Providing employer tax incentives for the support of veterans and military families.

HB 1016 creates a 20% tax credit for Washington employers hiring qualified veterans or spouses of active-duty military members, up to $3,000 per employee annually. To qualify, employees must work full-time (35+ hours/week) for two consecutive quarters, and employers must claim credits electronically. The credit is capped at $5 million total per fiscal year across both this bill and a related provision, with credits expiring for tax years after 2036. This directly affects employers in Washington who hire eligible military-affiliated workers, aiming to incentivize veteran/military family employment through tax relief.