To amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent withholding on certain payments made to vendors by government entities, to modify the calculation of modified adjusted gross income for purposes of determining eligibility for certain healthcare-related programs, and for other purposes.
PL 112-56 (H.R.674), enacted 11/21/2011

125 STAT. 711 
PUBLIC LAW 112–56—NOV. 21, 2011 
Public Law 112–56 
112th Congress 
An Act 
To amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent 
withholding on certain payments made to vendors by government entities, to 
modify the calculation of modified adjusted gross income for purposes of deter-
mining eligibility for certain healthcare-related programs, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of Contents. 
TITLE I—THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION 
ACT 
Sec. 101. Short title. 
Sec. 102. Repeal of imposition of 3 percent withholding on certain payments made 
to vendors by government entities. 
TITLE II—VOW TO HIRE HEROES 
Sec. 201. Short title. 
Subtitle A—Retraining Veterans 
Sec. 211. Veterans retraining assistance program. 
Subtitle B—Improving the Transition Assistance Program 
Sec. 221. Mandatory participation of members of the Armed Forces in the Transi-
tion Assistance Program of Department of Defense. 
Sec. 222. Individualized assessment for members of the Armed Forces under transi-
tion assistance on equivalence between skills developed in military occu-
pational specialties and qualifications required for civilian employment 
with the private sector. 
Sec. 223. Transition Assistance Program contracting. 
Sec. 224. Contracts with private entities to assist in carrying out Transition Assist-
ance Program of Department of Defense. 
Sec. 225. Improved access to apprenticeship programs for members of the Armed 
Forces who are being separated from active duty or retired. 
Sec. 226. Comptroller General review. 
Subtitle C—Improving the Transition of Veterans to Civilian Employment 
Sec. 231. Two-year extension of authority of Secretary of Veterans Affairs to pro-
vide rehabilitation and vocational benefits to members of the Armed 
Forces with severe injuries or illnesses. 
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to pay employers 
for providing on-job training to veterans who have not been rehabili-
tated to point of employability. 
Sec. 233. Training and rehabilitation for veterans with service-connected disabil-
ities who have exhausted rights to unemployment benefits under State 
law. 
Sec. 234. Collaborative veterans’ training, mentoring, and placement program. 
Sec. 235. Appointment of honorably discharged members and other employment as-
sistance. 
Sec. 236. Department of Defense pilot program on work experience for members of 
the Armed Forces on terminal leave. 
Nov. 21, 2011 
[H.R. 674] 
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125 STAT. 712 
PUBLIC LAW 112–56—NOV. 21, 2011 
Sec. 237. Enhancement of demonstration program on credentialing and licensing of 
veterans. 
Sec. 238. Inclusion of performance measures in annual report on veteran job coun-
seling, training, and placement programs of the Department of Labor. 
Sec. 239. Clarification of priority of service for veterans in Department of Labor job 
training programs. 
Sec. 240. Evaluation of individuals receiving training at the National Veterans’ 
Employment and Training Services Institute. 
Sec. 241. Requirements for full-time disabled veterans’ outreach program special-
ists and local veterans’ employment representatives. 
Subtitle D—Improvements to Uniformed Services Employment and Reemployment 
Rights 
Sec. 251. Clarification of benefits of employment covered under USERRA. 
Subtitle E—Other Matters 
Sec. 261. Returning heroes and wounded warriors work opportunity tax credits. 
Sec. 262. Extension of reduced pension for certain veterans covered by Medicaid 
plans for services furnished by nursing facilities. 
Sec. 263. Reimbursement rate for ambulance services. 
Sec. 264. Extension of authority for Secretary of Veterans Affairs to obtain informa-
tion from Secretary of Treasury and Commissioner of Social Security for 
income verification purposes. 
Sec. 265. Modification of loan guaranty fee for certain subsequent loans. 
TITLE III—OTHER PROVISIONS RELATING TO FEDERAL VENDORS 
Sec. 301. One hundred percent levy for payments to Federal vendors relating to 
property. 
Sec. 302. Study and report on reducing the amount of the tax gap owed by Federal 
contractors. 
