† HR 674 EAS 
‘‘(2) the term ‘nonprofit organization’ means an 
organization that is described in section 501(c)(3) of 
the Internal Revenue Code of 1986 and that is exempt 
from taxation under section 501(a) of such Code.’’. 
(b) CONFORMING AMENDMENT.—Section 4103A(a) of 
title 38, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘and facili-
tate placements’’ after ‘‘intensive services’’; and 
(2) by adding at the end the following: 
‘‘(3) In facilitating placement of a veteran under this 
program, a disabled veterans’ outreach program specialist 
shall help to identify job opportunities that are appropriate 
for the veteran’s employment goals and assist that veteran 
in developing a cover letter and resume that are targeted 
for those particular jobs.’’. 
(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 41 of such title is amended by in-
serting after the item relating to section 4104 the following 
new item: 
‘‘4104A. Collaborative veterans’ training, mentoring, and placement program.’’. 
SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED 
MEMBERS AND OTHER EMPLOYMENT ASSIST-
ANCE. 
(a) APPOINTMENTS TO COMPETITIVE SERVICE POSI-
TIONS.—
† HR 674 EAS 
(1) IN GENERAL.—Chapter 21 of title 5, United 
States Code, is amended by inserting after section 
2108 the following: 
‘‘§ 2108a. Treatment of certain individuals as vet-
erans, disabled veterans, and preference 
eligibles 
‘‘(a) VETERAN.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (3), an individual shall be treated as a 
veteran defined under section 2108(1) for purposes of 
making an appointment in the competitive service, if 
the individual— 
‘‘(A) meets the definition of a veteran under 
section 2108(1), except for the requirement that 
the individual has been discharged or released 
from active duty in the armed forces under hon-
orable conditions; and 
‘‘(B) submits a certification described under 
paragraph (2) to the Federal officer making the 
appointment. 
‘‘(2) CERTIFICATION.—A certification referred to 
under paragraph (1) is a certification that the indi-
vidual is expected to be discharged or released from 
active duty in the armed forces under honorable con-
† HR 674 EAS 
ditions not later than 120 days after the date of the 
submission of the certification. 
‘‘(b) DISABLED VETERAN.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (3), an individual shall be treated as a 
disabled veteran defined under section 2108(2) for 
purposes of making an appointment in the competi-
tive service, if the individual— 
‘‘(A) meets the definition of a disabled vet-
eran under section 2108(2), except for the re-
quirement that the individual has been separated 
from active duty in the armed forces under hon-
orable conditions; and 
‘‘(B) submits a certification described under 
paragraph (2) to the Federal officer making the 
appointment. 
‘‘(2) CERTIFICATION.—A certification referred to 
under paragraph (1) is a certification that the indi-
vidual is expected to be separated from active duty in 
the armed forces under honorable conditions not later 
than 120 days after the date of the submission of the 
certification. 
‘‘(c) PREFERENCE ELIGIBLE.—Subsections (a) and (b) 
shall apply with respect to determining whether an indi-
vidual is a preference eligible under section 2108(3) for pur-
† HR 674 EAS 
poses of making an appointment in the competitive serv-
ice.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) DEFINITIONS.—Section 2108 of title 5, 
United States Code, is amended— 
(i) in paragraph (1), in the matter fol-
lowing subparagraph (D), by inserting ‘‘, 
except as provided under section 2108a,’’ be-
fore ‘‘who has been’’; 
(ii) in paragraph (2), by inserting 
‘‘(except as provided under section 2108a)’’ 
before ‘‘has been separated’’; and 
(iii) in paragraph (3), in the matter 
preceding subparagraph (A), by inserting 
‘‘or section 2108a(c)’’ after ‘‘paragraph (4) 
of this section’’. 
(B) TABLE OF SECTIONS.—The table of sec-
tions for chapter 21 of title 5, United States 
Code, is amended by adding after the item relat-
ing to section 2108 the following: 
‘‘2108a. Treatment of certain individuals as veterans, disabled veterans, and pref-
erence eligibles.’’. 
