SB 136-INCOME TAX CREDIT FOR EMPLOYING A VETERAN  9:57:12 AM SENATOR WIELECHOWSKI announced the consideration of SB 136, which would provide a tax credit to Alaskan employers who hire a veteran. KENDRA KLOSTER, staff to Senator Bill Wielechowski, explained SB 136 is an income tax credit for employing a veteran. She related that veterans are some of the most highly trained, highly educated, and highly skilled workers. In June 2011, according to the U.S. Bureau of Labor Statistics, one million U.S. veterans were unemployed and the jobless rate for post-911 veterans was 13.3 percent. The picture was even worse for young, male veterans who saw an unemployment rate of 21.9 percent. The intention of the bill is a win-win situation; for businesses to receive a $2,000 tax credit for hiring veterans and for veterans to get employment. MS. KLOSTER explained that the $2,000 tax credit is for each veteran hired who works at least 1,560 hours within a 12-month period, or approximately 30 hours a week. The tax credit can be applied in the first year after 12-months of employment. SENATOR WIELECHOWSKI moved to adopt Amendment 1: 27-LS0983\I.1 Bullock AMENDMENT 1  OFFERED IN THE SENATE BY SENATOR WIELECHOWSKI TO: SB 136 Page 1, line 1: Delete "an Alaska" Insert "a" Page 1, lines 6 - 7: Delete "an Alaska veteran and employs the veteran" Insert "a veteran and employs the veteran in the state" Page 1, line 8: Delete "Alaska" Page 2, line 4: Delete "Alaska" Page 2, line 6: Delete "an Alaska veteran, and the Alaska" Insert "a veteran, and the veteran" Page 2, line 9: Delete "an Alaska" Insert "a" Page 2, line 10: Delete ""Alaska veteran" has the meaning given in AS 36.30.175" Insert ""veteran" means an individual who served in the (1) armed forces of the United States, including a reserve unit of the United States armed forces; or (2) Alaska Territorial Guard, the Alaska Army National Guard, the Alaska Air National Guard, or the Alaska Naval Militia" CHAIR WIELECHOWSKI objected for discussion purposes. MS. KLOSTER explained that Amendment 1 came about through conversations with the Tax Division in the Department of Revenue regarding the wording, "an Alaska veteran". The Department of Law also raised questions about that wording. A change was made to say "a veteran" instead. SENATOR WIELECHOWSKI withdrew his objection. Seeing no objection, Amendment 1 was adopted. 10:00:42 AM RIC DAVIDGE, President, Chapter 904, Vietnam Veterans of America, testified in support of SB 136. He reported on the recent success of the Vietnam Veterans of America in getting a veterans' jobs bill passed by Congress. The idea is to provide businesses and corporations with a tax credit for hiring veterans. The federal bill sets up a start point for a $2,400 tax credit. Currently, 48 states are considering the program or are doing it. He recommended a matching tax credit in Alaska of $2,600, which would provide a corporate tax credit totaling $5,000. He described the advantages of providing a tax credit to businesses. He said that Alaska has the highest per capita number of veterans in the U.S. with about 1,300-1,400 newly retired military annually. He urged the committee to pass the legislation with an increase to $2,600. 10:03:31 AM JOHANNA BALES, Deputy Director, Tax Division, Department of Revenue, offered to answer questions about SB 136. SENATOR WIELECHOWSKI asked if the fiscal note was an indeterminate or zero note. MS. BALES explained that it was indeterminate for the effect on income tax revenues. As the bill is written, for every $2,000 in credit, corporate income tax would decrease by that amount. The department is unable to determine how many veterans would be hired and how many corporations would take advantage of the credit. She noted that the Department of Revenue would be able to absorb any costs of this program with existing resources. SENATOR WIELECHOWSKI closed public testimony. SENATOR WIELECHOWSKI set SB 136 aside. SENATOR WIELECHOWSKI commented that veteran tax credit programs in other states are done in various ways. He welcomed suggestions.