TITLE IV—MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 
GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE PROGRAM 
ELIGIBILITY 
Sec. 401. Modification of calculation of modified adjusted gross income for deter-
mining certain healthcare program eligibility. 
TITLE V—BUDGETARY EFFECTS 
Sec. 501. Statutory Pay-As-You-Go Act of 2010. 
TITLE 
I—THREE 
PERCENT 
WITH-
HOLDING 
REPEAL 
AND 
JOB 
CRE-
ATION ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘3% Withholding Repeal and 
Job Creation Act’’. 
SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON 
CERTAIN PAYMENTS MADE TO VENDORS BY GOVERNMENT 
ENTITIES. 
(a) IN GENERAL.—Section 3402 of the Internal Revenue Code 
of 1986 is amended by striking subsection (t). 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments made after December 31, 2011. 
TITLE II—VOW TO HIRE HEROES 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘VOW to Hire Heroes Act of 
2011’’. 
38 USC 101 note. 
VOW to Hire 
Heroes Act of 
2011. 
26 USC 3402 
note. 
26 USC 3402. 
26 USC 1 note. 
3% Withholding 
Repeal and Job 
Creation Act. 
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125 STAT. 713 
PUBLIC LAW 112–56—NOV. 21, 2011 
Subtitle A—Retraining Veterans 
SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM. 
(a) PROGRAM AUTHORIZED.— 
(1) IN GENERAL.—Not later than July 1, 2012, the Secretary 
of Veterans Affairs shall, in collaboration with the Secretary 
of Labor, establish and commence a program of retraining 
assistance for eligible veterans. 
(2) NUMBER OF ELIGIBLE VETERANS.—The number of unique 
eligible veterans who participate in the program established 
under paragraph (1) may not exceed— 
(A) 45,000 during fiscal year 2012; and 
(B) 54,000 during the period beginning October 1, 2012, 
and ending March 31, 2014. 
(b) RETRAINING ASSISTANCE.—Except as provided by subsection 
(k), each veteran who participates in the program established under 
subsection (a)(1) shall be entitled to up to 12 months of retraining 
assistance provided by the Secretary of Veterans Affairs. Such 
retraining assistance may only be used by the veteran to pursue 
a program of education (as such term is defined in section 3452(b) 
of title 38, United States Code) for training, on a full-time basis, 
that— 
(1) is approved under chapter 36 of such title; 
(2) is offered by a community college or technical school; 
(3) leads to an associate degree or a certificate (or other 
similar evidence of the completion of the program of education 
or training); 
(4) is designed to provide training for a high-demand 
occupation, as determined by the Commissioner of Labor Statis-
tics; and 
(5) begins on or after July 1, 2012. 
(c) MONTHLY CERTIFICATION.—Each veteran who participates 
in the program established under subsection (a)(1) shall certify 
to the Secretary of Veterans Affairs the enrollment of the veteran 
in a program of education described in subsection (b) for each 
month in which the veteran participates in the program. 
(d) AMOUNT
OF ASSISTANCE.—The monthly amount of the 
retraining assistance payable under this section is the amount 
in effect under section 3015(a)(1) of title 38, United States Code. 
(e) ELIGIBILITY.— 
(1) IN GENERAL.—For purposes of this section, an eligible 
veteran is a veteran who— 
(A) as of the date of the submittal of the application 
for assistance under this section, is at least 35 years of 
age but not more than 60 years of age; 
(B) was last discharged from active duty service in 
the Armed Forces under conditions other than dishonor-
able; 
(C) as of the date of the submittal of the application 
for assistance under this section, is unemployed; 
(D) as of the date of the submittal of the application 
for assistance under this section, is not eligible to receive 
educational assistance under chapter 30, 31, 32, 33, or 
35 of title 38, United States Code, or chapter 1606 or 
1607 of title 10, United States Code; 
Time periods. 
Deadline. 
38 USC 4100 
note. 
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125 STAT. 714 
PUBLIC LAW 112–56—NOV. 21, 2011 
(E) is not in receipt of compensation for a service- 
connected disability rated totally disabling by reason of 
unemployability; 
(F) was not and is not enrolled in any Federal or 
State job training program at any time during the 180- 
day period ending on the date of the submittal of the 
application for assistance under this section; and 
(G) by not later than October 1, 2013, submits to 
the Secretary of Labor an application for assistance under 
this section containing such information and assurances 
as that Secretary may require. 
