Chapter 59 of the New York Law establishes a non-refundable credit for the hiring and employing of qualified veterans for tax years beginning on or after January 1, 2015 and before January 1, 2021. To claim the credit, you must have the qualified veteran complete and sign Form DTF-75, Employee Affidavit for the Hire a Veteran Credit, on or before the date he or she begins employment. You must keep the completed Form DTF-75 in your records and make it available to the Tax Department upon request. You must claim the credit in the tax year in which a qualified veteran completes one year of employment. Any amount of the credit not used in the current tax year may be carried forward to the following three years.
The credit is equal to 10% of the total amount of wages paid to the qualified veteran during the veteran’s first full year of employment, but not more than $5,000. If the qualified veteran is a disabled veteran, the credit is equal to 15% of the total amount of wages paid to the qualified veteran during the veteran’s first full year of employment, but not more than $15,000. To claim the credit complete Form CT-643 or IT-643.
To qualify for the tax credit, businesses must:
- Be subject to tax under Tax law Article 9-A, 22 or 33;
- Hire a qualified veteran who begins his or her employment on or after January 1, 2014, but before January 1, 2020; and
- Employ the qualified veteran in New York State for one year or more for at least 35 hours each week.