I 

111TH CONGRESS 

2D SESSION H. R. 5400 

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

credit to certain recently discharged veterans. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 25, 2010 

Mr. WALZ (for himself and Mr. BOOZMAN) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the work opportunity credit to certain recently discharged 

veterans. 

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 ‘‘Veteran Employment 

5 Transition Act of 2010’’. 


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1 SEC. 2. WORK OPPORTUNITY CREDIT FOR CERTAIN RE2 CENTLY DISCHARGED VETERANS. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 51(d)(3) of the Internal Revenue Code of 1986 is amended 

5 by striking ‘‘means any veteran’’ and all that follows and 

6 inserting ‘‘means any recently discharged veteran and any 

7 disadvantaged veteran.’’ 

8 (b) RECENTLY DISCHARGED VETERAN; DISADVAN9 TAGED VETERAN.—Paragraph (3) of section 51(d) of the 

10 Internal Revenue Code of 1986 is amended— 

11 (1) by redesignating subparagraphs (B) and 

12 (C) as subparagraphs (D) and (E), respectively, and 

13 (2) by inserting after subparagraph (A) the fol14 lowing new subparagraphs: 

15 ‘‘(B) RECENTLY DISCHARGED VETERAN.— 

16 For purposes of subparagraph (A), the term 

17 ‘recently discharged veteran’ means— 

18 ‘‘(i) any individual who has served on 

19 active duty (other than active duty for 

20 training) in the Armed Forces of the 

21 United States for more than 180 total 

22 days (whether consecutive or not), 

23 ‘‘(ii) any individual who has been dis24 charged or released from active duty in the 

25 Armed Forces of the United States for a 

26 service-connected disability, and 


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1 ‘‘(iii) any member of the National 

2 Guard who has served for more than 180 

3 total days (whether consecutive or not) 

4 of— 

5 ‘‘(I) active duty (within the 

6 meaning of title 32, United States 

7 Code) other than for training, 

8 ‘‘(II) full-time National Guard 

9 duty (within the meaning of such title 

10 32) other than for training, 

11 ‘‘(III) duty, other than inactive 

12 duty or duty for training, in State 

13 status (within the meaning of such 

14 title 32), or 

15 ‘‘(IV) any combination of duty 

16 described in subclause (I), (II), or 

17 (III), 

18 who has been discharged or released from such 

19 duty at any time during the 5-year period end20 ing on the hiring date. Such term shall not in21 clude any unemployed veteran who begins work 

22 for the employer before the date of the enact23 ment of the Veteran Employment Transition 

24 Act of 2010. 


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1 ‘‘(C) DISADVANTAGED VETERAN.—For 

2 purposes of subparagraph (A), the term ‘dis3 advantaged veteran’ means any veteran who is 

4 certified by the designated local agency as— 

5 ‘‘(i) being a member of a family re6 ceiving assistance under a supplemental 

7 nutrition assistance program under the 

8 Food and Nutrition Act of 2008 for at 

9 least a 3-month period ending during the 

10 12-month period ending on the hiring date, 

11 or 

12 ‘‘(ii) entitled to compensation for a 

13 service-connected disability, and— 

14 ‘‘(I) having a hiring date which is 

15 not more than 1 year after having 

16 been discharged or released from ac17 tive duty in the Armed Forces of the 

18 United States, or 

19 ‘‘(II) having aggregate periods of 

20 unemployment during the 1-year pe21 riod ending on the hiring date which 

22 equal or exceed 6 months.’’. 

23 (c) CONFORMING AMENDMENTS.—Section 51 of the 

24 Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘(d)(3)(A)(ii)’’ in paragraph (3) 

2 of subsection (b) and inserting ‘‘(d)(3)(C)(ii)’’, 

3 (2) by striking ‘‘For purposes of subparagraph 

4 (A)’’ each place it appears in subparagraphs (D) 

5 and (E) of subsection (d)(3), as redesignated by 

6 subsection (b), and inserting ‘‘For purposes of sub7 paragraph (C)’’, 

8 (3) by adding at the end of paragraph (13) of 

9 subsection (d) the following new subparagraph: 

10 ‘‘(D) PRE-SCREENING OF RECENTLY DIS11 CHARGED VETERANS.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

13 subparagraph (A), the term ‘pre-screening 

14 notice’ shall include any documentation 

15 provided to an individual by the Depart16 ment of Defense or the National Guard 

17 upon release or discharge from the Armed 

18 Forces or from service in the National 

19 Guard which includes information suffi20 cient to establish that such individual is a 

21 recently discharged veteran. 

