The “Vow to Hire Heroes Act of 2011” (H.R. 674) was signed into law effective November 21, 2011.  The legislation includes an enhanced tax benefit for employers that hire veterans and repeals a requirement that government entities withhold 3 percent on certain payments made to vendors.  The tax benefit may be of particular interest to employers in the hospitality industry.

The new law provides the following tax credits:

  • Employers hiring veterans who have been looking for employment for more than six months may be eligible for a Returning Heroes Tax Credit of up to $5,600 per employee.
  • Employers that hire veterans with service-connected disabilities who have been looking for employment for more than six months may be eligible for a Wounded Warriors Tax Credit of up to $9,600 per employee.
  • Employers that hire veterans who have been looking for employment for less than six months may be eligible for a credit of up to $2,400 per employee.  

The revised credits are available for individuals who begin work for the employer after the date of enactment through 2012.