GOV. SIGNS BILL THAT OFFERS TAX CREDIT TO FIRMS HIRING VETERANS

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Delaware Gov. Jack Markell signed legislation Tuesday  creating a new effort to help put recent combat veterans to work when they return from service. The “Veterans’ Opportunity Tax Credit” will give companies a $1,500 annual tax credit for each recent veteran they hire.

In the past, veterans have an unemployment rate that’s below the national average, but that has not held true for veterans who have served since 2001.

The January 2012 national unemployment rate among recently returning veterans was 9.1 percent, well above the national average of 8.3 percent.

Rep. Earl Jaques, the lead sponsor of the bill, chair of the House Veterans Affairs Committee and himself a 36-year veteran of the Delaware National Guard, said that encouraging businesses to help returning veterans will have a positive effect on both the companies and the veterans.

The Veterans Opportunity Tax credit will allow any business can take a tax credit of 10 percent of the gross wages paid to qualified veterans, with a cap of $1,500. The cap will continue for three tax years, so the total benefit to the employer could be $4,500 per veteran hired.

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The credit can be taken by any private sector business, and can be credited against personal income taxes, corporate income taxes, bank franchise taxes and insurance premium taxes. Because the tax credit is refundable, businesses without tax liabilities can use the tax credits immediately.

Businesses will not be able to double-count a qualifying veteran as a new hire under the New Economy Jobs Program tax credit, or tax credits for qualified investment in business facilities and targeted areas.

JPMorgan Chase, the site of Tuesday’s bill signing, is one company that has taken the lead in putting Delawareans back to work. Earlier this year, the company announced plans to expand its operations in Delaware and add up to 1,200 new jobs in the state. In addition, they are committed to helping our returning veterans find employment.

Early in 2011, JPMorgan Chase established its Office of Military and Veterans Affairs charged with developing a firm-wide, comprehensive strategy focused on jobs, military and veteran homeownership, and education. The company has committed resources across the company to address the issues facing service members, veterans and their families.

 

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