I 
114TH CONGRESS 
1ST SESSION H. R. 2861 
To amend the Internal Revenue Code of 1986 to extend the work opportunity 
credit to certain recently discharged veterans, to improve the coordination 
of veteran job training services between the Department of Labor, the 
Department of Veteran Affairs, and the Department of Defense, to 
require transparency for Executive departments in meeting the Govern-
ment-wide goals for contracting with small business concerns owned 
and controlled by service-disabled veterans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2015 
Mr. PETERS (for himself, Mr. ASHFORD, Mr. VAN HOLLEN, Mr. RUSH, Mr. 
HASTINGS, Mr. TAKANO, Mr. JONES, Ms. NORTON, Ms. HAHN, Ms. 
FRANKEL of Florida, Mr. KILMER, Ms. BASS, Mr. HECK of Washington, 
and Ms. MCCOLLUM) introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committees 
on Armed Services, Small Business, Education and the Workforce, and 
Veterans’ Affairs, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to extend 
the work opportunity credit to certain recently discharged 
veterans, to improve the coordination of veteran job 
training services between the Department of Labor, the 
Department of Veteran Affairs, and the Department of 
Defense, to require transparency for Executive depart-
ments in meeting the Government-wide goals for con-
tracting with small business concerns owned and con-
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trolled by service-disabled veterans, and for other pur-
poses. 
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 ‘‘Veteran Employment 
Transition Act’’. 
TITLE I—WORK OPPORTUNITY 
CREDIT FOR RECENTLY DIS-
CHARGED VETERANS 
SEC. 101. WORK OPPORTUNITY CREDIT FOR CERTAIN RE-
CENTLY DISCHARGED VETERANS. 
(a) IN GENERAL.—Subparagraph (A) of section 
51(d)(3) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘means any veteran who is’’ and inserting 
‘‘means any recently discharged veteran, or any veteran 
if such veteran is’’. 
(b) RECENTLY DISCHARGED VETERAN.—Paragraph 
(3) of section 51(d) of the Internal Revenue Code of 1986 
is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D), and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
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‘‘(C) RECENTLY DISCHARGED VETERAN.— 
For purposes of subparagraph (A), the term 
‘recently discharged veteran’ means— 
‘‘(i) any individual who is described in 
clause (i) of subparagraph (B) (without re-
gard to certification), and 
‘‘(ii) any member of the National 
Guard who has served for more than 180 
consecutive days of— 
‘‘(I) active duty (within the 
meaning of title 32, United States 
Code) other than for training, 
‘‘(II) full-time National Guard 
duty (within the meaning of such title 
32) other than for training, 
‘‘(III) duty, other than inactive 
duty or duty for training, in State 
status (within the meaning of such 
title 32), or 
‘‘(IV) any combination of duty 
described in subclause (I), (II), or 
(III), 
who has been discharged or released from duty 
meeting such requirements at any time during 
the 5-year period ending on the hiring date. 
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Such term shall not include any veteran who 
begins work for the employer before the date of 
the enactment of the Veteran Employment 
Transition Act.’’. 
(c) CONFORMING AMENDMENTS.—Section 51(d) of 
the Internal Revenue Code of 1986 is amended— 
(1) by adding at the end of paragraph (13) the 
following new subparagraph: 
‘‘(E) PRE-SCREENING OF RECENTLY DIS-
CHARGED VETERANS.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘pre-screening 
notice’ shall include any documentation 
provided to an individual by the Depart-
ment of Defense or the National Guard 
upon release or discharge from the Armed 
Forces or from service in the National 
Guard which includes information suffi-
cient to establish that such individual sat-
isfies 
the 
requirements 
of 
paragraph 
(3)(C). 
‘‘(ii) ADDITIONAL CERTIFICATION NOT 
REQUIRED.—Subparagraph (A) shall be 
applied without regard to clause (ii)(II) 
thereof in the case of a recently discharged 
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veteran who provides to the employer docu-
mentation described in clause (i).’’, and 
(2) by striking paragraph (14). 
(d) EFFECTIVE DATES.—The amendments made by 
subsections (a), (b), and (c) shall apply to individuals 
whose hiring date (as defined in section 51(d)(11) of the 
Internal Revenue Code of 1986) is on or after the date 
of the enactment of this Act. 
