II 

113TH CONGRESS 

2D SESSION S. 2138 

To provide a payroll tax holiday for newly hired veterans. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2014 

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

referred to the Committee on Finance 

A BILL 

To provide a payroll tax holiday for newly hired 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 ‘‘Veterans Hiring Act’’. 

5 SEC. 2. EMPLOYEE PAYROLL TAX HOLIDAY FOR NEWLY 

6 HIRED VETERANS. 

7 (a) IN GENERAL.—Subsection (d) of section 3111 of 

8 the Internal Revenue Code of 1986 is amended to read 

9 as follows: 

10 ‘‘(d) SPECIAL EXEMPTION FOR ELIGIBLE VETERANS

11 HIRED DURING CERTAIN CALENDAR QUARTERS.— 


tjames on DSK6SPTVN1PROD with BILLS
2 

•S 2138 IS

1 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

2 apply to 50 percent of the wages paid by the em3 ployer with respect to employment during the holi4 day period of any eligible veteran for services per5 formed— 

6 ‘‘(A) in a trade or business of the em7 ployer, or 

8 ‘‘(B) in the case of an employer exempt 

9 from tax under section 501(a), in furtherance 

10 of the activities related to the purpose or func11 tion constituting the basis of the employer’s ex12 emption under such section. 

13 ‘‘(2) HOLIDAY PERIOD.—For purposes of this 

14 subsection, the term ‘holiday period’ means the pe15 riod of 4 consecutive calendar quarters beginning 

16 with the first day of the first calendar quarter begin17 ning after the date of the enactment of the Veterans 

18 Hiring Act. 

19 ‘‘(3) ELIGIBLE VETERAN.—For purposes of this 

20 subsection— 

21 ‘‘(A) IN GENERAL.—The term ‘eligible vet22 eran’ means a veteran who— 

23 ‘‘(i) begins work for the employer dur24 ing the holiday period, 


tjames on DSK6SPTVN1PROD with BILLS
3 

•S 2138 IS

1 ‘‘(ii) was discharged or released from 

2 the Armed Forces of the United States 

3 under conditions other than dishonorable, 

4 and 

5 ‘‘(iii) is not an individual described in 

6 section 51(i)(1) (applied by substituting 

7 ‘employer’ for ‘taxpayer’ each place it ap8 pears). 

9 ‘‘(B) VETERAN.—The term ‘veteran’ 

10 means any individual who— 

11 ‘‘(i) has served on active duty (other 

12 than active duty for training) in the Armed 

13 Forces of the United States for a period of 

14 more than 180 days, or has been dis15 charged or released from active duty in the 

16 Armed Forces of the United States for a 

17 service-connected disability (within the 

18 meaning of section 101 of title 38, United 

19 States Code), 

20 ‘‘(ii) has not served on extended active 

21 duty (as such term is used in section 

22 51(d)(3)(B)) in the Armed Forces of the 

23 United States on any day during the 60- 

24 day period ending on the hiring date, and 


tjames on DSK6SPTVN1PROD with BILLS
4 

•S 2138 IS

1 ‘‘(iii) provides to the employer a copy 

2 of the individual’s DD Form 214, Certifi3 cate of Release or Discharge from Active 

4 Duty, that includes the nature and type of 

5 discharge. 

6 ‘‘(4) ELECTION.—An employer may elect not to 

7 have this subsection apply. Such election shall be 

8 made in such manner as the Secretary may require. 

9 ‘‘(5) COORDINATION WITH WORK OPPORTUNITY

10 CREDIT.—For coordination with the work oppor11 tunity credit, see section 51(3)(D).’’. 

12 (b) COORDINATION WITH WORK OPPORTUNITY

13 CREDIT.— 

14 (1) IN GENERAL.—Paragraph (3) of section 51 

15 of the Internal Revenue Code of 1986 is amended by 

16 adding at the end the following new subparagraph: 

17 ‘‘(D) DENIAL OF CREDIT FOR VETERANS

18 SUBJECT TO 50 PERCENT PAYROLL TAX HOLI19 DAY.—If section 3111(d)(1) (as amended by 

20 the Veterans Hiring Act) applies to any wages 

21 paid by an employer, the term ‘qualified vet22 eran’ does not include any individual who be23 gins work for the employer during the holiday 

24 period (as defined in section 3111(d)(2)) unless 


tjames on DSK6SPTVN1PROD with BILLS
5 

•S 2138 IS

1 the employer makes an election not to have sec2 tion 3111(d) apply.’’. 

3 (2) CONFORMING AMENDMENT.—Subsection (c) 

4 of section 51 of such Code is amended by striking 

5 paragraph (5). 

Æ 


tjames on DSK6SPTVN1PROD with BILLS