AN ACT CONCERNING TROOPS-TO-TRADES INITIATIVES.

House of Representatives
sHB5409 / File No. 149 1

General Assembly File No. 149
February Session, 2026 Substitute House Bill No. 5409

House of Representatives, March 24, 2026

The Committee on Veterans' and Military Affairs reported
through REP. FOSTER of the 57th Dist., Chairperson of the
Committee on the part of the House, that the substitute bill
ought to pass.

AN ACT CONCERNING TROOPS-TO-TRADES INITIATIVES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) ( Effective October 1, 2026 ) (a) (1) Not later than 1
January 1, 2027, and thereafter in accordance with the findings of the 2
study described in subsection (b) of this section, the Labor 3
Commissioner shall update the informational web page, hosted on the 4
Internet web site of the Labor Department, which serves as a central 5
repository of information, resources and materials, including links to 6
external sources of such information, resources and materials, regarding 7
job training, career counseling, workforce development organizations, 8
employers who are veteran and military -friendly or who establish and 9
commit to meeting targets for the hiring of veterans and current and 10
former members of the armed forces, and other topics relevant to the 11
state's population of current and former members of the armed forces 12
who may be transitioning from military service to a professional 13
occupation in the civilian workforce. On and after January 1, 2027, the 14
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commissioner shall (A) post in a conspicuous location on such 15
informational web page details of relevant employment assistance 16
programming administered by the Military Department, as described in 17
subsection (a) of section 2 of this act, and the job fair conducted by the 18
Department of Veterans Affairs, as described in subsection (b) of section 19
3 of this act, and (B) undertake efforts to optimize the visibility of such 20
informational web page in Internet search engine results. 21
(2) On and after January 1, 2027, the Labor Commissioner, in 22
consultation with the Commissioner of Veterans Affairs and the 23
Adjutant General, shall annually solicit known and reputable providers 24
of the information, resources and materials described in subdivision (1) 25
of this subsection for items to be included on the informational web page 26
described in said subdivision. 27
(b) (1) Not later than January 1, 2028, the Labor Commissioner shall 28
study models from other states within the northeastern region of the 29
United States that deploy technology, including, but not limited to, 30
artificial intelligence, as defined in section 4 -68jj of the general statutes, 31
to connect current and former members of the armed forces with 32
prospective employers based on such members' military occupational 33
specialties, educational backgrounds and professional backgrounds. 34
The commissioner shall use the findings from such study to update the 35
informational web page described in subdivision (1) of subsection (a) of 36
this section. 37
(2) Not later than February 1, 2028, the Labor Commissioner shall 38
submit a report on the commissioner's findings and recommendations 39
to the joint standing committee of the General Assembly having 40
cognizance of matters relating to veterans' and military affairs, in 41
accordance with the provisions of section 11-4a of the general statutes. 42
(c) (1) On and after January 1, 2027, the Commissioner of Veterans 43
Affairs shall send a biweekly electronic mail newsletter, containing 44
relevant resources and materials included on the informational web 45
page described in subdivision (1) of subsection (a) of this section, to 46
interested recipients. The Labor Commissioner shall make available on 47
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such informational page a form through which interested persons can 48
request to receive such biweekly electronic mail newsletter, and shall 49
each month forward to the Commissioner of Veterans Affairs the 50
electronic mail addresses of those interested recipients who have made 51
such request during the preceding month. 52
(2) On and after January 1, 2027, the Commissioner of Veterans 53
Affairs shall post in a conspicuous location on the Internet web site of 54
the Department of Veterans Affairs a link to the informational web page 55
described in subdivision (1) of subsection (a) of this section. 56
Sec. 2. (NEW) ( Effective October 1, 2026) (a) Not later than January 1, 57
2028, the Adjutant General, in consultation with the Labor 58
Commissioner and within existing resources, shall increase promotion 59
of, and periodically make improvements to, the state -based 60
employment assistance program developed and administered by the 61
