A credit may be claimed by a small business for each qualified veteran employee hired. The credit for each qualified veteran employee may not exceed 30% of up to the first $6,000 of wages paid to the qualified veteran employee during the first year of employment. A small business qualifying for this tax credit is required to apply to the Maryland Department of Commerce for a tax credit certificate. A copy of the Maryland Department of Commerce certification must be included with the tax return of the small business to claim this tax credit.
“Qualified veteran employee” means an individual who:
- Is honorably discharged or released under honorable circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101; and
- Is a qualified veteran as defined under 26 U.S.C. § 51(d) (3)(a) for purposes of the Federal Work Opportunity Tax Credit.
“Small business” means an individual, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a corporation that employs 50 or fewer full-time employees.
A small business may not claim the credit for more than five qualified veteran employees in a taxable year. A small business may not claim a credit for a qualified veteran employee who is hired to replace a laid-off employee or an employee who is on strike.
The credit is claimed on Part AA, line 1 and is also entered on Business Tax Credit Summary, Part BB, line 27.
Any unused credit amount for the tax year may not be carried forward to any other taxable year.
For questions on application and certification processes or for additional information on this credit program, contact:
Maryland Department of Commerce
Office of Finance Programs, Tax Incentives Group
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-737-4041
Note: A copy of the tax credit certification from the Maryland Department of Commerce must be included with Form 500CR.