Veterans Jobs Opportunity Act
This bill amends the Internal Revenue Code to allow a new business-related tax credit for the start-up expenses of a veteran-owned small business in an underserved community.
The allowable amount of such credit is 15% of start-up expenditures that do not exceed $80,000. To be eligible for the credit, the small business must (1) be owned and controlled by one or more veterans or spouses of veterans, and (2) have a principal place of business in an underserved community.
An "underserved community" is any area located within: (1) a HUBZone (as defined by the Small Business Act), (2) an empowerment zone or an enterprise community, (3) an area of low income or moderate income (as recognized by the Federal Financial Institutions Examination Council), or (4) a county with persistent poverty (as classified by the Economic Research Service of the Department of Agriculture).
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3345 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3345
To amend the Internal Revenue Code of 1986 to establish a small
business start-up tax credit for veterans creating businesses in
underserved communities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 20, 2017
Mr. Lawson of Florida (for himself, Ms. Velazquez, Mr. Hastings, Mr.
Gonzalez of Texas, Mr. Evans, Mr. Payne, Mr. Butterfield, Ms. Barragan,
Mrs. Watson Coleman, Mr. Bishop of Georgia, Ms. Brownley of California,
Ms. Shea-Porter, Ms. Hanabusa, Mr. Espaillat, Mrs. Beatty, Ms. Adams,
Ms. Lee, Ms. Gabbard, Mr. Pallone, Ms. Clarke of New York, Mr. Correa,
Mr. Thompson of California, Mr. Soto, and Mr. Veasey) 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 establish a small
business start-up tax credit for veterans creating businesses in
underserved communities.
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 Jobs Opportunity Act''.
SEC. 2. VETERAN SMALL BUSINESS START-UP CREDIT.
(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. VETERAN SMALL BUSINESS START-UP CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
applicable veteran-owned business which elects the application of this
section, the veteran small business start-up credit determined under
this section for any taxable year is an amount equal to 15 percent of
so much of the qualified start-up expenditures of the taxpayer as does
not exceed $80,000.
``(b) Applicable Veteran-Owned Small Business.--For purposes of
this section--
``(1) In general.--The term `applicable veteran-owned small
business' means a small business owned and controlled by one or
more veterans or spouses of veterans and the principal place of
business of which is in an underserved community.
``(2) Ownership and control.--The term `owned and
controlled' means--
``(A) management and operation of the daily
business, and--
``(B)(i) in the case of a sole proprietorship, sole
ownership,
``(ii) in the case of a corporation, ownership (by
vote or value) of not less than 51 percent of the stock
in such corporation, or
``(iii) in the case of a partnership or joint
venture, ownership of not less than 51 percent of the
profits interests or capital interests in such
partnership or joint venture.
``(3) Small business.--The term `small business' means,
with respect to any taxable year, any person engaged in a trade
or business in the United States if--
``(A) the gross receipts of such person for the
preceding taxable year did not exceed $5,000,000, or
``(B) in the case of a person to which subparagraph
(A) does not apply, such person employed not more than
100 full-time employees during the preceding taxable
year.
For purposes of subparagraph (B), an employee shall be
considered full-time if such employee is employed at least 30
hours per week for 20 or more calendar weeks in the taxable
year.
``(4) Underserved community.--The term `underserved
community' means any area located within--
``(A) a HUBZone (as defined in section 3(p) of the
Small Business Act (15 U.S.C. 632(p))),
``(B) an empowerment zone, or enterprise community,
designated under section 1391 (and without regard to
whether or not such designation remains in effect),
``(C) an area of low income or moderate income (as
recognized by the Federal Financial Institutions
Examination Council), or
``(D) a county with persistent poverty (as
classified by the Economic Research Service of the
Department of Agriculture).
``(5) Veteran or spouse of veteran.--The term `veteran or
spouse of a veteran' has the meaning given such term by section
7(a)(31)(G)(iii) of the Small Business Act (15 U.S.C.
636(a)(31)(G)(iii)).
``(c) Qualified Start-Up Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified start-up
expenditures' means--
``(A) any start-up expenditures (as defined in
section 195(c)), or
``(B) any amounts paid or incurred during the
taxable year for the purchase or lease of real
property, or the purchase of personal property, placed
in service during the taxable year and used in the
active conduct of a trade or business.
``(d) Special Rules.--For purposes of this section--
``(1) Year of election.--The taxpayer may elect the
application of this section only for the first 2 taxable years
for which ordinary and necessary expenses paid or incurred in
carrying on such trade or business are allowable as a deduction
by the taxpayer under section 162.
``(2) Controlled groups and common control.--All persons
treated as a single employer under subsections (a) and (b) of
section 52 shall be treated as 1 person.
``(3) No double benefit.--If a credit is determined under
this section with respect to any property, the basis of such
property shall be reduced by the amount of the credit
attributable to such property.''.
(b) 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. Veteran small business start-up credit.''.
(c) Made 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 veteran small business start-up credit
determined under section 45S.''.
(d) Report by Treasury Inspector General for Tax Administration.--
Every fourth year after the date of the enactment of this Act, the
Treasury Inspector General for Tax Administration shall include in one
of the semiannual reports under section 5 of the Inspector General Act
of 1978 with respect to such year, an evaluation of the program under
section 45S of the Internal Revenue Code of 1986 (as added by this
section), including an evaluation of the success of, and accountability
with respect to, such program.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning 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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