H. R. 674—12 
veterans’ employment representatives in carrying out activities 
under this section, which assessment shall include collecting 
information on the number of— 
‘‘(i) veterans who applied for training under this sec-
tion; 
‘‘(ii) veterans who entered the training; 
‘‘(iii) veterans who completed the training; 
‘‘(iv) veterans who were placed in meaningful employ-
ment under this section; and 
‘‘(v) veterans who remained in such employment as 
of the date of the assessment; and 
‘‘(B) submit to the appropriate committees of Congress 
a report that includes— 
‘‘(i) a description of how the grant recipients used 
the funds made available under this section; 
‘‘(ii) the results of the assessment conducted under 
subparagraph (A); and 
‘‘(iii) the recommendations of the Secretary as to 
whether amounts should be appropriated to carry out this 
section for fiscal years after 2013. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $4,500,000 for the 
period consisting of fiscal years 2012 and 2013. 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) the term ‘appropriate committees of Congress’ means— 
‘‘(A) the Committee on Veterans’ Affairs and the Com-
mittee on Health, Education, Labor, and Pension of the 
Senate; and 
‘‘(B) the Committee on Veterans’ Affairs and the Com-
mittee on Education and Workforce of the House of Rep-
resentatives; and 
‘‘(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 facilitate place-
ments’’ 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 iden-
tify job opportunities that are appropriate for the veteran’s employ-
ment 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 begin-
ning of chapter 41 of such title is amended by inserting 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 ASSISTANCE. 
(a) APPOINTMENTS TO COMPETITIVE SERVICE POSITIONS.— 
(1) IN GENERAL.—Chapter 21 of title 5, United States Code, 
is amended by inserting after section 2108 the following:
H. R. 674—13 
‘‘§ 2108a. Treatment of certain individuals as veterans, dis-
abled 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 honorable conditions; and 
‘‘(B) submits a certification described under paragraph 
(2) to the Federal officer making the appointment. 
‘‘(2) CERTIFICATION.—A certification referred to under para-
graph (1) is a certification that the individual is expected to 
be discharged or released from active duty in the armed forces 
under honorable conditions 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 competitive service, if the individual— 
‘‘(A) meets the definition of a disabled veteran under 
section 2108(2), except for the requirement that the indi-
vidual has been separated from active duty in the armed 
forces under honorable conditions; and 
‘‘(B) submits a certification described under paragraph 
(2) to the Federal officer making the appointment. 
‘‘(2) CERTIFICATION.—A certification referred to under para-
graph (1) is a certification that the individual is expected to 
be separated from active duty in the armed forces under honor-
able 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 individual is a preference 
eligible under section 2108(3) for purposes of making an appoint-
ment in the competitive service.’’. 
(2) TECHNICAL AND CONFORMING AMENDMENTS.— 
(A) DEFINITIONS.—Section 2108 of title 5, United States 
Code, is amended— 
(i) in paragraph (1), in the matter following 
subparagraph (D), by inserting ‘‘, except as provided 
under section 2108a,’’ before ‘‘who has been’’; 
(ii) in paragraph (2), by inserting ‘‘(except as pro-
vided under section 2108a)’’ before ‘‘has been sepa-
rated’’; 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 sections for 
chapter 21 of title 5, United States Code, is amended
H. R. 674—14 
by adding after the item relating to section 2108 the fol-
lowing: 
‘‘2108a. Treatment of certain individuals as veterans, disabled veterans, and pref-
erence eligibles.’’. 
(b) EMPLOYMENT ASSISTANCE: OTHER FEDERAL AGENCIES.— 
(1) DEFINITIONS.—In this subsection— 
(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 PERSONNEL MANAGE-
MENT.—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 separated from active duty in accord-
ance with paragraph (3); and 
(B) ensure that the programs established under this 
subsection are coordinated with the Transition Assistance 
Program (TAP) of the Department of Defense. 
(3) ELEMENTS OF PROGRAM.—The head of each agency des-
ignated under paragraph (2)(A), in consultation with the 
Director of the Office of Personnel Management, and acting 
through the Veterans Employment Program Office of the agency 
established under Executive Order 13518 (74 Fed. Reg. 58533; 
relating to employment of veterans in the Federal Government), 
or any successor thereto, shall— 
(A) establish a program to provide employment assist-
ance to members of the Armed Forces who are being sepa-
rated from active duty, including assisting such members 
in seeking employment 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 para-
graph (2)(A) does not have a Veterans Employment Program 
Office, the head of the agency, in consultation with the Director 
of the Office of Personnel Management, shall select an appro-
priate 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 establish a 
pilot program to assess the feasibility and advisability of providing 
to members of the Armed Forces on terminal 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.
