[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 674 Enrolled Bill (ENR)]

        H.R.674

                      One Hundred Twelfth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
            the fifth day of January, two thousand and eleven


                                 An Act


 
To amend the Internal Revenue Code of 1986 to repeal the imposition of 3 
 percent withholding on certain payments made to vendors by government 
 entities, to modify the calculation of modified adjusted gross income 
 for purposes of determining eligibility for certain healthcare-related 
                    programs, 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. TABLE OF CONTENTS.
    The table of contents for this Act is as follows:

Sec. 1. Table of Contents.

     TITLE I--THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT

Sec. 101. Short title.
Sec. 102. Repeal of imposition of 3 percent withholding on certain 
          payments made to vendors by government entities.

                      TITLE II--VOW TO HIRE HEROES

Sec. 201. Short title.

                     Subtitle A--Retraining Veterans

Sec. 211. Veterans retraining assistance program.

         Subtitle B--Improving the Transition Assistance Program

Sec. 221. Mandatory participation of members of the Armed Forces in the 
          Transition Assistance Program of Department of Defense.
Sec. 222. Individualized assessment for members of the Armed Forces 
          under transition assistance on equivalence between skills 
          developed in military occupational specialties and 
          qualifications required for civilian employment with the 
          private sector.
Sec. 223. Transition Assistance Program contracting.
Sec. 224. Contracts with private entities to assist in carrying out 
          Transition Assistance Program of Department of Defense.
Sec. 225. Improved access to apprenticeship programs for members of the 
          Armed Forces who are being separated from active duty or 
          retired.
Sec. 226. Comptroller General review.

 Subtitle C--Improving the Transition of Veterans to Civilian Employment

Sec. 231. Two-year extension of authority of Secretary of Veterans 
          Affairs to provide rehabilitation and vocational benefits to 
          members of the Armed Forces with severe injuries or illnesses.
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to pay 
          employers for providing on-job training to veterans who have 
          not been rehabilitated to point of employability.
Sec. 233. Training and rehabilitation for veterans with service-
          connected disabilities who have exhausted rights to 
          unemployment benefits under State law.
Sec. 234. Collaborative veterans' training, mentoring, and placement 
          program.
Sec. 235. Appointment of honorably discharged members and other 
          employment assistance.
Sec. 236. Department of Defense pilot program on work experience for 
          members of the Armed Forces on terminal leave.
Sec. 237. Enhancement of demonstration program on credentialing and 
          licensing of veterans.
Sec. 238. Inclusion of performance measures in annual report on veteran 
          job counseling, training, and placement programs of the 
          Department of Labor.
Sec. 239. Clarification of priority of service for veterans in 
          Department of Labor job training programs.
Sec. 240. Evaluation of individuals receiving training at the National 
          Veterans' Employment and Training Services Institute.
Sec. 241. Requirements for full-time disabled veterans' outreach program 
          specialists and local veterans' employment representatives.

     Subtitle D--Improvements to Uniformed Services Employment and 
                           Reemployment Rights

Sec. 251. Clarification of benefits of employment covered under USERRA.

                        Subtitle E--Other Matters

Sec. 261. Returning heroes and wounded warriors work opportunity tax 
          credits.
Sec. 262. Extension of reduced pension for certain veterans covered by 
          Medicaid plans for services furnished by nursing facilities.
Sec. 263. Reimbursement rate for ambulance services.
Sec. 264. Extension of authority for Secretary of Veterans Affairs to 
          obtain information from Secretary of Treasury and Commissioner 
          of Social Security for income verification purposes.
Sec. 265. Modification of loan guaranty fee for certain subsequent 
          loans.

         TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

Sec. 301. One hundred percent levy for payments to Federal vendors 
          relating to property.
Sec. 302. Study and report on reducing the amount of the tax gap owed by 
          Federal contractors.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME 
         FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

Sec. 401. Modification of calculation of modified adjusted gross income 
          for determining certain healthcare program eligibility.

                       TITLE V--BUDGETARY EFFECTS

Sec. 501. Statutory Pay-As-You-Go Act of 2010.