(2) DETERMINATION OF ELIGIBILITY.— 
(A) DETERMINATION BY SECRETARY OF LABOR.— 
(i) IN GENERAL.—For each application for assist-
ance under this section received by the Secretary of 
Labor from an applicant, the Secretary of Labor shall 
determine whether the applicant is eligible for such 
assistance under subparagraphs (A), (C), (F), and (G) 
of paragraph (1). 
(ii) 
REFERRAL
TO
SECRETARY
OF
VETERANS 
AFFAIRS.—If the Secretary of Labor determines under 
clause (i) that an applicant is eligible for assistance 
under this section, the Secretary of Labor shall forward 
the application of such applicant to the Secretary of 
Veterans Affairs in accordance with the terms of the 
agreement required by subsection (h). 
(B) DETERMINATION
BY
SECRETARY
OF
VETERANS 
AFFAIRS.—For each application relating to an applicant 
received by the Secretary of Veterans Affairs under 
subparagraph (A)(ii), the Secretary of Veterans Affairs shall 
determine under subparagraphs (B), (D), and (E) of para-
graph (1) whether such applicant is eligible for assistance 
under this section. 
(f) EMPLOYMENT ASSISTANCE.—For each veteran who partici-
pates in the program established under subsection (a)(1), the Sec-
retary of Labor shall contact such veteran not later than 30 days 
after the date on which the veteran completes, or terminates partici-
pation in, such program to facilitate employment of such veteran 
and availability or provision of employment placement services 
to such veteran. 
(g) CHARGING OF ASSISTANCE AGAINST OTHER ENTITLEMENT.— 
Assistance provided under this section shall be counted against 
the aggregate period for which section 3695 of title 38, United 
States Code, limits the individual’s receipt of educational assistance 
under laws administered by the Secretary of Veterans Affairs. 
(h) JOINT AGREEMENT.— 
(1) IN GENERAL.—The Secretary of Veterans Affairs and 
the Secretary of Labor shall enter into an agreement to carry 
out this section. 
(2) APPEALS PROCESS.—The agreement required by para-
graph (1) shall include establishment of a process for resolving 
disputes relating to and appeals of decisions of the Secretaries 
under subsection (e)(2). 
(i) REPORT.— 
(1) IN GENERAL.—Not later than July 1, 2014, the Secretary 
of Veterans Affairs shall, in collaboration with the Secretary 
of Labor, submit to the appropriate committees of Congress 
Deadline. 
Deadline. 
Time period. 
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125 STAT. 715 
PUBLIC LAW 112–56—NOV. 21, 2011 
a report on the retraining assistance provided under this sec-
tion. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) The total number of— 
(i) eligible veterans who participated; and 
(ii) associates degrees or certificates awarded (or 
other similar evidence of the completion of the program 
of education or training earned). 
(B) Data related to the employment status of eligible 
veterans who participated. 
(j) FUNDING.—Payments under this section shall be made from 
amounts appropriated to or otherwise made available to the Depart-
ment of Veterans Affairs for the payment of readjustment benefits. 
Not more than $2,000,000 shall be made available from such 
amounts for information technology expenses (not including per-
sonnel costs) associated with the administration of the program 
established under subsection (a)(1). 
(k) TERMINATION OF AUTHORITY.—The authority to make pay-
ments under this section shall terminate on March 31, 2014. 
(l) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 
section, the term ‘‘appropriate committees of Congress’’ means— 
(1) the Committee on Veterans’ Affairs and the Committee 
on Health, Education, Labor, and Pension of the Senate; and 
(2) the Committee on Veterans’ Affairs and the Committee 
on Education and the Workforce of the House of Representa-
tives. 
