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    2.623 -Veteran's Hire Tax Credit

    Item DescriptionFY2015 FY2016 FY2017 FY2018 FY2019
    2.623 Veteran's Hire Tax Credit
    This newly added tax expenditure item (St. 2017, c. 47) allows business corporations that hire veterans and meet certain requirements a tax credit equal to $2,000 for each qualified veteran hired. The business corporation must (i) employ less than 100 employees; (ii) be certified by the commissioner of veteran's services; and (iii) qualify for and claim the Work Opportunity Credit allowed under I.R.C. § 51, as amended and in effect for the taxable year.

    In order to claim the credit, the primary place of employment and the primary residence of the qualified veteran must be in Massachusetts. A business corporation must obtain certification that the veteran is a qualified veteran from the Department of Career Services (or any successor agency), no later than the employee's first day of work.
    A business corporation that is eligible for and claims the credit allowed under this subsection in a taxable year, with respect to a qualified veteran employee, will be eligible for a second credit equal to $2,000 in the subsequent taxable year, subject to certification of the veteran employee's continued employment during the subsequent taxable year.

    The credit is non-transferrable and non-refundable. However, any excess amount of credit over the tax due may be carried forward up to 3 subsequent taxable years. The total cumulative value of the credits authorized must not exceed $1,000,000 annually. The credit is available for qualified veterans hired after July 1, 2017 for tax years beginning on or after January 1, 2017. See TIR 17-10 for detail.

    Origin:  Origin: St. 2017, c. 47; M.G.L. c. 63, § 38GG
    Estimate:   $0.5    		 0.0 0.0 0.0 0.5 0.5

    Key:

    ORIGIN  
    IRCFederal Internal Revenue Code (26 U.S.C.)
    M.G.L. Massachusetts General Laws
    U.S.C United States Code
    ESTIMATES All estimates are in $ millions.

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