H.R. 674 is a large bill that amends the Internal Revenue Code. It includes new tax credits for businesses that hire unemployed veterans. The law provides nonprofit employers a tax credit of as much as $6,240 for hiring a disabled veteran or a $3,640 credit for any veteran who had been out of work for more than six months. The hiring incentive is 65 percent of the value of the for-profit tax credit. Nonprofits can apply the credit against employer payroll taxes.
Returning Heroes Tax Credit
The Returning Heroes Tax Credit is a new hiring tax credit that will provide an incentive for businesses to hire unemployed veterans.
- Short-term unemployed: A new credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least 4 weeks.
- Long-term unemployed: A new credit of 40 percent of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than 6 months.
Wounded Warrior Tax Credit
The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities. It will also:
- Maintain the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800).
- Create a new credit of 40 percent of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been unemployed longer than 6 months.
- White House Press Release 
- House Committee on Veteran's Affairs Press Release 
- VOW to Hire Heroes Act Details