You hire a veteran. The VA mails you a check for up to half their salary while they get up to speed. That is the Special Employer Incentive program, and most hiring managers have never heard of it.

It is not a tax credit. You do not wait until April to file a form and hope it gets approved. The VA reimburses a slice of the veteran's actual wages during a training period. You get cash back while the new hire ramps.

The program is run through Veteran Readiness and Employment, the VA's Chapter 31 program. It is built for veterans with a service-connected disability who hit a wall finding work. You hire one of those candidates, give them real training, and the VA helps cover the cost.

This guide breaks down what SEI actually pays, who qualifies, what you commit to, and how you set it up with a VR&E counselor. We will also draw a clean line between SEI and the Work Opportunity Tax Credit, because they work nothing alike.

What is the Special Employer Incentive program?

The Special Employer Incentive (SEI) is a hiring program from the VA's Veteran Readiness and Employment office. People still call it VR&E, or Chapter 31, after the section of law that created it.

Here is the core idea. Some veterans in the VR&E program face a real barrier to getting hired. Maybe their service-connected disability slowed their career. Maybe they have a skills gap a normal employer would not train through. SEI exists to get them in the door.

You agree to hire the veteran and train them. In exchange, the VA reimburses a portion of their salary during the training window. The reimbursement covers the cost of teaching them the job and the lost production while they learn.

The VA does the matching. A VR&E counselor identifies veterans who fit your roles and coordinates the placement. The goal is simple. The veteran finishes the training period and keeps the job long term.

How much salary does the VA reimburse?

The headline number is the reason to care. Under SEI, the VA reimburses up to 50 percent of the veteran's salary. That reimbursement runs for up to six months.

Read the cap closely. It says "up to" 50 percent and "up to" six months. The exact rate and length get set during planning with the VR&E counselor. It depends on the role, the training plan, and the veteran's needs. Do not promise your CFO a flat 50 percent for a full six months before the plan is written.

The reimbursement is meant to offset what training actually costs you. Per the VA, it covers the cost of instruction, the loss of production while the veteran learns, and supplies and equipment used for training.

That last part matters. You are not just getting wage money. The program is designed around the reality that a new hire in training is not yet at full output. SEI helps fill that gap so the training period does not bleed your budget.

What else does the VA cover?

The salary reimbursement is the big lever, but it is not the whole package. The VA may also provide support that takes cost and friction off your plate.

Based on the VA's SEI fact sheet, that support can include tools, equipment, uniforms, and other supplies the veteran needs to do the job. It can also include workplace accommodations based on the veteran's specific needs.

You also get a VA point of contact during the training and placement. A VR&E counselor or employment coordinator stays involved. You are not figuring this out alone after the hire.

SEI vs WOTC: what is the difference?

People mix these up all the time. They are both ways to lower the cost of hiring a veteran. They are built on completely different machinery.

The Work Opportunity Tax Credit is an IRS tax credit. You hire a qualifying veteran, file the paperwork, and claim a credit against your federal tax bill. It reduces what you owe at tax time. It does not put cash in your account during the hire.

SEI is a direct salary reimbursement from the VA. The money comes back to you during the training period, not at tax time. It is not tied to your tax liability at all. If your company owes little or no federal tax in a given year, a tax credit does you little good. A reimbursement still pays.

There is one more reason this distinction matters right now. WOTC is a creature of the tax code, and the tax code changes. SEI is a VA benefit program. It does not live or die by whether Congress reauthorizes a tax credit.

You do not have to pick one. A veteran who qualifies for SEI may also count toward WOTC if Congress reauthorizes that credit. WOTC expired on December 31, 2025 and has not been reauthorized as of this writing, so check the current status before you count on it. We cover the credit side in depth in our Work Opportunity Tax Credit employer guide, and you can see exactly what each veteran target group is worth in our WOTC credit amounts by veteran target group breakdown. For the full menu of programs, see our roundup of veteran hiring incentives beyond WOTC.

Who qualifies for SEI?

