Hi Chris,
Google recognizes both, and will show results for both on a search for one (either abbreviation or full name), but they are still working out this kinks. Issues like Google not being able to distinguish between words with more than one meaning like "OH" as the state abbreviation and as the expression, "IN", "OR" etc. They also still treat key phrases as separate in some cases, so if the phrase is searched I would target both. If you must choose, go for the full name.
Hope this makes sense.