,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #cgbe  ,,in ,,the ,,house ,,of  
,,representatives  ,december #ab1       
#bjac,mr4 ,flores 7for himself1 ,mr4    
,takano1 ,mr4 ,cook1 ,mr4 ,runyan1 ,mr4 
,schneider1 ,ms4 ,titus1 ,mr4 ,coffman1 
and ,mr4 ,hanna7 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 allow credits for the
 establishment of franchises with       
veterans4  #a4 ,short title ,this ,act  
may be cited as the ,veterans           
,entrepreneurs ,act of #bjac4  #b4      
,veterans franchising credit  7a7 ,in   
general ,subpart ,d of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf       
7relating to business related credits7  
is amended by adding at the end the     
following new section3  #de,s4 ,veterans
 franchising  7a7 ,veterans franchise   
fee credit  7#a7 ,in general ,for       
purposes of section #ch and subject to  

the limitation set forth in paragraph   
7#b71 the veterans franchise fee credit 
determined under this section for the   
taxable year is an amount equal to #be  
percent of the qualified franchise fee  
paid or incurred by a qualified veteran 
in connection with the purchase of a    
franchise4  7#b7 ,limitation ,the amount
 of qualified franchise fee taken into  
account under paragraph 7#a7 shall not  
exceed #djj1jjj4  7b7 ,reduction where  
franchise not #ajj percent              
veteran-,owned ,in the case of any      
franchise in which veterans do not own  
#ajj percent of the stock or the capital
 or profits interests of the franchisee1
 the credit under subsection 7a7 shall  
be the amount which bears the same      
ration to the amount determined under   
subsection 7a7 7without regard to this  
subsection7 as-- 7#a7 the stock or      
capital or profits interests of the     
franchise held by veterans1 bears to    
7#b7 the total stock or capital or      
profits interests of the franchisee4    

,for purposes of this subsection1 the   
spouse of a veteran shall be treated as 
a veteran4  7c7 ,qualified franchise fee
 ,for purposes of this section1 the term
 qualified franchise fee means any      
one-time fee required by the franchisor 
when entering into a franchise agreement
 with a veteran as the franchisee4  7d7 
,other definitions ,for purposes of this
 section1 the terms franchise1          
franchisee1 franchisor1 and franchise   
fee have the meanings given such terms  
in part #dcf of title #af1 ,code of     
,federal ,regulations4  7e7 ,veteran    
,the term veteran has the meaning given 
such term by section #aja of title #ch1 
,united ,states ,code4  7f7 ,election   
,this section shall not apply to a      
taxpayer for any taxable year if such   
taxpayer elects to have this section not
 apply for such taxable year4  4  7b7   
,credit ,to be part of general business 
credit ,section #ch7;b7 of such ,code is
 amended by striking plus at the end of 
paragraph 7#ce71 by striking the period 

at the end of paragraph 7#cf7 and       
inserting 1 plus1 and by adding at the  
end the following new paragraph3  7#cg7 
the veterans franchise fee credit       
determined under section #de,s7a74  4   
7c7 ,clerical amendment ,the table of   
sections for subpart ,d of part ,,iv of 
subchapter ,a of chapter #a of such     
,code is amended by adding at the end   
the following new item3  ,sec4 #de,s4   
,veterans franchising4  4  7d7          
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjac4  #c4 ,publication of information 
by ,department of ,veterans ,affairs and
 ,small ,business ,administration ,the  
,administrator of the ,small ,business  
,administration and the ,secretary of   
,veterans ,affairs shall publicize in   
mailings and brochures sent to veterans 
service organizations and veteran       
advocacy groups information regarding   
discounted franchise fees under section 
#de,s of the ,internal ,revenue ,code of

 #aihf and other information about the  
program established under amendments    
made by this ,act4