Hiring veterans can bring many benefits to construction companies including tax incentives for hiring veterans. Finding skilled workers is a constant challenge in the construction industry. Tax incentives for hiring veterans can be a game-changer, offering a pool of qualified candidates while reducing your tax burden. This post explores the benefits of these programs, explains the qualification process, and provides helpful tips for construction workforce management teams.
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The Consolidated Appropriations Act, a recent legislative win, extends the Work Opportunity Tax Credit (WOTC) through December 31, 2025. This program allows businesses to claim tax deductions for hiring veterans and other qualifying individuals. It’s a win-win situation: your company benefits financially, and veterans gain valuable employment opportunities.
But the WOTC isn’t the only program available. The Department of Veterans Affairs (VA) offers on-the-job training programs that help offset veterans’ wages, reducing your initial investment in new hires. Additionally, the Special Employer Incentive (SEI) program reimburses employers for a portion of a veteran’s salary during their first year of employment.

Benefits of Hiring Vets Go Beyond Tax Incentives for Hiring Veterans
There are numerous advantages to building a construction workforce that includes veterans. Here are just a few:
- Skilled and Experienced: Veterans often possess valuable skills and experience gained through military service. They’re accustomed to working in demanding environments, following instructions, and adhering to safety protocols – all crucial qualities in construction.
- Strong Work Ethic: Veterans are known for their dedication, work ethic, and commitment to excellence. They’re reliable, show up on time, and are eager to contribute to the team’s success.
- Leadership Potential: Many veterans honed their leadership skills during their military service. They can be valuable assets in mentoring and motivating other team members.
- Teamwork and Communication: Veterans excel at collaboration and communication. They understand the importance of teamwork to achieve common goals, a critical aspect of successful construction projects.
Work Opportunity Tax Credit (WOTC)
The WOTC program incentivizes businesses to hire veterans and other targeted groups facing employment challenges. Here’s a breakdown of the program:
- Eligibility:
- Veterans who have been unemployed for at least four weeks are eligible for the credit.
- Veterans with service-connected disabilities who’ve been unemployed for six months or more qualify for a higher credit amount.
- There are additional eligibility requirements for veterans, so consult the IRS website for details.
- Tax Credit Amounts:
- Employers can claim a tax credit of 25% of wages paid up to $6,000 for veterans unemployed for at least four weeks (maximum credit of $1,500).
- For veterans unemployed for over six months, the credit increases to 40% of wages up to $6,000 (maximum credit of $2,400).
- Veterans with service-connected disabilities who’ve been unemployed for six months or more qualify for a credit of 40% of wages up to $24,000 (maximum credit of $9,600).
- Claiming the Credit:
- To claim the WOTC, employers must complete IRS forms and obtain documentation verifying the veteran’s eligibility.
- It’s crucial to follow the application process carefully to ensure you qualify for the credit.
- Consider consulting a tax professional for guidance on navigating the WOTC program.

Additional Veteran Hiring Incentives
- VA On-the-Job Training: The VA offers programs that subsidize veterans’ wages during on-the-job training. This can significantly reduce your initial investment in training new hires.
- Special Employer Incentive (SEI) Program: The SEI program reimburses employers for a portion of a veteran’s salary during their first year of employment. This program can help offset the costs associated with hiring and training new employees.
Helpful Tips for Construction Workforce Management Teams
Here are some tips to help construction workforce management teams leverage tax incentives for hiring veterans:
- Partner with Veteran Service Organizations: Build relationships with local veteran service organizations (VSOs). They can connect you with qualified veteran candidates and assist with the hiring process.
- Develop a Veteran Hiring Strategy: Create a clear strategy that outlines your company’s commitment to hiring veterans. This demonstrates your support for veterans and helps attract qualified candidates.
- Highlight Veteran-Friendly Benefits: Promote your company’s veteran-friendly benefits, such as flexible work schedules or military leave policies. This can make your company stand out to potential veteran hires.
- Streamline the Onboarding Process: Ensure your onboarding process is smooth and efficient for veterans transitioning into civilian careers.
- Provide Mentorship Opportunities: Pair new veteran hires with experienced mentors to help them

Building a Strong Veteran Workforce
By implementing these strategies, construction workforce management teams can build a strong and successful workforce that includes veterans plus have tax incentive for hiring veterans. Here are some additional considerations:
- Understanding Veteran Skills: Take time to understand how a veteran’s military experience translates to relevant skills for construction jobs. Look beyond specific job titles and focus on transferable skills like leadership, problem-solving, and teamwork.
- Military Training Recognition: Many military occupations involve training programs that directly translate to construction skills. Explore programs offered by the various branches of the military and how they align with your company’s needs.
- Diversity and Inclusion: Hiring veterans adds valuable diversity and experience to your workforce. Create a work environment that is inclusive and respectful of all employees, including veterans.
- Celebrate Veteran Achievements: Recognize and celebrate the achievements of your veteran employees. This fosters a sense of pride and belonging within your team.
- Continuous Improvement: Regularly assess your veteran hiring program and make adjustments as needed. Seek feedback from veterans on your company culture and identify areas for improvement.

Tax Incentives for Hiring Veterans Offer Opportunity
Tax incentives for hiring veterans offer a compelling opportunity to strengthen your construction workforce. Veterans bring a wealth of skills, experience, and dedication to the table. By utilizing these programs and implementing effective recruitment strategies, construction companies can build a more skilled and successful team while giving back to those who served our country.
Taking Action:
Ready to start hiring veterans? Here are some resources to get you started:
- U.S. Department of Veterans Affairs: https://www.va.gov/jobs/
- National Association of State Workforce Agencies (NASWA): https://www.naswa.org/
- Helplink.org: https://vetlinks.org/donate/
Remember, hiring veterans is a win-win situation for your company and for those who served. By leveraging tax incentives and building strong partnerships with veteran service organizations, you can create a successful and rewarding experience for both your company and your veteran employees.
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The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.