Military Department for the provision of advice and information to 62
current and former members of the armed forces, including members of 63
any reserve component thereof, and of the National Guard, who are 64
considering available educational and occupational opportunities. The 65
Adjutant General and the Labor Commissioner shall tailor such 66
promotion and improvements to better supplement the federal 67
transition assistance program administered by the United States 68
Department of Defense. 69
(b) On and after January 1, 2027, at each inactive duty training 70
weekend conducted in the state by any reserve component of the armed 71
forces or by the National Guard, the Adjutant General shall post, in 72
conspicuous locations throughout the site of such inactive duty training 73
weekend, signage containing a quick response code that current 74
members of such reserve component or the National Guard can use to 75
access the informational web page described in subdivision (1) of 76
subsection (a) of section 1 of this act. 77
Sec. 3. (NEW) ( Effective October 1, 2026 ) (a) The Commissioner of 78
Veterans Affairs shall hold, annually and at locations throughout the 79
state, a one -day "Stand Down" event that offers services, supplies or 80
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assistance to any veteran. 81
(b) On and after January 1, 2028, the Commissioner of Veterans 82
Affairs shall include, as part of an event described in subsection (a) of 83
this section, a job fair to promote employment of current and former 84
members of the armed forces, including members of any reserve 85
component thereof, and of the National Guard. In holding such job fair, 86
the Commissioner of Veterans Affairs may coordinate with the Labor 87
Commissioner to invite representatives of employers in the state to 88
attend and present at such job fair for purposes of providing 89
information about prospective employment opportunities with such 90
employers. The Commissioner of Veterans Affairs shall publicize such 91
job fair on the Internet web site of the Department of Veterans Affairs 92
and shall include information about such job fair in the biweekly 93
electronic mail newsletter described in subdivision (1) of subsection (c) 94
of section 1 of this act. 95
Sec. 4. Section 14 -11k of the 2026 supplement to the general statutes 96
is repealed and the following is substituted in lieu thereof (Effective 97
October 1, 2026): 98
(a) As used in this section, "veteran" means a veteran, as defined in 99
section 14 -36h, who has verification from the Department of Veteran 100
Affairs that such person or member is a veteran. 101
(b) Notwithstanding the provisions of subsection (a) of section 1 -1h, 102
subsection (a) of section 14 -41 and subsection (a) of section 14 -50a 103
concerning fees, the Commissioner of Motor Vehicles shall waive the fee 104
for a motor vehicle operator's license or an identity card renewal or 105
duplication for any applicant who is a veteran while attending [a one-106
day event that offers services, supplies or assistance to veterans and is 107
hosted by the Department of Veteran Affairs ] an event described in 108
subsection (a) of section 3 of this act . For any such renewal application 109
made earlier than six months prior to the date on which an applicant's 110
motor vehicle operator's license or identity card expires, the 111
commissioner shall issue to such applicant a voucher entitling such 112
applicant to renewal of such applicant's motor vehicle operator's license 113
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or identity card, free of charge, during such six-month period. 114
Sec. 5. ( Effective from passage ) (a) Not later than August 1, 2026, the 115
Commissioner of Economic and Community Development shall consult 116
with the Labor Commissioner, the Commissioner of Veterans Affairs 117
and any other official, organization or entity the Commissioner of 118
Economic and Community Development deems appropriate for the 119
purpose of developing legislative recommendations for promoting 120
employment in the state of current and former members of the armed 121
forces, including members of any reserve component thereof, and of the 122
National Guard. In developing such legislative recommendations, the 123
Commissioner of Economic Development may examine the efficacy of 124
various incentives, including, but not limited to, tax credits, wage 125
subsidies and reimbursements for training. 126
(b) Not later than January 15, 2027, the Commissioner of Economic 127
and Community Development shall submit a report containing the 128
legislative recommendations developed pursuant to subsection (a) of 129
this section to the joint standing committees of the General Assembly 130
having cognizance of matters relating to labor, veterans' and military 131
