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) intro-
duced 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 em-
ployers a $1,000 credit against income tax for every 
3 years that they employ a veteran.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans’ Employment 
Act of 2004’’.
SEC. 2. $1,000 INCOME TAX CREDIT EVERY 3 YEARS FOR EM-
PLOYING A VETERAN. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
inserting after section 45F the following new section: 
‘‘SEC. 45G. EMPLOYER CREDIT FOR EVERY 3 YEARS OF 
FULL-TIME EMPLOYMENT OF VETERAN. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
veteran employment credit determined under this section 
for the taxable year is $1,000 for each veteran (as defined 
in section 101 of title 38, United States Code) whose has 
a 3-year employment period ending during the taxable 
year. 
‘‘(b) 3-YEAR EMPLOYMENT PERIOD.—For purposes 
of this section, a veteran’s 3-year employment period is 
each 3-year period throughout which the veteran is a full-
time employee of the taxpayer (or a predecessor) in a 
trade or business. A day of employment shall be taken into 
account under the preceding sentence with respect to any 
employment period only if not taken into account with re-
spect to any prior period. 
‘‘(c) SPECIAL RULES.—
‘‘(1) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after
2005, the dollar amount contained in subsection (a) 
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2004’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$50. 
‘‘(2) OTHER RULES.—Rules similar to the rules 
of section 52 shall apply for purposes of this sec-
tion.’’
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—
(1) IN GENERAL.—Subsection (b) of section 38 
of such Code (relating to current year business cred-
it) is amended by striking ‘‘plus’’ at the end of para-
graph (14), by striking the period at the end of 
paragraph (15) and inserting ‘‘, plus’’, and by add-
ing at the end thereof the following new paragraph: 
‘‘(16) the veteran employment credit deter-
mined under section 45G(a).’’.
(2) LIMITATION
ON
CARRYBACK.—Subsection 
(d) of section 39 of such Code is amended by adding 
at the end the following new paragraph: 
‘‘(11) NO CARRYBACK OF VETERAN EMPLOY-
MENT CREDIT BEFORE EFFECTIVE DATE.—No por-
tion of the unused business credit for any taxable 
year which is attributable to the credit determined 
under section 45G may be carried back to any tax-
able year beginning on or before the date of the en-
actment of this paragraph.’’. 
(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 inserting after the item relat-
ing to section 45F the following new item:
‘‘Sec. 45G. Employer credit for every 3 years of full-time employ-
ment of veteran.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act; except that such 
amendments shall take into account periods of employ-
ment on or before such date.
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