Obama signs bipartisan bill to hire veterans

By Vicki Needham - 11/21/11 01:05 PM ET

Noting a small patch of bipartisan consensus, President Obama signed off Monday on a bill that provides tax credits to businesses that hire veterans.

Obama signed a bill into law that repeals a requirement that federal, state and local governments begin withholding 3 percent of payments to contractors in 2013. The measure includes a package of tax breaks for companies that hire unemployed veterans, a small part of Obama's $447 billion jobs bill.

Veterans' jobs issues have remained largely bipartisan on both sides of the Capitol — no one voted against the bill in either chamber — and Obama extended an equally rare pat on the back for lawmakers, including Republicans, who have largely stymied the movement of his proposed jobs initiatives.

"I'm pleased that both parties came together to make it happen," he said during the signing ceremony on Monday.

Although Obama didn't address the apparent failure of the supercommittee to reach a deal on at least $1.2 trillion in spending cuts, he did urge lawmakers to continue working to help the unemployed and provide a boost to the broader economy.

"My message to every member of Congress is keep going. Keep working," Obama said, adding that Congress should keep finding more ways to "put more Americans back to work."

Obama suggested Congress extend the payroll tax holiday for workers as a way to keep a little extra cash in the pockets of consumers, and said he would discuss other issues to improve the economy during a trip to New Hampshire on Tuesday.

"Let's keep at it, no politics, no delays, no excuses," Obama said.

So far, companies have hired 18,000 veterans and have pledged to hire hire 135,000 veterans who face more unique challenges in translating their military skills to civilian life, Obama said.

The veterans bill was a collaboration of proposals by Sen. Patty Murray (D-Wash.), chairwoman of the Senate Veterans Affairs Committee, Rep. Jeff Miller (R-Fla.), chairman of the House Veterans Affairs Committee, and the White House.

"I am thrilled Congress was able to come together in a bipartisan manner and do right by these brave men and women," Murray said. "This is an example of how Congress can and should work — elected officials putting what’s best for the American people before politics or partisanship."

That newly signed 3 percent law was designed to pressure contractors to pay their taxes in full, but lawmakers now say the law would deny cash to companies that need it to hire more workers. Eliminating the requirement would reduce federal revenues by an estimated $11.2 billion over 10 years.

The provision is paid for by a change in the Medicaid eligibility formula.

The measure provides businesses with a “Returning Heroes” tax credit for 2012-2013, a $2,400 credit for hiring an unemployed veteran who has been unemployed for at least a month. The tax credit would increase to $4,800 for hiring a veteran who has been unemployed for six months or longer.

The bill also includes a two-year extension of the “Wounded Warriors” tax credit, which gives companies that hire veterans with service-related disabilities a $4,800 credit. If the veteran has been unemployed for six months or more, the tax credit increases to $9,600.

Under the 2009 economic stimulus, employers who hired certain unemployed veterans were eligible for a tax credit of up to $2,400. This credit expired at the end of 2010.

The tax credits for hiring veterans will cost the government about $95 million and would be paid for mostly by extending a fee that the Veterans Affairs Department charges on home loans.

For the past several months, Obama has said there was a “sense of urgency” to boost jobs programs for veterans because more than 1 million service members will separate from the armed forces between 2011 and 2016.

The new law also beefs up job training and counseling programs for vetearns, including improving transition assistance planning to separating troops and requiring the Labor Department to provide a clearer path between military and civilian skills.

Earlier this year, JPMorgan Chase and about 15 other U.S. companies — including Cisco Systems Inc., Delta Air Lines Inc. and AT&T Inc. — said they plan to hire 100,000 transitioning service members and military veterans by 2020.