affairs and commerce, in accordance with the provisions of section 11 -132
4a of the general statutes. 133
Sec. 6. (NEW) ( Effective January 1, 2027, and applicable to income years 134
commencing on or after January 1, 2027) (a) As used in this section: 135
(1) "Armed forces" has the same meaning as provided in section 27 -136
103 of the general statutes; 137
(2) "Commissioner" means the Commissioner of Economic and 138
Community Development; 139
(3) "Control", with respect to a corporation, means ownership, 140
directly or indirectly, of stock possessing fifty per cent or more of the 141
total combined voting power of all classes of the stock of such 142
corporation entitled to vote. "Control", with respect to a trust, means 143
ownership, directly or indirectly, of fifty per cent or more of the 144
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beneficial interest in the principal or income of such trust. The 145
ownership of stock in a corporation, of a capital or profits interest in a 146
partnership, limited liability company or association or of a beneficial 147
interest in a trust shall be determined in accordance with the rules for 148
constructive ownership of stock provided in Section 267(c) of the 149
Internal Revenue Code of 1986, or any subsequent corresponding 150
internal revenue code of the United States, as amended from time to 151
time, other than paragraph (3) of said Section 267(c); 152
(4) "Full-time job" means a job in which an employee is required to 153
work at least thirty -five hours per week for not less than forty -eight 154
weeks in a calendar year. "Full -time job" does not include a temporary 155
or seasonal job; 156
(5) "Income year" means, with respect to entities subject to the 157
insurance premiums tax under chapter 207 of the general statutes, the 158
corporation business tax under chapter 208 of the general statutes, the 159
utility companies tax under chapter 212 of the general statutes or the 160
income tax under chapter 229 of the general statutes, the income year as 161
determined under each of said chapters, as the case may be; 162
(6) "New employee" means a person who resides in the state and is 163
hired by a taxpayer on or after January 1, 2027, to fill a new job. "New 164
employee" does not include a person who was employed in the state by 165
a related person with respect to a taxpayer during the prior twelve 166
months; 167
(7) "New job" means a job that did not exist in the state prior to a 168
taxpayer's application to the commissioner for certification under this 169
section for a job expansion tax credit, is filled by a veteran employee and 170
is a full-time job; 171
(8) "Related person" means (A) a corporation, limited liability 172
company, partnership, association or trust controlled by the taxpayer, 173
(B) an individual, corporation, limited liability company, partnership, 174
association or trust that is in control of the taxpayer, (C) a corporation, 175
limited liability company, partnership, association or trust controlled by 176
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an individual, corporation, limited liability company, partnership, 177
association or trust that is in control of the taxpayer, or (D) a member of 178
the same controlled group as the taxpayer; 179
(9) "Taxpayer" means a person that (A) has been in business for at 180
least twelve consecutive months prior to the date of the taxpayer's 181
application to the commissioner for certification under this section for a 182
job expansion tax credit, and (B) is subject to tax under chapter 207, 208, 183
212 or 229 of the general statutes; 184
(10) "Veteran" has the same meaning as provided in section 27-103 of 185
the general statutes; and 186
(11) "Veteran employee" means a new employee who, at the time of 187
hiring by the taxpayer, is (A) a current or former member of the armed 188
forces, or (B) a veteran. 189
(b) (1) There is established a job expansion tax credit program 190
whereby a taxpayer may be allowed a credit against the tax imposed 191
under chapter 207, 208, 212 or 229 of the general statutes, other than the 192
liability imposed by section 12 -707 of the general statutes, for each 193
veteran employee hired on or after January 1, 2027. For taxpayers that 194
employ not more than fifty employees in full -time jobs in the state on 195
the date of application to the commissioner for certification under this 196
section, the creation of at least one new job in the state shall be required 197
for such tax credit. For taxpayers that employ more than fifty, but not 198
more than one hundred employees in full -time jobs in the state on the 199
date of application to the commissioner for certification under this 200
section, the creation of at least five new jobs in the state shall be required 201
