nues to the Treasury by reason of the amendments made 
by subsections (a) and (b). Amounts appropriated by the 
preceding sentence shall be transferred from the general 
fund at such times and in such manner as to replicate 
to the extent possible the transfers which would have oc-
curred to such Trust Fund had such amendments not 
been enacted. 
(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 enact-
ment of this Act. 
SEC. 5. REPORT. 
Not later than 2 years after the date of the enact-
ment of this Act, and annually thereafter, the Commis-
sioner of Internal Revenue, in consultation with the Sec-
retary of Labor, shall report to the Congress on the effec-
tiveness 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 rea-
son of subsection (d)(1)(B) thereof, or 3111(e) of the In-
ternal Revenue Code of 1986. 
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SEC. 6. TREATMENT OF POSSESSIONS. 
(a) PAYMENTS TO POSSESSIONS.— 
(1) MIRROR
CODE
POSSESSIONS.—The Sec-
retary 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 rea-
son of the amendments made by this Act. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment 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 posses-
sion 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 pos-
session establishes to the satisfaction of the Sec-
retary that the possession has implemented (or, at 
the discretion of the Secretary, will implement) an 
income tax benefit which is substantially equivalent 
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to the income tax credit in effect after the amend-
ments made by this Act. 
(b) 
COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—The credit 
allowed against United States income taxes for any tax-
able year under the amendments made by this Act to sec-
tion 51 of the Internal Revenue Code of 1986 to any per-
son with respect to any qualified veteran shall be reduced 
by the amount of any credit (or other tax benefit described 
in subsection (a)(2)) allowed to such person against in-
come taxes imposed by the possession of the United States 
by reason of this section with respect to such qualified 
veteran for such taxable year. 
(c) DEFINITIONS AND SPECIAL RULES.— 
(1) POSSESSION OF THE UNITED STATES.—For 
purposes of this section, the term ‘‘possession of the 
United States’’ includes American Samoa, Guam, 
the Commonwealth of the Northern Mariana Is-
lands, the Commonwealth of Puerto Rico, and the 
United States Virgin Islands. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
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session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(3) TREATMENT OF PAYMENTS.—For purposes 
of section 1324(b)(2) of title 31, United States 
Code, the payments under this section shall be treat-
ed in the same manner as a refund due from credit 
provisions described in such section. 
Æ 
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