Veteran Small Business Tax Credit Act of 2015

Summary: Veteran Small Business Tax Credit Act of 2015  This bill allows a new business-related tax credit for the start-up expenses of a veteran-owned small business. The allowable amount of such credit is 15% of start-up expenditures that do not exceed $80,000. The credit is allowed to any individual (or the surviving spouse of such individual) who: (1) has served on active duty in the U.S. Armed Forces, (2) was stationed outside the United States, and (3) was not discharged or released under dishonorable conditions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veteran Small Business Tax Credit 
Act of 2015''.

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 controlled by one or more 
        qualified veterans.
            ``(2) Qualified veteran.--The term `qualified veteran' 
        means any individual (or the spouse or surviving spouse of such 
        an individual) who--
                    ``(A) has served on active duty in the Armed Forces 
                of the United States, and
                    ``(B) at any time in the course of such service, 
                was stationed outside of the United States.
        Such term shall not include any individual who was discharged 
        or released from the Armed Forces of the United States under 
        dishonorable conditions.
            ``(3) Control.--The term `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.
            ``(4) 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.
    ``(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) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.