The Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran and the Wounded Warriors Tax Credit offers businesses hiring veterans with service-connected disabilities a maximum credit of $9,600 per veteran.
"Today, the message is simple. For businesses out there, if you are hiring, hire a veteran. It's the right thing to do for you. It's the right thing to do for them. And it's the right thing to do for our economy," Obama said during the signing ceremony.
Veterans are some of the most highly trained, highly educated, highly skilled workers the nation has, Obama said.
"If they can save lives on the battlefield, then they can save a life in an ambulance. If they can manage convoys moving tons of equipment over dangerous terrain, they can manage a company's supply chain. If they can track millions of dollars of assets in Iraq, they can balance the books of any company here in the United States," the president said.
"Just as they fight for us on the battlefield, it's up to us to fight for them when they come home."
The law also repeals the current requirement that that federal, state and local governments withhold 3 percent of payments to contractors.
It also scales back last year's healthcare law to disqualify some middle-income Americans from Medicaid.