Schedule J - West Virginia Military Incentives Credit Page 2
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Schedule
West Virginia Military Incentive Credit
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nformatIon
nstructIons
The purpose of the West Virginia Military Incentive Credit (formerly called the Veterans Employment Credit) is to
encourage the employment of veterans and members of the guard and reserve forces in the private sector. This would be
accomplished by providing tax credits to qualified employers providing employment to economically disadvantaged veterans,
disabled veterans and unemployed members of the West Virginia National Guard and United States Reserve forces.
ELIGIBLE TAXPAYERS
Eligibility for the Military Incentive Credit is limited to employers hiring individuals certified as eligible by the West
Virginia Division of Employment Security. The credit typically applies if the eligible individual is employed for a continuous
period of one year or more. Certain other restrictions and limitations also apply.
Tax credits will not be available to employers for any individual employed for less than one year of continuous employment.
However, if the individual voluntarily leaves employment with the employer; the individual becomes totally disabled and
unable to continue his employment; or the individual is terminated for good cause shown, the employer shall be entitled
to a partial tax credit in a proportional amount corresponding to the ratio of the time period during which the veteran was
actually employed.
The tax credit is not available for the employment of any individual who displaces a person already employed or for the
employment of any individual for whom the employer is receiving job training payments from either the federal or state
government.
AMOUNT OF CREDIT
For economically disadvantaged veterans hired, the credit available to the employer is 30% of the first $5,000.00 in wages or
compensation actually paid the employee. For disabled veterans, the credit is the percentage of disability multiplied by the
first $5,000.00 in wages or compensation actually paid the employee. For members of the West Virginia National Guard and
United States Reserve forces, the credit is 25% of the first $5,000.00 in wages or compensation actually paid the employee.
Classification
Percentage
x
Wage Base
= Credit
Disadvantaged Veteran
30%
x
$5,000.00
=$1,500.00
Disabled Veteran
Disability Percentage
x
$5,000.00
=$0.00 - $5,000.00
National Guard or Reserve
25%
x
$5,000.00
=$1,250.00
DEFINITIONS OF QUALIFIED EMPLOYEES
An “Economically Disadvantaged” veteran means a person who:
1. Receives, or is a member of a family which receives, cash welfare payments under a federal, state or local welfare
program;
2. Has been certified as eligible by the West Virginia Department of Employment Security and has been employed for
a continuous period of one year;
3. Has, or is a member of a family which has, received a total family income for the six months prior to application which,
in relation to family size, was not in excess of the high of:
a. The poverty level determined in accordance with criteria established by the federal office of management and
budget; or
b. Seventy percent of the lower living standard income; or
c. Is receiving food stamps pursuant to the food stamp act of 1977; or
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West Virginia Military Incentive Credit
Rev. 09-12
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