Outside Section 30

Veteran's Tax Credit 1

SECTION 30. Section 6 of chapter 62 of the General Laws, as most recently amended by sections 67 to 72, inclusive, of chapter 219 of the acts of 2016 , is hereby further amended by adding the following subsection:-
(u)(1) A partnership, limited liability corporation, or other legal entity engaged in business in the commonwealth that (a) is not a business corporation subject to the excise under chapter 63 , (b) employs not more than 100 employees, and (c) qualifies for and claims the Work Opportunity Credit, so called, allowed under the provisions of section 51 of the Code, as amended and in effect for the taxable year, for the hiring of one or more qualified veterans, shall be allowed a credit equal to $2,000 for each qualified veteran hired by the partnership, limited liability corporation, or other legal entity. For purposes of this section, the term "qualified veteran" shall have the same meaning as under section 51(d)(3) of the Code.
(2) To be eligible for a credit under this section, (a) the primary place of employment of the qualified veteran must be in the commonwealth, and (b) on or before the day an individual begins work, a business must have obtained the applicable certification from the department of career services or any successor agency that the individual is a qualified veteran.
(3) The credit under this section shall be attributed on a pro rata basis to the owners, partners or members of the legal entity entitled to the credit under this section, and shall be allowed as a credit against the tax due under this chapter of such owners, partners or members, in a manner determined by the commissioner.
(4) A business that is eligible for and claims the credit allowed under this section in a taxable year with respect to a qualified veteran shall be eligible for a second credit of $2,000 in the subsequent taxable year with respect to such qualified veteran, subject to certification of continued employment during the subsequent taxable year in the manner required by the commissioner. Any credit allowed under this section shall not be transferable or refundable. Any amount of the credit allowed by this section that exceeds the tax due for a taxable year may be carried forward to any of the 3 subsequent taxable years.



Summary:
This section, as well as the counterpart section for corporations, proposes a tax credit for eligible businesses that hire veterans. The amount of the credit is $2,000 for each of the first two years in which the veteran is employed.