(b) EMPLOYMENT
ASSISTANCE: OTHER
FEDERAL 
AGENCIES.— 
(1) DEFINITIONS.—In this subsection—
† HR 674 EAS 
(A) the term ‘‘agency’’ has the meaning 
given the term ‘‘Executive agency’’ in section 105 
of title 5, United States Code; and 
(B) the term ‘‘veteran’’ has the meaning 
given that term in section 101 of title 38, United 
States Code. 
(2) RESPONSIBILITIES
OF
OFFICE
OF
PER-
SONNEL MANAGEMENT.—The Director of the Office of 
Personnel Management shall— 
(A) designate agencies that shall establish a 
program to provide employment assistance to 
members of the Armed Forces who are being sep-
arated from active duty in accordance with 
paragraph (3); and 
(B) ensure that the programs established 
under this subsection are coordinated with the 
Transition Assistance Program (TAP) of the De-
partment of Defense. 
(3) ELEMENTS OF PROGRAM.—The head of each 
agency designated under paragraph (2)(A), in con-
sultation with the Director of the Office of Personnel 
Management, and acting through the Veterans Em-
ployment Program Office of the agency established 
under Executive Order 13518 (74 Fed. Reg. 58533;
† HR 674 EAS 
relating to employment of veterans in the Federal 
Government), or any successor thereto, shall— 
(A) establish a program to provide employ-
ment assistance to members of the Armed Forces 
who are being separated from active duty, in-
cluding assisting such members in seeking em-
ployment with the agency; 
(B) provide such members with information 
regarding the program of the agency established 
under subparagraph (A); and 
(C) promote the recruiting, hiring, training 
and development, and retention of such members 
and veterans by the agency. 
(4) OTHER
OFFICE.—If an agency designated 
under paragraph (2)(A) does not have a Veterans 
Employment Program Office, the head of the agency, 
in consultation with the Director of the Office of Per-
sonnel Management, shall select an appropriate office 
of the agency to carry out the responsibilities of the 
agency under paragraph (3). 
SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON 
WORK EXPERIENCE FOR MEMBERS OF THE 
ARMED FORCES ON TERMINAL LEAVE. 
(a) IN GENERAL.—The Secretary of Defense may es-
tablish a pilot program to assess the feasibility and advis-
† HR 674 EAS 
ability of providing to members of the Armed Forces on ter-
minal leave work experience with civilian employees and 
contractors of the Department of Defense to facilitate the 
transition of the individuals from service in the Armed 
Forces to employment in the civilian labor market. 
(b) DURATION.—The pilot program shall be carried 
out during the two-year period beginning on the date of 
the commencement of the pilot program. 
(c) REPORT.—Not later than 540 days after the date 
of the commencement of the pilot program, the Secretary 
shall submit to the Committee on Armed Services and the 
Committee on Veterans’ Affairs of the Senate and the Com-
mittee on Armed Services and the Committee on Veterans’ 
Affairs of the House of Representatives an interim report 
on the pilot program that includes the findings of the Sec-
retary with respect to the feasibility and advisability of 
providing covered individuals with work experience as de-
scribed in subsection (a). 
SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM 
ON CREDENTIALING AND LICENSING OF VET-
ERANS. 
(a) IN GENERAL.—Section 4114 of title 38, United 
States Code, is amended— 
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’;
† HR 674 EAS 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Assistant Secretary 
shall’’ and inserting ‘‘Assistant Secretary 
for Veterans’ Employment and Training 
shall, in consultation with the Assistant 
Secretary for Employment and Training,’’; 
(ii) by striking ‘‘not less than 10 mili-
tary’’ and inserting ‘‘not more than five 
military’’; and 
(iii) by inserting ‘‘for Veterans’ Em-
ployment and Training’’ after ‘‘selected by 
the Assistant Secretary’’; and 
(B) in paragraph (2), by striking ‘‘consult 
with appropriate Federal, State, and industry 
officials to’’ and inserting ‘‘enter into a contract 
with an appropriate entity representing a coali-
tion of State governors to consult with appro-
priate Federal, State, and industry officials 
and’’; and 
(3) by striking subsections (d) through (h) and 
inserting the following: 
‘‘(d) PERIOD OF PROJECT.—The period during which 
the Assistant Secretary shall carry out the demonstration 
project under this section shall be the two-year period begin-
† HR 674 EAS 
ning on the date of the enactment of the VOW to Hire He-
roes Act of 2011.’’. 
