Establishes a returning veterans tax credit for businesses that hire veterans and disabled veterans; provides that such tax credit is worth $3,000 per veteran hired or $4,000 for every disabled veteran hired and the total benefit shall not exceed $15,000 annually.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9672
SPONSOR: Cashman TITLE OF BILL:
An act to amend the tax law, in relation to establishing a returning
veterans tax credit for businesses that hire veterans and disabled
veterans
PURPOSE:
To establish a returning veterans tax credit to encourage, businesses to
hire veterans and disabled veterans by providing a targeted tax incen-
tive tied to new employment.
SUMMARY OF PROVISIONS:
Section 1 amends section 210-B of the tax law by adding a new subdivi-
sion 63 to establish a returning veterans tax credit under the corporate
franchise tax. The credit is available to taxpayers who hire new veteran
or disabled veteran employees who meet specified hourly and retention
requirements. The credit equals three thousand dollars per hired veteran
and four thousand dollars per hired disabled veteran, subject to an
annual cap of fifteen thousand dollars per taxpayer. Unused credits may
be carried forward for up to ten taxable years but may not reduce tax
liability below zero. The section also defines key terms, including new
employee, base year, base employment, credit employment, veteran, and
disabled veteran.
Section 2 amends section 606 of the tax law to reference the newly
established corporate returning veterans tax credit.
Section 3 amends section 606 of the tax law by adding a new subsection
(www) to establish a corresponding personal income tax credit for hiring
veterans and disabled veterans, mirroring the eligibility criteria,
credit amounts, carryover provisions, and definitions set forth in
section 210-B.
Section 4 provides that the act shall take effect immediately and shall
apply to taxable years beginning on or after January 1, 2027, and to
employees hired after the effective date.
JUSTIFICATION:
The amended language of this bill creates a structured tax incentive to
support the employment of returning veterans and disabled veterans. By
tying eligibility to net job creation, minimum work hours, and sustained
employment, the credit is designed to promote long-term workforce
participation rather than short-term hiring. The higher credit amount
for disabled veterans recognizes additional employment barriers they may
face, while the carryforward provisions provide flexibility for employ-
ers with limited initial tax liability. This approach encourages
private-sector engagement in supporting veterans' reintegration into the
workforce.
LEGISLATIVE HISTORY:
01/27/25 referred to ways and means
09/08/25 enacting clause stricken
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2027.
STATE OF NEW YORK
________________________________________________________________________
9672
IN ASSEMBLY
January 21, 2026
___________
Introduced by M. of A. CASHMAN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a returning
veterans tax credit for businesses that hire veterans and disabled
veterans
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 63 to read as follows:
3 63. Returning veterans tax credit. (a) General. A taxpayer shall be
4 allowed a credit, to be computed as provided in this subdivision,
5 against the tax imposed by this article for each veteran or disabled
6 veteran hired during a taxable year, provided that:
7 (i) such veteran is a new employee and is employed for thirty-five
8 hours or more per week and remains in the employ of such taxpayer for
9 twelve months or more; or
10 (ii) such disabled veteran is a new employee who is employed for
11 seventeen and one-half hours or more per week and remains in the employ
12 of such taxpayer for twelve months or more.
13 (b) Amount of credit. A credit authorized by this section shall equal
14 three thousand dollars per hired veteran and four thousand dollars per
15 hired disabled veteran but shall not exceed fifteen thousand dollars
16 annually.
17 (c) Carryovers. The credit allowed under this subdivision may be
18 claimed and if not fully used in the initial year for which the credit
19 is claimed may be carried over, in order, to each of the ten succeeding
20 taxable years. The credit authorized by this subdivision may not be used
21 to reduce the tax liability of the credit claimant below zero.
22 (d) Definitions. As used in this subdivision, the following terms
23 shall have the following meanings:
24 (i) "New employee" shall mean any full time employee that causes the
25 total number of employees to increase above base employment or credit
26 employment, whichever is higher.
27 (ii) "Base year" shall mean calendar year two thousand twenty-six.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03038-03-6
A. 9672 2
1 (iii) "Base employment" shall mean the average number of full time
2 employees or full time equivalent employees during the base year. For a
3 new business, base employment shall begin at zero.
4 (iv) "Credit employment" shall mean base employment plus the number of
5 new employees for which a credit is earned for the prior tax years.
6 (v) "Veteran" shall have the same meaning as set forth in section
7 eighty-five of the civil service law.
8 (vi) "Disabled veteran" shall have the same meaning as set forth in
9 section eighty-five of the civil service law.
10 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
11 of the tax law is amended by adding a new clause (liii) to read as
12 follows:
13 (liii) Returning veterans taxCosts under subdivision
14 credit; subsection (www)sixty-three of section
15 two hundred ten-B
16 § 3. Section 606 of the tax law is amended by adding a new subsection
17 (www) to read as follows:
18 (www) Returning veterans tax credit. (1) General. A taxpayer shall be
19 allowed a credit, to be computed as provided in this subsection, against
20 the tax imposed by this article for each veteran or disabled veteran
21 hired during a taxable year, provided that:
22 (i) such veteran is a new employee and is employed for thirty-five
23 hours or more per week and remains in the employ of such taxpayer for
24 twelve months or more; or
25 (ii) such disabled veteran is a new employee and is employed for
26 seventeen and one-half hours or more per week and remains in the employ
27 of such taxpayer for twelve months or more.
28 (2) Amount of credit. A credit authorized by this section shall equal
29 three thousand dollars per hired veteran and four thousand dollars per
30 hired disabled veteran but shall not exceed fifteen thousand dollars
31 annually.
32 (3) Carryovers. The credit allowed under this subsection may be
33 claimed and if not fully used in the initial year for which the credit
34 is claimed may be carried over, in order, to each of the ten succeeding
35 taxable years. The credit authorized by this subsection may not be used
36 to reduce the tax liability of the credit claimant below zero.
37 (4) Definitions. As used in this subsection, the following terms shall
38 have the following meanings:
39 (i) "New employee" shall mean any full time employee that causes the
40 total number of employees to increase above base employment or credit
41 employment, whichever is higher.
42 (ii) "Base year" shall mean calendar year two thousand twenty-six.
43 (iii) "Base employment" shall mean the average number of full time
44 employees or full time equivalent employees during the base year. For a
45 new business, base employment shall begin at zero.
46 (iv) "Credit employment" shall mean base employment plus the number of
47 new employees for which a credit is earned for the prior tax years.
48 (v) "Veteran" shall have the same meaning as set forth in section
49 eighty-five of the civil service law.
50 (vi) "Disabled veteran" shall have the same meaning as set forth in
51 section eighty-five of the civil service law.
52 § 4. This act shall take effect immediately and shall apply to taxable
53 years beginning on or after January 1, 2027 and shall apply to those
54 employees hired after this act shall take effect.
