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The RECRUIT Act of 2024 establishes a federal tax credit for employers who employ military reservists. Employers with fewer than 500 employees and meeting certain gross receipts thresholds can claim a credit equal to 40 percent of wages paid to qualified reservists, with the credit amount varying based on the reservist's days of active duty service (ranging from $1,000 to $10,000 per reservist per year). The credit applies to wages paid in taxable years beginning after December 31, 2023, and is integrated into the general business tax credit system.
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