|Posted:||December 18, 2012 06:08 PM|
|From:||Senator Anthony H. Williams|
|To:||All Senate members|
|Subject:||Tax Credit for Hiring Veterans|
|In the near future, I will reintroduce SB 1293. This legislation will establish a tax credit that Pennsylvania businesses can claim for hiring unemployed veterans. This bill will help to bolster the Commonwealth's economy by creating new jobs as well as aiding service men and women who have been hit especially hard by the economic downturn. This legislation will be introduced as a part of the PA Works Now package of economic investment initiatives.
This bill will amend the Tax Reform Code of 1971 by creating a tax credit for businesses that hire a person who has served in the armed forces, including the reserve components and National Guard, who has been discharged from active service under honorable conditions. A business may claim a $1,200 tax credit for hiring a short-term unemployed veteran or a $2,400 tax credit for hiring a long-term unemployed veteran. "Short-term" unemployment is defined as less than six months, while "long term" unemployment is defined as longer than six months. Additionally, a business may claim another $2,400 tax credit for hiring a disabled veteran. In order to prevent a business from dismissing or furloughing current employees to claim the tax credit, the unemployed veteran must be a new hire.
Finding employment has proven particularly difficult for the nation's youngest post-9/11-generation veterans. As of November 2012, the Bureau of Labor & Statistics reported that post-9/11 veterans from ages 20 to 24, experience an unemployment rate of 28%, compared to 11.6% unemployment for non-veteran citizens ages 20-24. Older post-9/11 veterans have experienced higher unemployment as well, as post-9/11 veterans from age groups 30-34, 35-39 and 40-44 have all experienced increases in their unemployment rates since October 2012. Overall, of the 211,000 unemployed post-9/11 veterans ages 20 and over, 45% have been unemployed for 15 weeks or more. My legislation will provide our veterans in Pennsylvania with some well-deserved support by giving employers extra-incentive to consider these individuals for employment opportunities.
If you have any questions, please contact my office at 717-787-5970. Thank you for your consideration.
Introduced as SB231