By ExpediUSA, July 14, 2025

Building a Veteran Talent Pipeline

Hiring veterans isn’t just a patriotic gesture; it’s a smart business decision, especially for federal contractors. Regardless of the branch in which they served, veterans bring unmatched discipline, mission-readiness, and leadership to the workplace. And with thousands transitioning out of the military each month, there’s a steady pipeline of talent ready and waiting to deploy their skills!

As a federal contractor, you are uniquely positioned to tap into the rich pool of veteran talent. In this article, we will highlight how building a pool of veteran talent will help you:

Reduce your tax burden significantly
Strengthen your proposal position in federal bids by showing a veteran hiring commitment
Help your company stand out as a mission-driven, veteran-friendly employer.

Why Hire Veterans?

Let’s start with the facts:

More than 18 million veterans live in the United States (U.S. Census Bureau, 2023).
200,000 service members transition out of the military each year (U.S. Department of Labor, 2024).
As of May 2025, the veteran unemployment rate was just 2.9%, compared to 3.8% for non-veterans (U.S. Bureau of Labor Statistics, 2025)...which means this workforce is in demand!

Additionally, hiring veterans gives your organization access to:

Mission-focused leaders trained to operate under pressure
Team-oriented professionals with cross-functional experience
Candidates with active security clearances, saving you onboarding time and costs
Federal and state tax incentives that can reduce your hiring costs

Federal and State Tax Incentives for Hiring Veterans

Federal and state governments offer a variety of tax incentives to encourage employers to bring veterans into the workforce.

1. Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from targeted groups that face barriers to employment, including veterans. Eligible employers can receive up to $9,600 per qualified veteran, depending on factors such as:

Duration of unemployment (at least 4 weeks)
Service-connected disability status
Receipt of SNAP or other assistance

To claim the credit, employers must submit IRS Form 8850 within 28 days of the employee's start date. This credit can significantly offset hiring costs, especially for companies building a veteran workforce.

📌 ExpediUSA Hiring Tip: You may be able to maximize your savings by combining the WOTC with state-level credits.

2. State-Specific Veteran Hiring Incentives

In addition to federal tax credits, several states offer bonus incentives to encourage veteran employment. Here are a few standout programs:

Alabama – Heroes for Hire Tax Credit
- Offers a $1,000 income tax credit to employers who hire veterans who were recently unemployed and deployed.
- A business privilege tax credit of up to $2,000 may also apply if the veteran remains employed for 12 consecutive months.
Georgia – Military Retirement Tax Exemption
- Georgia has phased in tax exemptions on military retirement pay, making the state more attractive to veterans relocating for civilian careers.
- This policy supports a more robust local veteran workforce for employers to tap into.

Vermont – Veteran Pension Income Exemption
- Veterans in Vermont enjoy income tax exemptions on military pensions, making the state an attractive home base for retirees seeking civilian employment.
- Employers benefit from a growing population of skilled, experienced veteran workers.

West Virginia – Military Incentive Program
- Provides a state tax credit to private-sector employers who hire veterans.
- Particularly helpful for small businesses and contractors in rural regions aiming to attract mission-ready talent.

How to Build a Veteran Talent Pipeline (Step-by-Step)

Hiring veterans is a smart move, but it doesn’t happen by accident. Building a strong veteran talent pipeline takes intention, planning, and the right partnerships. The good news? You don’t need a military background to get it right. Here’s a clear, actionable roadmap to help you recruit and retain top-tier veteran talent with confidence.

Step 1: Identify “Mission-Ready” Roles

Start by reviewing your job openings and identifying positions that align with military experience. Veterans often excel in roles that require structure, leadership, and problem-solving under pressure.

Top fits include:

IT & Cybersecurity
Logistics & Supply Chain
Program & Project Management
Operations & Facilities Management
Security & Intelligence

📌 ExpediUSA Hiring Tip: Think beyond job titles and match skills, not just resumes.

Step 2: Secure Your Tax Credits Early

Before your new hire’s first month is up, file IRS Form 8850 to claim the WOTC for each eligible veteran.

📌 ExpediUSA Hiring Tip: Many states offer additional veteran hiring credits. Reach out to your state workforce agency to explore what’s available to you!

Step 3: Tap into Transition Assistance Programs

The best time to connect with veteran talent is before they officially transition to civilian life. These programs give you early access to qualified candidates:

Transition Assistance Program (TAP) – Prepares service members for the civilian workforce.
DoL VETS Employment Services – Connects employers with job-ready veterans nationwide.
SkillBridge – Offers interns and apprentices from active-duty service members nearing separation.

📌 ExpediUSA Hiring Tip: Partnering with these programs helps you access vetted candidates who are already career-focused.

Step 4: Partner with State Veteran Hiring Networks

Most states have veteran employment representatives dedicated to helping businesses recruit former service members. These state-based programs are goldmines for local veteran talent:

Virginia Values Veterans (V3)
Texas Veterans Commission
Michigan Veterans Affairs Agency (MVAA)

Step 5: Post Jobs Where Veterans Actually Look

Here’s the deal: Veterans don’t always search on mainstream job boards. They turn to platforms that highlight veteran-ready employers, and that’s where ExpediUSA makes your life easier.

With ExpediUSA, you can:

Post unlimited jobs for just $59/year
Reach job seekers, including transitioning service members
Build your reputation as a veteran-friendly federal contractor

Let’s Recap On Why You Should Hire Veterans!!!

They’re dependable, trained, and experienced
They often hold security clearances
You can get thousands in tax credits
You gain access to dedicated hiring pipelines
You fulfill contract priorities for diverse and veteran hiring

Now's The Time To Act!

Veterans bring more than experience...they bring purpose, resilience, and a commitment to excellence. As a federal contractor, aligning your hiring strategy with this caliber of talent is not only strengthening your workforce and your mission impact; it's a great way to say thank you to the men and women who have served our nation! With the right tools, resources, and platforms like ExpediUSA at your side, building a veteran talent pipeline is easier than ever! Now’s your moment to lead with intention and hire with heart.

References

Bureau of Labor Statistics. (2025, May). Employment Situation of Veterans – May 2025. U.S. Department of Labor. https://www.bls.gov/news.release/vet.nr0.htm

Internal Revenue Service. (n.d.). Work Opportunity Tax Credit. Retrieved from https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit

Michigan Veterans Affairs Agency. (n.d.). Veteran-Friendly Employer Program. https://www.michigan.gov/mvaa/employers

Orion Talent. (n.d.). State Tax Credits for Hiring Veterans. Retrieved from https://www.oriontalent.com/hire-military/state-tax-credits-for-hiring-veterans.aspx

Texas Veterans Commission. (n.d.). Veteran Employment Services. https://www.tvc.texas.gov/employment/

U.S. Bureau of Labor Statistics. (2025). Employment Situation of Veterans — May 2025. Retrieved from https://www.bls.gov/news.release/vet.nr0.htm

U.S. Census Bureau. (2023). Veteran Statistics. Retrieved from https://www.census.gov/newsroom/facts-for-features/2023/veterans-day.html

U.S. Department of Labor. (2024). Hiring Veterans: Employer Guide. Retrieved from https://www.dol.gov/sites/dolgov/files/VETS/files/Employer-Guide-to-Hiring-Veterans2025.pdf

Virginia Department of Veterans Services. (n.d.). Virginia Values Veterans (V3) Program. https://dvsv3.vdvs.virginia.gov/