Veteran Hire Tax Credit — $2,500 per qualified veteran, for two years
$2,500 per qualified veteran per tax year, up to 2 sequential years
Not a veteran-owned-business benefit; a benefit for any Massachusetts small business — including yours — that hires a qualifying veteran. $2,500 per veteran per tax year, claimable twice in sequential years for the same hire. The catches, in order of how often they bite: "qualified veteran" is the federal WOTC definition, so the veteran has to hit one of four specific circumstances, not merely be a veteran; the Executive Office of Veterans Services must certify both the veteran and your business before you get access; the credit is neither refundable nor transferable, so it is worth nothing in a year you owe nothing; and the whole program is capped at $1,000,000 statewide, first-come first-served. That last one is the sleeper — the credit runs out.
Who qualifiesEmployer: conducts business in Massachusetts, 100 or fewer full-time employees, not a government unit, not debarred, in good standing. Veteran: lives in Massachusetts and meets ONE of — family received SNAP for at least 3 months in the prior year, unemployed at least 4 weeks in the prior year, service-connected disability and hired within one year of leaving the military, or service-connected disability and unemployed 6 months in the prior year.
Source: Massachusetts Executive Office of Veterans Services — Veteran Hire Tax Credit FAQs · verified 2026-08-12