,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ddf  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #aj1 #bjai,ms4
 ,br[nley ( ,cali=nia 7= h]self & ,mrs4 
,walorski7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to all[ tax cr$its
 to vet]ans = ! e/abli%m5t ( fran*ises4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,vet]an ,entrepr5eurs ,act ( #bjai4   
#b4 ,vet]ans fran*is+ cr$it  7a7 ,9     
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #de,t4 ,vet]ans    
fran*is+ cr$it  7a7 ,vet]ans fran*ise   
fee cr$it  7#a7 ,9 g5]al ,= purposes (  
section #ch & subject to ! limitation   
set =? 9 p>agraph 7#b71 9 ! case ( an   
eligible vet]an or bus9ess own$ by an   
eligible vet]an1 ! vet]ans fran*ise fee 
cr$it det]m9$ "u ?is section = ! taxable
 ye> is an am\nt equal to #be p]c5t ( ! 
qualifi$ fran*ise fee paid or incurr$ by

 an eligible vet]an 9 connection ) !    
pur*ase ( a fran*ise4  7#b7 ,limitation 
,! am\nt ( qualifi$ fran*ise fee tak5   
into acc\nt "u p>agraph 7#a7 %all n     
exce$ #djj1jjj4  7b7 ,r$uction :]e      
fran*ise n #ajj-,p]c5t vet]an own$ ,9 ! 
case ( any fran*ise 9 :i* vet]ans d n   
own #ajj p]c5t ( ! /ock or ! capital or 
pr(its int]e/s ( ! fran*isee1 ! vet]ans 
fran*ise fee cr$it "u subsection 7a7    
%all be ! am\nt :i* be>s ! same ration  
to ! am\nt det]m9$ "u subsection 7a7    
7)\t reg>d to ?is subsection7 z--  7#a7 
! /ock or capital or pr(its int]e/s ( ! 
fran*ise held by vet]ans1 be>s to  7#b7 
! total /ock or capital or pr(its       
int]e/s ( ! fran*isee4  ,= purposes (   
?is subsection1 ! sp\se ( a vet]an %all 
be treat$ z a vet]an4  7c7 ,qualifi$    
fran*ise fee ,= purposes ( ?is section1 
! t]m qualifi$ fran*ise fee means any   
"o-"t fee requir$ by ! fran*isor :5     
ent]+ into a fran*ise agreem5t ) a      
vet]an z ! fran*isee4  7d7 ,o!r         
def9itions ,= purposes ( ?is section1 ! 

t]ms fran*ise1 fran*isee1 fran*isor1 &  
fran*ise fee h ! mean+s giv5 su* t]ms 9 
"p #dcf ( title #af1 ,code ( ,f$]al     
,regulations4  7e7 ,eligible vet]an ,=  
purposes ( ?is section1 ! t]m eligible  
vet]an means a p]son :o s]v$ 9 ! active 
milit>y1 naval1 or air s]vice1 & :o 0   
dis*>g$ or releas$ !refrom "u conditions
 o!r ?an di%onorable :o pays or incurs a
 qualifi$ fran*ise fee 9 connection ) a 
fran*ise agreem5t ) a fran*isor4  7f7   
,transf] ( cr$it ,) respect to ! cr$it  
"u subsection 7a7 = any taxable ye>1 an 
eligible vet]an may elect to transf] !  
cr$it to an eligible fran*isor 9 ex*ange
 = a disc\nt 9 ! fran*ise fee           
comm5surate ) ! value ( ! cr$it4 ,9 su* 
case1 ! fran*isor specifi$ 9 su*        
election %all be treat$ z ! taxpay] =   
purposes ( ?is title ) respect to su*   
cr$it 7or su* portion !re(74  ,=        
purposes ( ?is subsection1 ! t]m        
#8eligible fran*isor' means ! p]son :o  
grants a fran*ise to ! eligible vet]an &
 p>ticipates 9 ! fran*ise agreem5t4  7g7

 ,election ,?is section %all n apply to 
a taxpay] = any taxable ye> if su*      
taxpay] elects to h ?is section n apply 
= su* taxable ye>4  4  7b7 ,cr$it ,to be
 "p ( g5]al bus9ess cr$it ,section      
#ch7;b7 ( su* ,code is am5d$ by /rik+   
plus at ! end ( p>agraph 7#cf71 by /rik+
 ! p]iod at ! end ( p>agraph 7#cg7 &    
ins]t+ 1 plus1 & by add+ at ! end !     
foll[+ new p>agraph3  7#ch7 ! vet]ans   
fran*ise fee cr$it det]m9$ "u section   
#de,t7a74  4  7c7 ,cl]ical am5dm5t ,!   
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #de,t4 ,vet]ans fran*is+   
cr$it4  4  7d7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4  #c4 ,publication (         
in=mation by ,dep>tm5t ( ,vet]ans       
,affairs & ,small ,bus9ess ,adm9i/ration
 ,! ,adm9i/rator ( ! ,small ,bus9ess    
,adm9i/ration & ! ,secret>y ( ,vet]ans  
,affairs %all publicize 9 mail+s &      

bro*ures s5t to vet]ans s]vice          
organizations & vet]an advocacy gr\ps   
in=mation reg>d+ disc\nt$ fran*ise fees 
"u section #de,t ( ! ,int]nal ,rev5ue   
,code ( #aihf & o!r in=mation ab\t !    
program e/abli%$ "u am5dm5ts made by ?is
 ,act4