As CCH’s Tim Bjur has reported, Delaware Gov. Jack Markell has signed legislation (H.B. 275, Laws 2012) creating a refundable credit that may be claimed against corporate income tax, bank franchise tax, insurance gross premiums, and personal income tax liability by employers located in Delaware that hire eligible veterans on or after January 1, 2012, and before January 1, 2016. Eligible veterans include Delaware residents or nonresident members of the Delaware National Guard who have received a medal for military service in Afghanistan, Iraq, or the global war on terrorism. In addition, the veteran must provide the employer with documentation showing that he or she was honorably discharged or is a current member of a National Guard or reserve unit.
The veterans’ opportunity credit is equal to 10% of the gross wages paid to an eligible veteran in the course of that veteran's sustained employment during the taxable year up to a maximum of $1,500. The credit may be claimed during the year in which the veteran is hired and for the two subsequent taxable years. Veterans counted for purposes of the credit may not be included in the calculation of employment for purposes of claiming other Delaware tax credits.