“Heart Act” Helps Reservists Meet Their Daily Needs

The US Senate Finance Committee recently approved a series of tax credit extensions, including a 2-year extension that assists small businesses, military reservists, and National Guard members called to active duty. Originally enacted as part of the Heroes Earnings Assistance and Relief Tax Act of 2008 (The Heart Act), the provision provides a tax credit of 20% to small employers with under 50 employees. The 20% is calculated from the differential amount that an employer would pay while the employee is on active duty. For example, if a reservist gets paid $2,000 per month from their employer, but only $1000 per month while on active duty, an employer would get a tax credit on $1,000 (or $2000) that the employer would pay to maintain the $2,000 per month salary.

The credit incentives small businesses to continue paying their employee’s salary, therefore ensuring that reservists, the men and women in the National Guard, and their families, are able to meet their daily needs.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Tax Credits, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

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