Time is running out for businesses that are planning to claim an expanded tax credit for hiring veterans, according to the IRS. The expanded credit is for businesses that hire qualified veterans who begin work on or after Nov. 22, 2011 but before Jan. 1, 2013. The maximum tax credit is $9,600.00 per worker for for-pofit businesses and $6,240.00 per worker for tax-exempt organizations. The credit amount is based on several factors: the length of the veteran’s unemployment, the number of hours worked, and the wages the veterans receives the first year of employment.
In order to apply, a company needs to file form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with a state workforce agency within 28 days of the veteran’s employment. Some states accept form 8850 electronically.