,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bajj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aa1 #bjai,ms4   
,ros5 7= h]self1 ,mr4 ,moran1 ,mr4      
,cram]1 & ,mr4 ,jones7 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to e/abli% a small bus9ess />t-up 
tax cr$it = vet]ans creat+ bus9esses 9  
und]s]v$ communities4  #a4 ,%ort title  
,?is ,act may be cit$ z ! ,vet]ans ,jobs
 ,opportunity ,act4  #b4 ,vet]an small  
bus9ess />t-up 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]an small     
bus9ess />t-up cr$it  7a7 ,9 g5]al ,=   
purposes ( section #ch1 9 ! case ( an   
applicable vet]an-own$ bus9ess :i*      
elects ! application ( ?is section1 !   
vet]an small bus9ess />t-up cr$it       
det]m9$ "u ?is section = any taxable ye>
 is an am\nt equal to #ae p]c5t ( s mu* 

( ! qualifi$ />t-up exp5ditures ( !     
taxpay] z does n exce$ #ej1jjj4  7b7    
,applicable vet]an-,own$ small bus9ess  
,= purposes ( ?is section-- 7#a7 ,9     
g5]al ,! t]m applicable vet]an-own$     
small bus9ess means a small bus9ess own$
 & controll$ by "o or m vet]ans or      
sp\ses ( vet]ans & ! pr9cipal place (   
bus9ess ( :i* is 9 an und]s]v$          
community4  7#b7 ,own]%ip & control ,!  
t]m own$ & controll$ means-- 7,a7       
managem5t & op]ation ( ! daily bus9ess1 
&--  7,b7 7i7 9 ! case ( a sole         
proprietor%ip1 sole own]%ip1  7ii7 9 !  
case ( a corporation1 own]%ip 7by vote  
or value7 ( n less ?an #ea p]c5t ( !    
/ock 9 su* corporation1 or  7iii7 9 !   
case ( a p>tn]%ip or jo9t v5ture1       
own]%ip ( n less ?an #ea p]c5t ( !      
pr(its int]e/s or capital int]e/s 9 su* 
p>tn]%ip or jo9t v5ture4  7#c7 ,small   
bus9ess ,! t]m small bus9ess means1 )   
respect to any taxable ye>1 any p]son   
engag$ 9 a trade or bus9ess 9 ! ,unit$  
,/ates :i* is a small bus9ess conc]n 7z 

def9$ "u section #c ( ! ,small ,bus9ess 
,act 7#ae ,u4,s4,c4 #fcb774  7#d7       
,und]s]v$ community ,! t]m und]s]v$     
community means any area locat$ )9--    
7,a7 a ,h,u,b,zone 7z def9$ 9 section   
#c7p7 ( ! ,small ,bus9ess ,act 7#ae     
,u4,s4,c4 #fcb7p7771  7,b7 an emp[]m5t  
zone1 or ent]prise community1 designat$ 
"u section #acia 7& )\t reg>d to :e!r or
 n su* designation rema9s 9 effect71    
7,c7 an area ( l[ income or mod]ate     
income 7z recogniz$ by ! ,f$]al         
,f9ancial ,in/itutions ,exam9ation      
,c\ncil71 or  7,d7 a c\nty ) p]si/5t    
pov]ty 7z classifi$ by ! ,economic      
,rese>* ,s]vice ( ! ,dep>tm5t (         
,agriculture74  7#e7 ,vet]an or sp\se ( 
vet]an ,! t]m vet]an or sp\se ( a vet]an
 has ! mean+ giv5 su* t]m by section    
#g7;a77#ca77;,g77iii7 ( ! ,small        
,bus9ess ,act 7#ae ,u4,s4,c4            
#fcf7;a77#ca77;,g77iii774  7c7 ,qualifi$
 />t-,up exp5ditures ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
/>t-up exp5ditures means--  7,a7 any    

/>t-up exp5ditures 7z def9$ 9 section   
#aie7;c771 or  7,b7 any am\nts paid or  
incurr$ dur+ ! taxable ye> = ! pur*ase  
or lease ( real prop]ty1 or ! pur*ase ( 
p]sonal prop]ty1 plac$ 9 s]vice dur+ !  
taxable ye> & us$ 9 ! active conduct ( a
 trade or bus9ess4  7d7 ,special rules  
,= purposes ( ?is section-- 7#a7 ,ye> ( 
election ,! taxpay] may elect !         
application ( ?is section only = ! fir/ 
#b taxable ye>s = :i* ord9>y & necess>y 
exp5ses paid or incurr$ 9 c>ry+ on su*  
trade or bus9ess are all[able z a       
d$uction by ! taxpay] "u section #afb4  
7#b7 ,controll$ gr\ps & common control  
,all p]sons treat$ z a s+le employ] "u  
subsections 7a7 & 7b7 ( section #eb %all
 be treat$ z #a p]son4  7#c7 ,no d\ble  
b5efit ,if a cr$it is det]m9$ "u ?is    
section ) respect to any prop]ty1 !     
basis ( su* prop]ty %all be r$uc$ by !  
am\nt ( ! cr$it attributable to su*     
prop]ty4  4  7b7 ,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]an small       
bus9ess />t-up cr$it4  4  7c7 ,made "p (
 g5]al bus9ess cr$it ,section #ch7;b7 ( 
su* ,code is am5d$ by /rik+ plus at !   
end ( p>agraph 7#ca71 by /rik+ ! p]iod  
at ! end ( p>agraph 7#cb7 & ins]t+ 1    
plus1 & by add+ at ! end ! foll[+ new   
p>agraph3  7#cc7 ! vet]an small bus9ess 
/>t-up cr$it det]m9$ "u section #de,t4  
4  7d7 ,report by ,treasury ,inspector  
,g5]al = ,tax ,adm9i/ration ,e f\r? ye> 
aft] ! date ( ! enactm5t ( ?is ,act1 !  
,treasury ,inspector ,g5]al = ,tax      
,adm9i/ration %all include 9 "o ( !     
semiannual reports "u section #e ( !    
,inspector ,g5]al ,act ( #aigh ) respect
 to su* ye>1 an evaluation ( ! program  
"u section #de,t ( ! ,int]nal ,rev5ue   
,code ( #aihf 7z add$ by ?is section71  
includ+ an evaluation ( ! success (1 &  
acc\ntability ) respect to1 su* program4
  7e7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  

?is ,act4