Title: Veterans Jobs Opportunity Act
Policy area: Taxation

Summary:
Veterans Jobs Opportunity Act
This bill allows a new business-related tax credit for 15% of the start-up expenditures, up to a maximum of $50,000 in a taxable year, of a veteran-owned small business. The business must be owned and controlled by one or more veterans or their spouses and have its principal place of business in an underserved community. The bill defines "underserved community" as any area located within a HUBZone, an empowerment zone or enterprise community, an area of low or moderate income, or a county with persistent poverty.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2100 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2100

    To amend the Internal Revenue Code of 1986 to establish a small 
   business start-up tax credit for veterans creating businesses in 
                        underserved communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 11, 2019

     Ms. Rosen (for herself, Mr. Moran, Mr. Cramer, and Mr. Jones) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to establish a small 
   business start-up tax credit for veterans creating businesses in 
                        underserved communities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Jobs Opportunity Act''.

SEC. 2. VETERAN SMALL BUSINESS START-UP CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45T. VETERAN SMALL BUSINESS START-UP CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
applicable veteran-owned business which elects the application of this 
section, the veteran small business start-up credit determined under 
this section for any taxable year is an amount equal to 15 percent of 
so much of the qualified start-up expenditures of the taxpayer as does 
not exceed $50,000.
    ``(b) Applicable Veteran-Owned Small Business.--For purposes of 
this section--
            ``(1) In general.--The term `applicable veteran-owned small 
        business' means a small business owned and controlled by one or 
        more veterans or spouses of veterans and the principal place of 
        business of which is in an underserved community.
            ``(2) Ownership and control.--The term `owned and 
        controlled' means--
                    ``(A) management and operation of the daily 
                business, and--
                    ``(B)(i) in the case of a sole proprietorship, sole 
                ownership,
                    ``(ii) in the case of a corporation, ownership (by 
                vote or value) of not less than 51 percent of the stock 
                in such corporation, or
                    ``(iii) in the case of a partnership or joint 
                venture, ownership of not less than 51 percent of the 
                profits interests or capital interests in such 
                partnership or joint venture.
            ``(3) Small business.--The term `small business' means, 
        with respect to any taxable year, any person engaged in a trade 
        or business in the United States which is a small business 
        concern (as defined under section 3 of the Small Business Act 
        (15 U.S.C. 632)).
            ``(4) Underserved community.--The term `underserved 
        community' means any area located within--
                    ``(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 designation remains in effect),
                    ``(C) an area of low income or moderate income (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 meaning 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
                    ``(B) any amounts paid or incurred during the 
                taxable year for the purchase or lease of real 
                property, or the purchase of personal property, 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 section--
            ``(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 expenses paid or incurred in 
        carrying on such trade or business are allowable as a deduction 
        by the taxpayer under section 162.
            ``(2) Controlled groups and common control.--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 determined 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 of such Code is amended by adding 
at the end the following 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 General 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 evaluation 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.
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