     TITLE I--THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT

    SEC. 101. SHORT TITLE.
    This title may be cited as the ``3% Withholding Repeal and Job 
Creation Act''.
    SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON CERTAIN 
      PAYMENTS MADE TO VENDORS BY GOVERNMENT ENTITIES.
    (a) In General.--Section 3402 of the Internal Revenue Code of 1986 
is amended by striking subsection (t).
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2011.

                      TITLE II--VOW TO HIRE HEROES

    SEC. 201. SHORT TITLE.
    This title may be cited as the ``VOW to Hire Heroes Act of 2011''.

                    Subtitle A--Retraining Veterans

    SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM.
    (a) Program Authorized.--
        (1) In general.--Not later than July 1, 2012, the Secretary of 
    Veterans Affairs shall, in collaboration with the Secretary of 
    Labor, establish and commence a program of retraining assistance 
    for eligible veterans.
        (2) Number of eligible veterans.--The number of unique eligible 
    veterans who participate in the program established under paragraph 
    (1) may not exceed--
            (A) 45,000 during fiscal year 2012; and
            (B) 54,000 during the period beginning October 1, 2012, and 
        ending March 31, 2014.
    (b) Retraining Assistance.--Except as provided by subsection (k), 
each veteran who participates in the program established under 
subsection (a)(1) shall be entitled to up to 12 months of retraining 
assistance provided by the Secretary of Veterans Affairs. Such 
retraining assistance may only be used by the veteran to pursue a 
program of education (as such term is defined in section 3452(b) of 
title 38, United States Code) for training, on a full-time basis, 
that--
        (1) is approved under chapter 36 of such title;
        (2) is offered by a community college or technical school;
        (3) leads to an associate degree or a certificate (or other 
    similar evidence of the completion of the program of education or 
    training);
        (4) is designed to provide training for a high-demand 
    occupation, as determined by the Commissioner of Labor Statistics; 
    and
        (5) begins on or after July 1, 2012.
    (c) Monthly Certification.--Each veteran who participates in the 
program established under subsection (a)(1) shall certify to the 
Secretary of Veterans Affairs the enrollment of the veteran in a 
program of education described in subsection (b) for each month in 
which the veteran participates in the program.
    (d) Amount of Assistance.--The monthly amount of the retraining 
assistance payable under this section is the amount in effect under 
section 3015(a)(1) of title 38, United States Code.
    (e) Eligibility.--
        (1) In general.--For purposes of this section, an eligible 
    veteran is a veteran who--
            (A) as of the date of the submittal of the application for 
        assistance under this section, is at least 35 years of age but 
        not more than 60 years of age;
            (B) was last discharged from active duty service in the 
        Armed Forces under conditions other than dishonorable;
            (C) as of the date of the submittal of the application for 
        assistance under this section, is unemployed;
            (D) as of the date of the submittal of the application for 
        assistance under this section, is not eligible to receive 
        educational assistance under chapter 30, 31, 32, 33, or 35 of 
        title 38, United States Code, or chapter 1606 or 1607 of title 
        10, United States Code;
            (E) is not in receipt of compensation for a service-
        connected disability rated totally disabling by reason of 
        unemployability;
            (F) was not and is not enrolled in any Federal or State job 
        training program at any time during the 180-day period ending 
        on the date of the submittal of the application for assistance 
        under this section; and
            (G) by not later than October 1, 2013, submits to the 
        Secretary of Labor an application for assistance under this 
        section containing such information and assurances as that 
        Secretary may require.
        (2) Determination of eligibility.--
            (A) Determination by secretary of labor.--
                (i) In general.--For each application for assistance 
            under this section received by the Secretary of Labor from 
            an applicant, the Secretary of Labor shall determine 
            whether the applicant is eligible for such assistance under 
            subparagraphs (A), (C), (F), and (G) of paragraph (1).
                (ii) Referral to secretary of veterans affairs.--If the 
            Secretary of Labor determines under clause (i) that an 
            applicant is eligible for assistance under this section, 
            the Secretary of Labor shall forward the application of 
            such applicant to the Secretary of Veterans Affairs in 
            accordance with the terms of the agreement required by 
            subsection (h).
            (B) Determination by secretary of veterans affairs.--For 
        each application relating to an applicant received by the 
        Secretary of Veterans Affairs under subparagraph (A)(ii), the 
        Secretary of Veterans Affairs shall determine under 
        subparagraphs (B), (D), and (E) of paragraph (1) whether such 
        applicant is eligible for assistance under this section.
    (f) Employment Assistance.--For each veteran who participates in 
the program established under subsection (a)(1), the Secretary of Labor 
shall contact such veteran not later than 30 days after the date on 
which the veteran completes, or terminates participation in, such 
program to facilitate employment of such veteran and availability or 
provision of employment placement services to such veteran.
    (g) Charging of Assistance Against Other Entitlement.--Assistance 
provided under this section shall be counted against the aggregate 
period for which section 3695 of title 38, United States Code, limits 
the individual's receipt of educational assistance under laws 
administered by the Secretary of Veterans Affairs.
    (h) Joint Agreement.--
        (1) In general.--The Secretary of Veterans Affairs and the 
    Secretary of Labor shall enter into an agreement to carry out this 
    section.
        (2) Appeals process.--The agreement required by paragraph (1) 
    shall include establishment of a process for resolving disputes 
    relating to and appeals of decisions of the Secretaries under 
    subsection (e)(2).
    (i) Report.--
        (1) In general.--Not later than July 1, 2014, the Secretary of 
    Veterans Affairs shall, in collaboration with the Secretary of 
    Labor, submit to the appropriate committees of Congress a report on 
    the retraining assistance provided under this section.
        (2) Elements.--The report required by paragraph (1) shall 
    include the following:
            (A) The total number of--
                (i) eligible veterans who participated; and
                (ii) associates degrees or certificates awarded (or 
            other similar evidence of the completion of the program of 
            education or training earned).
            (B) Data related to the employment status of eligible 
        veterans who participated.
    (j) Funding.--Payments under this section shall be made from 
amounts appropriated to or otherwise made available to the Department 
of Veterans Affairs for the payment of readjustment benefits. Not more 
than $2,000,000 shall be made available from such amounts for 
information technology expenses (not including personnel costs) 
associated with the administration of the program established under 
subsection (a)(1).
    (k) Termination of Authority.--The authority to make payments under 
this section shall terminate on March 31, 2014.
    (l) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
        (1) the Committee on Veterans' Affairs and the Committee on 
    Health, Education, Labor, and Pension of the Senate; and
        (2) the Committee on Veterans' Affairs and the Committee on 
    Education and the Workforce of the House of Representatives.

