# Plain Language Summary: VOW to Hire Heroes Extension Act of 2021

This bill makes it easier and more rewarding for companies to hire military veterans by extending and improving a tax credit program. When employers hire veterans, they can get a tax credit—essentially a discount on their taxes—as a reward for bringing veterans into the workforce. The bill extends this credit and removes some restrictions that previously limited how much credit companies could claim when hiring veterans. It also simplifies the paperwork veterans need to provide to prove they qualify for the program, making the hiring process smoother for both employers and job-seeking veterans.

The bill also expands who can use this tax credit. Previously, only certain nonprofit organizations and tax-exempt groups could take advantage of the credit. Now, for-profit companies that haven't made a profit in the past three years can also claim the credit. This is particularly helpful for struggling small businesses that want to hire veterans but can't normally use tax credits because they don't have enough tax liability. The government will compensate Social Security trust funds for any lost tax revenue from these credits, so the program won't drain Social Security resources.

To make the program work better, the bill requires the IRS to report back to Congress within two years about how effective the credit is at actually getting veterans hired. This helps lawmakers see whether the program is achieving its goal of getting more veterans into jobs. The bill also ensures that U.S. territories like Puerto Rico and Guam receive fair treatment under the new rules, so they're not disadvantaged by these changes to the federal tax code.

VOW to Hire Heroes Extension Act of 2021

Brownley, Julia

VOW to Hire Heroes Extension Act of 2021 This bill (1) makes permanent the work opportunity tax credit with respect to qualified veterans, (2) revises tax credit eligibility requirements for documenting the status of veterans and their receipt of unemployment compensation, and (3) extends the payroll tax offset for such credit to certain for-profit employers. The Internal Revenue Service must make annual reports to Congress on the effectiveness and cost-effectiveness of this bill in increasing the employment of veterans. The bill directs the Department of the Treasury to pay to each U.S. possession (i.e., American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands) amounts equal to the losses to such possessions due to this bill.