Eligible businesses can also claim valuable tax credits for hiring veterans
New York – (RealEstateRama) — The New York State Department of Taxation and Finance today reminded veterans to take advantage of the valuable year-round tax exemptions and credits available to them, their families, and employers.
“We can never begin to repay the brave and selfless men and women who have served or currently serve in our military for their dedication and sacrifice to New Yorkers, our state, and our nation,” said Acting Commissioner of Taxation and Finance Nonie Manion. “These exemptions and credits are a form of appreciation for their role protecting the great freedoms we enjoy each day. I encourage all veterans to take advantage of these valuable programs.”
Property tax exemption
New York’s veterans are eligible for valuable property tax exemptions available from local governments statewide.
More than 500,000 New York veterans now benefit from property tax exemptions. The exemptions can reduce the property tax burden of a wartime veteran by 15%, or as much as 25% if the veteran served in a combat zone. Many local governments also offer a Cold War veterans exemption of up to 15% for veterans who served outside of a period of war between 1945 and 1991.
Both categories of exemption include an additional reduction of up to 50% if the veteran was disabled as a result of his or her military service.
Cities, towns, counties, and villages have long been able to offer veterans property tax exemptions. However, for most New Yorkers, school district taxes represent about two-thirds of the local property tax bill. To address this, in 2013, Governor Cuomo signed into law legislation authorizing school districts to offer property tax reductions for veterans. Of the 679 school districts statewide, 220 are now granting veterans’ exemptions.
Governor Cuomo also signed legislation this year extending to school districts the option to offer the Cold War veterans exemption.
In light of local differences in the types and amounts of exemptions offered and application deadlines, veterans should contact their local assessor’s office for details on how to obtain these valuable tax benefits. For local contact information, visit our Municipal Profiles website.
Hire a veteran credit
There are two state credits available to businesses that hire a veteran. The hire a veteran credit can be claimed by:
- corporations subject to franchise tax; or
- individuals, estates, and trusts taxable under personal income tax laws.
Employers that have hired veterans who began working between January 1, 2014, and January 1, 2016, may qualify for this state business tax credit worth as much as $15,000 per veteran. The veteran must have worked for one year or more for at least 35 hours each week.
Business owners may claim the credit in the tax year in which the qualified veteran completes one year of employment. The credit may be claimed for tax years beginning on or after January 1, 2015, but before January 1, 2017.
The amount of the credit is equal to 15% of the total wages paid to a disabled veteran during their first full year of employment. The credit is worth up to $15,000 per disabled veteran. For nondisabled veterans, the credit is equal to 10% of the total wages up to $5,000 per nondisabled veteran.
To claim the credit, the employer must have the veteran certify that he or she qualifies as an eligible veteran on form DTF-75.
For press inquiries only, contact: James Gazzale, 518-457-7377