Veterans Entrepreneurs Act of 2013

Veterans Entrepreneurs Act of 2013 - Amends the Internal Revenue Code to allow a business-related tax credit of up to $400,000 for 25% of the franchise fees paid or incurred by a veteran for the purchase of a franchise. Reduces the amount of such credit if the veteran does not own 100% of the stock or capital or profits interest of the franchisee.

Directs the Administrator of the Small Business Administration (SBA) and the Secretary of Veterans Affairs (VA) to provide information about the tax credit allowed by this Act to veterans service organizations and veteran advocacy groups.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3725 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3725

  To amend the Internal Revenue Code of 1986 to allow credits for the 
               establishment of franchises with veterans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2013

    Mr. Flores (for himself, Mr. Takano, Mr. Cook, Mr. Runyan, Mr. 
   Schneider, Ms. Titus, Mr. Coffman, and Mr. Hanna) 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 credits for the 
               establishment of franchises with 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 Entrepreneurs Act of 
2013''.

SEC. 2. VETERANS FRANCHISING CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45S. VETERANS FRANCHISING.

    ``(a) Veterans Franchise Fee Credit.--
            ``(1) In general.--For purposes of section 38 and subject 
        to the limitation set forth in paragraph (2), the veterans 
        franchise fee credit determined under this section for the 
        taxable year is an amount equal to 25 percent of the qualified 
        franchise fee paid or incurred by a qualified veteran in 
        connection with the purchase of a franchise.
            ``(2) Limitation.--The amount of qualified franchise fee 
        taken into account under paragraph (1) shall not exceed 
        $400,000.
    ``(b) Reduction Where Franchise Not 100 Percent Veteran-Owned.--In 
the case of any franchise in which veterans do not own 100 percent of 
the stock or the capital or profits interests of the franchisee, the 
credit under subsection (a) shall be the amount which bears the same 
ration to the amount determined under subsection (a) (without regard to 
this subsection) as--
            ``(1) the stock or capital or profits interests of the 
        franchise held by veterans, bears to
            ``(2) the total stock or capital or profits interests of 
        the franchisee.
For purposes of this subsection, the spouse of a veteran shall be 
treated as a veteran.
    ``(c) Qualified Franchise Fee.--For purposes of this section, the 
term `qualified franchise fee' means any one-time fee required by the 
franchisor when entering into a franchise agreement with a veteran as 
the franchisee.
    ``(d) Other Definitions.--For purposes of this section, the terms 
`franchise', `franchisee', `franchisor', and `franchise fee' have the 
meanings given such terms in part 436 of title 16, Code of Federal 
Regulations.
    ``(e) Veteran.--The term `veteran' has the meaning given such term 
by section 101 of title 38, United States Code.
    ``(f) Election.--This section shall not apply to a taxpayer for any 
taxable year if such taxpayer elects to have this section not apply for 
such taxable year.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) 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 veterans franchise fee credit determined under 
        section 45S(a).''.
    (c) 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. Veterans franchising.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 3. PUBLICATION OF INFORMATION BY DEPARTMENT OF VETERANS AFFAIRS 
              AND SMALL BUSINESS ADMINISTRATION.

    The Administrator of the Small Business Administration and the 
Secretary of Veterans Affairs shall publicize in mailings and brochures 
sent to veterans service organizations and veteran advocacy groups 
information regarding discounted franchise fees under section 45S of 
the Internal Revenue Code of 1986 and other information about the 
program established under amendments made by this Act.
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