There is a new Veterans Tax Credit which was included in the The VOW to Hire Heroes Act of 2011 (enacted 11/21/11) expanded the Work Opportunity Tax Credit (WOTC), for businesses that hire eligible unemployed veterans on or before 12/31/12. The credit maximum is $9,600 per veteran for for-profit businesses depending on the length of unemployment, hours worked, first-year wages paid, and service-related disabilities.

Form 8850 must normally be filed with the state workforce agency within 28 days after an eligible veteran begins work, but for those hired after 11/21/11 and before 5/22/12, employers have until 6/19/12 to file the form.