II 

111TH CONGRESS 

2D SESSION S. 3398 

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

credit to certain recently discharged veterans. 

IN THE SENATE OF THE UNITED STATES 

MAY 24, 2010 

Mr. BAUCUS (for himself and Mr. GRASSLEY) 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 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’’. 

6 SEC. 2. WORK OPPORTUNITY CREDIT FOR CERTAIN RE7 CENTLY DISCHARGED VETERANS. 

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

9 51(d)(3) of the Internal Revenue Code of 1986 is amended 

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


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1 inserting ‘‘means any recently discharged veteran and any 

2 disadvantaged veteran.’’ 

3 (b) RECENTLY DISCHARGED VETERAN; DISADVAN4 TAGED VETERAN.—Paragraph (3) of section 51(d) of the 

5 Internal Revenue Code of 1986 is amended— 

6 (1) by redesignating subparagraphs (B) and 

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

8 (2) by inserting after subparagraph (A) the fol9 lowing new subparagraphs: 

10 ‘‘(B) RECENTLY DISCHARGED VETERAN.— 

11 For purposes of subparagraph (A), the term 

12 ‘recently discharged veteran’ means— 

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

14 active duty (other than active duty for 

15 training) in the Armed Forces of the 

16 United States for more than 180 total 

17 days (whether consecutive or not), 

18 ‘‘(ii) any individual who has been dis19 charged or released from active duty in the 

20 Armed Forces of the United States for a 

21 service-connected disability, and 

22 ‘‘(iii) any member of the National 

23 Guard who has served for more than 180 

24 total days (whether consecutive or not) 

25 of— 


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1 ‘‘(I) active duty (within the 

2 meaning of title 32, United States 

3 Code) other than for training, 

4 ‘‘(II) full-time National Guard 

5 duty (within the meaning of such title 

6 32) other than for training, 

7 ‘‘(III) duty, other than inactive 

8 duty or duty for training, in State 

9 status (within the meaning of such 

10 title 32), or 

11 ‘‘(IV) any combination of duty 

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

13 (III), 

14 who has been discharged or released from such 

15 duty at any time during the 5-year period end16 ing on the hiring date. Such term shall not in17 clude any unemployed veteran who begins work 

18 for the employer before the date of the enact19 ment of the Veteran Employment Transition 

20 Act of 2010. 

21 ‘‘(C) DISADVANTAGED VETERAN.—For 

22 purposes of subparagraph (A), the term ‘dis23 advantaged veteran’ means any veteran who is 

24 certified by the designated local agency as— 


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1 ‘‘(i) being a member of a family re2 ceiving assistance under a supplemental 

3 nutrition assistance program under the 

4 Food and Nutrition Act of 2008 for at 

5 least a 3-month period ending during the 

6 12-month period ending on the hiring date, 

7 or 

8 ‘‘(ii) entitled to compensation for a 

9 service-connected disability, and— 

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

11 not more than 1 year after having 

12 been discharged or released from ac13 tive duty in the Armed Forces of the 

14 United States, or 

15 ‘‘(II) having aggregate periods of 

16 unemployment during the 1-year pe17 riod ending on the hiring date which 

18 equal or exceed 6 months.’’. 

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

20 Internal Revenue Code of 1986 is amended— 

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

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

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

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

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


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1 subsection (b), and inserting ‘‘For purposes of sub2 paragraph (C)’’, 

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

4 subsection (d) the following new subparagraph: 

5 ‘‘(D) PRE-SCREENING OF RECENTLY DIS6 CHARGED VETERANS.— 

7 ‘‘(i) IN GENERAL.—For purposes of 

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

9 notice’ shall include any documentation 

10 provided to an individual by the Depart11 ment of Defense or the National Guard 

12 upon release or discharge from the Armed 

13 Forces or from service in the National 

14 Guard which includes information suffi15 cient to establish that such individual is a 

16 recently discharged veteran. 

17 ‘‘(ii) ADDITIONAL CERTIFICATION NOT

18 REQUIRED.—Subparagraph (A) shall be 

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

20 thereof in the case of a recently discharged 

21 veteran who provides to the employer docu22 mentation described in clause (i).’’, 

23 (4) by inserting ‘‘who begins work for the em24 ployer after December 31, 2008, and before the date 

25 of the enactment of the Veteran Employment TranVerDate Mar 15 2010 23:59 May 24, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3398.IS S3398

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1 sition Act of 2010,’’ after ‘‘Any unemployed vet2 eran’’ in subparagraph (A) of subsection (d)(14), 

3 and 

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

5 2010’’ in subparagraph (A) of subsection (d)(14). 

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

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

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

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

10 of the enactment of this Act. 

11 (e) DEPARTMENT OF DEFENSE DOCUMENTATION.— 

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

13 and the National Guard, as applicable, shall pro14 vide— 

15 (A) to each individual who is discharged or 

16 released from active duty in the Armed Forces 

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

18 enactment of this Act; and 

19 (B) to each member of the National Guard 

20 who is released from duty described in section 

21 51(d)(3)(B)(iii) of the Internal Revenue Code 

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

23 date of the enactment of this Act; 

24 in addition to the documentation which, without re25 gard to this subsection, is provided at the time of 


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1 such discharge or release, documentation described 

2 in paragraph (4). If the documentation which is pro3 vided without regard to this subsection at the time 

4 of the discharge or release described in the pre5 ceding sentence does not include information suffi6 cient to satisfy the requirements of section 

7 51(d)(13)(D)(i) of the Internal Revenue Code of 

8 1986 (as added by this Act), the Department of De9 fense or the National Guard, whichever is applicable, 

10 shall provide additional documentation which in11 cludes such information. 

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

13 an individual who is discharged or released from 

14 duty described in subparagraph (A) or (B) of para15 graph (1) after the date of the enactment of this 

16 Act, the Department of Defense or the National 

17 Guard, whichever is applicable, shall provide a brief18 ing to such individual before or at the time of such 

19 discharge or release to inform such individual of the 

20 credit for employment of recently discharged vet21 erans under section 51 of the Internal Revenue Code 

22 of 1986. 

23 (3) REQUEST FOR DOCUMENTATION.—The De24 partment of Defense or the National Guard, which25 ever is applicable, shall provide upon request the 


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1 documentation described in paragraph (1) to any in2 dividual who is discharged or released from duty de3 scribed in subparagraph (A) or (B) of paragraph (1) 

4 during the 5-year period preceding and including the 

5 date of the enactment of this Act. 

6 (4) INSTRUCTIONS FOR USE OF WORK OPPOR7 TUNITY CREDIT.—The documentation described in 

8 this paragraph is a document which includes— 

9 (A) instructions for an individual to ensure 

10 treatment as a recently discharged veteran for 

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

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

13 (B) instructions for employers detailing the 

14 use of the credit under such section 51 with re15 spect to such individual, and 

16 (C) the dates during which the credit 

17 under such section 51 is available. 

18 Such instructions shall be developed in collaboration 

19 with the Internal Revenue Service. 

Æ 


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