Sec. 3. (a) Except as provided in subsections (b) and (c), and subject to section 4 of this chapter, a taxpayer that employs an individual who:

(1) is referred to the employer for employment through a vocational rehabilitation services program for individuals with a disability; and

(2) was initially hired by the taxpayer after December 31, 2023;

during a taxable year is entitled to a credit in the amount determined under section 5 or 6 of this chapter, as applicable, against the taxpayer’s state tax liability for the taxable year based on the wages paid to the particular employee during the taxable year.

     (b) A taxpayer that has received an authorization certificate from the United States Department of Labor, Wage and Hour Division, under Section 14(c) of the federal Fair Labor Standards Act of 1938, as amended (29 U.S.C. § 201 et seq.), is not eligible for a credit under this chapter.

     (c) A taxpayer is not eligible for a credit under this chapter for employment of a particular employee described in subsection (a) if the employee was hired within the previous twelve (12) months to replace a former employee who was terminated, unless the employee who is being replaced:

(1) was terminated for misconduct in connection with that employee’s employment; or

(2) voluntarily left that employee’s position.

As added by P.L.236-2023, SEC.68.