Tax Credits Blog

Delaware Veteran Credit

There's continuing pressure on states to help companies hire vets - this one was just signed on 7/31 for Delaware Vets.

New Tax Credit – Delaware’s “Veterans Opportunity Tax Credit” Signed by Governor

The Veterans Opportunity Tax Credit program was signed by the Governor on July 31st.

The new program provides a tax credit equal to 10% of the qualifying employee’s wages, with a maximum annual credit of $1,500.  The credit can be claimed for up to 3 consecutive years, resulting in a maximum 3-year credit of $4,500.

The tax credit program is effective for hire dates from January 1, 2012 through December 31, 2015.  It focuses narrowly on a qualifying group of honorably discharged veterans who served in oversees missions, and who work at least 185 days during the applicable tax year(s).  In part, the bill reads as follows:

“Qualified military service” means military service for which a veteran received: (i) the Afghanistan Campaign Medal; (ii) the Iraq Campaign Medal; or (iii) the Global War on Terrorism Expeditionary Medal.

“Qualified veteran” means either a Delaware resident who engaged in qualified military service, or a nonresident who, as member of the Delaware National Guard, engaged in qualified military service, and who: (i) has provided to the qualified employer documentation showing that he or she was honorably discharged or is a current member of a National Guard or Reserve unit; and (ii) was initially hired by the qualified employer on or after January 1, 2012 and prior to January 1, 2016.

 

Ken Brice

.