Incentives Watch: States Offering Tax Credits for Employers Hiring Recently Deployed Veterans

More and more states are enacting income tax credits for recently deployed veterans. In Alabama, for example, legislation was enacted that establishes a tax credit for small businesses hiring recently deployed veterans and for recently deployed veterans starting up their own businesses in the state. For more information about the Alabama Heroes for Hire Tax Credit Act of 2012, check out this week's issue of the Weekly State Tax Report.

“This act parallels similar legislation in a number of states,” noted Bruce P. Ely, partner at Bradley Arant Boult Cummings LLP in Birmingham, Alabama. Both New Mexico and Utah recently enacted similar legislation that creates tax credits for recently deployed veterans. California, Illinois, Vermont, and West Virginia also offer veteran tax credits, according to the Bloomberg BNA State Tax Portfolios.  

“With Alabama being historically one of the largest contributors of men and women to the Armed Forces, our Legislature and Governor Bentley felt that our returning veterans should be given every possible advantage when they re-enter the workforce or start their own business.  That's the least we can do,” added Ely.

­­­­­­­­­­­ In other developments . . .

The cap for the Florida tax credit scholarship program was increased to $229 million for fiscal year 2012-2013, according to a recent Bloomberg BNA Weekly State Tax Reportarticle.

By: Kathleen Caggiano

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