On Monday, November 21, 2011, President Obama signed the “3 Percent Withholding Repeal and Job Creation Act of 2011” (H.R. 674) into law. By signing this bill, the 3 percent withholding provision on government contractors has been permanently repealed. The bill also offers tax incentives for businesses that hire veterans; including a $5,600 credit for hiring long-term unemployed veterans, a $2,400 credit for hiring short-term unemployed veterans, and credits of up to $9,600 for hiring unemployed veterans with service-related disabilities.
The bill reached President Obama’s desk just one week after it had passed through the House of Representatives on a 422-0 vote.