MainStreet.com: Hire a Veteran, Save on Taxes

Editors note: To read more features about the ways life and money intersect, be sure to visit MainStreet.com.

The U.S. troop count in Iraq is currently 144,000, force levels in Afghanistan are hovering around 32,000, and there is no established timetable to withdrawal the troops. But there is a way to offer support upon their return, and it's a win-win for both small businesses and soldiers.

"There are federal tax credits available, and they can have a significant impact for businesses filing taxes," says Nancy Steffens, a communications director with the Connecticut Department of Labor.

Surprisingly though, few businesses take advantage of these money-saving hiring incentives.

According to Blake Christian, CPA and co-founder of the National Tax Credit Group, nationwide credits are claimed by only 10% of eligible businesses, despite the fact the credits are worth roughly three times more than a tax deduction.

With the federal tax rate for corporations at 35%, a $3,000 deduction translates to only a $1,050 benefit after taxes. But a $3,000 credit reaps a $3,000 reward, making a credit considerably more valuable, especially for businesses hiring multiple veterans.

In 2007, the Work Opportunity Tax Credit Program (WOTC) expanded its eligibility requirements and increased the available tax credit to businesses from $2,400 to $4,800.

Veterans who receive food stamps for at least three consecutive months in the 15 months prior to employment are eligible, as is any vet who has sought either physical or psychological rehabilitation because of a service-related injury.

Additionally, veterans living in one of 408 designated rural renewal counties in 32 states are WOTC eligible.