H. R. 674—15 
(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 Vet-
erans’ Affairs of the Senate and the Committee on Armed Services 
and the Committee on Veterans’ Affairs of the House of Representa-
tives an interim report on the pilot program that includes the 
findings of the Secretary with respect to the feasibility and advis-
ability of providing covered individuals with work experience as 
described in subsection (a). 
SEC. 
237. 
ENHANCEMENT 
OF 
DEMONSTRATION 
PROGRAM 
ON 
CREDENTIALING AND LICENSING OF VETERANS. 
(a) IN GENERAL.—Section 4114 of title 38, United States Code, 
is amended— 
(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Assistant Secretary shall’’ and 
inserting ‘‘Assistant Secretary for Veterans’ Employ-
ment and Training shall, in consultation with the 
Assistant Secretary for Employment and Training,’’; 
(ii) by striking ‘‘not less than 10 military’’ and 
inserting ‘‘not more than five military’’; and 
(iii) by inserting ‘‘for Veterans’ Employment and 
Training’’ after ‘‘selected by the Assistant Secretary’’; 
and 
(B) in paragraph (2), by striking ‘‘consult with appro-
priate Federal, State, and industry officials to’’ and 
inserting ‘‘enter into a contract with an appropriate entity 
representing a coalition of State governors to consult with 
appropriate 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 Assist-
ant Secretary shall carry out the demonstration project under this 
section shall be the two-year period beginning on the date of the 
enactment of the VOW to Hire Heroes Act of 2011.’’. 
(b) STUDY COMPARING COSTS INCURRED
BY SECRETARY
OF 
DEFENSE FOR TRAINING FOR MILITARY OCCUPATIONAL SPECIALTIES 
WITHOUT CREDENTIALING OR LICENSING WITH COSTS INCURRED BY 
SECRETARY OF VETERANS AFFAIRS AND SECRETARY OF LABOR IN 
PROVIDING EMPLOYMENT-RELATED ASSISTANCE.— 
(1) IN GENERAL.—Not later than 180 days after the conclu-
sion 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 military occupational 
specialties selected by the Assistant Secretary of Labor of Vet-
erans’ Employment and Training pursuant to the demonstra-
tion project provided for in such section 4114, as amended 
by subsection (a), with the costs incurred by the Secretary 
of Veterans Affairs and the Secretary of Labor in providing 
employment-related assistance to veterans who previously held 
such military occupational specialties, including—
H. R. 674—16 
(A) providing educational assistance under laws 
administered by the Secretary of Veterans Affairs to vet-
erans to obtain credentialing and licensing for civilian 
occupations that are similar to such military occupational 
specialties; 
(B) providing assistance to unemployed veterans who, 
while serving in the Armed Forces, were trained in a 
military occupational specialty; and 
(C) providing vocational training or counseling to vet-
erans 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 sec-
tion 4114 of title 38, United States Code, as added by 
subsection (a), the Assistant Secretary of Labor of Veterans’ 
Employment 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: 
(i) The findings of the Assistant Secretary with 
respect to the study required by paragraph (1). 
(ii) A detailed description of the costs compared 
under the study required by paragraph (1). 
SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL 
REPORT ON VETERAN JOB COUNSELING, TRAINING, AND 
PLACEMENT PROGRAMS 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 paragraph: 
‘‘(7) performance measures for the provision of assistance 
under this chapter, including— 
‘‘(A) the percentage of participants in programs under 
this chapter who find employment before the end of the 
first 90-day period following their completion of the pro-
gram; 
‘‘(B) the percentage of participants described in 
subparagraph (A) who are employed during the first 180- 
day period following the period described in such subpara-
graph; 
‘‘(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 programs under 
this chapter who obtain a certificate, degree, diploma, licen-
sure, or industry-recognized credential relating to the pro-
gram in which they participated under this chapter during 
the third 90-day period following their completion of the 
program.’’.
H. R. 674—17 
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 amended— 
(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-covered person.’’; and 
(2) by amending subsection (d) to read as follows: 
‘‘(d) ADDITION TO ANNUAL REPORT.—(1) In the annual 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 pri-
ority of service and are being fully served by qualified job training 
programs. Such evaluation shall include— 
‘‘(A) an analysis of the implementation of providing such 
priority at the local level; 
‘‘(B) whether the representation of veterans in such pro-
grams is in proportion to the incidence of representation of 
veterans in the labor market, including within groups that 
the Secretary may designate for priority under such programs, 
if any; and 
‘‘(C) performance measures, as determined by the Sec-
retary, to determine whether veterans are receiving priority 
of service and are being fully served by qualified job training 
programs. 
‘‘(2) The Secretary may not use the proportion of representation 
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 programs.’’. 
SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE 
NATIONAL VETERANS’ EMPLOYMENT AND TRAINING SERV-
ICES 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 rep-
resentative who receives training provided by the Institute, or its 
successor, is given a final examination to evaluate the specialist’s 
or representative’s performance in receiving such training. 
