A new tax credit for businesses that hire unemployed veterans is now in effect. The credit amount varies with how long the veterans have been unemployed. It is 40% of the first $14,000 of wages paid to a veteran ($24,000 in wages if the vet is disabled) who have been jobless for six months or more in the year before they were hired. The credit is 40% of the first $6,000 of wages for vets who have been out of work at least four weeks but less than six months.

Congress recently passed legislation repealing a provision that would have required federal, state and local governments to withhold 3% of any payments over $10,000 from government contractors and certain other vendors. The provision was intended to combat tax avoidance, but critics argued that it would restrict the cash flow of businesses and was too costly to implement.