HB5246 Summary

• Creates a tax credit for qualified veterans who separate from military service during the tax year: $750 for single filers or $1,500 for joint returns where both spouses are qualified veterans.

• Reduces the credit by 10% for each $1,000 of adjusted gross income above $50,000, with the reduction starting at $50,000 in income.

• Defines "qualified veteran" as a person separated from military service who meets at least one condition: 20+ years of service, 100% permanent and total disability rating from VA, or eligibility for VA pension or retirement benefits.

• Excess credits that exceed a taxpayer's tax liability are not refunded.

• Effective for tax years beginning on and after January 1, 2020.