Subtitle B—Improving the Transition 
Assistance Program 
SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED 
FORCES IN THE TRANSITION ASSISTANCE PROGRAM OF 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Subsection (c) of section 1144 of title 10, 
United States Code, is amended to read as follows: 
‘‘(c) PARTICIPATION.—(1) Except as provided in paragraph (2), 
the Secretary of Defense and the Secretary of Homeland Security 
shall require the participation in the program carried out under 
this section of the members eligible for assistance under the pro-
gram. 
‘‘(2) The Secretary of Defense and the Secretary of Homeland 
Security may, under regulations such Secretaries shall prescribe, 
waive the participation requirement of paragraph (1) with respect 
to— 
‘‘(A) such groups or classifications of members as the Secre-
taries determine, after consultation with the Secretary of Labor 
and the Secretary of Veterans Affairs, for whom participation 
is not and would not be of assistance to such members based 
on the Secretaries’ articulable justification that there is extraor-
dinarily high reason to believe the exempted members are 
unlikely to face major readjustment, health care, employment, 
or other challenges associated with transition to civilian life; 
and 
Regulations. 
Waiver authority. 
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125 STAT. 716 
PUBLIC LAW 112–56—NOV. 21, 2011 
‘‘(B) individual members possessing specialized skills who, 
due to unavoidable circumstances, are needed to support a 
unit’s imminent deployment.’’. 
(b) REQUIRED USE OF EMPLOYMENT ASSISTANCE, JOB TRAINING 
ASSISTANCE, AND OTHER TRANSITIONAL SERVICES IN PRESEPARATION 
COUNSELING.—Section 1142(a)(2) of such title is amended by 
striking ‘‘may’’ and inserting ‘‘shall’’. 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall take effect on the date that is 1 year after the 
date of the enactment of this Act. 
SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE 
ARMED FORCES UNDER TRANSITION ASSISTANCE ON 
EQUIVALENCE BETWEEN SKILLS DEVELOPED IN MILITARY 
OCCUPATIONAL 
SPECIALTIES 
AND 
QUALIFICATIONS 
REQUIRED FOR CIVILIAN EMPLOYMENT WITH THE PRI-
VATE SECTOR. 
(a) STUDY ON EQUIVALENCE REQUIRED.— 
(1) IN GENERAL.—The Secretary of Labor shall, in consulta-
tion with the Secretary of Defense and the Secretary of Vet-
erans Affairs, enter into a contract with a qualified organization 
to conduct a study to identify any equivalences between the 
skills developed by members of the Armed Forces through 
various military occupational specialties (MOS), successful 
completion of resident training courses, attaining various mili-
tary ranks or rates, or other military experiences and the 
qualifications required for various positions of civilian employ-
ment in the private sector. 
(2) COOPERATION OF FEDERAL AGENCIES.—The departments 
and agencies of the Federal Government, including the Office 
of Personnel Management, the General Services Administra-
tion, the Government Accountability Office, the Department 
of Education, and other appropriate departments and agencies, 
shall cooperate with the contractor under paragraph (1) to 
conduct the study required under that paragraph. 
(3) REPORT.—Upon completion of the study conducted 
under paragraph (1), the contractor under that paragraph shall 
submit to the Secretary of Defense, the Secretary of Veterans 
Affairs, and the Secretary of Labor a report setting forth the 
results of the study. The report shall include such information 
as the Secretaries shall specify in the contract under paragraph 
(1) for purposes of this section. 
(4) TRANSMITTAL TO CONGRESS.—The Secretary of Labor 
shall transmit to the appropriate committees of Congress the 
report submitted under paragraph (3), together with such com-
ments on the report as the Secretary considers appropriate. 
(5) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In 
this subsection, the term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Veterans’ Affairs, the Committee 
on Armed Services, and the Committee on Health, Edu-
cation, Labor, and Pension of the Senate; and 
(B) the Committee on Veterans’ Affairs, the Committee 
on Armed Services, and the Committee on Education and 
the Workforce of the House of Representatives. 
Contracts. 
10 USC 1144 
note. 
10 USC 1142 
note. 
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125 STAT. 717 
PUBLIC LAW 112–56—NOV. 21, 2011 
(b) PUBLICATION.—The secretaries described in subsection (a)(1) 
shall ensure that the equivalences identified under subsection (a)(1) 
are— 
(1) made publicly available on an Internet website; and 
(2) regularly updated to reflect the most recent findings 
of the secretaries with respect to such equivalences. 