(b) STUDY COMPARING COSTS INCURRED BY SEC-
RETARY OF DEFENSE FOR TRAINING FOR MILITARY OCCU-
PATIONAL SPECIALTIES WITHOUT CREDENTIALING OR LI-
CENSING WITH COSTS INCURRED BY SECRETARY OF VET-
ERANS AFFAIRS AND SECRETARY OF LABOR IN PROVIDING 
EMPLOYMENT-RELATED ASSISTANCE.— 
(1) IN GENERAL.—Not later than 180 days after 
the conclusion of the period described in subsection 
(d) of section 4114 of title 38, United States Code, as 
added by subsection (a), the Assistant Secretary of 
Labor of Veterans’ Employment and Training shall, 
in consultation with the Secretary of Defense and the 
Secretary of Veterans Affairs, complete a study com-
paring the costs incurred by the Secretary of Defense 
in training members of the Armed Forces for the mili-
tary occupational specialties selected by the Assistant 
Secretary of Labor of Veterans’ Employment and 
Training pursuant to the demonstration project pro-
vided for in such section 4114, as amended by sub-
section (a), with the costs incurred by the Secretary 
of Veterans Affairs and the Secretary of Labor in pro-
viding employment-related assistance to veterans who
† HR 674 EAS 
previously held such military occupational specialties, 
including— 
(A) providing educational assistance under 
laws administered by the Secretary of Veterans 
Affairs to veterans to obtain credentialing and 
licensing for civilian occupations that are simi-
lar to such military occupational specialties; 
(B) providing assistance to unemployed vet-
erans who, while serving in the Armed Forces, 
were trained in a military occupational spe-
cialty; and 
(C) providing vocational training or coun-
seling to veterans described in subparagraph (B). 
(2) REPORT.— 
(A) IN GENERAL.—Not later than 180 days 
after the conclusion of the period described in 
subsection (d) of section 4114 of title 38, United 
States Code, as added by subsection (a), the As-
sistant Secretary of Labor of Veterans’ Employ-
ment and Training shall submit to Congress a 
report on the study carried out under paragraph 
(1). 
(B) ELEMENTS.—The report required by 
subparagraph (A) shall include the following:
† HR 674 EAS 
(i) The findings of the Assistant Sec-
retary with respect to the study required by 
paragraph (1). 
(ii) A detailed description of the costs 
compared under the study required by para-
graph (1). 
SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN AN-
NUAL REPORT ON VETERAN JOB COUN-
SELING, TRAINING, AND PLACEMENT PRO-
GRAMS OF THE DEPARTMENT OF LABOR. 
Section 4107(c) of title 38, United States Code, is 
amended— 
(1) in paragraph (2), by striking ‘‘clause (1)’’ 
and inserting ‘‘paragraph (1)’’; 
(2) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (6), by striking the period and 
inserting ‘‘; and’’; and 
(4) by adding at the end the following new para-
graph: 
‘‘(7) performance measures for the provision of 
assistance under this chapter, including— 
‘‘(A) the percentage of participants in pro-
grams under this chapter who find employment
† HR 674 EAS 
before the end of the first 90-day period following 
their completion of the program; 
‘‘(B) the percentage of participants de-
scribed in subparagraph (A) who are employed 
during the first 180-day period following the pe-
riod described in such subparagraph; 
‘‘(C) the median earnings of participants 
described in subparagraph (A) during the period 
described in such subparagraph; 
‘‘(D) the median earnings of participants 
described in subparagraph (B) during the period 
described in such subparagraph; and 
‘‘(E) the percentage of participants in pro-
grams under this chapter who obtain a certifi-
cate, degree, diploma, licensure, or industry-rec-
ognized credential relating to the program in 
which they participated under this chapter dur-
ing the third 90-day period following their com-
pletion of the program.’’. 
SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR 
VETERANS IN DEPARTMENT OF LABOR JOB 
TRAINING PROGRAMS. 
Section 4215 of title 38, United States Code, is amend-
ed—
† HR 674 EAS 
(1) in subsection (a)(3), by adding at the end the 
following: ‘‘Such priority includes giving access to 
such services to a covered person before a non-covered 
person or, if resources are limited, giving access to 
such services to a covered person instead of a non-cov-
ered person.’’; and 
(2) by amending subsection (d) to read as fol-
lows: 
‘‘(d) ADDITION TO ANNUAL REPORT.—(1) In the an-
nual report required under section 4107(c) of this title for 
the program year beginning in 2003 and each subsequent 
program year, the Secretary of Labor shall evaluate whether 
covered persons are receiving priority of service and are 
being fully served by qualified job training programs. Such 
evaluation shall include— 
‘‘(A) an analysis of the implementation of pro-
viding such priority at the local level; 
‘‘(B) whether the representation of veterans in 
such programs is in proportion to the incidence of 
representation of veterans in the labor market, includ-
ing within groups that the Secretary may designate 
for priority under such programs, if any; and 
‘‘(C) performance measures, as determined by the 
Secretary, to determine whether veterans are receiving
† HR 674 EAS 
priority of service and are being fully served by quali-
fied job training programs. 
‘‘(2) The Secretary may not use the proportion of rep-
resentation of veterans described in subparagraph (B) of 
paragraph (1) as the basis for determining under such 
paragraph whether veterans are receiving priority of service 
and are being fully served by qualified job training pro-
grams.’’. 
SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAIN-
ING AT THE NATIONAL VETERANS’ EMPLOY-
MENT AND TRAINING SERVICES INSTITUTE. 
(a) IN GENERAL.—Section 4109 of title 38, United 
States Code, is amended by adding at the end the following 
new subsection: 
‘‘(d)(1) The Secretary shall require that each disabled 
veterans’ outreach program specialist and local veterans’ 
employment representative who receives training provided 
by the Institute, or its successor, is given a final examina-
tion to evaluate the specialist’s or representative’s perform-
ance in receiving such training. 
‘‘(2) The results of such final examination shall be pro-
vided to the entity that sponsored the specialist or represent-
ative who received the training.’’. 
(b) EFFECTIVE DATE.—Subsection (d) of section 4109 
of title 38, United States Code, as added by subsection (a),
† HR 674 EAS 
shall apply with respect to training provided by the Na-
tional Veterans’ Employment and Training Services Insti-
tute that begins on or after the date that is 180 days after 
the date of the enactment of this Act. 
SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VET-
ERANS’ OUTREACH PROGRAM SPECIALISTS 
AND LOCAL VETERANS’ EMPLOYMENT REP-
RESENTATIVES. 
(a) DISABLED VETERANS’ OUTREACH PROGRAM SPE-
CIALISTS.—Section 4103A of title 38, United States Code, 
is amended by adding at the end the following new sub-
section: 
‘‘(d) ADDITIONAL REQUIREMENT FOR FULL-TIME EM-
PLOYEES.—(1) A full-time disabled veterans’ outreach pro-
gram specialist shall perform only duties related to meeting 
the employment needs of eligible veterans, as described in 
subsection (a), and shall not perform other non-veteran-re-
lated duties that detract from the specialist’s ability to per-
form the specialist’s duties related to meeting the employ-
ment needs of eligible veterans. 
‘‘(2) The Secretary shall conduct regular audits to en-
sure compliance with paragraph (1). If, on the basis of such 
an audit, the Secretary determines that a State is not in 
compliance with paragraph (1), the Secretary may reduce
† HR 674 EAS 
the amount of a grant made to the State under section 
4102A(b)(5) of this title.’’. 
(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTA-
TIVES.—Section 4104 of such title is amended— 
(1) by redesignating subsection (e) as subsection 
(f); and 
(2) by inserting after subsection (d) the following 
new subsection (e): 
‘‘(e) ADDITIONAL REQUIREMENTS FOR FULL-TIME EM-
PLOYEES.—(1) A full-time local veterans’ employment rep-
resentative shall perform only duties related to the employ-
ment, training, and placement services under this chapter, 
and shall not perform other non-veteran-related duties that 
detract from the representative’s ability to perform the rep-
resentative’s duties related to employment, training, and 
placement services under this chapter. 
