H.R.2801 - Honor and Hire Veterans Act of 2025 (119th Congress)
Summary
H.R.2801, the Honor and Hire Veterans Act of 2025, aims to incentivize the hiring of veterans by increasing the work opportunity credit for employers who hire qualified veterans. The bill amends the Internal Revenue Code of 1986 to provide a higher percentage of qualified first-year wages as a credit for veteran hires compared to other hires. It also increases the limitation on wages taken into account for calculating the credit for veterans.
Expected Effects
The bill's passage would likely lead to an increase in the employment rate among veterans as businesses seek to take advantage of the enhanced tax credit. This could reduce unemployment among veterans and provide them with greater economic stability. The increased wage limitations would further incentivize the hiring of veterans for higher-paying positions.
Potential Benefits
- Increased employment opportunities for veterans.
- Enhanced financial stability for veterans and their families.
- Potential reduction in veteran unemployment rates.
- Encourages businesses to consider veterans as valuable employees.
- Provides a financial incentive for businesses to hire veterans.
Potential Disadvantages
- Potential for businesses to exploit the tax credit without providing long-term employment.
- Increased complexity in tax code compliance for businesses.
- Possible budgetary impact due to increased tax credits claimed.
- May create an uneven playing field for other job seekers who are not veterans.
- Could lead to unintended consequences or loopholes in the implementation of the tax credit.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble) by aiming to improve the economic well-being of veterans. Congress has the power to tax and spend for the general welfare, as outlined in Article I, Section 8, Clause 1. The bill's provisions related to taxation fall under the purview of Congress's enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).