Veteran Small Business Tax Credit Act of 2015

To amend the Internal Revenue Code of 1986 to establish a small business start-up tax credit for veterans who have served overseas. 1. Short title This Act may be cited as the Veteran Small Business Tax Credit Act of 2015 2. Veteran small business start-up credit (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Veteran small business start-up credit (a) In general For purposes of section 38, in the case of an applicable veteran-owned business which elects the application of this section, the veteran small business start-up credit determined under this section for any taxable year is an amount equal to 15 percent of so much of the qualified start-up expenditures of the taxpayer as does not exceed $80,000. (b) Applicable veteran-Owned small business For purposes of this section— (1) In general The term applicable veteran-owned small business (2) Qualified veteran The term qualified veteran (A) has served on active duty in the Armed Forces of the United States, and (B) at any time in the course of such service, was stationed outside of the United States. Such term shall not include any individual who was discharged or released from the Armed Forces of the United States under dishonorable conditions. (3) Control The term controlled (A) management and operation of the daily business, and (B) (i) in the case of a sole proprietorship, sole ownership, (ii) in the case of a corporation, ownership (by vote or value) of not less than 51 percent of the stock in such corporation, or (iii) in the case of a partnership or joint venture, ownership of not less than 51 percent of the profits interests or capital interests in such partnership or joint venture. (4) Small business The term small business (A) the gross receipts of such person for the preceding taxable year did not exceed $5,000,000, or (B) in the case of a person to which subparagraph (A) does not apply, such person employed not more than 100 full-time employees during the preceding taxable year. For purposes of subparagraph (B), an employee shall be considered full-time if such employee is employed at least 30 hours per week for 20 or more calendar weeks in the taxable year. (c) Qualified start-Up expenditures For purposes of this section— (1) In general The term qualified start-up expenditures (A) any start-up expenditures (as defined in section 195(c)), or (B) any amounts paid or incurred during the taxable year for the purchase or lease of real property, or the purchase of personal property, placed in service during the taxable year and used in the active conduct of a trade or business. (d) Special rules For purposes of this section— (1) Year of election The taxpayer may elect the application of this section only for the first 2 taxable years for which ordinary and necessary expenses paid or incurred in carrying on such trade or business are allowable as a deduction by the taxpayer under section 162. (2) Controlled groups and common control All persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. (3) No double benefit If a credit is determined under this section with respect to any property, the basis of such property shall be reduced by the amount of the credit attributable to such property. . (b) 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. Veteran small business start-up credit. . (c) Made part of general business credit Section 38(b) of such Code is amended by striking plus , plus (37) the veteran small business start-up credit determined under section 45S. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.

Summary: Veteran Small Business Tax Credit Act of 2015 This bill allows a new business-related tax credit for the start-up expenses of a veteran-owned small business. The allowable amount of such credit is 15% of start-up expenditures that do not exceed $80,000. The credit is allowed to any individual (or the surviving spouse of such individual) who: (1) has served on active duty in the U.S. Armed Forces, (2) was stationed outside the United States, and (3) was not discharged or released under dishonorable conditions.