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quirements to provide prompt emergency cash assist-
ance, improved medical services, caregiver support 
programs, and medical care in private facilities to 
War on Terror Wounded Heroes.’’. 
(b) EFFECTIVE DATE.—The first report required by 
the amendment made by subsection (a) shall be submitted 
January 1, 2007. 
SEC. 6. CREDIT FOR EMPLOYERS HIRING WAR ON TERROR 
WOUNDED HEROES. 
(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 
adding at the end the following new section: 
‘‘SEC. 45N. CREDIT FOR EMPLOYERS HIRING WAR ON TER-
ROR WOUNDED HEROES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the War on Terror Wounded Hero employment credit for 
the taxable year shall be equal to— 
‘‘(1) 50 percent of the qualified first-year wages 
for such year, 
‘‘(2) 30 percent of the qualified second-year 
wages for such year, and 
‘‘(3) 20 percent of the qualified third-year 
wages for such year. 
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‘‘(b) QUALIFIED WAGES.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified wages’ 
means the wages paid or incurred by the employer 
during the taxable year to individuals who are War 
on Terror Wounded Heroes, but in no case greater 
than $60,000. 
‘‘(2) QUALIFIED
FIRST-YEAR
WAGES.—The 
term ‘qualified first-year wages’ means, with respect 
to any individual, qualified wages attributable to 
service rendered during the 1-year period beginning 
with the day the individual begins work for the em-
ployer. 
‘‘(3) QUALIFIED
SECOND-YEAR
WAGES.—The 
term ‘qualified second-year wages’ means, with re-
spect to any individual described in paragraph (2), 
qualified wages attributable to service rendered dur-
ing the 1-year period beginning with the day that 
succeeds the 1-year period referred to in paragraph 
(2). 
‘‘(4) QUALIFIED
THIRD-YEAR
WAGES.—The 
term ‘qualified third-year wages’ means, with respect 
to any individual described in paragraph (3), quali-
fied wages attributable to service rendered during 
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the 1-year period beginning with the day that suc-
ceeds the 1-year period referred to in paragraph (3). 
‘‘(5) WAGES.—The term ‘wages’ has the mean-
ing given such term by section 51(c), without regard 
to paragraph (4) thereof. 
‘‘(c) WAR ON TERROR WOUNDED HERO; HIRING 
DATE.—For purposes of this section— 
‘‘(1) WAR ON TERROR WOUNDED HERO.—The 
term ‘War on Terror Wounded Hero’ means a vet-
eran (as that term is defined in section 101(2) of 
title 38) who, on or after September 11, 2001, was 
severely injured while serving on active duty in the 
theater of combat operations (as determined by the 
Secretary of Defense) of Operation Enduring Free-
dom or Operation Iraqi Freedom. 
‘‘(2) SEVERELY
INJURED.—For purposes of 
paragraph (1), the term ‘severely’ with respect to an 
injury means— 
‘‘(A) the inability or severe difficulty of an 
individual with the injury to perform one or 
more activities of daily living (as determined by 
the Secretary of Veterans Affairs), 
‘‘(B) a service-connected disability rated at 
30 percent or more (as determined by the Sec-
retary of Veterans Affairs), and 
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