[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1145 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1145

     To amend the Internal Revenue Code of 1986 to extend the work 
opportunity credit to encourage the hiring of certain veterans, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 29, 2001

  Mrs. Boxer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to extend the work 
opportunity credit to encourage the hiring of certain veterans, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Opportunity to Work Act''.

SEC. 2. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) is amended by striking 
``or'' at the end of subparagraph (G), by striking the period at the 
end of subparagraph (H) and inserting ``, or'', and by adding at the 
end the following:
                    ``(I) a qualified low-income veteran.''
    (b) Qualified Low-Income Veteran.--Section 51(d) of the Internal 
Revenue Code of 1986 (relating to members of targeted groups) is 
amended by redesignating paragraphs (10) through (12) as paragraphs 
(11) through (13), respectively, and by inserting after paragraph (9) 
the following:
            ``(10) Qualified low-income veteran.--
                    ``(A) In general.--The term `qualified low-income 
                veteran' means any veteran whose gross income for the 
                taxable year preceding the taxable year including the 
                hiring date, was below the poverty line (as defined by 
                the Office of Management and Budget) for such preceding 
                taxable year.
                    ``(B) Veteran.--The term `veteran' has the meaning 
                given such term by paragraph (3)(B).
                    ``(C) Special rules for determining amount of 
                credit.--For purposes of applying this subpart to wages 
                paid or incurred to any qualified low-income veteran--
                            ``(i) subsection (a) shall be applied by 
                        substituting `50 percent of the qualified 
                        first-year wages and 25 percent of the 
                        qualified second-year wages' for `40 percent of 
                        the qualified first year wages', and
                            ``(ii) in lieu of paragraphs (2) and (3) of 
                        subsection (b), the following definitions and 
                        special rule shall apply:
                                    ``(I) Qualified first-year wages.--
                                The term `qualified first-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning with the day the individual 
                                begins work for the employer.
                                    ``(II) Qualified second-year 
                                wages.--The term `qualified second-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (I).
                                    ``(III) Only first $20,000 of wages 
                                per year taken into account.--The 
                                amount of the qualified first and 
                                second year wages which may be taken 
                                into account with respect to any 
                                individual shall not exceed $20,000 per 
                                year.''.
    (c) Permanence of Credit.--Section 51(c)(4) of the Internal Revenue 
Code of 1986 (relating to termination) is amended by inserting 
``(except for wages paid to a qualified low-income veteran)'' after 
``individual''.
    (d) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.
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