Hiring unemployed veterans - B&O tax and PUT credit

Available to:

Businesses hiring unemployed veterans located in Washington.

Qualifying activity:

Employ a qualified employee for a full-time position located in Washington for at least two consecutive full calendar quarters on or after Oct. 1, 2016 and before June 30, 2022.

Credit cap and end date:

• Individual cap - 20% of the wages and benefits paid to the qualified employee not to exceed $1,500 per qualified employee.
• Credits may be earned through June 30, 2022.
• No credits may be claimed after June 30, 2023.
• Credits are available on a first-in-time basis. Statewide cap - $500,000 per fiscal year. 

Reporting/documentation:

• You may claim the credit on your electronic excise tax return, if the qualified employee has been employed by you in Washington for at least two consecutive full calendar quarters.
• The amount of credit you claim during a reporting period cannot be more than the amount of your B&O tax and PUT owed during that period.
• Credits may be carried over until used, but must be claimed on returns filed no later than June 30, 2023.
• Credits will not be refunded.
• The online Annual Tax Performance Report is required by May 31 each year following the calendar year in which the tax incentive is claimed.

For questions about the credit, call Taxpayer Account Administration at 360-705-6214.