‘‘(2) The Secretary shall conduct regular audits to en-
sure compliance with paragraph (1). If, on the basis of such 
an audit, the Secretary determines that a State is not in 
compliance with paragraph (1), the Secretary may reduce 
the amount of a grant made to the State under section 
4102A(b)(5) of this title.’’. 
(c) CONSOLIDATION.—Section 4102A of such title is 
amended by adding at the end the following new subsection:
† HR 674 EAS 
‘‘(h) CONSOLIDATION OF DISABLED VETERANS’ OUT-
REACH PROGRAM SPECIALISTS AND VETERANS’ EMPLOY-
MENT REPRESENTATIVES.—The Secretary may allow the 
Governor of a State receiving funds under subsection (b)(5) 
to support specialists and representatives as described in 
such subsection to consolidate the functions of such special-
ists and representatives if— 
‘‘(1) the Governor determines, and the Secretary 
concurs, that such consolidation— 
‘‘(A) promotes a more efficient administra-
tion of services to veterans with a particular em-
phasis on services to disabled veterans; and 
‘‘(B) does not hinder the provision of serv-
ices to veterans and employers; and 
‘‘(2) the Governor submits to the Secretary a 
proposal therefor at such time, in such manner, and 
containing such information as the Secretary may re-
quire.’’.
† HR 674 EAS 
Subtitle D—Improvements to Uni-
formed 
Services 
Employment 
and Reemployment Rights 
SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT 
COVERED UNDER USERRA. 
Section 4303(2) of title 38, United States Code, is 
amended by inserting ‘‘the terms, conditions, or privileges 
of employment, including’’ after ‘‘means’’. 
Subtitle E—Other Matters 
SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS 
WORK OPPORTUNITY TAX CREDITS. 
(a) IN GENERAL.—Paragraph (3) of section 51(b) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘($12,000 per year in the case of any individual who is 
a qualified veteran by reason of subsection (d)(3)(A)(ii))’’ 
and inserting ‘‘($12,000 per year in the case of any indi-
vidual who is a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(I), $14,000 per year in the case of any indi-
vidual who is a qualified veteran by reason of subsection 
(d)(3)(A)(iv), and $24,000 per year in the case of any indi-
vidual who is a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(II))’’. 
(b) RETURNING HEROES TAX CREDITS.—Subpara-
graph (A) of section 51(d)(3) of the Internal Revenue Code 
of 1986 is amended—
† HR 674 EAS 
(1) by striking ‘‘or’’ at the end of clause (i), 
(2) by striking the period at the end of clause 
(ii)(II), and 
(3) by adding at the end the following new 
clauses: 
‘‘(iii) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or exceed 
4 weeks (but less than 6 months), or 
‘‘(iv) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or exceed 
6 months.’’. 
(c) SIMPLIFIED CERTIFICATION.—Paragraph (13) of 
section 51(d) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) 
CREDIT
FOR
UNEMPLOYED
VET-
ERANS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), for purposes of para-
graph (3)(A)— 
‘‘(I) a veteran will be treated as 
certified by the designated local agency 
as having aggregate periods of unem-
† HR 674 EAS 
ployment meeting the requirements of 
clause (ii)(II) or (iv) of such para-
graph (whichever is applicable) if such 
veteran is certified by such agency as 
being in receipt of unemployment com-
pensation under State or Federal law 
for not less than 6 months during the 
1-year period ending on the hiring 
date, and 
‘‘(II) a veteran will be treated as 
certified by the designated local agency 
as having aggregate periods of unem-
ployment meeting the requirements of 
clause (iii) of such paragraph if such 
veteran is certified by such agency as 
being in receipt of unemployment com-
pensation under State or Federal law 
for not less than 4 weeks (but less than 
6 months) during the 1-year period 
ending on the hiring date. 
