National Guard Hiring Tax Credit Program

The National Guard Hiring Tax Credit Program makes available a tax credit in the amount of $2,000 to businesses with less than 100 employees that hire active members of the Massachusetts National Guard.

General Information

The National Guard Hiring Tax Credit Program makes available a tax credit in the amount of $2,000 to employers with less than 100 employees that hire active members of the Massachusetts National Guard. Employers may apply for the credit up to two times per eligible employee.

Qualified Employer – An eligible employer is an individual or entity that:

• Conducts business in Massachusetts;
• Is subject to the Massachusetts unemployment insurance laws;
• Employs no more than 100 full-time employees;
• Is not debarred from doing business with the Commonwealth of Massachusetts; and
• Is not a unit of state, local, or federal government.

Qualified Employee – An eligible employee is an individual that:

• Is an active member of the Massachusetts National Guard in good standing;
• Is employed by the Qualified Employer for at least six (6) continuous months;
• Works at least 35 hours per week, without a termination date, and receives benefits at least equal to those provided to other full-time employees or works part time at least 18 hours per week and is currently enrolled in a higher education, vocational, or other acceptable educational program;
• Works in Massachusetts;
• Permanently resides in Massachusetts with no plans to return to a former home in another state; and
• Was hired on or after July 1, 2022

Application Requirements

A qualified employer may establish its eligibility to claim the National Guard Hiring Tax Credit by applying for and receiving a certification from the Massachusetts Office of Business Development (MOBD). Interested employers must submit an application for certification to MOBD that includes:

1. Qualified Employer - Information sufficient to establish that the applicant is a Qualified Employer, including:
   • Certificate of Good Standing from the Massachusetts Secretary of State;
   • Certificate of Good Standing from the Massachusetts Department of Revenue; and
   • Certificate of Compliance from the Massachusetts Department of Unemployment Assistance.
2. Qualified Employee - Information sufficient to establish that the employed individual meets the criteria of a Qualified Employee, including:
   • Memorandum from Massachusetts National Guard Unit stating the individual’s status and date of service in the Massachusetts National Guard; Must be obtained within six (6) months from the date the employee begins work.
   • Proof of employment indicating the employee is currently working and verification of dates of employment; and
   • (If applicable) Proof of Enrollment in Higher Education, vocational, or Other Acceptable Educational Program.

MOBD will accept applications for Certification beginning November 11, 2024 and thereafter will be accepted annually on a rolling basis, beginning January 1 of each year.

PLEASE NOTE: The Employee’s Memorandum in Good Standing from the Massachusetts National Guard must be obtained within six (6) months from the date the employee begins work.

Submit Your Application  Application Instructions 

Regulations

400 CMR 7.00 - National Guard Hiring Tax Credit

400 CMR 7.00 sets forth the procedures for establishing eligibility to claim the National Guard Hiring Tax Credit by applying for and receiving a Certification from MOBD, pursuant to M.G.L. c. 62, § 6(aa) and c. 63, § 38KK.

Review the Regulation 

830 CMR 63.38KK.1: National Guard Hiring Tax Credit

830 CMR 63.38KK.1 explains the general rules for calculating, and the tax ramifications of claiming, the Credit available pursuant to M.G.L. c. 62 § 6(aa) and M.G.L. c. 63 § 38KK.

Review the Regulation