7 Benefits and Incentives for Hiring Veterans

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Businesses that hire veterans may be eligible for government-provided incentives, such as tax credits or workforce development programs.

These programs are designed to support the transition of veterans into civilian employment and provide tangible benefits to employers who participate.

In Indeed’s guide, you’ll get an overview of these programs and learn about the resources available to support veterans entering the civilian workforce.

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3 key benefits of hiring veterans

The IRS and the U.S. Department of Veterans Affairs (VA) both provide resources and, in some cases, may provide financial assistance to businesses that hire veterans. These programs are designed to support veterans’ transition to civilian employment and provide tangible benefits for organizations that participate.

1. Potential tax breaks

The Work Opportunity Tax Credit (WOTC) is a deduction that business owners might be able to get from hiring certain groups, including veterans. The WOTC may be available until December 31, 2025. Depending on how many veterans you employ, the WOTC tax credit could add up to significant savings on your taxes.

2. Salary subsidies during training

The VA has on-the-job training funds through the Veteran Readiness and Employment program. It subsidizes a veteran’s wages so that you can pay them an apprentice-level wage during their training, allowing you to get a talented applicant while offsetting onboarding costs. As the veteran becomes more experienced at your business and completes training, the VA subsidy slowly decreases.

3. Salary reimbursement

The Special Employer Incentive (SEI) program is another VA benefit that reimburses employers for hiring veterans who meet certain requirements. This program can reimburse up to half of the employee’s salary for a maximum of six months, plus the cost of instruction, any loss of productivity that your business incurs during training and any supplies and equipment.

The SEI is designed for veterans who struggle to get jobs after serving and eligibility is determined on a case-by-case basis.

Finding veterans to hire

If you’re interested in hiring a veteran for your team, you may be able to find qualified applicants by contacting a Regional Veterans’ Employment Coordinator. Go to the U.S. Department of Labor’s website and select your state from the drop-down menu to find a representative in your area. They will refer you to available applicants and guide you through the process of signing up for VA support.

You can also attract veteran applicants by advertising on your website that your company is veteran-friendly or by using Indeed to find veterans.