,,ii #aaith ,,congress #ast ,session ,s4 #bddc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bd1 #bjbe ,ms4 ,rosen 7for herself and ,mr4 ,moran7 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;,,bb4 ,veteran small business start-up credit 7a7 ,in general ,for purposes of section #ch1 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 paid or incurred by the taxpayer during such taxable year with respect to an applicable veteran-owned business as does not exceed #ej1jjj4 7b7 ,definitions ,for purposes of this section-- 7#a7 ,applicable veteran-owned small business ,the term applicable veteran-owned small business means a small business-- 7,a7 owned and controlled by #a or more veterans or spouses of veterans1 and 7,b7 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 with respect to any of the individuals described in paragraph 7#a77;,a71 that the conduct of any trade or business of the small business is not a passive activity 7as defined in section #dfi7;c771 and 7,b7 with respect to the small business-- 7i7 such small business is a sole proprietorship1 7ii7 if such small business is a corporation1 ownership 7by vote or value7 by the individuals described in paragraph 7#a77;,a7 of greater than #ej percent of the stock in such corporation1 or 7iii7 if such small business is a partnership1 ownership by the individuals described in paragraph 7#a77;,a7 of greater than #ej percent of the profits interests or capital interests in such partnership4 7#c7 ,qualified start-up expenditures ,the term qualified start-up expenditures means-- 7,a7 any start-up expenditures 7as defined in section #aie7;c771 and 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 7#d7 ,small business 7,a7 ,in general ,the term small business means1 with respect to any taxable year1 any person engaged in a trade or business in the ,united ,states if-- 7i7 the gross receipts of such person for the preceding taxable year did not exceed #e1jjj1jjj1 or 7ii7 in the case of a person to which clause 7i7 does not apply1 such person employed not more than #ej full-time employees during the preceding taxable year4 7,b7 ,full-time employee ,for purposes of subparagraph 7,a77ii71 an employee shall be considered full-time if such employee is employed at least #cj hours per week for #bj or more calendar weeks in the taxable year4 7#e7 ,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 #fcb7p771 as in effect on the date of enactment of this section71 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#f7 ,veteran or spouse of veteran ,the term veteran or spouse of a veteran has the meaning given such term by section #g7;a77#ca77;,g77ii7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ca77;,g77ii71 as in effect on the date of enactment of this section74 7c7 ,special rules ,for purposes of this section-- 7#a7 ,election to take credit ,no credit shall be allowed under subsection 7a7 for any expenditures unless the taxpayer elects to have this section apply to such expenditures4 7#b7 ,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#c7 ,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#d7 ,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 7#e7 ,verification ,for purposes of determining whether an entity qualifies as an applicable veteran-owned small business for purposes of this section1 the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall verify that the requirements described in subsection 7b77#a7 have been satisfied4 4 7b7 ,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;,,bb4 ,veteran small business start-up credit4 4 7c7 ,part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf1 as amended by sections #acaje1 #acgja1 and #acgjd of ,public ,law #aag-afi1 is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the veteran small business start-up credit determined under section #de;,,bb4 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 credit allowed under section #de;,,bb 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 credit4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4