Wednesday, May 18, 2016

5 States Offering Tax Credits for Hiring Veterans


The recent extension through 2019 of the Work Opportunity Tax Credit Program (WOTC), namely the Returning Heroes and Wounded Warrior Credits, offer a great incentive to hiring veterans. But these federal tax credits aren’t the only way to take advantage of the cost benefits of hiring veterans. Many states throughout the US also offer veteran tax credits that can be used in conjunction with federal tax credits.  Below is a list of five states which offer such a tax credit:

1. Alabama: Heroes for Hire Income Tax Credit – This credit provides a $1,000 tax credit for job creation to employers who hire recently deployed, and now discharged, unemployed veterans. The credit also creates up to $2,000 nonrefundable income tax credit to recently deployed, and now discharged, unemployed veterans who hold at least 50 percent ownership interest in a start-up business.

2. Alaska: Veteran Tax Credit – This credit provides $3,000 for a disabled veteran and $2,000 for a veteran who is not disabled. The veteran must have been unemployed for more than four weeks and have been discharged or released from military service less than 10 years before the date employment begins for a veteran who is disabled; or less than two years before the date employment begins for a veteran who is not disabled. The veteran must also be employed in the state for 1,560 hours or more during 12 consecutive months immediately following the date the veteran is first employed.

3. Connecticut: Job Expansion Tax Credit - Connecticut businesses can be eligible for tax credits of $900 per month for each new full-time job created for a veteran employee who, at the time of hiring by the taxpayer, is a member of, was honorably discharged from or released under honorable conditions from active service in the armed forces.

4. West Virginia: Military Incentive Credit – Employers in West Virginia can receive 30% of the first $5,000 of compensation paid to a veteran. If the veteran was a member of the reserve or WV National Guard, the credit equals 25 percent of the first $5,000 of compensation. The credit equals the percentage of disability suffered by the veteran, multiplied by the first $5,000 of compensation.

5. Wisconsin: Veteran Employment Credit - This credit is available to businesses who have hired certain disabled veterans. For  each  qualifying  veteran  hired  for  a  full- time  job,  the  credit  is  $4,000  in  the  taxable  year  in  which  the  veteran  is  hired and $2,000 in each of the next three taxable years. For  each  qualifying  veteran  hired  for  a  part-time  job,  the  credit  is  up  to  $2,000  in  the  taxable  year  in  which  the  veteran  is  hired  and  up  to  $1,000  in  each  of  the  next  three  taxable years.


These are just a few of the states offering these great tax incentives. Click here to view a full list to see if your state has tax credits that you could be taking advantage of by hiring a veteran today.  

PLEASE NOTE: Orion ICS, LLC, its affiliates and its employees are not in the business of providing tax or legal advice to any taxpayer. This content is for general information purposes only, and is not intended or written to be used without the advice of the taxpayer's independent tax advisor. Thank you for reading about tax credits for hiring veterans.                             

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