House and Senate bills will be announced at a press conference today (11 Feb 2013) at the State Capitol, 2PM CST, St Paul, MN. Bill numbers will be provided ASAP. Below is a summary of the bill.
Subject: Veterans Jobs Tax Credit
Date: February 11, 2013
Author: Representative Anna Wills
This bill creates an income tax credit for a business that hires a disabled veteran, an unemployed veteran, or any other veteran in Minnesota.
The amount of the credit is as follows:
(1) For hiring a disabled veteran, the credit equals $3,000;
(2) For hiring an unemployed veteran, the credit equals $1,500; and
(3) For hiring any other veteran, the credit equals $500.
The credit is not refundable, and therefore, the credit only offsets the tax liability of a business. There is no limit on the number of credits that a business may claim during a taxable year.
A business is eligible for a credit for hiring a disabled veteran, if the veteran has a service-connected disability rating as adjudicated by the United States Veterans Administration or the retirement board of one of the several branches of the armed forces.
A business is eligible for a credit for hiring an unemployed veteran, if the veteran:
(1) has received unemployment compensation during the two year period prior to the date of hire; and
(2) is unemployed on the date of hire.
A business is eligible for a credit for hiring a veteran, if the individual qualifies as a veteran. “Veteran” includes any person who has been separated under honorable conditions from any branch of the armed forces of the United States after having served on active duty for at least 181 consecutive days, or by reason of disability incurred while serving on active duty.
1 Veterans Jobs Tax Credit Bill Summary
Subd. 1. Definitions. Defines qualified employee, qualified employer, disabled veteran, unemployed veteran, veteran, and date of hire.
Subd. 2. Credit allowed. An employer is allowed a credit for each individual that the employer hires who is a disabled veteran, an unemployed veteran, or a veteran. Provides that there is no limit on the number of credits that an employer may claim during a taxable year.
Subd. 3. Credit amount. Establishes the amount of the credit and that the credit is limited to an employer’s liability for tax during a taxable year. Clarifies that only one credit may be claimed per hire and that a credit may not be claimed for hiring an individual who was previously employed by the employer.
Subd. 4. Flow-through entities. For an entity not taxed at the entity level, the credit amount is divided between the owners based on each owner’s share of the entity’s assets or as determined by the organizational documents of the entity.