Hire Student Veterans Act Expands Tax Credit, Drops Minimum Hour Requirement for Employers

The new Hire Student Veterans Act aims to smooth the transition from military to civilian life by making it significantly easier and more attractive for businesses to hire veterans who are currently using their GI Bill or other educational benefits. This legislation amends the tax code to expand the Work Opportunity Tax Credit (WOTC) to include this specific group of student veterans and, crucially, removes a common bureaucratic hurdle for employers claiming the credit.

The Tax Break for Hiring Student Vets

Right now, employers can get a tax credit (the WOTC) for hiring people from certain groups facing employment barriers. This bill adds a new, specific category to that list: veterans who are attending school and using educational assistance under various programs from the Department of Veterans Affairs (VA) or the Department of Defense (DoD). This includes veterans using the Post-9/11 GI Bill (Chapter 33) or other programs like the Montgomery GI Bill (Chapter 30), among others (Section 2).

If you’re a business owner, this means that hiring a student veteran—someone who might only be looking for part-time or flexible work while they complete their degree—now qualifies you for the same federal tax credit available for hiring other targeted groups. The incentive is simple: hire a veteran using their education benefits, and get a tax break.

Cutting the 120-Hour Catch

Perhaps the most practical change for employers and student veterans alike is the modification to the minimum employment period. Under current WOTC rules, an employer typically has to employ a new hire for at least 120 hours before they can claim the credit. For a full-time employee, that’s about three weeks. But for a student veteran juggling classes, study time, and family life, finding a job that guarantees 120 hours right away can be tough.

The Act explicitly removes this 120-hour minimum employment requirement for the newly eligible category of student veterans (Section 2). This is a big deal. For a student veteran, it means they can take on part-time, flexible, or project-based work without the employer worrying about meeting that initial hour threshold to qualify for the tax incentive. For employers, it streamlines the process, making it less risky to hire a student who might only be available for 10-15 hours a week, which is often exactly what a student veteran needs.

Real-World Impact: More Flexible Jobs

Consider a small software firm looking to hire a part-time junior developer, or a construction company needing a flexible administrative assistant. If a qualified veteran who is using their GI Bill applies, the employer gets the tax credit right away, without having to guarantee the 120 hours. This directly addresses the reality that many student veterans need flexible income but cannot commit to a demanding schedule while completing rigorous degree programs.

This change applies to any individual who starts work after the date the Act is signed into law. While the financial impact will ultimately reduce tax revenue for the U.S. Treasury, the goal is to leverage that cost to increase employment opportunities and retention for a highly skilled, transitioning population. In short, this bill aims to make it a no-brainer for businesses to hire service members who are working hard to balance education and a new career.