II

107TH CONGRESS

1ST SESSION S. 1145

To amend the Internal Revenue Code of 1986 to extend the work opportunity

credit to encourage the hiring of certain veterans, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 29, 2001

Mrs. BOXER introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend

the work opportunity credit to encourage the hiring of

certain veterans, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans Opportunity

5 to Work Act’’.

6 SEC. 2. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

7 (a) IN GENERAL.—Section 51(d)(1) of the Internal

8 Revenue Code of 1986 (relating to members of targeted

9 groups) is amended by striking ‘‘or’’ at the end of sub10 paragraph (G), by striking the period at the end of sub-
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1 paragraph (H) and inserting ‘‘, or’’, and by adding at the

2 end the following:

3 ‘‘(I) a qualified low-income veteran.’’

4 (b) QUALIFIED LOW-INCOME VETERAN.—Section

5 51(d) of the Internal Revenue Code of 1986 (relating to

6 members of targeted groups) is amended by redesignating

7 paragraphs (10) through (12) as paragraphs (11) through

8 (13), respectively, and by inserting after paragraph (9) the

9 following:

10 ‘‘(10) QUALIFIED LOW-INCOME VETERAN.—

11 ‘‘(A) IN GENERAL.—The term ‘qualified

12 low-income veteran’ means any veteran whose

13 gross income for the taxable year preceding the

14 taxable year including the hiring date, was

15 below the poverty line (as defined by the Office

16 of Management and Budget) for such preceding

17 taxable year.

18 ‘‘(B) VETERAN.—The term ‘veteran’ has

19 the meaning given such term by paragraph

20 (3)(B).

21 ‘‘(C) SPECIAL RULES FOR DETERMINING

22 AMOUNT OF CREDIT.—For purposes of applying

23 this subpart to wages paid or incurred to any

24 qualified low-income veteran—
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1 ‘‘(i) subsection (a) shall be applied by

2 substituting ‘50 percent of the qualified

3 first-year wages and 25 percent of the

4 qualified second-year wages’ for ‘40 per5 cent of the qualified first year wages’, and

6 ‘‘(ii) in lieu of paragraphs (2) and (3)

7 of subsection (b), the following definitions

8 and special rule shall apply:

9 ‘‘(I) QUALIFIED FIRST-YEAR

10 WAGES.—The term ‘qualified first11 year wages’ means, with respect to

12 any individual, qualified wages attrib13 utable to service rendered during the

14 1-year period beginning with the day

15 the individual begins work for the em16 ployer.

17 ‘‘(II) QUALIFIED SECOND-YEAR

18 WAGES.—The term ‘qualified second19 year wages’ means, with respect to

20 any individual, qualified wages attrib21 utable to service rendered during the

22 1-year period beginning on the day

23 after the last day of the 1-year period

24 with respect to such individual deter25 mined under subclause (I).
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1 ‘‘(III) ONLY FIRST $20,000 OF

2 WAGES PER YEAR TAKEN INTO AC3 COUNT.—The amount of the qualified

4 first and second year wages which

5 may be taken into account with re6 spect to any individual shall not ex7 ceed $20,000 per year.’’.

8 (c) PERMANENCE OF CREDIT.—Section 51(c)(4) of

9 the Internal Revenue Code of 1986 (relating to termi10 nation) is amended by inserting ‘‘(except for wages paid

11 to a qualified low-income veteran)’’ after ‘‘individual’’.

12 (d) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to individuals who begin work for

14 the employer after the date of the enactment of this Act.

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