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Friday, November 11, 2011

Pierluisi Secures Puerto Rico’s Inclusion in Legislation to Provide Tax Credits to Companies that Hire Veterans

Senate Passes Bill; House Approval Expected Next Week

San Juan, Puerto Rico- Last night, the U.S. Senate approved the VOW to Hire Heroes Act, which provides federal income tax credits to companies that hire unemployed veterans by the end of 2012. Thanks to the efforts of Resident Commissioner Pedro Pierluisi, companies and veterans in Puerto Rico and the other U.S. territories will fully benefit from this legislation. Specifically, the bill contains a “cover-over” provision, proposed by Pierluisi, that authorizes the Puerto Rico government to offer the credit to Island companies through its local tax system, and to obtain reimbursement from the U.S. Treasury Department for the lost revenue.

Puerto Rico businesses will be eligible to receive a tax credit of up to $5,600 for hiring veterans who have been looking for a job for more than six months, as well as a $2,400 credit for hiring veterans who are unemployed for more than 4 weeks, but less than 6 months. Island companies will also be eligible to receive a credit of up to $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months.

According to the U.S. Census Bureau, there are over 12,000 unemployed veterans in Puerto Rico.

The VOW to Hire Heroes Act is based on a proposal first made by President Obama on August 5th. When President Obama unveiled his proposal, the Resident Commissioner wrote the President a letter the same day, urging the Administration to extend its benefits to veterans in Puerto Rico and the other U.S. territories through use of a cover-over mechanism. On September 8th, President Obama addressed a joint session of Congress to announce that he would soon be transmitting to Congress the American Jobs Act, which would include his proposal to provide tax credits to companies that hire unemployed veterans. Following that speech, Pierluisi spearheaded a letter from the five territory delegates to President Obama, reiterating his request for equitable treatment for the territories.

As a result of these actions, reinforced by efforts by Governor Luis Fortuño, the American Jobs Act that the Obama Administration sent to Congress included the cover-mechanism that was necessary for the tax credit provision to benefit Puerto Rico and the other territories.

“Governor Fortuño and I have worked hard, as a team, to ensure Puerto Rico companies and veterans could benefit from the worthy initiative. I strongly believe that, as a nation, we have an obligation to help our veterans find rewarding employment in the civilian workforce. They have fought for us on the battlefield, and it our duty and our privilege to fight for them when they come home,” said Pierluisi.

The Resident Commissioner made the announcement this morning, before participating in official events to commemorate Veterans Day.

“I have always believed that military service is extraordinary. All veterans—whether they were draftees or volunteers; whether they joined up in a time of war or a time of peace; whether they served on the front lines or in a support role, whether they fought on the beaches of Europe, in the jungles of Vietnam, or along the mountain ranges of Afghanistan—can lay their heads down at night knowing that they sacrificed for a cause greater than themselves. That they did their duty. And that they did it with honor,” said Pierluisi.

The Resident Commissioner has compiled an extensive record of work on behalf of Puerto Rico’s soldiers and veterans, which he has explained in various town hall meetings and roundtable discussions with the Island’s veterans’ organizations.

In 2009, Pierluisi introduced legislation to extend the health care program TRICARE Prime to retirees in Puerto Rico. As a result of his initiative, the House Armed Services Committee in 2010 required the Department of Defense to prepare a study on the feasibility of making Prime available in Puerto Rico and the other territories. That report is expected to be completed soon.

Since Pierluisi was elected to Congress, VA health facilities in Puerto Rico have received more federal funding than ever before in the Island’s history.

That funding includes hundreds of millions of dollars for a multi-phase renovation and expansion of the VA hospital in San Juan, including a 1,500-space parking garage. It also includes tens of millions of dollars for the construction of smaller veterans’ health clinics throughout the Island, including Utuado, Comerío and Vieques. Moreover, new VA health facilities are scheduled to be activated in the coming years, including major construction projects in Mayagüez and Ponce. In Mayagüez, the existing facility will be replaced by a larger facility that will provide primary and specialty care, mental health, radiology and pharmacy services. In Ponce, a $60.6 million health care center will replace the existing clinic. The new center will provide many services and reduce the need for veterans in the southwest part of the Island to travel to San Juan for care. A new community-based outpatient clinic is scheduled to be opened in Ceiba as well.

In a joint effort with Governor Fortuño, Pierluisi recently helped secure over $7 million in federal funds to construct a state veterans cemetery in Aguadilla, as well as the allocation of over $20 million in 2010 to improve and expand the National Cemetery in Bayamón.

Several months ago, the Resident Commissioner wrote to VA Secretary Eric Shinseki to request that the San Juan Regional Office be excluded from the 2012 consolidation of the VA Fiduciary Program, through which the VA provides assistance to veterans with mental or physical impairments. As a result of that letter and a follow-up meeting with VA officials, Puerto Rico veterans will not be adversely affected by this consolidation.