Senate Bill 488 Summary

• Creates a nonrefundable tax credit of $3,000 per qualified new employee, limited to $100,000 per small business, for taxable years 2013-2015.

• Qualified new employees must be individuals receiving unemployment benefits or military veterans hired full-time after December 31, 2012, and cannot be related to the business owner or previously employed by related businesses.

• Small businesses must employ more full-time employees on average during the taxable year than during their base employment period (January 1 - June 30, 2012) to claim the credit.

• Excess credits may be carried forward for up to three subsequent taxable years; businesses forfeit 50% of credits if the qualified new employee is terminated, laid off, reclassified to part-time, or the position is eliminated within 18 months of hire.

• Credit is effective January 1, 2013 (retroactive) and expires January 1, 2021.