Updated:  November 21, 2011

The first portion of President Obama’s jobs package is likely to become law this week after the House unanimously approved a bill the Senate amended (H.R. 674) that contains employer tax incentives for hiring unemployed veterans. The veterans provisions are set forth in the VOW to Hire Heroes Act, added as an amendment to a previously-approved tax bill the House cleared in October. Among other job training and assistance benefits offered to veterans, the measure would provide employers with a tax credit of up to $5,600 for hiring veterans who have been unemployed for at least six months, a $2,400 credit for hiring veterans who have been unemployed for more than four weeks, but less than six months, and a credit of up to $9,600 that would increase the existing Wounded Warriors Tax Credit for employers that hire veterans with service-connected disabilities who have been unemployed for at least six months. These hiring incentives were included in the broader American Jobs Act (S. 1660) that failed to advance in the Senate last month.

The initial bill that cleared the House on October 27, 2011 – called the 3% Withholding Repeal and Job Creation Act – was a much shorter measure to rescind the imposition of a 3% withholding that had not yet taken effect on payments made to government contractors. This repeal provision was also contained the American Jobs Act. After the House overwhelmingly approved this bill, the legislation was combined with a separate measure (H.R. 2576), which passed the same day, that seeks to modify how adjusted gross income is calculated for the purposes of qualifying for certain healthcare programs under the Affordable Care Act. Essentially, the appended bill (H.R. 2576) would factor in the full amount of Social Security benefits received for determining whether an individual is entitled to obtain, among other benefits, premium assistance credits for health insurance purchased through the future health insurance exchanges.

The merged bill was then presented to the Senate as a package, and ultimately became the vehicle for the veterans’ provisions. The Senate passed the amended bill in a 95-0 vote on November 10.  Because the bill had been modified, it needed to return to the House for a final vote.

The President is expected to sign this bill into law.

Update:  This bill was signed into law on November 21, 2011.