,i #aacth ,,congress #ast ,session ,h4 ,r4 #bacc ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjac ,mr4 ,poe of ,texas 7for himself and ,mr4 ,thompson of ,california7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make permanent the work opportunity tax credit for veterans and to allow an exemption from an employer's employment taxes in an amount equivalent to the value of such credit in the case of veterans4 #a4 ,short title ,this ,act may be cited as the ,veterans ,back to ,work ,act of #bjac4 #b4 ,extension and improvement of work opportunity tax credit for veterans 7a7 ,credit made permanent for veterans ,section #ea7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7other than a qualified veteran7 after an individual4 7b7 ,election to claim credit as exemption from employment taxes 7#a7 ,in general ,section #caaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,special exemption for certain veterans 7#a7 ,in general ,subsection 7a7 shall not apply to first-year wages paid after the date of the enactment of this subsection by a qualified employer with respect to employment of any specified veteran for services performed-- 7,a7 in a trade or business of such qualified employer1 or 7,b7 in the case of a qualified employer exempt from tax under section #eja7;a71 in furtherance of the activities related to the purpose or function constituting the basis of the employer's exemption under section #eja4 7#b7 ,limitation ,with respect to any specified veteran employed by a qualified employer1 the amount of wages to which paragraph 7#a7 applies shall not exceed-- 7,a7 #abe1dij in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77ii77,,ii71 7,b7 #gc1bjc in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77iv71 7,c7 #fb1gde in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77ii77,i71 and 7,d7 #ca1cgc in the case of any other qualified veteran4 7#c7 ,qualified employer ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified employer means any employer other than the ,united ,states1 any ,state1 or any political subdivision thereof1 or any instrumentality of the foregoing4 7,b7 ,treatment of employees of post-secondary educational institutions ,notwithstanding subparagraph 7,a71 the term qualified employer includes any employer which is a public institution of higher education 7as defined in section #aja7;b7 of the ,higher ,education ,act of #aife74 7#d7 ,specified veteran ,for purposes of this subsection-- 7,a7 ,in general ,the term specified veteran means any individual who-- 7i7 begins employment with a qualified employer after the date of the enactment of this subsection1 7ii7 certifies by signed affidavit1 under penalties of perjury1 that such individual is a qualified veteran and whether such individual is a qualified veteran described in subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#b71 7iii7 is not employed by the qualified employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause1 and 7iv7 is not an individual described in section #ea7;i77#a7 7applied by substituting qualified employer for taxpayer each place it appears74 7,b7 ,qualified veteran ,the term qualified veteran has the meaning given such term by section #ea7;d77#c71 but applied without regard to whether such individual has been certified by the designated local agency4 7#e7 ,first-year wages ,for purposes of this subsection1 the term first-year wages means1 with respect to any individual1 wages for services rendered during #a-year period beginning with the day the individual begins work for the employer4 7#f7 ,coordination with credit for employment of qualified veterans by qualified tax-exempt organizations ,this subsection shall not apply with respect to the first-year wages of any individual if such wages are taken into account in determining the credit allowed under subsection 7e74 7#g7 ,election ,a qualified employer may elect to have this subsection not apply with respect to the first-year wages of any individual4 ,such election shall be made in such manner as the ,secretary may require4 4 7#b7 ,coordination with work opportunity credit ,section #ea7;c7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,coordination with payroll tax exemption for qualified veterans ,the credit determined under this section with respect to any qualified veteran for any taxable year shall be reduced by an amount equal to #g4fe percent of the qualified first-year wages paid or incurred by the taxpayer to such veteran during such taxable year to which section #caaa7;e7 or #cbba7;d7 applied4 4 7#c7 ,coordination with credit for employment of qualified veterans by qualified tax-exempt organizations ,section #caaa7;e7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,election 7,a7 ,in general ,a qualified tax-exempt organization may elect to determine the credit allowed under this section without regard to the qualified first-year wages of any individual4 7,b7 ,coordination with exemption for first-year wages of specified veterans ,for exemption for first-year wages of specified veterans to which this subsection does not apply1 see subsection 7f74 4 7#d7 ,transfers to ,federal ,old-,age and ,survivors ,insurance ,trust ,fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the amendments made by paragraph 7#a74 ,amounts appropriated 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 enacted4 7#e7 ,application to ,railroad ,retirement ,taxes 7,a7 ,in general ,section #cbba of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7d7 as subsection 7e7 and by inserting after subsection 7c7 the following new subsection3 7d7 ,special exemption for certain veterans 7#a7 ,in general ,in the case of first-year compensation paid by a qualified employer after the date of the enactment of this subsection with respect to having a specified veteran in the employer's employ for services rendered to such qualified employer1 the applicable percentage under subsection 7a7 shall be equal to the rate of tax in effect under section #caaa7;b7 for the calendar year4 7#b7 ,limitation ,with respect to any specified veteran employed by a qualified employer1 the amount of compensation to which paragraph 7#a7 applies shall not exceed-- 7,a7 #abe1dij in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77ii77,,ii71 7,b7 #gc1bjc in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77iv71 7,c7 #fb1gde in the case of an individual who is a qualified veteran by reason of section #ea7;d77#c77;,a77ii77,i71 and 7,d7 #ca1cgc in the case of any other qualified veteran4 7#c7 ,qualified employer ,the term #8qualified employer' means any employer other than the ,united ,states1 any ,state1 or any political subdivision thereof1 or any instrumentality of the foregoing4 7#d7 ,specified veteran ,for purposes of this subsection-- 7,a7 ,in general ,the term specified veteran means any individual who-- 7i7 begins employment with a qualified employer after the date of the enactment of this subsection1 7ii7 certifies by signed affidavit1 under penalties of perjury1 that such individual is a qualified veteran and whether such individual is a qualified veteran described in subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#b71 7iii7 is not employed by the qualified employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause1 and 7iv7 is not an individual described in section #ea7;i77#a7 7applied by substituting qualified employer for taxpayer each place it appears74 7,b7 ,qualified veteran ,the term qualified veteran has the meaning given such term by section #ea7;d77#c71 but applied without regard to whether such individual has been certified by the designated local agency4 7#e7 ,first-year compensation ,for purposes of this subsection1 the term first-year compensation means1 with respect to any individual1 compensation for services rendered during #a-year period beginning with the day the individual begins work for the employer4 7#f7 ,election ,a qualified employer may elect to have this subsection not apply4 ,such election shall be made in such manner as the ,secretary may require4 4 7,b7 ,transfers to social security equivalent benefit account ,there are hereby appropriated to the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of the amendments made by subparagraph 7,a74 ,amounts appropriated 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 ,account had such amendments not been enacted4 7c7 ,effective ,dates 7#a7 ,in general ,the amendments made by subsection 7a7 shall apply to individuals who begin work for the employer after ,december #ca1 #bjac4 7#b7 ,exemption from employment taxes ,the amendments made by subsection 7b7 shall apply to amounts paid after the date of the enactment of this ,act4