(c) INDIVIDUALIZED ASSESSMENT OF CIVILIAN POSITIONS AVAIL-
ABLE THROUGH MILITARY EXPERIENCES.—The Secretary of Defense 
shall ensure that each member of the Armed Forces who is partici-
pating in the Transition Assistance Program (TAP) of the Depart-
ment of Defense receives, as part of such member’s participation 
in that program, an individualized assessment of the various posi-
tions of civilian employment in the private sector for which such 
member may be qualified as a result of the skills developed by 
such member through various military occupational specialties 
(MOS), successful completion of resident training courses, attaining 
various military ranks or rates, or other military experiences. The 
assessment shall be performed using the results of the study con-
ducted under subsection (a) and such other information as the 
Secretary of Defense, in consultation with the Secretary of Veterans 
Affairs and the Secretary of Labor, considers appropriate for that 
purpose. 
(d) FURTHER USE IN EMPLOYMENT-RELATED TRANSITION ASSIST-
ANCE.— 
(1) TRANSMITTAL
OF
ASSESSMENT.—The Secretary of 
Defense shall make the individualized assessment provided 
a member under subsection (a) available electronically to the 
Secretary of Veterans Affairs and the Secretary of Labor. 
(2) USE IN ASSISTANCE.—The Secretary of Veterans Affairs 
and the Secretary of Labor may use an individualized assess-
ment with respect to an individual under paragraph (1) for 
employment-related assistance in the transition from military 
service to civilian life provided the individual by such Secretary 
and to otherwise facilitate and enhance the transition of the 
individual from military service to civilian life. 
(e) EFFECTIVE DATE.—This section shall take effect on the 
date that is one year after the date of the enactment of this 
Act. 
SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING. 
(a) TRANSITION ASSISTANCE PROGRAM CONTRACTING.— 
(1) IN GENERAL.—Section 4113 of title 38, United States 
Code, is amended to read as follows: 
‘‘§ 4113. Transition Assistance Program personnel 
‘‘(a) REQUIREMENT TO CONTRACT.—In accordance with section 
1144 of title 10, the Secretary shall enter into a contract with 
an appropriate private entity or entities to provide the functions 
described in subsection (b) at all locations where the program 
described in such section is carried out. 
‘‘(b) FUNCTIONS.—Contractors under subsection (a) shall provide 
to members of the Armed Forces who are being separated from 
active duty (and the spouses of such members) the services 
described in section 1144(a)(1) of title 10, including the following: 
‘‘(1) Counseling. 
Public 
information. 
Web posting. 
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125 STAT. 718 
PUBLIC LAW 112–56—NOV. 21, 2011 
‘‘(2) Assistance in identifying employment and training 
opportunities and help in obtaining such employment and 
training. 
‘‘(3) Assessment of academic preparation for enrollment 
in an institution of higher learning or occupational training. 
‘‘(4) Other related information and services under such 
section. 
‘‘(5) Such other services as the Secretary considers appro-
priate.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 41 of title 38, United States Code, is 
amended by striking the item relating to section 4113 and 
inserting the following new item: 
‘‘4113. Transition Assistance Program personnel.’’. 
(b) DEADLINE FOR IMPLEMENTATION.—The Secretary of Labor 
shall enter into the contract required by section 4113 of title 38, 
United States Code, as added by subsection (a), not later than 
two years after the date of the enactment of this Act. 
SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CAR-
RYING 
OUT 
TRANSITION 
ASSISTANCE 
PROGRAM 
OF 
DEPARTMENT OF DEFENSE. 
Section 1144(d) of title 10, United States Code, is amended— 
(1) in paragraph (5), by striking ‘‘public or private entities; 
and’’ and inserting ‘‘public entities;’’; 
(2) by redesignating paragraph (6) as paragraph (7); and 
(3) by inserting after paragraph (5), the following new 
paragraph (6): 
‘‘(6) enter into contracts with private entities, particularly 
with qualified private entities that have experience with 
instructing members of the armed forces eligible for assistance 
under the program carried out under this section on— 
‘‘(A) private sector culture, resume writing, career net-
working, and training on job search technologies; 
‘‘(B) academic readiness and educational opportunities; 
or 
‘‘(C) other relevant topics; and’’. 
SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR 
MEMBERS OF THE ARMED FORCES WHO ARE BEING SEPA-
RATED FROM ACTIVE DUTY OR RETIRED. 
Section 1144 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(e) PARTICIPATION IN APPRENTICESHIP PROGRAMS.—As part of 
the program carried out under this section, the Secretary of Defense 
and the Secretary of Homeland Security may permit a member 
of the armed forces eligible for assistance under the program to 
participate in an apprenticeship program registered under the Act 
of August 16, 1937 (commonly known as the ‘National Apprentice-
ship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), or 
a pre-apprenticeship program that provides credit toward a program 
registered under such Act, that provides members of the armed 
forces with the education, training, and services necessary to transi-
tion to meaningful employment that leads to economic self-suffi-
ciency.’’. 
38 USC 4113 
note. 
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125 STAT. 719 
PUBLIC LAW 112–56—NOV. 21, 2011 
SEC. 226. COMPTROLLER GENERAL REVIEW. 
Not later than two years after the date of the enactment 
of this Act, the Comptroller General of the United States shall 
conduct a review of the Transition Assistance Program (TAP) and 
submit to Congress a report on the results of the review and 
any recommendations of the Comptroller General for improving 
the program. 
Subtitle C—Improving the Transition of 
Veterans to Civilian Employment 
SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF 
VETERANS AFFAIRS TO PROVIDE REHABILITATION AND 
VOCATIONAL BENEFITS TO MEMBERS OF THE ARMED 
FORCES WITH SEVERE INJURIES OR ILLNESSES. 
Section 1631(b)(2) of the Wounded Warrior Act (title XVI of 
Public Law 110–181; 10 U.S.C. 1071 note) is amended by striking 
‘‘December 31, 2012’’ and inserting ‘‘December 31, 2014’’. 
SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS 
AFFAIRS TO PAY EMPLOYERS FOR PROVIDING ON-JOB 
TRAINING TO VETERANS WHO HAVE NOT BEEN REHABILI-
TATED TO POINT OF EMPLOYABILITY. 
Section 3116(b)(1) of title 38, United States Code, is amended 
by striking ‘‘who have been rehabilitated to the point of employ-
ability’’. 
SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH 
SERVICE-CONNECTED 
DISABILITIES 
WHO 
HAVE 
EXHAUSTED 
RIGHTS 
TO 
UNEMPLOYMENT 
BENEFITS 
UNDER STATE LAW. 
(a) ENTITLEMENT TO ADDITIONAL REHABILITATION PROGRAMS.— 
(1) IN GENERAL.—Section 3102 of title 38, United States 
Code, is amended— 
(A) in the matter before paragraph (1), by striking 
‘‘A person’’ and inserting the following: 
‘‘(a) IN GENERAL.—A person’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(b) ADDITIONAL REHABILITATION PROGRAMS FOR PERSONS WHO 
HAVE EXHAUSTED RIGHTS
TO UNEMPLOYMENT BENEFITS UNDER 
STATE LAW.—(1) Except as provided in paragraph (4), a person 
who has completed a rehabilitation program under this chapter 
shall be entitled to an additional rehabilitation program under 
the terms and conditions of this chapter if— 
‘‘(A) the person is described by paragraph (1) or (2) of 
subsection (a); and 
‘‘(B) the person— 
‘‘(i) has exhausted all rights to regular compensation 
under the State law or under Federal law with respect 
to a benefit year; 
‘‘(ii) has no rights to regular compensation with respect 
to a week under such State or Federal law; and 
‘‘(iii) is not receiving compensation with respect to such 
week under the unemployment compensation law of 
Canada; and 
10 USC 1071 
note. 
Deadline. 
Reports. 
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125 STAT. 720 
PUBLIC LAW 112–56—NOV. 21, 2011 
‘‘(C) begins such additional rehabilitation program within 
six months of the date of such exhaustion. 