‘‘(2) The results of such final examination shall be provided 
to the entity that sponsored the specialist or representative who 
received the training.’’. 
(b) EFFECTIVE DATE.—Subsection (d) of section 4109 of title 
38, United States Code, as added by subsection (a), shall apply 
with respect to training provided by the National Veterans’ Employ-
ment and Training Services Institute that begins on or after the 
date that is 180 days after the date of the enactment of this 
Act.
H. R. 674—18 
SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VETERANS’ OUT-
REACH PROGRAM SPECIALISTS AND LOCAL VETERANS’ 
EMPLOYMENT REPRESENTATIVES. 
(a) DISABLED VETERANS’ OUTREACH PROGRAM SPECIALISTS.— 
Section 4103A of title 38, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(d) ADDITIONAL REQUIREMENT FOR FULL-TIME EMPLOYEES.— 
(1) A full-time disabled veterans’ outreach program specialist shall 
perform only duties related to meeting the employment needs of 
eligible veterans, as described in subsection (a), and shall not per-
form other non-veteran-related duties that detract from the special-
ist’s ability to perform the specialist’s duties related to meeting 
the employment needs of eligible veterans. 
‘‘(2) The Secretary shall conduct regular audits to ensure 
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.’’. 
(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTATIVES.—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 sub-
section (e): 
‘‘(e) ADDITIONAL REQUIREMENTS FOR FULL-TIME EMPLOYEES.— 
(1) A full-time local veterans’ employment representative shall per-
form only duties related to the employment, training, and placement 
services under this chapter, and shall not perform other non-vet-
eran-related duties that detract from the representative’s ability 
to perform the representative’s duties related to employment, 
training, and placement services under this chapter. 
‘‘(2) The Secretary shall conduct regular audits to ensure 
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: 
‘‘(h) CONSOLIDATION OF DISABLED VETERANS’ OUTREACH PRO-
GRAM
SPECIALISTS
AND
VETERANS’ EMPLOYMENT
REPRESENTA-
TIVES.—The Secretary may allow the Governor of a State receiving 
funds under subsection (b)(5) to support specialists and representa-
tives as described in such subsection to consolidate the functions 
of such specialists and representatives if— 
‘‘(1) the Governor determines, and the Secretary concurs, 
that such consolidation— 
‘‘(A) promotes a more efficient administration of serv-
ices to veterans with a particular emphasis on services 
to disabled veterans; and 
‘‘(B) does not hinder the provision of services to vet-
erans 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 require.’’.
H. R. 674—19 
Subtitle D—Improvements to Uniformed 
Services 
Employment 
and 
Reemploy-
ment 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 individual 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 individual 
who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))’’. 
(b) RETURNING HEROES TAX CREDITS.—Subparagraph (A) of 
section 51(d)(3) of the Internal Revenue Code of 1986 is amended— 
(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 unemployment 
during the 1-year period ending on the hiring date 
which equal or exceed 4 weeks (but less than 6 
months), or 
‘‘(iv) having aggregate periods of unemployment 
during the 1-year period ending 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 subparagraph: 
‘‘(D) CREDIT FOR UNEMPLOYED VETERANS.— 
‘‘(i) IN GENERAL.—Notwithstanding subparagraph 
(A), for purposes of paragraph (3)(A)— 
‘‘(I) a veteran will be treated as certified by 
the designated local agency as having aggregate 
periods of unemployment meeting the require-
ments of clause (ii)(II) or (iv) of such paragraph 
(whichever is applicable) if such veteran is certified 
by such agency as being in receipt of unemploy-
ment compensation 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
H. R. 674—20 
periods of unemployment meeting the require-
ments of clause (iii) of such paragraph if such 
veteran is certified by such agency as being in 
receipt of unemployment compensation 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 vet-
eran as a qualified veteran described in clause (ii)(II), 
(iii), or (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 ORGANIZATIONS 
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.—’’ before ‘‘No credit’’, 
and 
(B) by adding at the end the following new paragraph: 
‘‘(2) CREDIT
MADE
AVAILABLE
TO
QUALIFIED
TAX-EXEMPT 
ORGANIZATIONS
EMPLOYING
QUALIFIED
VETERANS.—For credit 
against payroll taxes for employment of qualified veterans by quali-
fied tax-exempt organizations, see section 3111(e).’’. 
(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 VETERANS.— 
‘‘(1) IN GENERAL.—If a qualified tax-exempt organization 
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 subsection (a) on wages paid with respect to employment 
of all employees of the organization during the applicable period 
an amount equal to the credit determined under section 51 
(after application of the modifications 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. 