for such tax credit. For taxpayers that employ more than one hundred 202
employees in full-time jobs in the state on the date of application to the 203
commissioner for certification under this section, the creation of at least 204
ten new jobs in the state shall be required for such tax credit. 205
(2) For the purposes of determining the number of new jobs a 206
taxpayer is required to create in order to claim a credit under this 207
section, the number of employees working in full-time jobs the taxpayer 208
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employs in the state on the date of its application to the commissioner 209
for certification under this section shall apply to such taxpayer for the 210
duration of such certification. 211
(c) The credit shall be in a one -time amount of two thousand five 212
hundred dollars for each veteran employee hired on or after January 1, 213
2027. 214
(d) (1) The taxpayer shall claim the credit in the income year in which 215
it is earned and, if eligible, in the two immediately succeeding income 216
years. Any credit not claimed by the taxpayer in an income year shall 217
expire and shall not be refundable. 218
(2) If the taxpayer is an S corporation or an entity treated as a 219
partnership for federal income tax purposes, the shareholders or 220
partners of such taxpayer may claim the credit. If the taxpayer is a single 221
member limited liability company that is disregarded as an entity 222
separate from its owner, the limited liability company's owner may 223
claim the credit. 224
(3) No taxpayer shall claim a credit for any veteran employee who is 225
an owner, member or partner in the business or who is not employed by 226
the taxpayer at the close of the taxpayer's income year. 227
(4) No taxpayer claiming the credit under this section with respect to 228
a veteran employee shall claim any credit against any tax under any 229
other provision of the general statutes with respect to the same veteran 230
employee. 231
(e) (1) To be eligible to claim the credit, a taxpayer shall apply to the 232
commissioner in accordance with the provisions of this section. The 233
application shall be on a form provided by the commissioner and shall 234
contain sufficient information as required by the commissioner, 235
including, but not limited to, the activities that the taxpayer primarily 236
engages in, the North American Industrial Classification System code of 237
the taxpayer, the current number of employees employed by the 238
taxpayer as of the application date, and, if applicable, the name and 239
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position or job title of the veteran employee. The commissioner shall 240
consult with the Commissioner of Veterans Affairs for any verification 241
the commissioner deems necessary of service in the armed forces of the 242
United States by a veteran employee. The commissioner may impose a 243
fee for such application as the commissioner deems appropriate. 244
(2) (A) Upon receipt of an application, the commissioner shall render 245
a decision, in writing, on each completed application not later than 246
thirty days after the date of its receipt by the commissioner. If the 247
commissioner approves such application, the commissioner shall issue 248
a certification letter to the taxpayer indicating that the credit will be 249
available to be claimed by the taxpayer if the taxpayer and the veteran 250
employee otherwise meet the requirements of this section. 251
(B) On and after January 1, 2027, the commissioner shall render a 252
decision upon such completed applications and, if approved, issue such 253
certification letters, as provided in subparagraph (A) of this subdivision, 254
that pertain to veteran employees who meet the requirements of this 255
section, and with respect to whom credits pursuant to this section have 256
previously been granted. 257
(f) The total amount of credits granted under this section shall not 258
exceed one million dollars in any one fiscal year. 259
(g) No credit allowed under this section shall exceed the amount of 260
tax imposed on a taxpayer under chapter 207, 208, 212 or 229 of the 261
general statutes. The commissioner shall annually provide to the 262
Commissioner of Revenue Services a list detailing all credits that have 263
been approved and all taxpayers that have been issued a certification 264
letter under this section. 265
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section
Sec. 2 October 1, 2026 New section
Sec. 3 October 1, 2026 New section
Sec. 4 October 1, 2026 14-11k
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Sec. 5 from passage New section
Sec. 6 January 1, 2027, and
applicable to income years
commencing on or after
January 1, 2027
New section

