Veterans' Employment Transition Support Act of 2011or the VETS Act of 2011- Amends the Internal Revenue Code to allow employers a general business tax credit for hiring certain veterans certified by designated local agencies as having served on active duty (other than for training) in the Armed Forces for a period of more than 180 days or having been discharged or released from active duty for a service-connected disability. Sets the amount of such credit at 40% of the first-year wages of such veterans and increases the percentage of such credit for disabled veterans based upon their disability ratings.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 781 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 781
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for hiring veterans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 17, 2011
Mr. McCotter introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for hiring veterans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans' Employment Transition
Support Act of 2011'' or the ``VETS Act of 2011''.
SEC. 2. CREDIT FOR EMPLOYERS HIRING VETERANS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. CREDIT FOR EMPLOYERS HIRING VETERANS.
``(a) General Rule.--For purposes of section 38, the military
service personnel employment credit for the taxable year shall be equal
to--
``(1) in the case of a qualified veteran, 40 percent of the
qualified first-year wages with respect to such veteran for
such year, and
``(2) in the case of a qualified disabled veteran, the
applicable percentage of the qualified first-year wages with
respect to such veteran for such year.
``(b) Veteran Taken Into Account Only Once.--No credit shall be
determined under subsection (a) with respect to any veteran unless such
veteran has elected (in such form and manner as the Secretary may
require) to have his qualified first-year wages taken into account with
respect to the employer paying such wages. A veteran may make only one
election under this subsection. The Secretary shall require such
reporting as the Secretary determines is necessary to carry out the
purposes of this subsection.
``(c) Qualified Wages.--For purposes of this section--
``(1) In general.--The term `qualified wages' means, with
respect to any individual, the wages paid or incurred by the
employer during the taxable year to such individual.
``(2) Qualified first-year wages.--The term `qualified
first-year wages' means, with respect to any individual,
qualified wages attributable to service rendered during the 1-
year period beginning with the day the individual begins work
for the employer.
``(3) Wages.--The term `wages' has the meaning given such
term by section 51(c), without regard to paragraph (4) thereof.
``(d) Qualified Veteran; Hiring Date.--For purposes of this
section--
``(1) Qualified veteran.--The term `qualified veteran'
means any individual who is certified by the designated local
agency (as defined in section 51(d)(11)) as being a veteran (as
defined in section 51(d)(3)(B)).
``(2) Hiring date.--The term `hiring date' has the meaning
given such term by section 51(d).
``(e) Qualified Disabled Veteran; Applicable Percentage.--
``(1) In general.--The term `qualified disabled veteran'
means any qualified veteran who is certified by the designated
local agency (as defined in section 51(d)(11)) as having a
disability that has been determined under the laws administered
by the Secretary of Veterans Affairs to be service-connected
and that is rated by such Secretary (as of the date of the
certification) as 10 percent or more disabling.
``(2) Applicable percentage.--The term `applicable
percentage' means the percentage determined in accordance with
the following table:
Applicable
``Percentage of disability: percentage:
At least 10 but not over 20............................ 41
At least 20 but not over 30............................ 42
At least 30 but not over 40............................ 43
At least 40 but not over 50............................ 44
At least 50 but not over 60............................ 45
At least 60 but not over 70............................ 46
At least 70 but not over 80............................ 47
At least 80 but not over 90............................ 48
At least 90 but not over 100........................... 49
100 percent............................................ 50.
``(f) Certain Rules To Apply.--Rules similar to the rules of
section 52, and subsections (d)(11), (f), (g), (i) (as in effect on the
day before the date of the enactment of the Taxpayer Relief Act of
1997), (j), and (k) of section 51, shall apply for purposes of this
section.
``(g) Coordination With Work Opportunity Credit.--The credit
allowed under this section with respect to any qualified first-year
wages shall be in addition to any credit allowed under section 51 with
respect to such wages.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (35), by striking the period at the end of paragraph (36)
and inserting ``, plus'', and by adding at the end the following new
paragraph:
``(37) the military service personnel employment credit
determined under section 45S(a).''.
(c) Technical Amendments.--
(1) Clause (iii) of section 41(b)(2)(D) of such Code is
amended to read as follows:
``(iii) Exclusion for wages to which
employment credits apply.--The term `wages'
shall not include any amount taken into account
in determining the credit under section 45S(a)
or 51(a).''.
(2) Subparagraph (B) of section 45A(b)(1) of such Code is
amended to read as follows:
``(B) Coordination with other employment credits.--
The term `qualified wages' shall not include wages
attributable to service rendered during the 1-year
period beginning with the day the individual begins
work for the employer if any portion of such wages is
taken into account in determining the credit under
section 45S or 51.''.
(3) Subsection (a) of section 280C of such Code is amended
by inserting ``45S(a),'' after ``45A(a),''.
(4) Paragraph (3) of section 1396(c) of such Code is
amended to read as follows:
``(3) Coordination with other employment credits.--
``(A) In general.--The term `qualified wages' shall
not include wages taken into account in determining the
credit under section 45S or 51.
``(B) Coordination with paragraph (2).--The $15,000
amount in paragraph (2) shall be reduced for any
calendar year by the amount of wages paid or incurred
during such year which are taken into account in
determining the credit under section 45S or 51.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45S. Credit for employers hiring veterans.''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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