(e) DEPARTMENT OF DEFENSE DOCUMENTATION.— 
(1) IN GENERAL.—The Department of Defense 
and the National Guard, as applicable, shall pro-
vide— 
(A) to each individual who is discharged or 
released from active duty in the Armed Forces 
of the United States on or after the date of the 
enactment of this Act; and 
(B) to each member of the National Guard 
who is released from duty described in section 
51(d)(3)(C)(ii) of the Internal Revenue Code of 
1986 (as added by this Act) on or after the 
date of the enactment of this Act; 
documentation described in paragraph (4) (in addi-
tion to the documentation which, without regard to 
this subsection, is provided at the time of such dis-
charge or release). If the documentation which is 
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provided without regard to this subsection at the 
time of the discharge or release described in the pre-
ceding sentence does not include information suffi-
cient to satisfy the requirements of section 
51(d)(13)(E)(i) of the Internal Revenue Code of 
1986 (as added by this Act), the Department of De-
fense or the National Guard, whichever is applicable, 
shall provide additional documentation which in-
cludes such information. 
(2) INFORMATIONAL
BRIEFING
AS
PART
OF 
PRESEPARATION COUNSELING.—In the case of an 
individual who is discharged or released from duty 
described in subparagraph (A) or (B) of paragraph 
(1) after the date of the enactment of this Act, the 
Department of Defense or the National Guard, 
whichever is applicable, shall inform such individual, 
as a part of the individual preseparation counseling 
required by section 1142 of title 10, United States 
Code, of the credit for employment of recently dis-
charged veterans under section 51 of the Internal 
Revenue Code of 1986. 
(3) REQUEST FOR DOCUMENTATION.—The De-
partment of Defense or the National Guard, which-
ever is applicable, shall provide upon request the 
documentation required by paragraph (1) to any in-
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dividual who is discharged or released from duty de-
scribed in subparagraph (A) or (B) of such para-
graph during the 5-year period preceding and in-
cluding the date of the enactment of this Act. 
(4) INSTRUCTIONS FOR USE OF WORK OPPOR-
TUNITY CREDIT.—The documentation described in 
this paragraph is a document which includes— 
(A) instructions for an individual to ensure 
treatment as a recently discharged veteran for 
purposes of section 51(d)(3)(C) of the Internal 
Revenue Code of 1986 (as added by this Act), 
(B) instructions for employers detailing the 
use of the credit under such section 51 with re-
spect to such individual, and 
(C) the dates during which the credit 
under such section 51 is available. 
Such instructions shall be developed in collaboration 
with the Internal Revenue Service. 
SEC. 102. WORK OPPORTUNITY CREDIT MADE PERMANENT 
FOR VETERANS. 
(a) IN GENERAL.—Paragraph (4) of section 51(c) of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
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‘‘(4) TERMINATION.—The term ‘wages’ shall 
not include any amount paid or incurred to any indi-
vidual who— 
‘‘(A) is not a qualified veteran, and 
‘‘(B) begins work for the employer after 
December 31, 2014.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) applies to individuals who begin work for 
the employer after December 31, 2014. 
TITLE 
II—VETERAN 
EMPLOY-
MENT AND TRAINING SERV-
ICES 
SEC. 201. DEFINITIONS. 
In this title: 
(1) DISABLED VETERAN.—The term ‘‘disabled 
veteran’’ has the meaning given the term in section 
4211 of title 38, United States Code. 
(2) ECONOMICALLY AND EDUCATIONALLY DIS-
ADVANTAGED
VETERAN.—The term ‘‘economically 
and educationally disadvantaged veteran’’ means 
such a veteran, within the meaning of chapter 41 of 
title 38, United States Code. 
(3) REHABILITATION PLAN.—The term ‘‘reha-
bilitation plan’’ means an individualized plan formu-
lated for a veteran under section 3107 of title 38, 
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United States Code, that has an employment objec-
tive. 
(4) VETERAN.—The term ‘‘veteran’’ has the 
meaning given the term in section 101 of title 38, 
United States Code. 
(5) VETERAN
JOB
TRAINING
PROGRAM.—The 
term ‘‘veteran job training program’’ means— 
(A) the Disabled Veterans’ Outreach Pro-
gram carried out under section 4103A of title 
38, United States Code; 
(B) the Homeless Veterans Reintegration 
Program carried out under section 2021 of that 
title; 
(C) the Local Veterans’ Employment Rep-
resentative Program carried out under section 
4104 of that title; 
(D) the Transition Assistance Program 
carried out under section 1144 of title 10, 
United States Code; 
(E) the Veterans Workforce Investment 
Program carried out under section 168 of the 
Workforce Investment Act of 1998 (29 U.S.C. 
2913); and 
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(F) the Vocational Rehabilitation & Em-
ployment Program carried out under chapter 31 
of title 38, United States Code. 
(6) VETERAN JOB TRAINING SERVICES.—The 
term ‘‘veteran job training services’’ means the serv-
ices provided under a veteran job training program. 
SEC. 202. COORDINATION BETWEEN SECRETARY OF LABOR, 
SECRETARY OF VETERANS AFFAIRS, AND 
SECRETARY OF DEFENSE ON VETERAN JOB 
TRAINING. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of Labor, the Secretary of Vet-
erans Affairs, and the Secretary of Defense shall enter 
into an agreement, covering the 3 departments involved, 
to govern the coordination of veteran job training services. 
