Origin: Massachusetts allows businesses a credit of $2,000 for each qualified veteran hired. The credit is set out for corporations in M.G.L. c. 63, § 38GG and for other business organizations in M.G.L. c. 62, § 6(u). The credit is available for qualified veterans hired after July 1, 2017, and may be applied to tax years beginning on or after January 1, 2017. See TIR 17-10.
To claim the credit a business must (i) have fewer than 100 employees, (ii) be approved by the Secretary of the Executive Office of Veterans Services and (iii) claim the federal Work Opportunity Credit for the taxable year with respect to the veterans hired. A qualified veteran is person that has served in the Armed Forces and has faced unemployment or economic hardship in the year prior to being hired. In addition, the person must be a Massachusetts resident and be assigned to a primary workplace in the state. A business that claims the credit 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 if the veteran continues employment.
The credit is non-transferrable and non-refundable. However, any unused credit may be carried forward up to 3 taxable years. The total cumulative value of the credit allowed across the Commonwealth is limited to $1,000,000 per year.
The amount of revenue foregone as a result of the credit constitutes a tax expenditure.
Origin: St. 2017, c. 47; M.G.L. c. 63, §38GG
Corporate Excise Tax
Credits Against Tax
2.623
Veteran's Hire Credit
Massachusetts allows businesses a credit of $2,000 for each qualified veteran hired. The credit is set out for corporations in M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38gg" target="_blank">c. 63, § 38GG</a> and for other business organizations in M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6" target="_blank">c. 62, § 6(u)</a>. The credit is available for qualified veterans hired after July 1, 2017, and may be applied to tax years beginning on or after January 1, 2017. See TIR 17-10.<BR><BR>To claim the credit a business must (i) have fewer than 100 employees, (ii) be approved by the Secretary of the Executive Office of Veterans Services and (iii) claim the federal Work Opportunity Credit for the taxable year with respect to the veterans hired. A qualified veteran is person that has served in the Armed Forces and has faced unemployment or economic hardship in the year prior to being hired. In addition, the person must be a Massachusetts resident and be assigned to a primary workplace in the state. A business that claims the credit 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 if the veteran continues employment.<BR><BR>The credit is non-transferrable and non-refundable. However, any unused credit may be carried forward up to 3 taxable years. The total cumulative value of the credit allowed across the Commonwealth is limited to $1,000,000 per year.<BR><BR>The amount of revenue foregone as a result of the credit constitutes a tax expenditure.
<a href="https://malegislature.gov/Laws/SessionLaws/Acts/2017/Chapter47" target="_blank">St. 2017, c. 47</a>; M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38gg" target="_blank">c. 63, §38GG</a>
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