This bill introduces new tax credits for employers who hire veterans and military spouses, aiming to support these groups and reduce unemployment among them. Specifically, it establishes a credit equal to 20% of wages and benefits paid to qualified employees, capped at $3,000 per employee, effective from January 1, 2026. Employers must retain these employees for at least two consecutive full calendar quarters to claim the credit, which is available on a first-come, first-served basis, with a total cap of $5 million in credits per fiscal year. The bill also outlines conditions under which credits can be carried over and stipulates that no refunds will be granted for these credits.

Additionally, the bill includes a performance statement to evaluate the effectiveness of these tax preferences, emphasizing the legislature's intent to create jobs for veterans and military families. It specifies that if unemployment among these groups decreases by 10%, the legislative auditor may recommend extending the tax credit's expiration date, which is set for January 1, 2037. The bill also mandates that applications for credits must be submitted electronically, and it prohibits claiming credits under both the new sections and existing tax laws for the same employee.