Veterans Entrepreneurs Act of 2013

To amend the Internal Revenue Code of 1986 to allow credits for the establishment of franchises with veterans. 1. Short title This Act may be cited as the Veterans Entrepreneurs Act of 2013 2. Veterans franchising credit (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Veterans franchising (a) Veterans franchise fee credit (1) In general For purposes of section 38 and subject to the limitation set forth in paragraph (2), the veterans franchise fee credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified franchise fee paid or incurred by a qualified veteran in connection with the purchase of a franchise. (2) Limitation The amount of qualified franchise fee taken into account under paragraph (1) shall not exceed $400,000. (b) Reduction where franchise not 100 percent veteran-Owned In the case of any franchise in which veterans do not own 100 percent of the stock or the capital or profits interests of the franchisee, the credit under subsection (a) shall be the amount which bears the same ration to the amount determined under subsection (a) (without regard to this subsection) as— (1) the stock or capital or profits interests of the franchise held by veterans, bears to (2) the total stock or capital or profits interests of the franchisee. For purposes of this subsection, the spouse of a veteran shall be treated as a veteran. (c) Qualified franchise fee For purposes of this section, the term qualified franchise fee (d) Other definitions For purposes of this section, the terms franchise franchisee franchisor franchise fee (e) Veteran The term veteran section 101 (f) Election This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year. . (b) Credit To be part of general business credit Section 38(b) of such Code is amended by striking plus , plus (37) the veterans franchise fee credit determined under section 45S(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Veterans franchising. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 3. Publication of information by Department of Veterans Affairs and Small Business Administration The Administrator of the Small Business Administration and the Secretary of Veterans Affairs shall publicize in mailings and brochures sent to veterans service organizations and veteran advocacy groups information regarding discounted franchise fees under section 45S

Summary: Veterans Entrepreneurs Act of 2013 - Amends the Internal Revenue Code to allow a business-related tax credit of up to $400,000 for 25% of the franchise fees paid or incurred by a veteran for the purchase of a franchise. Reduces the amount of such credit if the veteran does not own 100% of the stock or capital or profits interest of the franchisee. Directs the Administrator of the Small Business Administration (SBA) and the Secretary of Veterans Affairs (VA) to provide information about the tax credit allowed by this Act to veterans service organizations and veteran advocacy groups.