,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #ddf  ,,in ,,the ,,house ,,of   
,,representatives  ,january #aj1        
#bjai,ms4 ,brownley of ,california 7for 
herself and ,mrs4 ,walorski7 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 tax    
credits to veterans for the             
establishment of franchises4  #a4 ,short
 title ,this ,act may be cited as the   
,veteran ,entrepreneurs ,act of #bjai4  
#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 is    
amended by adding at the end the        
following new section3  #de,t4 ,veterans
 franchising credit  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 in the case of an       
eligible veteran or business owned by an

 eligible veteran1 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 an eligible 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        
veterans franchise fee 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 ,eligible   
veteran ,for purposes of this section1  
the term eligible veteran means a person
 who served in the active military1     
naval1 or air service1 and who was      
discharged or released therefrom under  
conditions other than dishonorable who  
pays or incurs a qualified franchise fee
 in connection with a franchise         
agreement with a franchisor4  7f7       
,transfer of credit ,with respect to the

 credit under subsection 7a7 for any    
taxable year1 an eligible veteran may   
elect to transfer the credit to an      
eligible franchisor in exchange for a   
discount in the franchise fee           
commensurate with the value of the      
credit4 ,in such case1 the franchisor   
specified in such election shall be     
treated as the taxpayer for purposes of 
this title with respect to such credit  
7or such portion thereof74  ,for        
purposes of this subsection1 the term   
#8eligible franchisor' means the person 
who grants a franchise to the eligible  
veteran and participates in the         
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 such ,code 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 such     
,code is amended by adding at the end   
the following new item3  ,sec4 #de,t4   
,veterans franchising credit4  4  7d7   
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #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