Philadelphia, PA – Earlier today, Congressman Allyson Schwartz (D-PA) joined House Administration Committee Chairman Bob Brady (D-PA), Congressman Chris Carney (D-PA), WPHT 1210 talk show host Michael Smerconish, Ret. Master Gunnery Sergeant Patricia Orsini – Director of the Wounded Warriors Program, local veterans and others to talk about the importance of a Congressional initiative called the Wounded Warriors Program. The Wounded Warriors Program will help identify employment opportunities within the House of Representatives, in Congressional Member offices and other support areas for disabled veterans. The announcement today served as the launch of a component of the Wounded Warrior program that will be based in the Delaware Valley.

During the press conference, Schwartz also announced details on her initiative known as the Veterans Employment and Respect Act (VERA). As one of her first legislative acts as a Member of Congress, in 2005, Schwartz introduced VERA, legislation to provide tax credits to businesses that hire soldiers returning from service in Iraq or Afghanistan.

In May 2007, President Bush signed this provision into law as part of the Small Business and Work Opportunity Tax Act of 2007

“Our soldiers make tremendous sacrifices to serve. They leave behind family and loved ones in order to protect and defend America – a truly selfless act. Despite their honorable service, many of our soldiers are facing economic hardships when they return home and seek to enter the civilian workforce. Our soldiers, who honorably served our nation, should be able to return home to economic opportunity – and that is why VERA is such critical legislation. VERA will open doors to civilian employment for our newest veterans,” said Congresswoman Allyson Schwartz.
 
BACKGROUND

The Small Business and Work Opportunity Tax Act of 2007, which accompanied the first minimum wage increase in over a decade, extended the work opportunity tax credit (WOTC) to cover employees who begin work before September 1, 2011.

This new law also included the Veterans Employment and Respect Act (VERA), a provision authored by Rep. Allyson Y. Schwartz that will help our most recent veterans gain employment.

Under VERA, the group of veterans qualifying for the WOTC is expanded to include those who have been out of the armed forces for less than a year, or who have been unemployed for more than six months, and who are determined to be entitled to compensation for a service-connected disability. 

VALUE OF THE CREDIT

Under the WOTC, the credit available to the employer of these qualified veterans equals 40 percent of qualified first-year wages.  If the veteran worked 400 hours or less for the employer, the value of the credit is reduced to 25 percent.

Generally, the WOTC is only applicable to the first $6,000 earned.  But for veterans qualifying under VERA, the maximum wage to which the subsidy rates can be applied is the first $12,000 earned.  This means the maximum credit for employers of these veterans is $4,800. 

HOW TO CLAIM THE CREDIT

The VERA credit did not create any new paperwork requirements.  Rather, it is a part of the WOTC, a tax credit many employers are already familiar with. 

To claim the WOTC, employers must request and receive a certification for each employee from the state employment security agency (SESA). The certification proves that the employee is a member of a group targeted by the WOTC.

The employer must either receive this certification by the day the individual begins work or they must complete IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, on or before the day they offer the individual a job.

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