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Education & Employment

Work Opportunity Tax Credit for Hiring Veterans

A federal tax credit to employers of up to $9,600 for hiring a qualified veteran, for hires who began work on or before December 31, 2025. The credit has expired for later hires unless Congress extends it.

Also called: WOTC, employer tax credit, Form 8850, Form 5884, VOW to Hire Heroes.

For: Veteran or service member.

Where it applies

Applies in states and territories.

The Work Opportunity Tax Credit, IRC section 51, is a credit to the employer, not the veteran. The IRS says up to $24,000 of wages may be taken into account for certain qualified veterans, against $6,000 for most other hires; at the 40% rate that is a credit of up to $9,600. Which veteran category reaches the $24,000 cap depends on service-connected disability and length of unemployment, set out in IRC 51(b)(3). The employer and applicant complete IRS Form 8850 on or before the job offer, and the employer submits it to the state workforce agency within 28 days of the start date. A qualified tax-exempt employer can take the credit against payroll taxes for veteran hires only. The IRS page, updated July 20, 2026, says the credit is available for wages paid to individuals who begin work on or before December 31, 2025. VetTOC found no extension on irs.gov. A veteran hired after that date does not earn the employer the credit unless Congress extends it retroactively.

Thresholds

Thresholds for Work Opportunity Tax Credit for Hiring Veterans
GateRule
Qualified veteran hired by December 31, 2025A veteran in a WOTC target group who began work on or before December 31, 2025.

Sources

Updated

Last updated .

What changed then:

  • First published.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.