SEI is not open to every veteran you might hire. It is tied to the VR&E program. The veteran has to be enrolled in VR&E and working with a counselor.

VR&E itself is for veterans with a service-connected disability that creates an employment barrier. The VA decides who is eligible. You do not assess this yourself, and you should not try to.

The program targets veterans who are struggling to land work despite wanting it. That is the whole point of the incentive. It gives an employer a reason to take a chance on a candidate who might otherwise get passed over.

Here is the practical version. You do not go find an "SEI veteran" on your own. You connect with VR&E, and the counselor brings you candidates who already qualify. The eligibility work is done before the resume hits your desk.

What does the employer commit to?

SEI is not free money for parking a veteran at a desk. The VA expects something back. The trade is straightforward.

First, you hire the veteran as a real employee. They get a real wage and real benefits from day one. SEI reimburses part of that wage. It does not replace it.

Second, you provide actual training. The reimbursement is built around a training plan. You are teaching the veteran the job, with the expectation that they reach full productivity.

Third, the intent is long-term employment. The program is designed so the veteran keeps the job after the six-month window closes. SEI is a ramp, not a temp gig. If you are only looking for short-term labor, this is the wrong tool.

You also work the plan with the VA. The counselor helps build the training structure and stays involved during the period. You report on progress so the reimbursement stays on track.

What roles fit SEI best?

SEI shines on roles with a clear training curve. Think positions where a sharp person needs a few months of structured ramp to hit full output. That describes a lot of midsize-company hiring.

Logistics coordinators, IT support, security operations, facilities and maintenance, project and program support roles all fit. These are jobs where military experience transfers well but the specific tools and processes still need teaching.

If you are not sure a veteran's background lines up with a civilian role, that is a separate skill. We wrote a full guide on how to evaluate a veteran candidate with no civilian degree. It pairs well with SEI, because the program is built for exactly the candidates whose value is hard to read off a resume.

How do you set up SEI with a VR&E counselor?

The setup is less about paperwork and more about a conversation. You start by reaching the right VA office and explaining what you want.

Per the VA, the front door is your local VA Regional Office. You connect with a VR&E representative there. You can find your nearest office through the VA's Veteran Readiness and Employment employer page or by calling 800-827-1000.

The exact reimbursement rate and length come out of that planning. The "up to 50 percent" and "up to six months" are ceilings. What you land on depends on the role and the agreed training plan.

Lean on the counselor. They run this program every day. They know what training plans get approved and how to structure the role so the reimbursement holds up. Treat them as a partner, not a gatekeeper.

Why SEI is worth the effort for midsize employers

Big companies often have a whole team chasing veteran-hiring programs. Most midsize firms do not. That is exactly why SEI is underused, and why it is a quiet edge if you move on it.

The math is simple. You were going to hire and train someone anyway. SEI hands you back a chunk of the wage cost during the most expensive part of the hire, the ramp. The veteran arrives with a work ethic and a structure that tends to stick.

It also lowers your risk on a candidate who looks unusual on paper. A veteran with a service-connected disability and a nontraditional background might never make your shortlist through a normal funnel. SEI gives you a reason to look harder, with the VA sharing the cost of being right.

The retention upside is real too. Veterans who land in a role through structured training and stay tend to stay a while. Once they are on board, the next job is keeping them. Our guide on training managers to retain veteran hires covers that, and our veteran-inclusive workplace checklist covers the culture side.

Where the candidates come from

SEI tells you how the VA shares the cost. It does not solve the harder problem, which is finding qualified veterans in the first place.

That is the gap Best Military Resume fills. We add over 1,000 new veteran profiles every month, and we have built more than 60,000 veteran resumes. That is a steady, growing pool of transitioning service members and veterans actively looking for civilian work.

If you want access to that talent, reach out through our hire page. Tell us the roles you are filling, and we will connect you with veterans who fit. Pair that pipeline with SEI, and you have both the candidates and a way to share the cost of bringing them up to speed.

The Special Employer Incentive program rewards employers who give veterans a real shot. The talent is out there. The VA will help you pay for the ramp. The only thing missing is the decision to move.