H. R. 674 
One Hundred Twelfth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Wednesday, 
the fifth day of January, two thousand and eleven 
An Act 
To amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent 
withholding on certain payments made to vendors by government entities, to 
modify the calculation of modified adjusted gross income for purposes of deter-
mining eligibility for certain healthcare-related programs, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of Contents. 
TITLE I—THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION 
ACT 
Sec. 101. Short title. 
Sec. 102. Repeal of imposition of 3 percent withholding on certain payments made 
to vendors by government entities. 
TITLE II—VOW TO HIRE HEROES 
Sec. 201. Short title. 
Subtitle A—Retraining Veterans 
Sec. 211. Veterans retraining assistance program. 
Subtitle B—Improving the Transition Assistance Program 
Sec. 221. Mandatory participation of members of the Armed Forces in the Transi-
tion Assistance Program of Department of Defense. 
Sec. 222. Individualized assessment for members of the Armed Forces under transi-
tion assistance on equivalence between skills developed in military occu-
pational specialties and qualifications required for civilian employment 
with the private sector. 
Sec. 223. Transition Assistance Program contracting. 
Sec. 224. Contracts with private entities to assist in carrying out Transition Assist-
ance Program of Department of Defense. 
Sec. 225. Improved access to apprenticeship programs for members of the Armed 
Forces who are being separated from active duty or retired. 
Sec. 226. Comptroller General review. 
Subtitle C—Improving the Transition of Veterans to Civilian Employment 
Sec. 231. Two-year extension of authority of Secretary of Veterans Affairs to pro-
vide rehabilitation and vocational benefits to members of the Armed 
Forces with severe injuries or illnesses. 
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to pay employers 
for providing on-job training to veterans who have not been rehabili-
tated to point of employability. 
Sec. 233. Training and rehabilitation for veterans with service-connected disabil-
ities who have exhausted rights to unemployment benefits under State 
law. 
Sec. 234. Collaborative veterans’ training, mentoring, and placement program. 
Sec. 235. Appointment of honorably discharged members and other employment as-
sistance. 
Sec. 236. Department of Defense pilot program on work experience for members of 
the Armed Forces on terminal leave.
H. R. 674—2 
Sec. 237. Enhancement of demonstration program on credentialing and licensing of 
veterans. 
Sec. 238. Inclusion of performance measures in annual report on veteran job coun-
seling, training, and placement programs of the Department of Labor. 
Sec. 239. Clarification of priority of service for veterans in Department of Labor job 
training programs. 
Sec. 240. Evaluation of individuals receiving training at the National Veterans’ 
Employment and Training Services Institute. 
Sec. 241. Requirements for full-time disabled veterans’ outreach program special-
ists and local veterans’ employment representatives. 
Subtitle D—Improvements to Uniformed Services Employment and Reemployment 
Rights 
Sec. 251. Clarification of benefits of employment covered under USERRA. 
Subtitle E—Other Matters 
Sec. 261. Returning heroes and wounded warriors work opportunity tax credits. 
Sec. 262. Extension of reduced pension for certain veterans covered by Medicaid 
plans for services furnished by nursing facilities. 
Sec. 263. Reimbursement rate for ambulance services. 
Sec. 264. Extension of authority for Secretary of Veterans Affairs to obtain informa-
tion from Secretary of Treasury and Commissioner of Social Security for 
income verification purposes. 
Sec. 265. Modification of loan guaranty fee for certain subsequent loans. 
TITLE III—OTHER PROVISIONS RELATING TO FEDERAL VENDORS 
Sec. 301. One hundred percent levy for payments to Federal vendors relating to 
property. 
Sec. 302. Study and report on reducing the amount of the tax gap owed by Federal 
contractors. 
TITLE IV—MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 
GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE PROGRAM 
ELIGIBILITY 
Sec. 401. Modification of calculation of modified adjusted gross income for deter-
mining certain healthcare program eligibility. 
TITLE V—BUDGETARY EFFECTS 
Sec. 501. Statutory Pay-As-You-Go Act of 2010. 
TITLE 
I—THREE 
PERCENT 
WITH-
HOLDING 
REPEAL 
AND 
JOB 
CRE-
ATION ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘3% Withholding Repeal and 
Job Creation Act’’. 
SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON 
CERTAIN PAYMENTS MADE TO VENDORS BY GOVERNMENT 
ENTITIES. 
(a) IN GENERAL.—Section 3402 of the Internal Revenue Code 
of 1986 is amended by striking subsection (t). 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments made after December 31, 2011. 
TITLE II—VOW TO HIRE HEROES 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘VOW to Hire Heroes Act of 
2011’’.
H. R. 674—3 
Subtitle A—Retraining Veterans 
SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM. 
(a) PROGRAM AUTHORIZED.— 
(1) IN GENERAL.—Not later than July 1, 2012, the Secretary 
of Veterans Affairs shall, in collaboration with the Secretary 
of Labor, establish and commence a program of retraining 
assistance for eligible veterans. 
(2) NUMBER OF ELIGIBLE VETERANS.—The number of unique 
eligible veterans who participate in the program established 
under paragraph (1) may not exceed— 
(A) 45,000 during fiscal year 2012; and 
(B) 54,000 during the period beginning October 1, 2012, 
and ending March 31, 2014. 
(b) RETRAINING ASSISTANCE.—Except as provided by subsection 
(k), each veteran who participates in the program established under 
subsection (a)(1) shall be entitled to up to 12 months of retraining 
assistance provided by the Secretary of Veterans Affairs. Such 
retraining assistance may only be used by the veteran to pursue 
a program of education (as such term is defined in section 3452(b) 
of title 38, United States Code) for training, on a full-time basis, 
that— 
(1) is approved under chapter 36 of such title; 
(2) is offered by a community college or technical school; 
(3) leads to an associate degree or a certificate (or other 
similar evidence of the completion of the program of education 
or training); 
(4) is designed to provide training for a high-demand 
occupation, as determined by the Commissioner of Labor Statis-
tics; and 
(5) begins on or after July 1, 2012. 
(c) MONTHLY CERTIFICATION.—Each veteran who participates 
in the program established under subsection (a)(1) shall certify 
to the Secretary of Veterans Affairs the enrollment of the veteran 
in a program of education described in subsection (b) for each 
month in which the veteran participates in the program. 
(d) AMOUNT
OF ASSISTANCE.—The monthly amount of the 
retraining assistance payable under this section is the amount 
in effect under section 3015(a)(1) of title 38, United States Code. 
(e) ELIGIBILITY.— 
(1) IN GENERAL.—For purposes of this section, an eligible 
veteran is a veteran who— 
(A) as of the date of the submittal of the application 
for assistance under this section, is at least 35 years of 
age but not more than 60 years of age; 
(B) was last discharged from active duty service in 
the Armed Forces under conditions other than dishonor-
able; 
(C) as of the date of the submittal of the application 
for assistance under this section, is unemployed; 
(D) as of the date of the submittal of the application 
for assistance under this section, is not eligible to receive 
educational assistance under chapter 30, 31, 32, 33, or 
35 of title 38, United States Code, or chapter 1606 or 
1607 of title 10, United States Code;