22 ‘‘(ii) ADDITIONAL CERTIFICATION NOT

23 REQUIRED.—Subparagraph (A) shall be 

24 applied without regard to clause (ii)(II) 

25 thereof in the case of a recently discharged 


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1 veteran who provides to the employer docu2 mentation described in clause (i).’’, 

3 (4) by inserting ‘‘who begins work for the em4 ployer after December 31, 2008, and before the date 

5 of the enactment of the Veteran Employment Tran6 sition Act of 2010,’’ after ‘‘Any unemployed vet7 eran’’ in subparagraph (A) of subsection (d)(14), 

8 and 

9 (5) by inserting a comma after ‘‘during 2009 or 

10 2010’’ in subparagraph (A) of subsection (d)(14). 

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

12 subsections (a), (b), and (c) shall apply to individuals 

13 whose hiring date (as defined in section 51(d)(11) of the 

14 Internal Revenue Code of 1986) is on or after the date 

15 of the enactment of this Act. 

16 (e) DEPARTMENT OF DEFENSE DOCUMENTATION.— 

17 (1) IN GENERAL.—The Department of Defense 

18 and the National Guard, as applicable, shall pro19 vide— 

20 (A) to each individual who is discharged or 

21 released from active duty in the Armed Forces 

22 of the United States on or after the date of the 

23 enactment of this Act; and 

24 (B) to each member of the National Guard 

25 who is released from duty described in section 


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1 51(d)(3)(B)(iii) of the Internal Revenue Code 

2 of 1986 (as added by this Act) on or after the 

3 date of the enactment of this Act; 

4 in addition to the documentation which, without re5 gard to this subsection, is provided at the time of 

6 such discharge or release, documentation described 

7 in paragraph (4). If the documentation which is pro8 vided without regard to this subsection at the time 

9 of the discharge or release described in the pre10 ceding sentence does not include information suffi11 cient to satisfy the requirements of section 

12 51(d)(13)(D)(i) of the Internal Revenue Code of 

13 1986 (as added by this Act), the Department of De14 fense or the National Guard, whichever is applicable, 

15 shall provide additional documentation which in16 cludes such information. 

17 (2) INFORMATIONAL BRIEFING.—In the case of 

18 an individual who is discharged or released from 

19 duty described in subparagraph (A) or (B) of para20 graph (1) after the date of the enactment of this 

21 Act, the Department of Defense or the National 

22 Guard, whichever is applicable, shall provide a brief23 ing to such individual before or at the time of such 

24 discharge or release to inform such individual of the 

25 credit for employment of recently discharged vetVerDate Mar 15 2010 06:55 May 26, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5400.IH H5400

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1 erans under section 51 of the Internal Revenue Code 

2 of 1986. 

3 (3) REQUEST FOR DOCUMENTATION.—The De4 partment of Defense or the National Guard, which5 ever is applicable, shall provide upon request the 

6 documentation described in paragraph (1) to any in7 dividual who is discharged or released from duty de8 scribed in subparagraph (A) or (B) of paragraph (1) 

9 during the 5-year period preceding and including the 

10 date of the enactment of this Act. 

11 (4) INSTRUCTIONS FOR USE OF WORK OPPOR12 TUNITY CREDIT.—The documentation described in 

13 this paragraph is a document which includes— 

14 (A) instructions for an individual to ensure 

15 treatment as a recently discharged veteran for 

16 purposes of section 51(d)(3)(B) of the Internal 

17 Revenue Code of 1986 (as added by this Act), 

18 (B) instructions for employers detailing the 

19 use of the credit under such section 51 with re20 spect to such individual, and 

21 (C) the dates during which the credit 

22 under such section 51 is available. 

23 Such instructions shall be developed in collaboration 

24 with the Internal Revenue Service. 

Æ 


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