‘‘(ii) REGULATORY
AUTHORITY.—The 
Secretary may provide alternative methods 
for certification of a veteran as a qualified 
veteran described in clause (ii)(II), (iii), or
† HR 674 EAS 
(iv) of paragraph (3)(A), at the Secretary’s 
discretion.’’. 
(d) EXTENSION OF CREDIT.—Subparagraph (B) of 
section 51(c)(4) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(B) after— 
‘‘(i) December 31, 2012, in the case of 
a qualified veteran, and 
‘‘(ii) December 31, 2011, in the case of 
any other individual.’’. 
(e) CREDIT MADE AVAILABLE TO TAX-EXEMPT ORGA-
NIZATIONS IN CERTAIN CIRCUMSTANCES.— 
(1) IN GENERAL.—Subsection (c) of section 52 of 
the Internal Revenue Code of 1986 is amended— 
(A) by inserting ‘‘(1) IN GENERAL.—’’ be-
fore ‘‘No credit’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) CREDIT MADE AVAILABLE TO QUALIFIED TAX- 
EXEMPT ORGANIZATIONS EMPLOYING QUALIFIED VET-
ERANS.—For credit against payroll taxes for employment 
of qualified veterans by qualified tax-exempt organizations, 
see section 3111(e).’’.
† HR 674 EAS 
(2) CREDIT ALLOWABLE.—Section 3111 of such 
Code is amended by adding at the end the following 
new subsection: 
‘‘(e) CREDIT FOR EMPLOYMENT OF QUALIFIED VET-
ERANS.— 
‘‘(1) IN GENERAL.—If a qualified tax-exempt or-
ganization hires a qualified veteran 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, then there shall be 
allowed as a credit against the tax imposed by sub-
section (a) on wages paid with respect to employment 
of all employees of the organization during the appli-
cable period an amount equal to the credit determined 
under section 51 (after application of the modifica-
tions under paragraph (3)) with respect to wages 
paid to such qualified veteran during such period. 
‘‘(2) 
OVERALL
LIMITATION.—The 
aggregate 
amount allowed as a credit under this subsection for 
all qualified veterans for any period with respect to 
which tax is imposed under subsection (a) shall not 
exceed the amount of the tax imposed by subsection 
(a) on wages paid with respect to employment of all 
employees of the organization during such period.
† HR 674 EAS 
‘‘(3) MODIFICATIONS.—For purposes of para-
graph (1), section 51 shall be applied— 
‘‘(A) by substituting ‘26 percent’ for ‘40 
percent’ in subsection (a) thereof, 
‘‘(B) by substituting ‘16.25 percent’ for ‘25 
percent’ in subsection (i)(3)(A) thereof, and 
‘‘(C) by only taking into account wages 
paid to a qualified veteran for services in fur-
therance of the activities related to the purpose 
or function constituting the basis of the organi-
zation’s exemption under section 501. 
‘‘(4) APPLICABLE PERIOD.—The term ‘applicable 
period’ means, with respect to any qualified veteran, 
the 1-year period beginning with the day such quali-
fied veteran begins work for the organization. 
‘‘(5) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘qualified tax-exempt organi-
zation’ means an employer that is an organiza-
tion described in section 501(c) and exempt from 
taxation under section 501(a), and 
‘‘(B) the term ‘qualified veteran’ has mean-
ing given such term by section 51(d)(3).’’. 
(3) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby
† HR 674 EAS 
appropriated to the Federal Old-Age and Survivors 
Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the So-
cial Security Act (42 U.S.C. 401) amounts equal to 
the reduction in revenues to the Treasury by reason 
of the amendments made by paragraphs (1) and (2). 
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 pos-
sible the transfers which would have occurred to such 
Trust Fund had such amendments not been enacted. 
(f) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSIONS.—The Sec-
retary of the Treasury shall pay to each posses-
sion of the United States with a mirror code tax 
system amounts equal to the loss to that posses-
sion by reason of the amendments made by this 
section. Such amounts shall be determined by the 
Secretary of the Treasury based on information 
provided by the government of the respective pos-
session of the United States. 
