Putting Our Heroes Back to Work
San Diego has a proud military heritage and is home to the largest military and defense complex in the United States. Thousands of active-duty Navy and Marine Corps personnel are stationed here, and 250,000 more veterans call our county home. This group of veterans is a significant portion of the San Diego labor pool, and as a hiring employer, you can claim a significant tax credit if you add U.S. military veterans to your payroll before January 1, 2013.
On November 21, 2011, President Obama signed into law two federal tax credits designed to bring unemployed veterans back to work. These new tax credits were included in the American Jobs Act proposed by the President in September 2011, and they were included as work opportunity tax credits (WOTC) in the Vow to Hire Heroes Act of 2011. The act also expands the definition of “qualified veteran,” increases the maximum amount of allowable WOTC, and extends the availability of the credit to tax-exempt employers.
The first of these two tax credits is the Returning Heroes Tax Credit, offering a credit based on the length of time a veteran has been unemployed. A tax credit of up to $2,400 (40 percent of the first $6,000 in wages) is available when a newly-hired veteran has been unemployed for at least four weeks; a credit of up to $5,600 (40 percent of the first $14,000 in wages) is available when a newly-hired veteran has been unemployed for at least six months. This tax credit replaced the expired Recovery Act credit which had provided up to $2,400 for employers hiring a certain, more restricted class of unemployed veterans.
The second of these two tax credits in the Act is the Wounded Warrior Tax Credit, which provides a new tax credit up to $9,600 (40 percent of the first $24,000 in wages) for those employers who hire service-disabled veterans who have been unemployed for longer than six months. This credit is in addition to the existing Work Opportunity Tax Credit providing up to $4,800 for all employers who hire service-disabled veterans.
Above and beyond the type and amounts of each credit, there are three things you should know about these federal tax credits:
- Employers may take the credits for any qualified veterans hired between November 22, 2011 and December 31, 2012, but they expire at the end of this year.
- There is no time limit associated to when the veteran left the service.
- Qualified tax exempt – 501 (c) – organizations may now claim a WOTC by hiring veterans.
At the state level, hiring credits are available through the California Enterprise Zone Program for hiring veterans – $37,440 or more in tax credits for each qualified employee hired earned over a five year period. The California Revenue & Taxation Code provides a state Hiring Credit for a business who employs a “qualified employee” within a designated Enterprise Zone.
While most people believe that an employee must live within an Enterprise Zone to be a “qualified employee,” this is not the case. You can claim the hiring credits even if your business is not located in an enterprise zone but your employees work in an enterprise zone.
An employee will qualify for the California Enterprise Zone hiring credit if, at the time of hire, the employee was:
- A Vietnam-era veteran who served between 8/05/1964 to 5/07/1975
- A recently separated veteran who has left the military within 48 months of their employment date
- A service-connected disabled veteran
There is no limit to the number of veterans you can hire and still claim these federal and state tax credits.
By Brendan Foote and Matt Brogdon
Matt Brogdon is the President of The Pathfinder Group. The Pathfinder Group is a San Diego-based national recruiting consulting firm and the leading advisor on military marketing and recruiting strategy. They partner with clients in all sectors and regions to identify their military outreach and recruiting needs, address their most critical challenges, and transform their businesses with veteran talent.
Brendan Foote is Senior Vice President of Tax Credit Services at Hughes Marino, a San Diego commercial real estate company specializing in California Enterprise Zone tax credit services. Contact Brendan direct at (619) 238-2111 or firstname.lastname@example.org to learn more.
Brendan Foote is senior vice president of Tax Credit Services for Hughes Marino, which focuses on securing tax refunds and savings for California businesses who are eligible for various economic development programs. With an expertise in such programs as the California Enterprise Zone Program, the Federal Empowerment Zone Program and the LAMBRA Program, Brendan and his team generate substantial tax savings for businesses located in these incentive zones. Brendan is an active member of the Downtown San Diego Partnership and a board member of the East Village Association.
Jason Hughes is president of Hughes Marino, as well as a featured columnist for the San Diego Business Journal and past columnist for the San Diego Daily Transcript. Jason has written well over 100 articles, is a real estate resource for the Wall Street Journal, and has been profiled in the San Diego Union Tribune, San Diego Business Journal, San Diego Daily Transcript, San Diego Metro, Smart Business San Diego, California Real Estate Journal, and Western Real Estate Business.
David Marino is executive vice president of Hughes Marino, as well as a monthly columnist for the San Diego Metro. Specializing in high-value, time-critical and complex transactions for technology, life science, and business service companies, David has been featured in the San Diego Union Tribune, San Diego Business Journal, Smart Business San Diego, and Western Real Estate Journal.
Nik Bandak is project engineer for Hughes Marino CM. Nik earned a degree in Financial Services from Saint Mary’s College of California where he graduated with honors. As a project engineer, Nik is knowledgeable in estimating, documentation control, construction scheduling and processes, contract administration, and financial analysis. Prior to joining Hughes Marino, Nik worked for Bechtel International on the Khalifa Port and Industrial Zone in Taweelah, United Arab Emirates, where he monitored and oversaw the daily construction activities and progress of 5,000 field workers in 53 buildings within the Industrial Zone borders.
Kyle Barnas is an Associate of Hughes Marino, the largest tenant representation company in San Diego. With a background in financial analysis and advisory, Kyle brings a methodical approach to every transaction and aggressively leverages firm resources to negotiate the most competitive deals in the suburban marketplace for his clients.
