,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #biej  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bd1      
#bjah,mr4 ,casey introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to allow credits
 for the establishment of franchises by 
veterans4  #a4 ,short title ,this ,act  
may be cited as the ,veteran            
,entrepreneurs ,act of #bjah4  #b4      
,veterans franchise fee 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,t4 ,veterans
 franchise fee credit  7a7 ,veterans    
franchise fee credit  7#a7 ,in general  
,for purposes of section #ch1 the       
veterans franchise fee credit determined
 under this section for the taxable year
 is an amount equal to #be percent of   
the qualified franchise fees paid or    

incurred by a veteran during the taxable
 year4  7#b7 ,limitation ,the amount    
allowed as a credit under paragraph 7#a7
 with respect to the purchase of any    
franchise shall not exceed #ajj1jjj4    
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 of the 
capital or profits interests of the     
franchise1 the credit under subsection  
7a7 shall be the credit amount          
determined under such subsection1       
multiplied by the same ratio as--  7#a7 
the stock or capital or profits         
interests of the franchise held by      
veterans1 bears  7#b7 to 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 initial 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 initial fee 
have the meanings given such terms in   
part #dcf of title #af1 ,code of        
,federal ,regulations 7as in effect on  
,january #a1 #bjah74  7e7 ,veteran ,the 
term veteran has the meaning given such 
term by section #aja of title #ch1      
,united ,states ,code4  7f7 ,transfer of
 credit  7#a7 ,in general ,with respect 
to the credit allowed under subsection  
7a7 for any taxable year1 in the case of
 a veteran who--  7,a7 has received a   
reduction in the amount of the qualified
 franchise fee otherwise required by the
 franchisor1 and  7,b7 elects           
application of this subsection for such 
taxable year with respect to any portion
 of such credit which is commensurate   
with the amount of the reduction        
described in subparagraph 7,a71  the    
franchisor1 and not the veteran1 shall  

be treated as the taxpayer for purposes 
of this title with respect to such      
portion of the credit4  7#b7            
,prohibition ,a franchisor may not      
require a veteran to elect application  
of this subsection as a condition for   
entering into a franchise agreement4    
7g7 ,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 the 
,internal ,revenue ,code of #aihf is    
amended by striking plus at the end of  
paragraph 7#cf71 by striking the period 
at the end of paragraph 7#cg7 and       
inserting 1 plus1 and by adding at the  
end the following new paragraph3  7#ch7 
the veterans franchise fee credit       
determined under section #de,t7a74  4   
7c7 ,clerical amendment ,the table of   
sections for 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 item3  ,sec4 #de,t4       
,veterans franchise fee credit4  4  7d7 
,effective date ,the amendments made by 
this section shall apply to taxable     
years ending after ,december #ca1 #bjah4
  #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,t of the ,internal ,revenue ,code of
 #aihf and other information about the  
program established under amendments    
made by this ,act4