Governor Jack Markell

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

Friday, August 10th, 2012

On March 16, 2012, the WOTC Planet told you about Delaware Governor Jack Markell’s support of a new tax credit for employers that hire military veterans in the State of Delaware.  Almost five months later, we have more good news.

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.

Read the entire bill and its legislative history here on the Delaware General Assembly’s website.

Governor and Legislators Support Delaware’s “Veterans Opportunity Tax Credit” Proposal

Friday, March 16th, 2012

Jack Markell, Governor of Delaware, has had a lot to say lately about a new proposal to help veterans find work in his state.  It’s called the Delaware Veterans Opportunity Tax Credit.   The Governor publicly announced the proposal yesterday and followed up today with an effective YouTube video discussing the idea.

Unlike most hiring credits, this proposed credit is refundable meaning that even employers without a current state tax liability can benefit from a tax refund.  It’s worth up to $4,500.

“The Veterans Opportunity Tax credit would allow any business can take a tax credit of 10% of the gross wages paid to qualified veterans, with a cap of $1,500. The cap would continue for 3 tax years, so the total benefit to the employer could be $4,500 per veteran hired. The credit could be taken by any private sector business, and can be credited against personal income taxes, corporate income taxes, bank franchise taxes and insurance premium taxes. Because the tax credit is refundable, businesses without tax liabilities can use the tax credits immediately.”

Read more on the Governor’s news page.