Act No. 44 (H.275). Taxation; income tax; credit; veterans

This act provides a tax credit for employers who hire recently deployed veterans or for recently deployed veterans who incur certain expenses starting a new business.

Sec. 1(a) creates a $2,000.00 nonrefundable tax credit for employers who hire a recently deployed veteran after the passage of the act but before December 31, 2012. The majority of the position's duties must be in Vermont. The credit must be used in the tax year following the date of hire, or it may be carried forward one additional year.

Sec. 1(b) creates a tax credit of up to $2,000.00 for a recently deployed veteran who incurred certain specified expenses in starting up a business after the passage of the act but before December 31, 2012. The credit must be used in the tax year following the date of hire, or it may be carried forward one additional year.

Under the act, a recently deployed veteran is someone who was a Vermont resident at the time of entry in the military service, or who was mobilized to federal military service while a member of a Guard unit in Vermont, and who received an honorable or general discharge within two years of the date of hire. In order to be eligible for either credit, the recently deployed veteran must be collecting or eligible to collect unemployment insurance, or must have exhausted his or her unemployment insurance benefits.

The department of labor, in coordination with the department of taxes, the agency of commerce and community development, and the Vermont office of veterans affairs, shall publicize the credits, develop systems for administering the credits, develop goals for success, and report on the effectiveness of the credit.

Effective Date:  May 24, 2011