Technical Information Release  TIR 24-15: Tax Provisions in An Act Honoring, Empowering, and Recognizing Our Servicemembers and Veterans

Date:	11/22/2024
Referenced Sources:	Massachusetts General Laws

This Technical Information Release (“TIR”) explains provisions included in An Act Honoring, Empowering, and Recognizing Our Servicemembers and Veterans (the “Act”)^[1] relating to the excise tax on registered motor vehicles, G.L. c. 60A, the personal income tax, G.L. c. 62, the corporate excise, G.L. c. 63, and the sales and use tax on motor vehicles, G.L. c. 64H.

The following statutory amendments are discussed in this TIR:

• A change to the determination of whether a disabled service member is eligible for the exemption from the motor vehicle excise;
• Changes to the Qualified Veterans Hire Tax Credit, which consist of: (i) an increase in the amount of the annual credit awarded to employers per qualified veteran hired; and (ii) an extension of the deadline for employers to receive the requisite certification from the Department of Career Services that the employee for whom the employer is claiming the credit is a qualified veteran; and
• A change to the motor vehicle license plate requirement for the G.L. 64H, § 6(u) sales tax exemption.

A. Change to the Determination of Whether a Disabled Service Member is Eligible for the Exemption from the Motor Vehicle Excise Tax

General Laws c. 60A imposes an excise on the value of motor vehicles owned and registered in Massachusetts for the privilege of such registration. Motor vehicles owned by certain types of individuals or entities are exempt from the excise.^[2] Among the exemptions are motor vehicles owned and registered by, or leased to, certain disabled veterans.^[3] Prior to the Act, the exemption applied to veterans who were determined to be permanently disabled by the Medical Advisory Board established under G.L. c. 90 § 8C.^[4]

Pursuant to section 24 of the Act, the Medical Advisory Board no longer determines whether a veteran is permanently disabled for the purposes of the exemption.^[5] Effective August 8, 2024, the Act replaces the phrase “has been determined by the medical advisory board… to be permanently disabled” with “has been determined by the United States Department of Veterans Affairs to: (i) have a combined service-connected disability rating of 100 per cent; or (ii) be individually unemployable due to their service-connected disability.”^[6] 

B. Changes to the Qualified Veterans Hire Tax Credit

General Laws c. 62 § 6(u) and c. 63 § 38GG provide for non-refundable, non-transferrable tax credits for certain employers located in Massachusetts that hire qualified veterans.^[7]

Prior to the Act, the credit was equal to $2,000 for each qualified veteran hired.^[8] Sections 25 and 27 of the Act amend G.L. c. 62, § 6(u)(4) and G.L. c. 63, § 38GG(d), respectively, effective for taxable years beginning on or after January 1, 2024,^[9] to increase the amount of the credit per qualified veteran hired from $2,000 to $2,500.

Furthermore, prior to the Act, to be eligible to claim the credit, an employer was required to obtain “the applicable certification from the Department of Career Services… that the individual [hired] is a qualified veteran … not later than the day [the qualified veteran] begins work.”^[10] Sections 26 and 28 of the Act amend G.L. c. 62, § 6(u)(2) and G.L. c. 63, § GG(b), respectively, effective for qualified veterans hired on or after August 1, 2024, to allow employers up to 6 months after the qualified veteran employee begins work to obtain the requisite certification from the Department of Career Services.

C. Change to the Motor Vehicle License Plate Requirement for the G.L. 64H, § 6(u) Sales Tax Exemption

General Laws c. 64H § 6(u) provides a sales tax exemption for certain disabled veterans purchasing motor vehicles. Prior to the Act, the exemption applied to the sale of a “motor vehicle purchased by and for the use of… a veteran who has been determined to be permanently disabled by the medical advisory board… and has been issued a disabled veteran number plate under” G.L. c. 90 § 2.^[11]  Section 29 of the Act changes the exemption requirement, making it available to taxpayers who have been issued a motor vehicle license plate “displaying the words ‘Disabled Veteran’ or a Purple Heart distinctive registration plate.” This change to the eligibility requirements for the exemption is effective for purchases made on or after February 8, 2025 (i.e., six months after the effective date of the Act).^[12]

                                                                                    /s/Geoffrey E. Snyder
                                                                                    Geoffrey E. Snyder
                                                                                    Commissioner of Revenue
 

GES:RHF:jjt

November 22, 2024

TIR 24-15

[1] St. 2024, c. 178 (the “Act”).

[2] G.L. c. 60A § 1.

[3] Id.

[4] Id.

[5] See the Act § 24.

[6] G.L. c. 60A § 1, as amended by the Act § 24. 

[7] G.L. c. 62 § 6(u) and G.L. c. 63 § 38GG list the eligibility criteria that must be met for employers and qualified veteran employees for purposes claiming the credit. See also, Technical Information Release 17-10.

[8] G.L. c. 62 § 6(u)(4); G.L. c. 63 § 38GG(d).

[9] The Act, § 153.

[10] G.L. c. 62 § 6(u)(2); G.L. c. 63 § 38GG(b).

[11] G.L. c. 64H § 6(u).

[12] The Act § 154.