An Act To Provide a Tax Credit to Employers That Hire Certain Veterans
Maine Legislature, Session 126, LD 0341
Committee: Taxation
Sponsors: WILSON, PLUMMER, DUNPHY, KNIGHT, MAKER, NADEAU, NUTTING, POULIOT, WILLETTE
Amends: 36 MRSA §5219-I

Legislative Document 
No. 341 
H.P. 246 
House of Representatives, February 12, 2013 
An Act To Provide a Tax Credit to Employers That Hire Certain 
Veterans 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative WILSON of Augusta. 
Cosponsored by Senator PLUMMER of Cumberland and 
Representatives: DUNPHY of Embden, KNIGHT of Livermore Falls, MAKER of Calais, 
McCLELLAN of Raymond, NADEAU of Fort Kent, NUTTING of Oakland, POULIOT of 
Augusta, WILLETTE of Mapleton. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5219-II is enacted to read: 
§5219-II.  Veterans employment tax credit 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Qualified compensation" means a stipend, hourly wage or salary paid for 
services rendered in an employment position held by a qualified veteran and excludes 
payment in a medium other than legal tender, such as meals provided at the 
employer's expense. 
B.  "Qualified employer" means an employing unit, as defined in Title 26, section 
1043, subsection 10, located in this State that hires and employs one or more 
qualified veterans. 
C.  "Qualified military service" means military service for which a veteran received 
the Afghanistan Campaign Medal, the Iraq Campaign Medal, the Global War on 
Terrorism Expeditionary Medal or the Global War on Terrorism Service Medal. 
D.  "Qualified veteran" means a person who is a resident of this State who engaged in 
qualified military service, or a nonresident who, as a member of the Maine National 
Guard, engaged in qualified military service, and who has provided to a qualified 
employer documentation showing that that person was honorably discharged or is a 
current member of the National Guard or Reserves of the United States Armed Forces 
and who was initially hired by the qualified employer on or after January 1, 2013 and 
prior to January 1, 2017. 
E.  "Sustained employment" means employment for a period that is not less than 185 
days during the taxable year. 
2.  Credit allowed.  For tax years beginning on or after January 1, 2013 but before 
January 1, 2017, a qualified employer is allowed a credit against the tax imposed by this 
Part subject to the qualifications in this subsection and the limitations in subsection 3. 
A.  The amount of the credit to which a qualified employer is entitled is 10% of the 
qualified compensation, up to $1,500, paid by the qualified employer to a qualified 
veteran in the course of sustained employment. 
B.  A qualified employer may claim the credit for the taxable year in which a 
qualified veteran is hired and for the 2 following taxable years of the qualified 
veteran's sustained employment. 
3.  Limitations.  The credit under this section may not reduce the tax otherwise due 
under this Part to less than zero. 
4.  Repeal.  This section is repealed January 1, 2019. 
SUMMARY 
This bill provides a nonrefundable income tax credit to qualified employers that hire 
qualified veterans in an amount equal to 10% of each veteran's compensation, up to 
$1,500, as long as the veteran is employed for not less than 185 days in the taxable year.  
The credit may be claimed in the taxable year in which a qualified veteran is hired and 
the 2 following taxable years of sustained employment.  The credit applies to veterans 
hired on or after January 1, 2013 and before January 1, 2017 and expires January 1, 2019.