H.R. 6404: Hire Student Veterans Act

The Hire Student Veterans Act seeks to amend the Internal Revenue Code to expand tax benefits for employers hiring veterans who are currently receiving educational assistance. Here’s a breakdown of the key components of the bill:

Work Opportunity Tax Credit Enhancement

The bill aims to modify an existing tax credit known as the work opportunity tax credit. This credit provides financial incentives to employers who hire individuals from certain underrepresented groups, including disabled individuals and veterans. The proposed changes would specifically include:

• Employers who hire veterans attending educational institutions with funding from specific chapters of titles 38 and 10 of the United States Code related to veterans’ educational assistance.

Inclusion of Additional Veteran Groups

The bill adds a new category of eligible veterans under section 51(d)(3)(A) of the Internal Revenue Code. Qualified veterans would be those:

• Who are attending educational programs funded under:
• Chapter 30, 31, 32, 33, or 34 of title 38 (which covers various types of educational assistance for veterans).
• Chapter 1606 or 1607 of title 10 (which pertains to educational benefits for reservists).

Changes to Minimum Employment Period

The bill also proposes a modification regarding the minimum employment period to qualify for the tax credit. It specifies that this new category of veterans may have different conditions regarding the time they need to remain employed to qualify the employer for the tax credit.

Effective Date

The proposed changes would take effect for individuals employed after the legislation is enacted. This means that any new hires fitting the criteria after the enactment date would qualify the employer for the enhanced tax credit.

Summary of Purpose

The overarching aim of this legislation is to encourage employers to hire veterans who are furthering their education, thereby assisting these veterans in transitioning to civilian employment while benefitting employers financially through tax credits.

Relevant Companies

None found