August 7, 2012|
By: Kimbery A. Fonda, CPA, CFE Delaware's Veterans' Opportunity Tax Credit Act was signed into law July 31, 2012 in an effort to decrease the number of unemployed veterans within the State. The benefit per veteran provided by this act is up to $4,500 of a refundable tax credit. It is available to businesses that hire qualified veterans after January 1, 2012 and before January 1, 2016. Veterans that served and received the Afghanistan Campaign Medal, Iraq Campaign Medal or the Global War on Terrorism Expeditionary Medal, which are typically awarded for serving a minimum of 30 days in specified areas, would qualify for this credit. The credit amount is 10% of gross wages with a maximum of $1,500 per year for the year of hire and 2 subsequent years. This credit is available to Delaware employers and can be taken against personal income tax, corporate income tax, bank franchise tax or insurance premium tax. New hires qualifying under this credit would be precluded from being counted by a Company for other credits such as the New Economy Jobs Credit or the New Jobs Creation Credit. Contact either of our offices to hear how this may apply to your situation.