‘‘(2) For purposes of paragraph (1)(B)(i), a person shall be 
considered to have exhausted such person’s rights to regular com-
pensation under a State law when— 
‘‘(A) no payments of regular compensation can be made 
under such law because such person has received all regular 
compensation available to such person based on employment 
or wages during such person’s base period; or 
‘‘(B) such person’s rights to such compensation have been 
terminated by reason of the expiration of the benefit year 
with respect to which such rights existed. 
‘‘(3) In this subsection, the terms ‘compensation’, ‘regular com-
pensation’, ‘benefit year’, ‘State’, ‘State law’, and ‘week’ have the 
respective meanings given such terms under section 205 of the 
Federal-State Extended Unemployment Compensation Act of 1970 
(26 U.S.C. 3304 note). 
‘‘(4) No person shall be entitled to an additional rehabilitation 
program under paragraph (1) from whom the Secretary receives 
an application therefor after March 31, 2014.’’. 
(2) DURATION OF ADDITIONAL REHABILITATION PROGRAM.— 
Section 3105(b) of such title is amended— 
(A) by striking ‘‘Except as provided in subsection (c) 
of this section,’’ and inserting ‘‘(1) Except as provided in 
paragraph (2) and in subsection (c),’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(2) The period of a vocational rehabilitation program pursued 
by a veteran under section 3102(b) of this title following a deter-
mination of the current reasonable feasibility of achieving a voca-
tional goal may not exceed 12 months.’’. 
(b) EXTENSION
OF PERIOD
OF ELIGIBILITY.—Section 3103 of 
such title is amended— 
(1) in subsection (a), by striking ‘‘in subsection (b), (c), 
or (d)’’ and inserting ‘‘in subsection (b), (c), (d), or (e)’’; 
(2) by redesignating subsection (e) as subsection (f); and 
(3) by inserting after subsection (d) the following new sub-
section (e): 
‘‘(e)(1) The limitation in subsection (a) shall not apply to a 
rehabilitation program described in paragraph (2). 
‘‘(2) A rehabilitation program described in this paragraph is 
a rehabilitation program pursued by a veteran under section 3102(b) 
of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall take effect on June 1, 2012, and shall apply 
with respect to rehabilitation programs beginning after such date. 
(d) COMPTROLLER GENERAL REVIEW.—Not later than two years 
after the date of the enactment of this Act, the Comptroller General 
of the United States shall— 
(1) conduct a review of the training and rehabilitation 
under chapter 31 of title 38, United States Code; and 
(2) submit to Congress a report on the findings of the 
Comptroller General with respect to the review and any rec-
ommendations of the Comptroller General for improving such 
training and rehabilitation. 
Deadline. 
Reports. 
38 USC 3102 
note. 
Deadline. 
Deadline. 
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125 STAT. 721 
PUBLIC LAW 112–56—NOV. 21, 2011 
SEC. 234. COLLABORATIVE VETERANS’ TRAINING, MENTORING, AND 
PLACEMENT PROGRAM. 
(a) IN GENERAL.—Chapter 41 of title 38, United States Code, 
is amended by inserting after section 4104 the following new section: 
‘‘§ 4104A. Collaborative veterans’ training, mentoring, and 
placement program 
‘‘(a) GRANTS.—The Secretary shall award grants to eligible non-
profit organizations to provide training and mentoring for eligible 
veterans who seek employment. The Secretary shall award the 
grants to not more than three organizations, for periods of two 
years. 
‘‘(b) COLLABORATION AND FACILITATION.—The Secretary shall 
ensure that the recipients of the grants— 
‘‘(1) collaborate with— 
‘‘(A) the appropriate disabled veterans’ outreach 
specialists (in carrying out the functions described in sec-
tion 4103A(a)) and the appropriate local veterans’ employ-
ment representatives (in carrying out the functions 
described in section 4104); and 
‘‘(B) the appropriate State boards and local boards 
(as such terms are defined in section 101 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2801)) for the areas 
to be served by recipients of the grants; and 
‘‘(2) based on the collaboration, facilitate the placement 
of the veterans that complete the training in meaningful 
employment that leads to economic self-sufficiency. 
