VOW to Hire Heroes Extension Act of 2019

To amend the Internal Revenue Code of 1986 to extend the work opportunity credit for hiring veterans, and for other purposes. 1. Short title This Act may be cited as the VOW to Hire Heroes Extension Act of 2019 2. Extension of work opportunity credit for veterans (a) In general Section 51(c) (b) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2018. 3. Simplified certification of veteran status (a) In general Subparagraph (D) of section 51(d)(13) (D) Pre-screening of qualified veterans (i) In general Subparagraph (A) shall be applied without regard to subclause (II) of clause (ii) thereof in the case of an individual seeking treatment as a qualified veteran with respect to whom the pre-screening notice contains— (I) qualified veteran status documentation, (II) qualified proof of unemployment compensation, and (III) an affidavit furnished by the individual stating, under penalty of perjury, that the information provided under subclauses (I) and (II) is true. (ii) Qualified veteran status documentation For purposes of clause (i), the term qualified veteran status documentation (iii) Qualified proof of unemployment compensation For purposes of clause (i), the term qualified proof of unemployment compensation . (b) Effective date The amendment made by this section shall apply to individuals who begin work for the employer after the date of the enactment of this Act. 4. Credit made available against payroll taxes in certain circumstances (a) In general Section 52(c) (1) in the heading by striking Tax-exempt organizations Certain employers (2) in paragraph (2)— (A) by striking qualified tax-exempt organizations certain employers (B) by striking by qualified tax-exempt organizations by certain employers (b) Credit allowed to certain for-Profit employers (1) In general Paragraph (1) of section 3111(e) of such Code is amended by inserting or a qualified for-profit employer If a qualified tax-exempt organization (2) Qualified for-profit employer defined Paragraph (5) of section 3111(e) of such Code is amended by striking and (B) the term qualified for-profit employer (i) such employer does not have profits for any of the 3 taxable years preceding such taxable year, and (ii) such employer elects under section 51(j) not to have section 51 apply to such taxable year, and . (3) Conforming amendments (A) Section 3111(e)(1) of such Code is amended by striking with respect to whom a credit would be allowable under section 38 by reason of section 51 if the organization were not a qualified tax-exempt organization (B) Paragraphs (1) and (2) of section 3111(e) of such Code are both amended by inserting or for-profit employer employees of the organization (C) Section 3111(e)(3)(C) of such Code is amended by inserting in the case of a qualified tax-exempt organization, by only taking into account (D) Section 3111(e)(4) of such Code is amended by inserting or for-profit employer the organization (E) Section 3111(e)(5)(C) of such Code, as redesignated by paragraph (2), is amended to read as follows: (C) the term qualified veteran . (c) Transfers to Federal Old-Age and Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 (d) Effective date The amendments made by subsections (a) and (b) shall apply to individuals who begin work for the employer after the date of the enactment of this Act. 5. Report Not later than 2 years after the date of the enactment of this Act, and annually thereafter, the Commissioner of Internal Revenue, in consultation with the Secretary of Labor, shall report to the Congress on the effectiveness and cost-effectiveness of the amendments made by sections 2, 3, and 4 in increasing the employment of veterans. Such report shall include the results of a survey, conducted, if needed, in consultation with the Veterans' Employment and Training Service of the Department of Labor, to determine how many veterans are hired by each employer that claims the credit under section 51, by reason of subsection (d)(1)(B) thereof, or 3111(e) of the Internal Revenue Code of 1986. 6. Treatment of Possessions (a) Payments to possessions (1) Mirror code possessions The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this Act. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession of the United States. (2) Other possessions The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system the amount estimated by the Secretary of the Treasury as being equal to the loss to that possession that would have occurred by reason of the amendments made by this Act if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession establishes to the satisfaction of the Secretary that the possession has implemented (or, at the discretion of the Secretary, will implement) an income tax benefit which is substantially equivalent to the income tax credit in effect after the amendments made by this Act. (b) Coordination with credit allowed against United States income taxes The credit allowed against United States income taxes for any taxable year under the amendments made by this Act to section 51 (c) Definitions and special rules (1) Possession of the united states For purposes of this section, the term possession of the United States (2) Mirror code tax system For purposes of this section, the term mirror code tax system (3) Treatment of payments For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from credit provisions described in such section.

Summary: VOW to Hire Heroes Extension Act of 2019 This bill amends the Internal Revenue Code to (1) make permanent the work opportunity tax credit, including with respect to qualified veterans; (2) revise tax credit eligibility requirements for documenting the status of veterans and their receipt of unemployment compensation; and (3) extend the payroll tax offset for such credit to certain for-profit employers. The Internal Revenue Service must make annual reports to Congress on the effectiveness and cost-effectiveness of this bill in increasing the employment of veterans. The bill directs the Department of the Treasury to pay (1) each U.S. possession (i.e., American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands) with a mirror code tax system amounts equal to the loss to such possession due to this bill; and (2) each U.S. possession without such a tax system an amount estimated to equal the loss to such possession that would have occurred due to this bill if such a tax system had been in effect in that possession.