‘‘(3) MODIFICATIONS.—For purposes of paragraph (1), sec-
tion 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
H. R. 674—21 
‘‘(C) by only taking into account wages paid to a quali-
fied veteran for services in furtherance of the activities 
related to the purpose or function constituting the basis 
of the organization’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 qualified veteran begins work 
for the organization. 
‘‘(5) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) the term ‘qualified tax-exempt organization’ means 
an employer that is an organization described in section 
501(c) and exempt from taxation under section 501(a), and 
‘‘(B) the term ‘qualified veteran’ has meaning given 
such term by section 51(d)(3).’’. 
(3) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSUR-
ANCE TRUST FUND.—There are hereby appropriated to the Fed-
eral Old-Age and Survivors Trust Fund and the Federal Dis-
ability Insurance Trust Fund established under section 201 
of the Social 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 appro-
priated 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 
occurred to such Trust Fund had such amendments not been 
enacted. 
(f) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSIONS.—The Secretary 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 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 possession 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 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 section if a 
mirror code tax system had been in effect in such posses-
sion. The preceding sentence shall not apply with respect 
to any possession of the United States unless such posses-
sion establishes 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 section to section 51 of the Internal Revenue 
Code of 1986 to any person with respect to any qualified veteran 
shall be reduced by the amount of any credit (or other tax 
benefit described in paragraph (1)(B)) allowed to such person
H. R. 674—22 
against income taxes imposed by the possession of the United 
States by reason of this 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 ‘‘possession of the United 
States’’ includes American Samoa, Guam, the Common-
wealth of the Northern Mariana Islands, the Common-
wealth of Puerto Rico, and the United States Virgin Islands. 
(B) MIRROR CODE TAX SYSTEM.—For purposes of this 
subsection, 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 possession under such system 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 purposes 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 
section. 
(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 FACILITIES. 
Section 5503(d)(7) of title 38, United States Code, is amended 
by striking ‘‘May 31, 2015’’ and inserting ‘‘September 30, 2016’’. 
SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES. 
Section 111(b)(3) of title 38, United States Code, is amended 
by adding at the end the following new subparagraph: 
‘‘(C) In the case of transportation of a person under subpara-
graph (B) by ambulance, the Secretary may pay the provider of 
the transportation the lesser of the actual charge for the transpor-
tation or the amount determined by the fee schedule established 
under section 1834(l) of the Social Security Act (42 U.S.C. 1395(l)) 
unless the Secretary has entered into a contract for that transpor-
tation with the provider.’’. 
SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS 
AFFAIRS TO OBTAIN INFORMATION FROM SECRETARY OF 
TREASURY AND COMMISSIONER OF SOCIAL SECURITY FOR 
INCOME 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 SUB-
SEQUENT 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
H. R. 674—23 
(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 subparagraph 
(C), by striking ‘‘October 1, 2013’’ and inserting ‘‘October 
1, 2016’’; 
(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 subsection 
(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 VENDORS 
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 enactment of 
this Act. 
SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE 
TAX GAP OWED BY FEDERAL CONTRACTORS. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of the Treasury, 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 proposals 
for the procurement of property or services by the Federal 
government. 
(2) MATTERS STUDIED.—The study conducted under para-
graph (1) shall include the following matters: 
(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
H. R. 674—24 
(ii) been a factor in Federal agency decisions not 
to enter into or renew contracts with such contractors. 
(C) In cases in which Federal agencies continue to 
contract with persons who report having delinquent tax 
debt, the factors taken into consideration 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 subcontrac-
tors under Federal contracts have delinquent tax debt. 
(G) The Federal agencies which have most frequently 
awarded contracts to persons notwithstanding any certifi-
cation by such person that the person has delinquent tax 
debt. 
(H) Recommendations on ways to better identify Fed-
eral 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 Representa-
tives, the Committee on Finance of the Senate, the Committee 
on Oversight and Government Reform of the House of Representa-
tives, and the Committee on Homeland Security and Government 
Affairs of the Senate, a report on the study conducted under sub-
section (a), together with any legislative recommendations. 
TITLE IV—MODIFICATION OF CALCULA-
TION OF MODIFIED ADJUSTED GROSS 
INCOME FOR DETERMINING CERTAIN 
HEALTHCARE PROGRAM ELIGIBILITY 
SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 
GROSS 
INCOME 
FOR 
DETERMINING 
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 tax-
payer’s social security benefits (as defined in section 
86(d)) which is not included in gross income under 
section 86 for the taxable year.’’. 
(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 annually 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).
H. R. 674—25 
(2) TRANSFER OF FUNDS.—If, under paragraph (1), the Sec-
retary of the Treasury or the Secretary’s delegate estimates 
that such amendments have a negative 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 sufficient so as to ensure that the income and balances 
of such trust funds are not reduced as a result of such amend-
ments. 
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, submitted for printing in the 
Congressional Record by the Chairman of the House Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.