MN HF2550

Allows taxpayers a state tax credit against individual income and corporate franchise taxes for employing qualified veterans under age 35, effective for taxable years beginning after December 31, 2015.

Defines "qualified veteran" using the same meaning as section 51 of the Internal Revenue Code and limits the credit to the portion of the federal credit allowed for employment of qualified veterans in Minnesota.

Credit equals the federal credit under section 51 of the Internal Revenue Code without regard to federal liability limitations, and applies regardless of whether the federal credit is allowed for wages paid in the taxable year.

Excess credit amounts exceeding tax liability can be carried forward to the next ten taxable years, applied first to the earliest applicable year.

Purpose of the tax expenditure is to incentive employers to hire returning veterans under age 35 who would otherwise be unemployed and to encourage their reintegration into the community, with effectiveness measured by the number of such veterans hired.