HB 1016 establishes employer tax credits for hiring veterans and spouses of active duty military members. Beginning January 1, 2026, employers may claim a credit equal to 20 percent of wages and benefits paid to qualifying employees, up to $3,000 per employee, against business and occupation taxes or public utility taxes. The credit requires the employee to work in a permanent full-time position for at least two consecutive calendar quarters, and credits are available on a first-come, first-served basis subject to a $5 million annual cap across both tax types. The credits expire January 1, 2037, with a review mechanism to extend the expiration date if veteran unemployment decreases by 10 percent.