,i  #aadth ,,congress  #ast ,session    
,h4 ,r4 #djci  ,,in ,,the ,,house ,,of  
,,representatives  ,november #ag1 #bjae 
,ms4 ,adams 7for herself1 ,ms4 ,judy    
,chu of ,california1 ,ms4 ,kelly of     
,illinois1 ,mrs4 ,lawrence1 ,mr4 ,payne1
 ,mr4 ,takai1 and ,ms4 ,velzquez7       
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    
establish a small business start-up tax 
credit for veterans4  #a4 ,short title  
,this ,act may be cited as the ,veteran 
,small ,business ,tax ,credit ,act of   
#bjae4  #b4 ,veteran small business     
start-up credit  7a7 ,in general        
,subpart ,d of part ,,iv of subchapter  
,a of chapter #a of the ,internal       
,revenue ,code of #aihf is amended by   
adding at the end the following new     
section3  #de,s4 ,veteran small business
 start-up credit  7a7 ,in general ,for  
purposes of section #ch1 in the case of 
an applicable veteran-owned business    

which elects the application of this    
section1 the veteran small business     
start-up credit determined under this   
section for any taxable year is an      
amount equal to #ae percent of so much  
of the qualified start-up expenditures  
of the taxpayer as does not exceed      
#hj1jjj4  7b7 ,applicable veteran-,owned
 small business ,for purposes of this   
section-- 7#a7 ,in general ,the term    
applicable veteran-owned small business 
means a small business controlled by one
 or more qualified veterans4  7#b7      
,qualified veteran ,the term qualified  
veteran means any individual 7or the    
spouse or surviving spouse of such an   
individual7 who-- 7,a7 has served on    
active duty in the ,armed ,forces of the
 ,united ,states1 and  7,b7 who has not 
been discharged or released from the    
,armed ,forces of the ,united ,states   
under dishonorable conditions4  7#c7    
,control ,the term controlled means--   
7,a7 management and operation of the    
daily business1 and--  7,b7  7i7 in the 

case of a sole proprietorship1 sole     
ownership1  7ii7 in the case of a       
corporation1 ownership 7by vote or      
value7 of not less than #ea percent of  
the stock in such corporation1 or  7iii7
 in the case of a partnership or joint  
venture1 ownership of not less than #ea 
percent of the profits interests or     
capital interests in such partnership or
 joint venture4  7#d7 ,small business   
,the term small business means1 with    
respect to any taxable year1 any person 
engaged in a trade or business in the   
,united ,states if--  7,a7 the gross    
receipts of such person for the         
preceding taxable year did not exceed   
#e1jjj1jjj1 or  7,b7 in the case of a   
person to which subparagraph 7,a7 does  
not apply1 such person employed not more
 than #ajj full-time employees during   
the preceding taxable year4  ,for       
purposes of subparagraph 7,b71 an       
employee shall be considered full-time  
if such employee is employed at least   
#cj hours per week for #bj or more      

calendar weeks in the taxable year4  7c7
 ,qualified start-,up expenditures ,for 
purposes of this section-- 7#a7 ,in     
general ,the term qualified start-up    
expenditures means--  7,a7 any start-up 
expenditures 7as defined in section     
#aie7;c771 or  7,b7 any amounts paid or 
incurred during the taxable year for the
 purchase or lease of real property1 or 
the purchase of personal property1      
placed in service during the taxable    
year and used in the active conduct of a
 trade or business4  7d7 ,special rules 
,for purposes of this section-- 7#a7    
,year of election ,the taxpayer may     
elect the application of this section   
only for the first #b 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 
#afb4  7#b7 ,controlled groups and      
common control ,all persons treated as a
 single employer under subsections 7a7  
and 7b7 of section #eb shall be treated 

as #a person4  7#c7 ,no double benefit  
,if a credit is determined under this   
section with respect to any property1   
the basis of such property shall be     
reduced by the amount of the credit     
attributable to such property4  4  7b7  
,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   
,veteran small business start-up credit4
  4  7c7 ,made 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 veteran small business start-up     
credit determined under section #de,s4  
4  7d7 ,effective date ,the amendments  
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjaf4