This bill establishes tax credits under both the corporation business tax and the gross income tax for employers who hire qualified disabled veterans. Specifically, for privilege periods and taxable years commencing on or after January 1, 2023, and before January 1, 2026, employers can receive a credit equal to 15 percent of the qualified wages paid to a qualified disabled veteran, capped at $1,800 per veteran per year. A "qualified disabled veteran" is defined as a resident who has been honorably discharged from military service after January 1, 1990, and has a service-connected disability rating of 30 percent or greater. To qualify for the credit, the veteran must be employed for at least 185 business days during the relevant tax period.

The bill includes provisions to prevent misuse of the tax credits, such as disallowing credits for wages that are already included in other state tax calculations. Additionally, if a taxpayer is found to be displacing existing employees to hire qualified disabled veterans solely to obtain the credit, the credit will be denied, and penalties may be imposed. The bill also restricts the use of these credits in conjunction with other tax credits, ensuring that the total tax liability does not fall below statutory minimums. Unused credits can be carried forward for up to seven years, and taxpayers may apply for a tax credit transfer certificate, allowing them to sell or assign the credit to other taxpayers for at least 75 percent of the credit amount.