To amend the Internal Revenue Code of 1986 to provide a credit for employing returning heroes and wounded warriors.

Summary: Hiring Our Veterans Act of 2011 - Amends the Internal Revenue Code to: (1) increase the amount of wages eligible for the work opportunity tax credit for veterans who are hired after being unemployed for six months or more during the one-year period ending on the hiring date ($14,000 of first-year wages) or disabled veterans who are either hired within one year after discharge from active duty ($12,000 of first-year wages) or who are hired after being unemployed for six months or more during the one-year period ending on the hiring date ($24,000 of first-year wages), and (2) allow tax-exempt organizations to claim the lesser of the amount of the work opportunity tax credit for hiring veterans or the amount of the payroll taxes paid by such organizations during the calendar year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hiring Our Veterans Act of 2011''.

SEC. 2. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY TAX 
              CREDITS.

    (a) In General.--Paragraph (3) of section 51(b) of the Internal 
Revenue Code of 1986 is amended by striking ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii))'' and inserting ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any 
individual who is a qualified veteran by reason of subsection 
(d)(3)(A)(iv), and $24,000 per year in the case of any individual who 
is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))''.
    (b) Returning Heroes Tax Credits.--Section 51(d)(3)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (3)(A)(i), and inserting the following new clauses after 
clause (ii)--
                            ``(iii) having aggregate periods of 
                        unemployment during the 1-year period ending on 
                        the hiring date which equal or exceed 4 weeks 
                        (but less than 6 months), or
                            ``(iv) having aggregate periods of 
                        unemployment during the 1-year period ending on 
                        the hiring date which equal or exceed 6 
                        months.''.
    (c) Simplified Certification.--Section 51(d) of the Internal 
Revenue Code of 1986 is amended by adding a new paragraph (15) as 
follows--
            ``(15) Credit allowed for unemployed veterans.--
                    ``(A) In general.--Any qualified veteran under 
                paragraphs (3)(A)(ii)(II), (3)(A)(iii), and (3)(A)(iv) 
                will be treated as certified by the designated local 
                agency as having aggregate periods of unemployment if--
                            ``(i) in the case of qualified veterans 
                        under paragraphs (3)(A)(ii)(II) and (3)(A)(iv), 
                        the veteran is certified by the designated 
                        local agency as being in receipt of 
                        unemployment compensation under State or 
                        Federal law for not less than 6 months during 
                        the 1-year period ending on the hiring date; or
                            ``(ii) in the case of a qualified veteran 
                        under paragraph (3)(A)(iii), the veteran is 
                        certified by the designated local agency as 
                        being in receipt of unemployment compensation 
                        under State or Federal law for not less than 4 
                        weeks (but less than 6 months) during the 1-
                        year period ending on the hiring date.
                    ``(B) Regulatory authority.--The Secretary in his 
                discretion may provide alternative methods for 
                certification.''.
    (d) Credit Made Available to Tax-Exempt Employers in Certain 
Circumstances.--Section 52(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking the word ``No'' at the beginning of the 
        section and replacing it with ``Except as provided in this 
        subsection, no'';
            (2) by inserting at the end of section 52(c) the following 
        new paragraphs--
            ``(1) In general.--In the case of a tax-exempt employer, 
        there shall be treated as a credit allowable under subpart C 
        (and not allowable under subpart D) the lesser of--
                    ``(A) the amount of the work opportunity credit 
                determined under this subpart with respect to such 
                employer that is related to the hiring of qualified 
                veterans described in sections 51(d)(3)(A)(ii)(II), 
                (iii) or (iv); or
                    ``(B) the amount of the payroll taxes of the 
                employer during the calendar year in which the taxable 
                year begins.
            ``(2) Credit amount.--In calculating for tax-exempt 
        employers, the work opportunity credit shall be determined by 
        substituting `26 percent' for `40 percent' in section 51(a) and 
        by substituting `16.25 percent' for `25 percent' in section 
        51(i)(3)(A).
            ``(3) Tax-exempt employer.--For purposes of this subpart, 
        the term `tax-exempt employer' means an employer that is--
                    ``(A) an organization described in section 501(c) 
                and exempt from taxation under section 501(a), or
                    ``(B) a public higher education institution (as 
                defined in section 101 of the Higher Education Act of 
                1965).
            ``(4) Payroll taxes.--For purposes of this subsection--
                    ``(A) In general.--The term `payroll taxes' means--
                            ``(i) amounts required to be withheld from 
                        the employees of the tax-exempt employer under 
                        section 3401(a),
                            ``(ii) amounts required to be withheld from 
                        such employees under section 3101(a), and
                            ``(iii) amounts of the taxes imposed on the 
                        tax-exempt employer under section 3111(a).''.
    (e) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the 
                application of this section (other than this 
                subsection). Such amounts shall be determined by the 
                Secretary of the Treasury based on information provided 
                by the government of the respective possession of the 
                United States.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States, which does not have a mirror code tax system, 
                amounts estimated by the Secretary of the Treasury as 
                being equal to the aggregate credits that would have 
                been provided by the possession by reason of the 
                application of this section (other than this 
                subsection) if a mirror code tax system had been in 
                effect in such possession. The preceding sentence shall 
                not apply with respect to any possession of the United 
                States unless such possession has a plan, which has 
                been approved by the Secretary of the Treasury, under 
                which such possession will promptly distribute such 
                payments.
            (2) Coordination with credit allowed against united states 
        income taxes.--No increase in the credit determined under 
        section 38(b) of the Internal Revenue Code of 1986 that is 
        attributable to the credit provided by this section (other than 
        this subsection (e)) shall be taken into account with respect 
        to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession of the United States by 
                reason of this section for such taxable year, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B) with respect to such 
                taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection (e), the term ``possession of the 
                United States'' includes American Samoa, the 
                Commonwealth of the Northern Mariana Islands, the 
                Commonwealth of Puerto Rico, Guam, and the United 
                States Virgin Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, rules 
                similar to the rules of section 1001(b)(3)(C) of the 
                American Recovery and Reinvestment Tax Act of 2009 
                shall apply.
    (f) Reporting.--The taxpayer shall provide such information as the 
Secretary of the Treasury requires to enable the Secretary to determine 
the number of veterans specified by each of the categories in clauses 
(i) through (iv) of section 51(d)(3)(A) of the Internal Revenue Code of 
1986 (as amended by this section) with respect to whom a credit is 
claimed under section 51(a) of such Code pursuant to the amendments 
made by this section.
    (g) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after the date of the 
enactment of this Act.