NC H1108

Establishes an income tax credit for small businesses that hire qualifying veterans, calculated at $1.90 per hour for all hours worked by qualifying veterans paid at least $12.00 per hour.

Defines qualifying veterans as those with honorable or honorable conditional discharge from any U.S. Armed Forces branch who have no felony convictions or have had all felony convictions expunged.

Limits the credit to small businesses with annual receipts not exceeding $1,000,000 and 12 or fewer employees working an average of 32 or more hours per week.

Restricts credit claims to the first year of a qualifying veteran's employment and allows unused credits to carry forward for five succeeding years.

Applies to both individual income tax (Part 1) and corporate income tax (Part 2) for taxable years beginning January 1, 2017 and expires for taxable years beginning January 1, 2019.