One week ago the nation observed Veterans Day. The holiday is aptly observed on Nov. 11, coinciding with Armistice Day, the formal end of World War I at the 11th hour of the 11th day of the 11th month of 1918. As we reflect on Veterans Day, it may be pertinent to look at states’ employment initiatives for servicemen and women and the myriad tax breaks that are available for businesses that employ veterans. Here is a breakdown of some of these important tax breaks:
Alabama offers the Heroes for Hire Income Tax Credit, which provides a $1,000 credit to employers who hire recently deployed unemployed veterans. In order to be eligible, the veteran must 1) be an Alabama resident at the start of military service; 2) have received an honorable or general discharge within the two years before the hiring date; and 3) be certified by the Department of Labor as being eligible for unemployment benefits.
Additionally, Alaska’s Veteran Tax Credit provides a $2,000 credit for hiring a veteran and a $3,000 credit for hiring a disabled veteran. To qualify for the credit, the veteran may not have been discharged from service for less than two year before the start date, with 10 years as the limit for a disabled one. The veteran must also have been employed in-state for at least 1,560 hours during 12 consecutive months immediately following the start date.
With the second largest population of veterans in the nation, Florida enacted the Veterans Employment Act, which allows a business to take a one-time credit of $5,000 for each veteran it hires and an additional $5,000 credit for hiring a veteran with a service-related disability. However, Florida’s credit is set to expire on June 30, 2019.
In addition, the Empire State offers businesses up to $5,000 for hiring a qualified veteran and up to $15,000 for hiring disabled veterans through its Hire-A-Vet Credit. To qualify as a veteran for purposes of the credit, he or she must attest that they were not employed for 35 or more hours during the prior 180 days and must have been released from active duty by general or honorable discharge after Sept. 11, 2001.
Wisconsin’s Veteran Employment Credit is available for hiring certain disabled veterans full-time in the amount of $4,000 for the year of hire. An additional $2,000 is also available for each of the following three taxable years. The credit is reduced to $2,000 for part-time hires in the first year and $1,000 for the next three years.
Many states incentivize the employment of veterans by offering businesses tax credits for hiring veterans. While the incentives mentioned above are not all-inclusive, they are apropos of veteran employment credit programs of states that do offer them.
Continue the discussion on Bloomberg Tax’s State Tax Group on LinkedIn: Does your state offer a Hire-A-Vet Credit
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