Labor Legislation Will Increase Employment of Military Spouses

The Military Spouses Employment Act of 2010, S.3232 and H.R.4764, seeks to provide employers a new tax incentive to hire qualified military spouses.

Sen. Richard Burr, R-N.C, introduced the bill in the Senate, while Congressman John Carter, R-TX, sponsored the House version. The bill is co-sponsored by a bipartisan coalition of 12 Republicans and 5 Democrats.

According to Rep. Carter, the proposed legislation would expand the Workforce Opportunity Tax Credit (“WOTC”) to include military spouses, providing employers a tax incentive to hire qualified military spouses. Qualified spouses include all active duty military spouses, as well as spouses of National Guard and Reserve members who are activated for 90 days or more.

The change would allow employers to claim an income tax credit of 40 percent for the first $6,000 in wages for qualified spouses who remain on the payroll at least 400 hours. For spouses who remain employed from 120 hours to 399 hours, employers are eligible for a tax credit of 25 percent.

“This legislation will help alleviate some of the long-standing obstacles to quality jobs for military spouses,” said Carter, who represents the Fort Hood, Texas area. “Far too often employers overlook military spouses in the hiring process due to concerns over family transfers. The hiring incentives in this bill should help level the playing field to allow our military spouses an equal shot at getting a civilian job.”

“Military spouses already sacrifice so much for our country, and we can’t let the hard facts of military life like relocations get in the way of their career and financial support for their families,” Burr stated. “By encouraging employers to hire military spouses, this tax incentive results in big returns with just a small investment.”

Senator Burr introduced this bill in light of recent studies that show that military spouses earn less income and have higher unemployment rates than their civilian counterparts due to frequent relocations. The WOTC would allow employers to claim an income tax credit of 40% of the first $6,000 in wages paid during the worker’s first year of employment.

The bill is now with the Senate Committee for Finance for study and deliberation after being read on the Senate floor twice.

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