Statement of Legislative Commissioners:
In Section 1(a)(1)(A), "conspicuously post" was changed to "post in a
conspicuous location", for clarity, and "section 3 of this act" and "section
4 of this act" were changed to "subsection (a) of section 2 of this act" and
"subsection (b) of section 3 of this act", respectively, for accuracy; in
Section 1(b)(1), "the region" was changed to "the northeastern region of
the United States", for accuracy; in Section 1(c)(2), "conspicuously post"
was changed to "post in a conspicuous location", for clarity; in Section
3(b), "subsection (a) of this act " was changed to "subsection (a) of this
section", for accuracy; in Section 5(b), "economic development" was
changed to "commerce", for statutory consistency; and in Section 6(e)(1),
", of any such veteran employee's disability rating or any such veteran
employee's status as to discharge or release, as applicable, from the
armed forces" was deleted, for consistency with other provisions of the
section.

VA Joint Favorable Subst.

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Labor Dept. GF - Cost None Up to
100,000
Military Dept. GF - Potential
Cost
None Up to
224,963
State Comptroller - Fringe
Benefits1
GF - Potential
Cost
None Up to
89,898
Vet. Affairs, Dept. GF - Cost 50,000 50,000
Department of Revenue Services GF - Potential
Revenue Loss
None Up to 1
million
Department of Economic &
Community Development
GF - Potential
Cost
34,750 69,000
Note: GF=General Fund

Municipal Impact: None
Explanation
The bill places various requirements related to current and former
armed forces members on several state agencies and results in the fiscal
impacts described below.
Section 1 establishes several requirements for the Department of
Labor related to veteran and military member career support, including
a study of models from other states in the region that deploy technology
to connect such individuals with prospective employers. This results in
a cost of up to $100,000 in FY 28 for the hiring of a consultant to conduct

1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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such study.
Section 2 requires the Military Department to increase promotion of
and periodically improve its employment assistance program, resulting
in a potential cost to the Military Department of up to $ 224,963 and a
potential cost to the State Comptroller of up to $89,898 beginning in FY
28. Depending on the extent to which the department improves and
promotes the program and how many transitioning servicemembers
participate, the department may need to hire one Program Manager and
one Executive Assistant II.2 Costs of equipment and supplies for these
positions are not expected to exceed $10,000 annually.
Section 3 requires the Department of Veterans Affairs (DVA) to hold
an annual “Stand Down” event at multiple locations around the state,
which must include a job fair to promote the hiring of current and
former members of the armed services, reserves, and National Guard.
DVA currently hol ds six such annual events around the state that
include employers and workforce development providers. These
events are currently funded through the agency’s Institutional General
Welfare Fund. 3 Due to the depletion of this fund, it is estimated that
DVA will require $50,000 beginning in FY 27 to continue to sponsor
“Stand Down” events.
Section 4 makes a technical change that does not result in a fiscal
impact.
Section 5 requires the Department of Economic and Community
Development (DECD) to develop legislative recommendations for
promoting in-state employment of armed forces members and has no
fiscal impact. It is anticipated that DECD can produce these
recommendations within existing resources.
Section 6 establishes a veterans' job tax credit program and results in

2 The starting salaries for these positions are $98,695 and $116,268, respectively. The
total estimated fringe benefits cost for these positions is $89,898.
3 This fund is currently supported via fees from residents at the Veterans' Home and
private monetary donations made to the state for veterans.
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a potential revenue loss of up to $1 million annually as early as FY 28. 4
The actual magnitude and timing of the revenue loss depends on the
timing and number of qualifying jobs created. A similar expired tax
credit program (the Job Expansion Tax Credit) resulted in credits being
claimed for approximately 50 military jobs annually from 2012 through
2014.
The section also results in a potential cost of $34,750 to DECD in FY
27 and $69,500 annually thereafter to administer the Job Expansion Tax
Credit program. It is anticipated that DECD will require one part -time
(0.5 FTE) position at an annualized cost of $49,000 in salary and $20,500
in fringes to manage applications and approvals for tax credits under
the program which is capped at $1 million per year. The bill allows
DECD to charge an application fee which may partially or fully offset
the cost to administer this program.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the scale of improvement to and
promotion of the Military Department's employment assistance
program and inflation.

4 The total amount of credits is capped at a total of $1 million annually. Each credit is
a one-time amount of $2,500 per qualifying veteran job created.
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OLR Bill Analysis
sHB 5409

AN ACT CONCERNING TROOPS-TO-TRADES INITIATIVES.