(B) OTHER
POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States which does not have a mirror
† HR 674 EAS 
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 sec-
tion if a mirror code tax system had been in ef-
fect in such possession. The preceding sentence 
shall not apply with respect to any possession of 
the United States unless such possession estab-
lishes 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 section. 
(2) 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 sec-
tion to section 51 of the Internal Revenue Code of 
1986 to any person with respect to any qualified vet-
eran shall be reduced by the amount of any credit (or 
other tax benefit described in paragraph (1)(B)) al-
lowed to such person against income taxes imposed by 
the possession of the United States by reason of this
† HR 674 EAS 
subsection with respect to such qualified veteran for 
such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) POSSESSION OF THE UNITED STATES.— 
For purposes of this subsection, the term ‘‘posses-
sion of the United States’’ includes American 
Samoa, Guam, the Commonwealth of the North-
ern Mariana Islands, the Commonwealth of 
Puerto Rico, and the United States Virgin Is-
lands. 
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax system 
of such possession if the income tax liability of 
the residents of such possession under such sys-
tem is determined by reference to the income tax 
laws of the United States as if such possession 
were the United States. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this subsection 
shall be treated in the same manner as a refund 
due from credit provisions described in such sec-
tion.
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(g) EFFECTIVE DATE.—The amendments made by this 
section shall apply to individuals who begin work for the 
employer after the date of the enactment of this Act. 
SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN 
VETERANS COVERED BY MEDICAID PLANS 
FOR SERVICES FURNISHED BY NURSING FA-
CILITIES. 
Section 5503(d)(7) of title 38, United States Code, is 
amended by striking ‘‘May 31, 2015’’ and inserting ‘‘Sep-
tember 30, 2016’’. 
SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERV-
ICES. 
Section 111(b)(3) of title 38, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) In the case of transportation of a person under 
subparagraph (B) by ambulance, the Secretary may pay 
the provider of the transportation the lesser of the actual 
charge for the transportation or the amount determined by 
the fee schedule established under section 1834(l) of the So-
cial Security Act (42 U.S.C. 1395(l)) unless the Secretary 
has entered into a contract for that transportation with the 
provider.’’.
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SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF 
VETERANS AFFAIRS TO OBTAIN INFORMA-
TION FROM SECRETARY OF TREASURY AND 
COMMISSIONER OF SOCIAL SECURITY FOR IN-
COME VERIFICATION PURPOSES. 
Section 5317(g) of title 38, United States Code, is 
amended by striking ‘‘September 30, 2011’’ and inserting 
‘‘September 30, 2016’’. 
SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR 
CERTAIN SUBSEQUENT LOANS. 
(a) IN GENERAL.—Section 3729(b)(2) of title 38, 
United States Code, is amended— 
(1) in subparagraph (A)— 
(A) in clause (iii), by striking ‘‘November 
18, 2011’’ and inserting ‘‘October 1, 2016’’; and 
(B) in clause (iv), by striking ‘‘November 
18, 2011’’ and inserting ‘‘October 1, 2016’’; 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘November 18, 
2011’’ and inserting ‘‘October 1, 2016’’; 
(B) by striking clauses (ii) and (iii); 
(C) by redesignating clause (iv) as clause 
(ii); and 
(D) in clause (ii), as redesignated by sub-
paragraph (C), by striking ‘‘October 1, 2013’’ 
and inserting ‘‘October 1, 2016’’;
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(3) in subparagraph (C)— 
(A) in clause (i), by striking ‘‘November 18, 
2011’’ and inserting ‘‘October 1, 2016’’; and 
(B) in clause (ii), by striking ‘‘November 
18, 2011’’ and inserting ‘‘October 1, 2016’’; and 
(4) in subparagraph (D)— 
(A) in clause (i), by striking ‘‘November 18, 
2011’’ and inserting ‘‘October 1, 2016’’; and 
(B) in clause (ii), by striking ‘‘November 
18, 2011’’ and inserting ‘‘October 1, 2016’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the later of— 
(1) November 18, 2011; or 
(2) the date of the enactment of this Act. 
TITLE III—OTHER PROVISIONS 
RELATING TO FEDERAL VEN-
DORS 
SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO 
FEDERAL VENDORS RELATING TO PROPERTY. 
