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CSSB 136(FIN): "An Act providing a tax credit for employing a veteran that may be taken against a liability for the tax on corporation income; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 136(FIN)                                                                   
01 "An Act providing a tax credit for employing a veteran that may be taken against a                                      
02 liability for the tax on corporation income; and providing for an effective date."                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 43.20 is amended by adding a new section to article 1 to read:                                     
05            Sec. 43.20.047. Veteran employment tax credit. (a) A taxpayer that hires a                                 
06       veteran and employs the veteran in the state is entitled to a credit under this section                           
07       against the tax due under this chapter. The taxpayer is entitled to the credit for each                           
08       veteran whose employment qualifies under this section.                                                            
09            (b)  To qualify as a veteran for the purposes of the credit under this section, the                          
10       veteran must have been unemployed for more than four weeks immediately preceding                                  
11       the date employment begins and must have been discharged or released from military                                
12       service                                                                                                           
13                 (1)  not more than 10 years before the date employment begins in the                                    
14       case of a veteran who is a disabled veteran; or                                                                   
01                 (2)  not more than two years before the date employment begins in the                                   
02       case of a veteran who is not a disabled veteran.                                                                  
03            (c)  The amount of credit that may be applied by a taxpayer for each qualifying                              
04       veteran under this section is,                                                                                    
05                 (1)  for a veteran employed for 1,560 hours or more during the 12                                       
06       consecutive months immediately following the date the veteran is first employed,                                  
07                      (A)  $3,000 for a disabled veteran; and                                                            
08                      (B)  $2,000 for a veteran who is not disabled;                                                     
09                 (2)  for a veteran employed for 600 hours or more in a seasonal position                                
10       during the five consecutive months immediately following the date the veteran is first                            
11       employed by an employer in a seasonal position, $1,000; an employer that hires a                                  
12       veteran for a seasonal position may take the credit under this paragraph only for the                             
13       first season in which the employer employs the veteran.                                                           
14            (d)  The tax credit under this section may be applied against the tax due under                              
15       this chapter for the first tax year ending on or after the end of the employment period                           
16       described in (c) of this section. The credit may not be used to reduce a person's tax                             
17       liability under this chapter below zero for any tax year, and any credit or portion of a                          
18       credit not used under this section may be applied in a later tax year.                                            
19            (e)  A taxpayer shall keep a record of the name of the veteran employee whose                                
20       employment is the basis for a credit under this section, documentation supporting the                             
21       employee's qualification as a veteran or disabled veteran, and the veteran employee's                             
22       hours employed and period of employment. The department may adopt a regulation                                    
23       that lists the documentation that must be maintained to support a claim that an                                   
24       employee qualifies as a veteran or disabled veteran for purposes of this section.                                 
25            (f)  In this section,                                                                                        
26                 (1)  "disabled veteran" has the meaning given in AS 39.25.159;                                          
27                 (2)  "seasonal position" means employment that is not intended to                                       
28       continue through an entire calendar year but recurs annually;                                                     
29                 (3)  "veteran" means an individual who served in the                                                    
30                      (A)  armed forces of the United States, including a reserve unit                                   
31            of the armed forces of the United States; or                                                                 
01                      (B)  Alaska Territorial Guard, the Alaska Army National Guard,                                     
02            the Alaska Air National Guard, or the Alaska Naval Militia.                                                  
03    * Sec. 2. This Act takes effect July 1, 2012.