Employers could be provided an income tax credit for hiring disabled or unemployed veterans.
Sponsored by Rep. Bob Gunther (R-Fairmont), HF120 specifies that a nonrefundable tax credit would be 10 percent of the wages paid to the veteran, with a maximum credit of $3,000 for each disabled veteran hired, and $1,500 for each unemployed veteran hired.
“It is our duty as a country and a state to help these veterans obtain employment when they return,” Gunther said.
Approved Tuesday by the House Veterans and Military Affairs Finance and Policy Division, it was sent to the House Taxes Committee. Its companion, SF300, sponsored by Sen. Michael Goggin (R-Red Wing), awaits action by the Senate Veterans and Military Affairs Finance and Policy Committee.
The tax credit would only be available to Minnesota employers hiring veterans who are Minnesota residents on the date of hire.
Many disabled veterans feel their disabilities are a hindrance to being hired, said Trent Dilks, legislative director of Disabled American Veterans of Minnesota.
As a result, a majority of disabled veterans say they are reluctant to disclose their disabilities to prospective employers, Dilks said.
“Anything that will allow us to engage employers to specifically help disabled veterans … can help change that narrative within our disabled veteran population,” he said.