‘‘(A) a HUBZone (as defined in section 
3(p) of the Small Business Act (15 U.S.C. 
632(p))), 
‘‘(B) an empowerment zone, or enterprise 
community, designated under section 1391 (and 
without regard to whether or not such designa-
tion remains in effect), 
‘‘(C) an area of low income or moderate in-
come (as recognized by the Federal Financial 
Institutions Examination Council), or 
‘‘(D) a county with persistent poverty (as 
classified by the Economic Research Service of 
the Department of Agriculture). 
‘‘(5) VETERAN OR SPOUSE OF VETERAN.—The 
term ‘veteran or spouse of a veteran’ has the mean-
ing given such term by section 7(a)(31)(G)(iii) of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
636(a)(31)(G)(iii)). 
‘‘(c) QUALIFIED START-UP EXPENDITURES.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified start- 
up expenditures’ means— 
‘‘(A) any start-up expenditures (as defined 
in section 195(c)), or 
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‘‘(B) any amounts paid or incurred during 
the taxable year for the purchase or lease of 
real property, or the purchase of personal prop-
erty, placed in service during the taxable year 
and used in the active conduct of a trade or 
business. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) YEAR OF ELECTION.—The taxpayer may 
elect the application of this section only for the first 
2 taxable years for which ordinary and necessary ex-
penses paid or incurred in carrying on such trade or 
business are allowable as a deduction by the tax-
payer under section 162. 
‘‘(2) CONTROLLED GROUPS AND COMMON CON-
TROL.—All persons treated as a single employer 
under subsections (a) and (b) of section 52 shall be 
treated as 1 person. 
‘‘(3) NO DOUBLE BENEFIT.—If a credit is de-
termined under this section with respect to any 
property, the basis of such property shall be reduced 
by the amount of the credit attributable to such 
property.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
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of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45T. Veteran small business start-up credit.’’. 
(c) MADE PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) of such Code is amended by striking ‘‘plus’’ 
at the end of paragraph (31), by striking the period at 
the end of paragraph (32) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(33) the veteran small business start-up credit 
determined under section 45T.’’. 
(d) REPORT
BY TREASURY INSPECTOR GENERAL 
FOR TAX ADMINISTRATION.—Every fourth year after the 
date of the enactment of this Act, the Treasury Inspector 
General for Tax Administration shall include in one of the 
semiannual reports under section 5 of the Inspector Gen-
eral Act of 1978 with respect to such year, an evaluation 
of the program under section 45T of the Internal Revenue 
Code of 1986 (as added by this section), including an eval-
uation of the success of, and accountability with respect 
to, such program. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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