‘‘(c) APPLICATION.—To be eligible to receive a grant under this 
section, a nonprofit organization shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require. At a minimum, the 
information shall include— 
‘‘(1) information describing how the organization will— 
‘‘(A) collaborate with disabled veterans’ outreach 
specialists and local veterans’ employment representatives 
and the appropriate State boards and local boards (as 
such terms are defined in section 101 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2801)); 
‘‘(B) based on the collaboration, provide training that 
facilitates the placement described in subsection (b)(2); and 
‘‘(C) make available, for each veteran receiving the 
training, a mentor to provide career advice to the veteran 
and assist the veteran in preparing a resume and devel-
oping job interviewing skills; and 
‘‘(2) an assurance that the organization will provide the 
information necessary for the Secretary to prepare the reports 
described in subsection (d). 
‘‘(d) REPORTS.—(1) Not later than six months after the date 
of the enactment of the VOW to Hire Heroes Act of 2011, the 
Secretary shall prepare and submit to the appropriate committees 
of Congress a report that describes the process for awarding grants 
under this section, the recipients of the grants, and the collaboration 
described in subsections (b) and (c). 
‘‘(2) Not later than 18 months after the date of enactment 
of the VOW to Hire Heroes Act of 2011, the Secretary shall— 
‘‘(A) conduct an assessment of the performance of the grant 
recipients, disabled veterans’ outreach specialists, and local 
Assessment. 
Grants. 
Nonprofit 
organizations. 
Time periods. 
38 USC 4104A. 
Grants. 
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125 STAT. 722 
PUBLIC LAW 112–56—NOV. 21, 2011 
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: 
Time period. 
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125 STAT. 723 
PUBLIC LAW 112–56—NOV. 21, 2011 
‘‘§ 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 
Applicability. 
Deadline. 
Deadline. 
5 USC 2108a. 
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125 STAT. 724 
PUBLIC LAW 112–56—NOV. 21, 2011 
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. 
10 USC 1143 
note. 
Designation. 
38 USC 4214 
note. 
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125 STAT. 725 
PUBLIC LAW 112–56—NOV. 21, 2011 
(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— 
Deadline. 
Effective date. 
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125 STAT. 726 
PUBLIC LAW 112–56—NOV. 21, 2011 
(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.’’. 
Time periods. 
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125 STAT. 727 
PUBLIC LAW 112–56—NOV. 21, 2011 
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. 
Applicability. 
38 USC 4109 
note. 
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125 STAT. 728 
PUBLIC LAW 112–56—NOV. 21, 2011 
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.’’. 
Determination. 
Proposal. 
Audits. 
Audits. 
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125 STAT. 729 
PUBLIC LAW 112–56—NOV. 21, 2011 
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 
Time period. 
Time period. 
26 USC 51. 
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125 STAT. 730 
PUBLIC LAW 112–56—NOV. 21, 2011 
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 
Applicability. 
26 USC 3111. 
26 USC 52. 
26 USC 51. 
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125 STAT. 731 
PUBLIC LAW 112–56—NOV. 21, 2011 
‘‘(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 
Determination. 
26 USC 51 note. 
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125 STAT. 732 
PUBLIC LAW 112–56—NOV. 21, 2011 
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 
26 USC 51 note. 
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125 STAT. 733 
PUBLIC LAW 112–56—NOV. 21, 2011 
(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 
26 USC 6331 
note. 
26 USC 6331. 
38 USC 3729 
note. 
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125 STAT. 734 
PUBLIC LAW 112–56—NOV. 21, 2011 
(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). 
Deadline. 
26 USC 36B note. 
26 USC 36B note. 
26 USC 36B. 
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125 STAT. 735 
PUBLIC LAW 112–56—NOV. 21, 2011 
LEGISLATIVE HISTORY—H.R. 674: 
HOUSE REPORTS: No. 112–253 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 157 (2011): 
Oct. 27, considered and passed House. 
Nov. 8–10, considered and passed Senate, amended. 
Nov. 16, House concurred in Senate amendment. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2011): 
Nov. 21, Presidential remarks. 
(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. 
Approved November 21, 2011. 
Deadline. 
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