Tax Credit for Small Businesses Hiring Military Spouses
This law establishes a new tax credit for small employers who hire spouses of members of the uniformed services. To qualify, employers must make these employees eligible for defined contribution plans within two months of hiring and immediately grant them nonforfeitable rights to employer contributions.
Key points
Small employers can receive up to a $500 annual tax credit for each eligible military spouse ($250 base plus up to $250 in employer contributions).
Military spouses must be eligible to participate in the retirement plan not later than 2 months after starting employment.
Military spouses must immediately have a nonforfeitable right to the accrued benefit derived from employer contributions.
The credit applies to the taxable year the individual began participating in the plan and the 2 succeeding taxable years.
Expired
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