A non-refundable credit is available to taxpayers who hire a qualified recently deployed veteran on or after January 1, 2012.
A qualified recently deployed veteran is an individual who was mobilized to active federal military service in an active or reserve component of the United States Armed Forces, and received an honorable or general discharge within the two-year period before the employment begins.
To qualify for the credit, the qualified veteran must meet all of the following conditions:
The credit is claimed beginning in the year the 45 consecutive weeks in paragraph 3 above are met.
|Calculating the Veteran Employment Tax Credit|
|First Year Credit (count all months in the year the 45 week requirement is met)|
|1. Number of months or partial months veteran employed since hiring1|
|2. Monthly credit allowable in first year||$ 200|
|3. First year credit – multiply line 1 by line 2 (maximum $2,400)2||$|
|Second Year Credit|
|4. Number of months or partial months veteran employed in 2nd year|
|5. Monthly credit allowable in second year||$ 400|
|6. Second year credit – multiply line 4 by line 5 (maximum ($4,800)||$|
1. The qualified veteran must work at least 35 hours per week.
2. The credit is taken in the first year in which the veteran was employed 45 consecutive weeks.
Any credit in excess of tax due will not be refunded, but may be carried forward to offset tax for up to five years.
The following documentation for the qualified recently deployed veteran must be retained by the taxpayer to support the credit claimed, and made available to the Tax Commission upon request: