Vermont § 5930nn - Recently deployed veteran tax credit

§ 5930nn. Recently deployed veteran tax credit

• (a) A qualified employer shall be eligible for a nonrefundable credit against the income
  tax liability imposed under this chapter in an amount equal to $2,000.00 for each
  new full-time employee hired after May 24, 2011 but on or before December 31, 2012
  for a position, the majority of the duties of which are at a business location within
  Vermont. (b) A recently deployed veteran shall be eligible for a nonrefundable credit against the
  income tax liability imposed under this chapter in an amount up to a total of $2,000.00
  for expenses associated with one start-up business in which the recently deployed
  veteran holds at least a 50-percent ownership interest. A credit under this subsection
  may only be taken for a business started after May 24, 2011 but on or before December
  31, 2012, that is located within Vermont, and that shows a net profit of at least
  $3,000.00 for the year in which the credit is taken. (c) A credit earned under this section shall be claimed in the tax year following the
  new full-time employee’s date of hire, or in the tax year following the date that
  the start-up business was created, and may be carried forward one year. (d) In this section: (1) “Expense associated with a start-up business” means the following expenses: (A) expenses associated with the development of a business plan; (B) professional services associated with the formation of the business (e.g., attorney
  and accounting services); (C) an analysis or survey of potential markets, products, labor supply, or transportation
  facilities; (D) advertisements for the opening of the business; (E) salaries and wages for employees who are being trained and their instructors; (F) travel and other necessary costs for securing prospective distributors, suppliers,
  or customers; and (G) salaries and fees for executives and consultants, or for similar professional services. (2) “New full-time employee” means a recently deployed veteran: (A) who works at least 35 hours per week for not less than 45 of the 52 weeks following
  the individual’s date of hire; (B) whose compensation equals or exceeds the prevailing compensation level, including
  wages and benefits, for the particular employment sector and region of the State as
  determined by the Commissioner of Labor; (C) who has certification by the Department of Labor at the time of hire of: (i) collecting or being eligible to collect unemployment benefits; or (ii) having exhausted his or her unemployment benefits; and (D) who has not been employed by the qualified employer for 90 days prior to the date
  of hire. (3) “Qualified employer” means a person who: (A) is in good standing with respect to applicable registration, fee, and filing requirements
  with the Secretary of State, the Department of Taxes, and the Department of Labor;
  and (B) has in place a valid workers’ compensation policy. (4) “Recently deployed veteran” means an individual who: (A)(i) was a resident of Vermont at the time of entry into military service; or (ii) was mobilized to active, federal military service while a member of the Vermont National
  Guard or other reserve unit located in Vermont, regardless of the resident’s home
  of record; (B) received an honorable or general discharge from active, federal military service within
  the two-year period preceding the date of hire; and (C) for the purposes of the credit in subsection (b) of this section, a person who at
  the time of starting up a new business has been certified by the Department of Labor
  as: (i) collecting or being eligible to collect unemployment benefits; or (ii) having exhausted his or her unemployment benefits. (e) The Department of Labor, in coordination with the Department of Taxes, the Agency
  of Commerce and Community Development, and the Office of Veterans’ Affairs, shall: (1) promote awareness of the recently deployed veteran tax credit authorized in this section
  to employers and eligible veterans; (2) establish procedures for prequalifying an individual as a recently deployed veteran
  and for providing notice to the Department of Labor when a new full-time employee
  is hired; (3) establish procedures for certifying a qualified employer’s compliance or, in the case
  of a credit under subsection (b) of this section, a recently deployed veteran’s compliance,
  with the eligibility and expense verification requirements to claim the credit authorized
  under this section; (4) adopt measurable goals, performance measures that demonstrate results, and an audit
  strategy to assess the utilization and performance of the credit authorized in this
  section; and (5) engage in efforts to promote the hiring of recently deployed veterans through the
  hiring practices of the State of Vermont. (6) [Repealed.] (f) An employer shall not claim the credit in subsection (a) of this section for an employee
  who has claimed the credit under subsection (b) of this section, and a recently deployed
  veteran shall not claim the credit in subsection (b) if an employer has claimed his
  or her hire for the credit in subsection (a). (Added 2011, No. 44, § 1, eff. May 24, 2011; amended 2015, No. 11, § 34.)