SUMMARY
This bill establishes a job expansion tax credit program and various
requirements and initiatives to assist current and former armed forces
members transition into the civilian workforce.
Under the bill, the program gives a tax credit to businesses that create
new jobs for veterans. It allows employers a $2,500 credit for each
veteran hired, with a maximum of $1 million each fiscal year of the
program.
Among other things, the bill also requires the:
1. Department of Labor (DOL) to (a) update its informational
webpage with certain relevant information and resources for
those transitioning from the military to the civilian workforce
and (b) study models from other states that use technology to
connect armed forces members with prospective employers;
2. adjutant general, to (a) increase promotion of, and periodically
improve the Military Department ’s employment assistance
program and (b) post certain signs at weekend trainings;
3. Department of Veterans Affairs (DVA) commissioner to (a) send
a biweekly email with certain job -related information and (b)
annually hold a one-day “Stand Down” event that offers services,
supplies, or assistance to any veteran; and
4. Department of Economic and Community Development (DECD)
commissioner to develop legislative recommendations for
promoting in-state employment of armed forces members.
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EFFECTIVE DATE: October 1, 2026, except the legislative
recommendation provision is effective upon passage, and the tax credit
program is effective January 1, 2027, and applicable to income years
commencing on or after that date.
§ 6 — JOB EXPANSION TAX CREDIT
The bill establishes a job expansion tax credit program , substantially
similar to a program that ended on January 1, 2014, where a business
that hires veteran employees on or after January 1, 2027, is allowed to
credit against the insurance premium, corporation business, utility
company, or personal income tax, but not the withholding tax.
It allows businesses a one-time $2,500 credit for each veteran hired,
with a maximum of $1 million each fiscal year for the program.
Businesses claiming a job expansion tax credit for a new hire cannot
count the veteran toward other credits the law allows.
For the tax credit , a veteran employee is (1) any current or former
member of the armed forces or (2) anyone honorably discharged or
released under honorable conditions, or released with an other than
honorable (OTH) discharge based on a qualifying condition, from active
service in the armed forces (the U.S. Army, Navy, Marine Corps, Coast
Guard, Space Fo rce, Air Force, and any of their reserve components,
including the Connecticut National Guard when under federal service)
(CGS § 27- 103).
Eligible Companies and Jobs
Under the bill, a business qualifies for the credit only for new jobs for
veteran employees it creates after January 1, 2027. The business must (1)
have been in business for 12 consecutive months prior to its credit
application and (2) be subject to any of the taxes to which the credit
applies. In addition, the job to which the credit applies must (1) not have
existed in Connecticut before the application and (2) be filled by a
veteran employee at full-time, which does not include a temporary or
seasonal job.
Businesses with 50 or fewer employees in the state qualify for the
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credit if they create at least one new job; those with 51 to 100 employees,
if they create at least five; and those with more than 100 employees, at
least 10. The number of full-time employees the business employs in
Connecticut is calculated based on when the business applies for the
credit, which applies for the credit certificate’s duration.
The job must require a new employee to work at least 35 hours per
week for at least 48 weeks per calendar year.
A business cannot count a veteran employee as new if the employee
1. owns the business or is a member or partner in it,
2. no longer works for the business at the end of its income year, or
3. worked in Connecticut for a related business during the previous
12 months.
An employee worked for a related business if:
1. the business where the veteran formerly worked controls the
business that subsequently hired him,
2. the business that hired the veteran controls the business where
he or she previously worked,
3. the business where the veteran worked is part of a larger business
entity that also controls the business that hired him or her, or
4. both businesses belong to the same group of controlled
businesses.
A company is “controlled” by someone if the person directly or
indirectly owns more than 50% of the combined voting power of all
classes of its stock. In the case of a trust, control means owning 50% or
more of the beneficial interest of the trust ’s principal or income.
Ownership is determined as outlined in federal income tax law.
Application and Approval Procedure
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To claim the credits, businesses must apply to DECD for a
certification letter. The business must use a DECD form and give DECD
enough information to determine its eligibility. The information must
(1) describe the business ’ activities; (2) indicate its North American
Industrial Classification System (NAICS) code; (3) specify the number
of people employed as of the application date; and, if applicable, (4)
identify the new hire’s name and job title or classification.
The DECD commissioner, in his discretion, must consult with DVA
commissioner to verify a person’s eligibility as a veteran employee. The
DECD commissioner may charge an application fee as he deems
appropriate.
Claiming Credits
The DECD commissioner must issue a written decision on each
completed application within 30 days after receiving it. If he approves
the application, he must issue the certification letter (1) indicating that
the business may claim the credit if the business and new employee
meets the bill’s requirements and (2) to a business employing veteran
employees who met the bill ’s requirements for which credits were
previously been granted.
The commissioner must annually give the revenue services
commissioner a list of the businesses that he approved for credits and
