I 

108TH CONGRESS 

2D SESSION H. R. 5080

To amend the Internal Revenue Code of 1986 to allow employers a $1,000 

credit against income tax for every 3 years that they employ a veteran. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 15, 2004

Mr. SAXTON (for himself, Mr. BURR, Mr. WILSON of South Carolina, Mr. 

CARDOZA, Mr. MEEHAN, Mr. WALSH, Mr. GARRETT of New Jersey, Mr. 

STENHOLM, Mr. SHERWOOD, Mr. LOBIONDO, Ms. ROS-LEHTINEN, Mr. 

SANDLIN, Mr. SENSENBRENNER, Mr. GIBBONS, and Mr. TOWNS) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL

To amend the Internal Revenue Code of 1986 to allow employers a $1,000 credit against income tax for every 

3 years that they employ a veteran.

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’ Employment 

5 Act of 2004’’. 
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1 SEC. 2. $1,000 INCOME TAX CREDIT EVERY 3 YEARS FOR EM2 PLOYING A VETERAN. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to business related credits) is amended by 

6 inserting after section 45F the following new section: 

7 ‘‘SEC. 45G. EMPLOYER CREDIT FOR EVERY 3 YEARS OF 

8 FULL-TIME EMPLOYMENT OF VETERAN. 

9 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

10 veteran employment credit determined under this section 

11 for the taxable year is $1,000 for each veteran (as defined 

12 in section 101 of title 38, United States Code) whose has 

13 a 3-year employment period ending during the taxable 

14 year. 

15 ‘‘(b) 3-YEAR EMPLOYMENT PERIOD.—For purposes 

16 of this section, a veteran’s 3-year employment period is 

17 each 3-year period throughout which the veteran is a full18 time employee of the taxpayer (or a predecessor) in a 

19 trade or business. A day of employment shall be taken into 

20 account under the preceding sentence with respect to any 

21 employment period only if not taken into account with re22 spect to any prior period. 

23 ‘‘(c) SPECIAL RULES.—

24 ‘‘(1) INFLATION ADJUSTMENT.—In the case of 

25 any taxable year beginning in a calendar year after 
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1 2005, the dollar amount contained in subsection (a) 

2 shall be increased by an amount equal to—

3 ‘‘(A) such dollar amount, multiplied by 

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting ‘calendar year 2004’ for 

8 ‘calendar year 1992’ in subparagraph (B) 

9 thereof. 

10 Any increase determined under the preceding sen11 tence shall be rounded to the nearest multiple of 

12 $50. 

13 ‘‘(2) OTHER RULES.—Rules similar to the rules 

14 of section 52 shall apply for purposes of this sec15 tion.’’

16 (b) CREDIT MADE PART OF GENERAL BUSINESS

17 CREDIT.—

18 (1) IN GENERAL.—Subsection (b) of section 38 

19 of such Code (relating to current year business cred20 it) is amended by striking ‘‘plus’’ at the end of para21 graph (14), by striking the period at the end of 

22 paragraph (15) and inserting ‘‘, plus’’, and by add23 ing at the end thereof the following new paragraph: 

24 ‘‘(16) the veteran employment credit deter25 mined under section 45G(a).’’. 
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1 (2) LIMITATION ON CARRYBACK.—Subsection 

2 (d) of section 39 of such Code is amended by adding 

3 at the end the following new paragraph: 

4 ‘‘(11) NO CARRYBACK OF VETERAN EMPLOY5 MENT CREDIT BEFORE EFFECTIVE DATE.—No por6 tion of the unused business credit for any taxable 

7 year which is attributable to the credit determined 

8 under section 45G may be carried back to any tax9 able year beginning on or before the date of the en10 actment of this paragraph.’’. 

11 (c) CLERICAL AMENDMENT.—The table of sections 

12 for subpart D of part IV of subchapter A of chapter 1 

13 of such Code is amended by inserting after the item relat14 ing to section 45F the following new item:

‘‘Sec. 45G. Employer credit for every 3 years of full-time employment of veteran.’’.

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act; except that such 

18 amendments shall take into account periods of employ19 ment on or before such date.

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