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Payments, assistance & taxes

Veterans Employment Tax Credit

The City offers a tax credit for businesses that hire returning veterans of the armed forces.

Eligibility

A business will receive a tax credit for each qualifying employee* who has been employed by the business for more than six months. The tax credit is available for a total of 36 months of a qualifying veteran’s employment, whether the employee is full-time or part-time.

The amount of tax credit a business can receive for any one qualifying full-time employee is:

  • $5,000 multiplied by the percentage of the tax year that the employee was employed by the business.
  • Not allowed to exceed $15,000 total over all tax years.

The amount of tax credit a business can receive for any one qualifying part-time employee is:

  • $2,500 multiplied by the percentage of the tax year that the employee was employed by the business.
  • Not allowed to exceed $7,500 over all tax years.

One City tax credit per employee

A business is not eligible to receive the Returning Veterans tax credit for an employee if:

  • The business already receives a tax credit for the same employee under the New Job Creation Tax Credit Program; or
  • The business already receives a tax credit for the same employee under the Philadelphia Re-Entry Employment Program (PREP).

*You can find a full description of the Credit for Employment of Returning Veterans of the Armed Forces, including a definition of qualifying veterans, under Section 508 of the BIRT regulations.

Using the credit

Tax credits apply to the total Business Income and Receipts Tax (BIRT) liability of participating businesses. Any unused credit may be carried forward for three years from the date of hire of the qualifying employee.

Applying for the credit

Application forms are available through the resource links on this page. Application can also be submitted through the Philadelphia Tax Center:

  • Log into your https://tax-services.phila.gov,
  • Under the “Summary” tab, find your BIRT account,
  • Select the “Apply for credit programs” link on this screen,
  • Pick a program you wish to apply to,
  • Make sure to read the brief instruction before hitting “Next” to access the full application.

Follow the on-screen prompts to complete the process. Be sure to check all the eligibility requirements before applying for credits.


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