Nearly 900,000 vets are unemployed, the U.S. Department of Veteran's Affairs reports. In fact, the average unemployment rate among vets of the conflicts in Iraq and Afghanistan ranges from 7.7 to 12.1 percent. Perhaps more troubling is the fact that veterans between the ages of 35 and 64 – that is, those who should be in their peak earning years – make up almost two-thirds of all unemployed veterans. "Overall, nearly one in twelve of our nation's heroes can't find a job to support their family, don't have an income that provides stability, and don't have work that provides them with the confidence and pride that is so critical to their transition home," the VA said in a statement.

The VOW (Veterans Opportunity to Work) to Hire Heroes Act of 2011 could chip away at those numbers. The Act provides a tax credit to businesses that hire qualified veterans; the credit can hit $9,600 per veteran for for-profit employers, or up to $6,240 for qualified tax-exempt organizations.

Although the Act became law in November 2011, the IRS recently released guidance and an FAQ on the legislation. Among the provisions (a word of warning: as with many government processes, this one gets a bit involved):

The tax credit may be available for hiring qualified veterans who begin work before January 1, 2013, and who have worked at least 120 hours. A qualified vet is one who has served on active duty, not including training, in the U.S. Armed Forces for more than 180 days, or has been discharged or released from active duty for a service-connected disability. The employee also can't have had a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

Normally, an eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with its state workforce agency within 28 days after the eligible worker begins work. However, under a special rule included in IRS Notice 2012-13, employers have until June 19, 2012, to complete and file this form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.

The amount of the credit will depend on several factors, including the length of the veteran's unemployment status before he or she was hired, the number of hours the veteran works, whether the vet has a disability, and his or her first-year wages. To determine the exact amount, for-profit employers crunch the numbers on Form 5884, Work Opportunity Credit, while tax-exempt organizations use Form 5884-C.

For-profit employers claim the tax credit as a general business credit against their income tax, using Form 3800. Tax-exempt employers claim the credit against the employer social security tax.

To be sure, the VOW Act is not a panacea; a variety of factors, such as a mismatch between many vets' skills and those typically needed by employers, contribute to the high unemployment rate among veterans. Still, it can help.