Employers who hire veterans can claim federal tax credits up to $9,600 per hire, get training costs subsidized, and tap free recruiting pipelines built for military talent. If you are a veteran job seeker, knowing these programs is leverage — many hiring managers simply do not know the incentives exist.
Why employers seek veterans
Beyond incentives, veterans bring what every employer says they cannot find: proven leadership and teamwork, technical training, adaptability under pressure, reliability, and — for defense and government work — active security clearances.
Work Opportunity Tax Credit (WOTC)
WOTC is the biggest direct incentive: a federal tax credit for hiring veterans in qualifying categories.
| Veteran hired | Maximum credit |
|---|---|
| Unemployed at least 4 weeks in the prior year | $2,400 |
| Service-connected disability, hired within a year of discharge | $4,800 |
| Unemployed at least 6 months in the prior year | $9,600 (varies by category) |
| Service-connected disability plus 6+ months unemployed | $9,600 |
To claim it, the employer screens the candidate at hire, files IRS Form 8850 with the state workforce agency within 28 days of the start date, and claims the credit at tax time. The employee must work at least 120 hours for a partial credit or 400 hours for the full amount. Current rules are on dol.gov.
Paid training programs
SkillBridge
Employers host transitioning service members for on-the-job training during their final months of service — while the military keeps paying their salary. The employer trains a candidate at no wage cost; the service member walks into civilian work with experience and a network.
GI Bill on-the-job training (OJT)
Veterans in an approved employer OJT program draw a monthly GI Bill allowance while they train, letting employers start wages at journey-level percentages and raise them as skills grow. The employer provides a structured training plan and a mentor.
VR&E employer incentives
When a veteran with a service-connected disability trains through VR&E, the VA may pay part of the veteran’s salary during training, plus materials and required certifications.
Registered apprenticeships
Apprenticeships pair paid on-the-job training with classroom instruction. Veterans can use GI Bill benefits during an apprenticeship, and employers build skilled workers to their own standards — often with state and federal support for program costs.
Federal contractors: VEVRAA obligations
Companies holding federal contracts are required to recruit and advance protected veterans under VEVRAA: listing openings with state employment services, setting annual veteran hiring benchmarks, documenting outreach, and filing VETS-4212 reports. The Office of Federal Contract Compliance Programs enforces it, and non-compliance can cost contracts. For covered companies, veteran hiring is not optional — which makes veteran candidates especially valuable to them.
Recruiting pipelines
- Hiring Our Heroes — U.S. Chamber of Commerce hiring fairs, corporate fellowships, and an employer roadmap for building a veteran hiring program
- Military Spouse Employment Partnership (MSEP) — connects employers with military spouses, a talent pool that thrives with remote-friendly roles
- State employment services — veterans employment representatives match employers with local veteran candidates free of charge
For veterans reading this
Use these programs as talking points. Mentioning that your hire may qualify an employer for a WOTC credit, or that OJT and VR&E can subsidize your training, turns “take a chance on me” into a business case. Pair it with our job search guide and the free help in our career services guide.
Common questions
How much is the Work Opportunity Tax Credit worth?
Up to $9,600 per qualified veteran hire, depending on category. Veterans unemployed at least four weeks qualify the employer for up to $2,400; veterans with a service-connected disability, up to $4,800; and veterans with both a service-connected disability and six-plus months of unemployment, up to $9,600.
What does SkillBridge cost an employer?
Nothing in wages — the military keeps paying the service member during the program. The employer provides the training and mentorship for up to the final months of service, and gains a trained candidate who already knows the team before any hiring decision.
What is VEVRAA and does it apply to my company?
The Vietnam Era Veterans’ Readjustment Assistance Act requires federal contractors and subcontractors to take affirmative action to employ protected veterans — including listing jobs with state employment services, setting annual veteran hiring benchmarks, and filing VETS-4212 reports. If you hold no federal contracts, it does not apply, but the hiring incentives still do.
Where do I find veteran candidates?
Hiring Our Heroes fairs and fellowships, RecruitMilitary events, state employment services and American Job Centers, SkillBridge partnerships, and veteran job boards. State veterans employment representatives will connect you with candidates at no charge.