Honor and Hire Veterans Act of 2025

HR 2801, the Honor and Hire Veterans Act of 2025, increases tax incentives for employers hiring veterans. It raises the Work Opportunity Tax Credit from 40% to 50% of wages paid in an employee's first year for qualified veterans (compared to 40% for others), while also raising the maximum wage amount eligible for the credit to $18,000 for veterans (from $12,000) and $21,000 for non-veterans (from $14,000). The bill applies to veterans hired after the law's enactment. This directly affects employers seeking to hire veterans by making it more financially advantageous to do so through a larger tax credit.