(a) IN GENERAL.—Section 6331(h)(3) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘goods or 
services’’ and inserting ‘‘property, goods, or services’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to levies issued after the date of the en-
actment of this Act.
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SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT 
OF THE TAX GAP OWED BY FEDERAL CON-
TRACTORS. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, or the Secretary’s delegate, in consultation with 
the Director of the Office of Management and Budget 
and the heads of such other Federal agencies as the 
Secretary determines appropriate, shall conduct a 
study on ways to reduce the amount of Federal tax 
owed but not paid by persons submitting bids or pro-
posals for the procurement of property or services by 
the Federal government. 
(2) MATTERS
STUDIED.—The study conducted 
under paragraph (1) shall include the following mat-
ters: 
(A) An estimate of the amount of delinquent 
taxes owed by Federal contractors. 
(B) The extent to which the requirement 
that persons submitting bids or proposals certify 
whether such persons have delinquent tax debts 
has— 
(i) improved tax compliance; and 
(ii) been a factor in Federal agency de-
cisions not to enter into or renew contracts 
with such contractors.
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(C) In cases in which Federal agencies con-
tinue to contract with persons who report having 
delinquent tax debt, the factors taken into con-
sideration in awarding such contracts. 
(D) The degree of the success of the Federal 
lien and levy system in recouping delinquent 
Federal taxes from Federal contractors. 
(E) The number of persons who have been 
suspended or debarred because of a delinquent 
tax debt over the past 3 years. 
(F) An estimate of the extent to which the 
subcontractors under Federal contracts have de-
linquent tax debt. 
(G) The Federal agencies which have most 
frequently awarded contracts to persons notwith-
standing any certification by such person that 
the person has delinquent tax debt. 
(H) Recommendations on ways to better 
identify Federal contractors with delinquent tax 
debts. 
(b) REPORT.—Not later than 12 months after the date 
of the enactment of this Act, the Secretary of the Treasury 
shall submit to the Committee on Ways and Means of the 
House of Representatives, the Committee on Finance of the 
Senate, the Committee on Oversight and Government Re-
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form of the House of Representatives, and the Committee 
on Homeland Security and Government Affairs of the Sen-
ate, a report on the study conducted under subsection (a), 
together with any legislative recommendations. 
TITLE 
IV—MODIFICATION 
OF 
CALCULATION OF MODIFIED 
ADJUSTED 
GROSS 
INCOME 
FOR DETERMINING CERTAIN 
HEALTHCARE PROGRAM ELI-
GIBILITY 
SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED 
ADJUSTED 
GROSS 
INCOME 
FOR 
DETER-
MINING CERTAIN HEALTHCARE PROGRAM 
ELIGIBILITY. 
(a) IN
GENERAL.—Subparagraph (B) of section 
36B(d)(2) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘and’’ at the end of clause (i), by striking the 
period at the end of clause (ii) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(iii) an amount equal to the portion 
of the taxpayer’s social security benefits (as 
defined in section 86(d)) which is not in-
cluded in gross income under section 86 for 
the taxable year.’’.
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(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act. 
(c) NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.— 
(1) ESTIMATE OF SECRETARY.—The Secretary of 
the Treasury, or the Secretary’s delegate, shall annu-
ally estimate the impact that the amendments made 
by subsection (a) have on the income and balances of 
the trust funds established under section 201 of the 
Social Security Act (42 U.S.C. 401). 
(2) TRANSFER OF FUNDS.—If, under paragraph 
(1), the Secretary of the Treasury or the Secretary’s 
delegate estimates that such amendments have a nega-
tive impact on the income and balances of such trust 
funds, the Secretary shall transfer, not less frequently 
than quarterly, from the general fund an amount suf-
ficient so as to ensure that the income and balances 
of such trust funds are not reduced as a result of such 
amendments. 
TITLE V—BUDGETARY EFFECTS 
SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement titled 
‘‘Budgetary Effects of PAYGO Legislation’’ for this Act,
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submitted for printing in the Congressional Record by the 
Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on pas-
sage. 
Attest: 
Secretary.