Sen. Chuck Wiger introduced a bill to provide an income tax credit to businesses who hire qualified veterans. The credit, like similar federal programs past and present, is aimed at lowering the veterans’ unemployment rate, which has consistently outpaced state and national averages for years.
Under the proposed legislation, employers could claim one of three credits equal to 10% of wages paid to a veteran. The maximum credit would be $3,000 for each disabled veteran hired, $1,500 for each unemployed veteran hired, and $500 for each other veteran hired. There is no limit to the number of credits that a qualified employer may claim in one taxable year.
Several veterans and business owners testified to the Tax Reform Division and focused on Minnesota’s disproportionately high veteran unemployment rate – still about 1.5% higher than the state rate. “Minnesota has an unacceptably high level of unemployment for our veterans,” said Sen. Wiger. “They fought for our country and now are fighting for a job.”
The bill was laid over for possible inclusion. (S.F. 79)