SEC. 203. IMPLEMENTATION REPORTS ON VETERAN JOB 
TRAINING PROGRAMS. 
(a) REPORT REQUIRED.—The Secretary of Veterans 
Affairs and the Secretary of Labor shall prepare an initial 
and a final report on the veteran job training programs 
of the Department of Veterans Affairs and Department 
of Labor as described in this section. 
(b) DEPARTMENT
OF VETERANS AFFAIRS.—The 
Secretary of Veterans Affairs shall include in each of the 
reports required by subsection (a), with regard to the De-
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partment of Veterans Affairs, information describing each 
of the following: 
(1) The actions taken by the Department to en-
sure that States receive sufficient guidance to com-
ply with Federal laws regarding veteran job training 
programs. 
(2) The extent to which the Department re-
viewed and incorporated into its operations— 
(A) the employment related initiatives of 
the Yellow Ribbon Reintegration Program 
under section 582 of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public 
Law 110–181; 10 U.S.C. 10101 note); and 
(B) the conclusions of the Credentialing 
and Licensing Task Force of the Department of 
Defense. 
(3) The extent to which veterans’ employment 
outcomes result from participation in the Vocational 
Rehabilitation & Employment Program carried out 
under chapter 31 of title 38, United States Code, 
rather than from other factors. 
(4) Actions taken by the Department to ensure 
that veterans with a rehabilitation plan receive vet-
eran job training services consistent with the reha-
bilitation plan. 
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(5) Efforts taken by the Department to better 
serve veterans living in rural communities. 
(c) DEPARTMENT
OF LABOR.—The Secretary of 
Labor shall include in each of the reports required by sub-
section (a), with regard to the Department of Labor, infor-
mation describing each of the following: 
(1) The matters referred to in paragraphs (1), 
(2), (3), and (5) of subsection (b). 
(2) The extent to which veterans’ employment 
outcomes result from participation in the veteran job 
training programs specified in subparagraphs (A) 
through (E) of section 201(5), rather than from 
other factors. 
(3) The actions taken by the Department to 
provide States with clear guidance for determining 
which veterans are classified as economically and 
educationally disadvantaged veterans, or in other 
categories of veterans. 
(4) The progress of the Department in clari-
fying its approach to determining which participants 
in the Disabled Veterans Outreach Program carried 
out under section 4103A of title 38, United States 
Code, shall receive intensive services (as defined in 
section 134(d)(3) of the Workforce Investment Act 
of 1998 (29 U.S.C. 2864(d)(3))). 
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(5) How the Department reports on goals for 
performance, and actual performance, on perform-
ance standards or other measures, for each of its 
veterans job training programs, including an assess-
ment of how to better monitor employment outcomes 
for disabled veterans. 
(d) SUBMISSION
OF REPORTS.—The Secretary of 
Labor and the Secretary of Veterans Affairs shall submit 
to Congress— 
(1) not later than 1 year after the date of en-
actment of this Act, the initial report required by 
subsection (a); and 
(2) not later than 2 years after such date, the 
final report required by subsection (a). 
(e) INTERNET PUBLICATION OF DEPARTMENT OF 
LABOR
DATA
ON
PERFORMANCE
GOALS
AND
OUT-
COMES.—The Secretary of Labor shall publish on a pub-
licly accessible, user-friendly Internet website the goals 
and actual performance data described in subsection 
(c)(4). 
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SEC. 204. EXPANSION OF PILOT PROGRAM ON RECEIPT OF 
CIVILIAN CREDENTIALING FOR SKILLS RE-
QUIRED FOR MILITARY OCCUPATIONAL SPE-
CIALTIES. 
Section 558(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2012 (Public Law 112–81; 10 
U.S.C. 2015 note) is amended by striking ‘‘not less than 
three’’ and inserting ‘‘the MOS 31B Military Police, MOS 
15Q AC–Air Traffic Controller, and MOS 12M Fire Pro-
tection military occupational specialties and not fewer 
than three and not more than five additional’’. 
SEC. 205. RULE OF CONSTRUCTION. 
Nothing in this title shall be construed to affect any 
other Federal law specifying a reporting requirement. 
TITLE III—HONORING PROMISES 
TO SERVICE-DISABLED VET-
ERANS 
SEC. 301. TRANSPARENCY IN CONTRACTING GOALS FOR 
SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY SERVICE-DISABLED VET-
ERANS. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following: 
‘‘(s) TRANSPARENCY IN CONTRACTING GOALS FOR 
SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
BY SERVICE-DISABLED VETERANS.— 
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‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered contractor’ means a 
contractor that is required to submit a subcon-
tracting plan under section 8(d) to an Execu-
tive department; 
‘‘(B) the term ‘Executive department’ has 
the meaning given that term in section 101 of 
title 5, United States Code; and 
‘‘(C) the term ‘physically completed’ has 
the meaning given that term in section 4.804– 
4 of the Federal Acquisition Regulation, or any 
successor thereto. 
