Hire Our Veterans Tax Credit

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This program provides a State income tax credit to small businesses for hiring qualified veterans based on wages paid to those veteran employees. BENEFITS

A Maryland employer may qualify for an income tax credit equal to 30% of up to the first $6,000 of wages paid to a qualified veteran employee during the first year of employment if the first year of employment falls between tax year 2017 and 2020. The maximum tax credit is $1,800 per qualified veteran employee. For positions created in tax year 2021 and later, please refer to the Job Creation Tax Credit. ELIGIBILITY Qualified Employer

A qualified employer is a “small business” operated by an individual, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a corporation that employs 50 or fewer full-time employees. Qualified Veteran Employee Must have been hired on or after January 1, 2017;

AND Must have served in the active Armed Forces and have been discharged or released from that service under honorable circumstances. “Armed Forces” means the United States Army, Navy, Marine Corps, Air Force, & Coast Guard, including related reserve components;

AND Must have served on active duty (not including training) in the Armed Forces for more than 180 days, OR have been discharged or released from active duty for a service-connected disability; AND not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date;

AND Must be a Qualified Veteran for purposes of the Federal Work Opportunity Tax Credit, as follows: Be a veteran who is a member of a family that received SNAP benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date;

OR Be a disabled veteran entitled to compensation for a service-connected disability, who has been hired within 1 year after discharge or release from active dutyOR unemployed for at least 6 months in the year ending on the hiring date;

OR Be a veteran who has been unemployed for at least 4 weeks in the year ending on the hiring date. LIMITATIONS This credit is only available for wages paid in the qualified veteran’s first year of employment. A qualified employer may claim up to 5 qualified veteran employees for each taxable year. The total amount of credits available in a year is capped at $500,000, and approvals of the tax credit certifications are on a first-come, first-served basis. The tax credit is not refundable. The tax credit cannot be carried forwards or backwards. APPLY A small business must submit the Application Forms A & B, Qualified Veteran Employee’s Self-Certification Form(s), copies of W-2s and/or paystubs, and copies of DD214 or equivalent official discharge forms to the Maryland Department of Commerce (Commerce) for the certification. Commerce will certify or deny an application within 45 days after the receipt of a “complete” application. Application Materials Hire Our Veterans Employer Tax Credit Form A & B Qualified Veteran Employee’s Self-Certification Form CLAIM TAX CREDIT

After receiving the tax credit certification from Commerce, the employer must file a tax return with the Comptroller of Maryland for the taxable year in which the certification was issued using Maryland Tax Form 500CR. Maryland Tax Form 500CR must be filed electronically with an attached copy of the certification from Commerce. Please note that the credit can be taken against the State income tax ONLY. It is not taken against the county income tax “add-on”. For more information regarding the tax forms and tax…

Topic areas: Workforce Development.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Hire Our Veterans Tax Credit is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.