,,ii  #aafth ,,congress  #ast ,session  
,s4 #bajj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #aa1     
#bjai,ms4 ,rosen 7for herself1 ,mr4     
,moran1 ,mr4 ,cramer1 and ,mr4 ,jones7  
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 establish a small business     
start-up tax credit for veterans        
creating businesses in underserved      
communities4  #a4 ,short title ,this    
,act may be cited as the ,veterans ,jobs
 ,opportunity ,act4  #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,t4 ,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 #ej1jjj4  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 owned and controlled by  
one or more veterans or spouses of      
veterans and the principal place of     
business of which is in an underserved  
community4  7#b7 ,ownership and control 
,the term owned and 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#c7 ,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 which is a small        
business concern 7as defined under      
section #c of the ,small ,business ,act 
7#ae ,u4,s4,c4 #fcb774  7#d7            
,underserved community ,the term        
underserved community means any area    
located within-- 7,a7 a ,h,u,b,zone 7as 
defined in section #c7p7 of the ,small  
,business ,act 7#ae ,u4,s4,c4 #fcb7p7771
  7,b7 an empowerment zone1 or          
enterprise community1 designated under  
section #acia 7and without regard to    
whether or not such designation remains 
in effect71  7,c7 an area of low income 
or moderate income 7as recognized by the
 ,federal ,financial ,institutions      
,examination ,council71 or  7,d7 a      
county with persistent poverty 7as      

classified by the ,economic ,research   
,service of the ,department of          
,agriculture74  7#e7 ,veteran or spouse 
of veteran ,the term veteran or spouse  
of a veteran has the meaning given such 
term by section #g7;a77#ca77;,g77iii7 of
 the ,small ,business ,act 7#ae         
,u4,s4,c4 #fcf7;a77#ca77;,g77iii774  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,t4   
,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#ca71 by striking the period 
at the end of paragraph 7#cb7 and       
inserting 1 plus1 and by adding at the  

end the following new paragraph3  7#cc7 
the veteran small business start-up     
credit determined under section #de,t4  
4  7d7 ,report by ,treasury ,inspector  
,general for ,tax ,administration ,every
 fourth year after the date of the      
enactment of this ,act1 the ,treasury   
,inspector ,general for ,tax            
,administration shall include in one of 
the semiannual reports under section #e 
of the ,inspector ,general ,act of #aigh
 with respect to such year1 an          
evaluation of the program under section 
#de,t of the ,internal ,revenue ,code of
 #aihf 7as added by this section71      
including an evaluation of the success  
of1 and accountability with respect to1 
such program4  7e7 ,effective date ,the 
amendments made by this section shall   
apply to taxable years beginning after  
the date of the enactment of this ,act4