Veterans in Londonderry could see a larger tax credit this year.
The town council voted at its Monday meeting to pass a resolution to accept new provisions to the existing veterans tax credit. RSA 72:28 states that a veteran of a qualifying war or armed conflict, or surviving spouse of said veteran, shall be eligible to receive a standard tax credit. The updated version, RSA 72:28-b is called the “All Veterans’ Tax Credit,” and it would extend a credit of up to 500 dollars “to all veterans, not just those who have served in qualifying wars and certain foreign conflicts,” according to a drafted version of the policy. The state is asking local governments to vote on whether to adopt it or not.
Once approved, it would allow Londonderry to offer the $500 over the course of three years. Applicants could apply for $100 in the first year, up to $300 in the second and all $500 in the third year.
The reasoning for spacing it over three years is to allow the town council time to budget for the tax credits after seeing how many veterans apply for the credit.
“No town has a good accounting method for counting veterans,” said Chairman Tom Dolan. He explained at the council meeting that they want to make sure people don’t try to cheat the system, just to save themselves 500 dollars in their taxes. He believed that only offering $100 in the first year would discourage non-veterans from taking advantage of the new system.
Some extra provisions to being eligible for the tax credit include having 90 or more days of active service in the armed forces and being honorably discharged. This also includes officers.
The surviving spouses of veterans could collect on the tax credit if they were married to a resident who “suffered a service-related injury or death,” according to RSA 72:28. The new provisions also cover the surviving spouse, but, if they remarry and the latest husband or wife dies, then the spouse will not be eligible for their previous partners benefits. However, the spouse would qualify if they divorced their current partner. It’s probably as complicated as it sounds. The spouse would still have to prove the veteran status before being able to collect on the tax credit.
One-way for veterans to be able to apply for the tax credit is by presenting their DD Form 214 (Certificate of Release or Discharge from Active Duty) to the town offices. In the event this form is ever lost, veterans can request a new from the Veterans Affairs office in Manchester.