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New York State Announces Upcoming Implementation of Tax Credit for Employers Hiring Post-9/11 Vetera

On November 11, 2013, Governor Andrew M. Cuomo announced the beginning of a promotional effort by New York State’s Division of Veterans’ Affairs to highlight a $74 million tax credit encouraging employers to hire New York’s post-9/11 veterans who are currently not employed.

The highlights of the tax credit are as follows:

  1. New York State has allocated $74 million in tax credits that can be applied against the taxes of any private business that hires a post 9/11 veteran after January 1, 2014 and before January 1, 2017 to a full time position of at least 35 hours per week for at least a year.

  2. The tax credit equals 10% of gross wages paid to a non-disabled veteran, and 15% of the gross wages paid to a disabled veteran for the 1st year of employment.

  3. The credit is capped at $5,000 for a non-disabled veteran and $15,000 for a disabled veteran.

  4. The one-time credit is applied against the 2015-2016 franchise tax years.  Any credit not used by an employer can be carried forward for three years.

  5. The veteran employee must be a new hire who had been unemployed for at least 6 months prior.

  6. An employer cannot fire an employee to replace him/her with a veteran.

This tax credit comes out at a very opportune time for federal contractors. The Office of Federal Contract Compliance Programs (OFCCP) has recently published new regulations in the Federal Register, effective March 24, 2014, setting a hiring benchmark of 8% for protected veterans for all federal contractors.

The tax credit will take effect on January 1, 2014, and is expected to incentivize employers to hire post-9/11 veterans and help reduce high unemployment rates among this population.

To view the entire announcement by Governor Cuomo, please visit Please do not hesitate to contact us with any questions.


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