that have been issued certification letters.
The business must claim the credit in the income year in which it
created the job and hired a new employee to fill it. It may claim the credit
for each of the two subsequent years if the employee remains employed.
The credit cannot exceed the total tax due. Unused credits expire and
cannot be refunded.
The bill also allows shareholders and partners of S corporations and
partnerships to claim the credit. With respect to single-member limited
liability companies (LLCs) that are disregarded as entities separate from
their owners, only the company’s owner may claim the credit.
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§§ 1 & 2 — DOL INFORMATIONAL WEBPAGE
The bill requires the DOL commissioner , by January 1, 2027, to
improve and update the veteran employment information DOL
provides on the Internet. First, the bill requires he r to update the
department’s informational webpage serving as a central repository of
information, resources, and materials. The webpage must include links
to external sources on:
1. job training,
2. career counseling,
3. workforce development organizations,
4. employers who are veteran - and military -friendly or who
establish and commit to meeting veteran hiring targets and
current and former armed forces members, and
5. other relevant topics for those transitioning from the military to
a professional civilian occupation.
Additionally, she must (1) post in a conspicuous location on the
informational webpage details of relevant Military Department
employment assistance programming (see § 3) and the DVA job fair (see
§ 4) and (2) try to optimize the webpage’s visibility in Internet search
engine results.
The bill also requires the DOL commissioner, starting January 1, 2027,
to annually solicit known and reputable providers of information,
resources, and materials described above . She must do this in
consultation with the DVA commissioner and adjutant general.
DVA Newsletter and Website
The bill requires the DVA commissioner, starting January 1, 2027, to
(1) send a biweekly email newsletter with relevant resources and
materials included on the DOL informational webpage to interested
recipients and (2) post a link to the webpage in a conspicuous location
on the DVA’s website.
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Under the bill, the DOL commissioner must (1) make the
informational page available in a way an interested person can ask to
receive the biweekly email newslette r and (2) forward to the DVA
commissioner the email addresses of those interested recipients during
the preceding month.
Training Site Signage
Beginning January 1, 2027, the bill requires the adjutant general to
post, in conspicuous locations throughout each inactive duty training
weekend site, signage containing a quick response (QR) code that
current reserve members or the National Guard can use to access the
informational webpage.
§ 1 — DOL STUDY ON TECHNOLOGY USE FOR JOB CONNECTION
By January 1, 2028, the bill requires the DOL commissioner to study
models from other northeastern region states that use technology,
including artificial intelligence, to connect current and former armed
forces members with prospective employers based on the members ’
military occupational specialties, and educational and professional
backgrounds. The commissioner must use the study’s findings to
update the informational webpage.
Under the bill, the commissioner must submit a report on her
findings and recommendations to the Veterans ’ and Military Affairs
Committee by February 1, 2028.
§ 2 — MILITARY DEPARTMENT ASSISTANCE PROGRAM
The bill requires the adjutant general, in consultation with the DOL
commissioner and within existing resources, to promote and
periodically improve the Military Department’s employment assistance
program. The adjutant general and the DOL commissioner must tailor
the promotion and improvements to better supplement the federal
transition assistance program administered by the U .S. Department of
Defense.
Currently, the program offers advice and information to current and
former armed forces members, including any reserve component and
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the National Guard, who are considering available educational and
occupational opportunities.
§§ 3 & 4 — “STAND DOWN” EVENT
The bill requires the DVA commissioner to annually hold a one -day
“Stand Down” event throughout the state that offers services, supplies,
or assistance to any veteran. (In practice, DVA is already conducting
these events.)
Beginning January 1, 2028, the commissioner must include, as part of
these events, a job fair to promote employment of current and former
armed forces members, including reserve and National Guard
members.
The DVA commissioner may coordinate with the DOL commissioner
to invite representatives of Connecticut employers to attend the fair and
present information about prospective employment opportunities. The
DVA commissioner must also publicize the job fair on the department’s
website and in the biweekly newsletter required above.
§ 5 — LEGISLATIVE RECOMMENDATIONS
By August 1, 2026, the bill requires the DECD commissioner, in
consultation with the DOL and DVA commissioners and any other
official, organization, or entity, he deems appropriate, to develop
legislative recommendations for promoting in-state employment of
current and former armed forces members, including reserve and
National Guard members. In developing these recommendations, the
DECD commissioner may examine the effectiveness of various
incentives, including tax credits, wage subsidies, and training.
The DECD commissioner must report these recommendations to the
Commerce, Labor and Public Employees , and Veterans’ and Military
Affairs committees by January 15, 2027.
BACKGROUND
Related Bill
sHB 5003, §§ 45 -49, favorably reported by the Labor and Public
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Employees Committee, has substantially similar provisions related to
the DOL informational webpage, study on technology use for job
connection, the “stand down” event, and legislative recommendations.
COMMITTEE ACTION
Veterans’ and Military Affairs Committee
Joint Favorable Substitute
Yea 22 Nay 0 (03/10/2026)