The VOW to Hire Heroes Act of 2011 provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations.
The Act allows employers, including qualified tax-exempt organizations, to claim the credit for qualified veterans who begin work on or after Nov. 22, 2011, and before January 1, 2013.
The credit is claimed as a credit against the employer's share of social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans.
IRS Notice 2012-13 contains additional guidance for tax-exempt employers claiming the credit.
Note: For purposes of the credit, a qualified tax-exempt organization is "an employer that is an organization described in section 501(c) and exempt from taxation under section 501(a)."
Source: Internal Revenue Service