The Wisconsin Department of Revenue now provides a tax credit for hiring and retaining unemployed disabled veterans in tax years beginning on or after January 1, 2012. For example, for each qualifying veteran hired full-time, employers can qualify for a credit against state income or franchise tax aggregating up to $10,000 over four years.
The amount of the credit depends on whether the veteran is a full-time or part-time employee, and whether he or she continues to work over the full four-year term that the credit is available.
Employer’s Wisconsin credit for hiring unemployed disabled veterans
|| Full-time employee
|| Part-time employee
|For the first tax year of employment
||Up to $2,000
|For each of the next three tax years
||Up to $1,000
To be considered full-time, the veteran must be required to work 2,080 hours per year (including holidays and paid leave) as a condition of employment in a regular, nonseasonal position. For part-time qualified employees, the credit is prorated based on the number of hours the veteran worked that tax year divided by 2,080.
Veterans meeting the following conditions qualify for the credit:
- Must have served on honorable active duty as verified by the Wisconsin Department of Veteran Affairs,
- Must have a service-connected disability rating of at least 50% as verified by the Wisconsin Department of Veteran Affairs,
- Must have received at least one week of unemployment compensation prior to employment, and
- Must be receiving unemployment benefits when hired.
The credit will not be available for the year in which employment is voluntarily or involuntarily terminated. The credit is nonrefundable, and employers can carry forward any unused balance for up to 15 years.
A fact sheet is available on the Wisconsin Department of Revenue website. Please contact us if you need more information.
This new state credit is not related to the federal tax credit for unemployed veterans hired after November 21, 2011 and before January 1, 2013, which modified and extended certain provisions of the Work Opportunity Tax Credit and the 2011 Heroes Act. For information about the federal credit, call us or see our article The 2011 Heroes Act Extends and Modifies the Credit for Hiring Veterans.