Alaska Veteran Employment Tax Credit Instructions

Veteran Employment Tax Credit Instructions
Form 6325i
Instructions for Form 6325
Alaska Veteran Employment Tax Credit
GENERAL INSTRUCTIONS
Purpose of Form

Form 6325 is required for an employer to claim an income tax
credit for the employment of a veteran in the state.
Complete Form 6325 to claim an income tax credit on Form 6000,
6100, or 6150, or to report creditable activities on Form 6900
Alaska Partnership Information Return.
An employer may be eligible to claim an income tax credit for hiring
a veteran in the state. The amount of the credit is dependent on
whether the veteran is disabled, and whether the veteran is a
permanent hire or a seasonal hire. If a permanent hire, the law
requires that the veteran be employed for 1,560 hours or more
during the 12 consecutive months immediately following the date
the veteran is first employed. For a seasonal hire, the law requires
that the veteran be employed for 500 hours or more during the
three months immediately following the date the veteran is first
employed. The credit available is $3,000 for the permanent hire of
a disabled veteran and $2,000 for the permanent hire of a veteran
not disabled. A credit of $1,000 is available for the employment of
any veteran in a seasonal position.
The law imposes certain other requirements for the credit. The
employment of a veteran must start not more than two years
after discharge (in the case of a veteran not disabled) or 10 years
after discharge (in the case of a disabled veteran). The veteran
must have been unemployed for at least four weeks immediately
preceding the date employment begins.
The employer is required to maintain records to support its claim
of credit, including Form 6326 (see below) and a copy of the
veteran’s documentation to show the date that the veteran was
honorably discharged.

Other Related Forms

Form 6325 is a supplementary form that calculates the potential
credit to be ordered and limited on Form 6300 Alaska Incentive
Credits. Carryovers of the veteran employment tax credit are
reported directly on Form 6300. If the taxpayer is claiming a
carryover of the veteran employment tax credit, the employer must
attach a schedule of the carryover, showing amounts and tax years
in which the credit was generated, and the years of utilization. See
instructions for Form 6300 for more information.

SPECIFIC INSTRUCTIONS
Line 1: Report the name, social security number, discharge
date, and employment date of each veteran hired in a permanent
position, in columns A, B, C, and D, respectively. Column E is a
check-box to indicate whether the veteran is disabled. Enter the
dates in columns C and D in the format mm/dd/yyyy.
Enter in column F the number of hours that the veteran was
employed during the twelve months immediately following the date
the veteran is first employed. If the amount of hours employed is
less than 1,560, then no credit is available for that veteran. In
column G, enter the credit available if all requirements are met.
The credit is $3,000 for the employment of a disabled veteran in a
permanent position, or $2,000 for a veteran who is not disabled.
Additional Forms 6325 may be attached, if one Form 6325 is
inadequate to report all veterans hired. In this case, show the total
of all Forms 6325 on the first Form 6325 line 2, leaving line 2 blank
on subsequent Forms 6325.
Line 3: Report the name, social security number, discharge date,
and employment date of each veteran hired in a seasonal position,
in columns A, B, C, and D, respectively, in the same manner as
described above.
In column F, enter the number of hours that the veteran was
employed during the three months immediately following the date
the veteran is first employed. If the amount of hours employed
is less than 500, then no credit is available for that veteran. The
credit is $1,000 for the employment of a veteran in a seasonal
position.
If additional Forms 6325 are needed, show the total of all Forms
6325 on the first Form 6325, line 4, leaving line 4 blank on
subsequent Forms 6325.
Attach Form 6325 to Form 6000, 6100, or 6150, or Form 6900, as
appropriate.

Form 6326 Certificate of Qualifying Veteran is prepared and
signed by the qualifying veteran. The employer must secure the
certificate at the time of employment of the veteran, along with a
copy of the veteran’s federal Certificate of Discharge (DD 214 etc.)
showing that the veteran was honorably discharged. Do not send
Form 6326 or the Certificate of Discharge with the tax return.

If You Need Help

If you have questions, need additional information or require other
assistance, see our website at www.tax.alaska.gov, or call:
Juneau: 907-465-2320
Anchorage: 907-269-6620
0405-6325i Rev 02/05/19