The RECRUIT Act of 2024 creates a new federal tax credit for small businesses that employ members of the National Guard or military reserves. Eligible employers can claim a credit equal to 40 percent of wages paid to qualified reservists, with the credit capped at $1,000 per reservist per year, plus additional amounts of up to $10,000 depending on how many days the employee serves on active duty during the year. The credit is available only to businesses with fewer than 500 employees that meet certain gross receipts requirements. The tax credit applies retroactively to wages paid starting January 1, 2024, and the bill includes provisions to ensure U.S. territories with mirror tax systems receive compensating payments so they don't lose tax revenue from this credit.
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