HB 1553 Summary

• Creates a tax credit for small businesses that hire new full-time employees receiving unemployment benefits or who are veterans between January 1, 2013 and January 1, 2016.

• Tax credit amount is $3,000 per qualified new employee, capped at $100,000 per year, and only available if average employment increases compared to the January 1, 2011 base period.

• Qualified new employees must earn at least 200% of the federal minimum wage and cannot be family members or related entity employees of business owners with 5% or more ownership.

• Unused credits may be carried forward for up to three subsequent tax years; forfeiting 50% of credits if employee is terminated within 18 months of hiring.

• Legislation effective retroactively January 1, 2013 and expires January 1, 2022.