‘‘(2) REPORTS TO ADMINISTRATOR.—Not later 
than 1 year after the date of enactment of this sub-
section, and annually thereafter, the head of each 
Executive department shall submit to the Adminis-
trator a report that contains— 
‘‘(A) the percentage of the total value of 
all prime contracts awarded by the Executive 
department to small business concerns owned 
and controlled by service-disabled veterans dur-
ing the 1-year period ending on the date of the 
report; 
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‘‘(B) the name of each covered contractor 
to which the Executive department awards a 
contract; 
‘‘(C) for each contract awarded to a cov-
ered contractor by the Executive department— 
‘‘(i) the percentage goal negotiated 
under section 8(d)(6)(A) for the utilization 
as subcontractors of small business con-
cerns owned and controlled by service-dis-
abled veterans; and 
‘‘(ii) if the contract is physically com-
pleted during the 1-year period ending on 
the date of the report, the percentage of 
the total value of subcontracts entered into 
by the covered contractor awarded to small 
business concerns owned and controlled by 
service-disabled veterans; 
‘‘(D) the weighted average percentage goal 
negotiated by each covered contractor under 
section 8(d)(6)(A) for the utilization as sub-
contractors of small business concerns owned 
and controlled by service-disabled veterans for 
all contracts awarded by the Executive depart-
ment to the covered contractor; 
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‘‘(E) for all contracts awarded to covered 
contractors by the Executive department that 
are physically completed during the 1-year pe-
riod ending on the date of the report, the per-
centage of the total value of all subcontracts 
awarded by covered contractors that were 
awarded to small business concerns owned and 
controlled by service-disabled veterans; and 
‘‘(F) the dollar amount by which the Exec-
utive department exceeded or failed to meet the 
Government-wide goals under subsection (g) for 
prime contracts and subcontracts awarded to 
small business concerns owned and controlled 
by service-disabled veterans. 
‘‘(3) RANKINGS.—For the first full fiscal year 
following the date of enactment of this subsection, 
and each fiscal year thereafter, the Administrator 
shall rank— 
‘‘(A) the Executive departments, based 
on— 
‘‘(i) the percentage of the total value 
of prime contracts awarded by the Execu-
tive departments to small business con-
cerns owned and controlled by service-dis-
abled veterans; and 
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‘‘(ii) the percentage of the total value 
of subcontracts awarded by covered con-
tractors that are awarded contracts by the 
Executive departments to small business 
concerns owned and controlled by service- 
disabled veterans; and 
‘‘(B) covered contractors, based on the 
percentage of the total value of subcontracts 
awarded by the covered contractors to small 
business concerns owned and controlled by serv-
ice-disabled veterans. 
‘‘(4) PUBLICATION.— 
‘‘(A) WEBSITE.—Except as provided in 
subparagraph (B), the Administrator shall pub-
lish on a website accessible to the public a user- 
friendly, electronically searchable report con-
taining— 
‘‘(i) the information submitted to the 
Administrator under paragraph (2); and 
‘‘(ii) the rankings made by the Ad-
ministrator under paragraph (3). 
‘‘(B) EXCEPTION
FOR
NATIONAL
SECU-
RITY.—If the head of an Executive department 
determines that publication of information con-
tained in a report submitted under paragraph 
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(2) would be detrimental to national security, 
the Administrator shall not publish the infor-
mation on the website described in subpara-
graph (A). 
‘‘(C) UPDATING.—The Administrator shall 
update the contents of the website described in 
subparagraph (A) not less frequently than an-
nually. 
‘‘(5) REPORTS TO CONGRESS.— 
‘‘(A) ANNUAL
REPORT.—The Adminis-
trator shall submit to Congress an annual re-
port on the progress of each Executive depart-
ment toward meeting the Government-wide 
goals for contracting and subcontracting estab-
lished under subsection (g). 
‘‘(B) CONTENTS.—Each report under this 
paragraph shall include— 
‘‘(i) a statement of whether the 
website described in paragraph (4) con-
tains the latest data reported to the Ad-
ministrator by the Executive departments; 
and 
‘‘(ii) a recommendation of a prime 
contractor that should be recognized by 
Congress for outstanding progress in con-
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tracting with small business concerns 
owned and controlled by service-disabled 
veterans. 
‘‘(6) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to affect any other 
reporting requirement under Federal law.’’. 
Æ 
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