Travis Carter, a San Diego native, serves as vice president of Hughes Marino. A licensed real estate broker, Travis specializes in representing legal and accounting firms throughout the UTC, Del Mar Heights, Mission Valley and Downtown markets. Travis, a graduate of Point Loma Nazarene University, was honored as one of SD Metro's 40 under 40 recipients in 2011.
Kirt Gilliland, division president of Hughes Marino CM, has over 25 years of construction and project management experience in San Diego, having managed over 6 million square feet of projects valued in excess of $400 million. Among the most notable projects are a 23 story, $70 million affordable housing project at 10th and B Street, and the nationally-recognized, award-winning 45,000 square foot New Children’s Museum.
Scot Ginsburg has been solely focused on exclusively representing tenants and occupiers of commercial space throughout his career. With over 8,000,000 square feet of experience, Scot specializes in high-tech, life science, business service, research and development, and other growth-oriented companies. Scot is a guest columnist for California Real Estate Journal and the San Diego Daily Transcript.
Steven Gorup is project manager/LEED AP BD+C for Hughes Marino CM, which is essential for green-building technology implementation. In 2009, Steven obtained the Lean Six Sigma Green Belt Certificate, a strategy designed to improve quality while simultaneously eliminating cost and administrative excess. Prior to serving as a project engineer on University of San Diego’s LEED Silver-certified, award-winning Student Life Pavilion, Steven earned a degree in Construction Science and Management from Kansas State University.
Shay Hughes, chief operating officer, plays a key role in all aspects of the organization, including internal operations, marketing, business strategy, and end-to-end management. A San Diego native, her versatile skills range from designing Hughes Marino’s corporate headquarters, managing the day-to-day operations of the firm, and a strong understanding of the local marketplace and client needs.
Star Hughes is a director at Hughes Marino, the largest tenant representation company in San Diego. A San Diego native, Star specializes in downtown San Diego real estate. Star earned her Masters of Business Administration at University of San Diego, where she was the first and youngest full-time MBA student to complete the two-year program in one year, at the age of twenty-one. Star graduated from University of San Diego with her Bachelor of Business Administration at the age of nineteen after completing her undergraduate degree in two years with a 4.0 overall GPA and highest academic average in the graduating class.
Tucker Hughes is an Associate of Hughes Marino where he specializes in tenant representation throughout San Diego. A native San Diegan, Tucker is a member of one of the most experienced and respected commercial real estate teams in San Diego, contributing to his ability to provide the best service to his clients. Tucker graduated from the University of San Diego magna cum laude with his Bachelor of Business Administration and is currently pursuing his Master of Science in Real Estate also from the University of San Diego.
John Jarvis is senior vice president of Hughes Marino, a past contributor to Smart Business San Diego, and a leader in countless local charitable, professional and civic organizations. A member of Biocom, International Facility Management Association, and Corporate Finance Council, as well as a graduate of LEAD San Diego, John has earned the trust of a loyal clientele by consistently providing thoughtful and creative solutions on high value real estate projects.
Craig Knox is senior vice president of Hughes Marino, where he is an insightful advisor and aggressive advocate for tenants, especially those in the life sciences and technology sectors where his technical background is a key asset. A graduate of Stanford’s M.B.A. and Master of Engineering programs, Craig serves as a board member of the San Diego Venture Group, a chair of CommNexus’ Capital Markets Committee, and is in charge of real estate for the EvoNexus start-up incubator.
Ryan McCrary, general counsel and vice president of Hughes Marino, is a licensed California real estate broker, a member of the State bar of California, the Association of Corporate Counsel, and the San Diego County Bar Association. Ryan holds an engineering degree, a Master of Law (LL.M.) in real property development, a J.D. from Thomas Jefferson School of Law, and is also a LEED for New Construction Accredited Professional.
Ed Muna is senior vice president of Lease Audit Services, providing tenants with a resource to review and audit their landlord charges, ensuring fairness and proper billing by landlords for operating expenses, CAM charges, and property tax expenses. A twenty year veteran of San Diego’s commercial real estate industry, Ed brings a unique perspective having worked as an owner’s representative, asset manager, and property manager in the development, leasing, management and operations of several million square feet. He is currently involved in the Downtown San Diego Partnership and North County Chamber of Commerce.
Dean Petersen, senior vice president and LEED AP, has been responsible for the management of over 5 million square feet of construction valued in excess of $225 million throughout his 30 years of construction and project management experience. Having directed a wide range of projects, from ground up historical building remodels, multi-million dollar tenant improvement projects, award-winning residential work/live highrises, hospital facilities, airport terminals and universities, Dean brings a strong knowledge of project cost estimating and control, scheduling, quality control, contract administration, and construction means and methods to his clients.
Shane Poppen is a native Southern Californian who specializes in tenant representation in the suburban markets of San Diego County, partnering with companies to make the most of their real estate decisions. His experience includes site selection, strategic planning and needs assessment, financial analysis, negotiation and transaction structuring for lease renewals, relocations and renegotiations. Shane brings persistence, a strong work ethic, dependability, and a results-driven attitude to the Hughes Marino team.
Daniel Turek is an associate of Hughes Marino’s Tax Credit Services (TCS) division. Hughes Marino TCS is focused on securing tax refunds and savings for California businesses that are eligible for various economic development programs. With an expertise in such programs such as the California Enterprise Zone Program, the Federal Empowerment Zone Program, and the LAMBRA Program, Daniel and his team are able to generate substantial tax savings for businesses and business owners located in these incentive zones. Hughes Marino TCS and real estate services pair to create the most comprehensive location analysis in the market.