        Subtitle B--Improving the Transition Assistance Program

    SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED FORCES IN 
      THE TRANSITION ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE.
    (a) In General.--Subsection (c) of section 1144 of title 10, United 
States Code, is amended to read as follows:
    ``(c) Participation.--(1) Except as provided in paragraph (2), the 
Secretary of Defense and the Secretary of Homeland Security shall 
require the participation in the program carried out under this section 
of the members eligible for assistance under the program.
    ``(2) The Secretary of Defense and the Secretary of Homeland 
Security may, under regulations such Secretaries shall prescribe, waive 
the participation requirement of paragraph (1) with respect to--
        ``(A) such groups or classifications of members as the 
    Secretaries determine, after consultation with the Secretary of 
    Labor and the Secretary of Veterans Affairs, for whom participation 
    is not and would not be of assistance to such members based on the 
    Secretaries' articulable justification that there is 
    extraordinarily high reason to believe the exempted members are 
    unlikely to face major readjustment, health care, employment, or 
    other challenges associated with transition to civilian life; and
        ``(B) individual members possessing specialized skills who, due 
    to unavoidable circumstances, are needed to support a unit's 
    imminent deployment.''.
    (b) Required Use of Employment Assistance, Job Training Assistance, 
and Other Transitional Services in Preseparation Counseling.--Section 
1142(a)(2) of such title is amended by striking ``may'' and inserting 
``shall''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 1 year after the date of the 
enactment of this Act.
    SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE ARMED FORCES 
      UNDER TRANSITION ASSISTANCE ON EQUIVALENCE BETWEEN SKILLS 
      DEVELOPED IN MILITARY OCCUPATIONAL SPECIALTIES AND QUALIFICATIONS 
      REQUIRED FOR CIVILIAN EMPLOYMENT WITH THE PRIVATE SECTOR.
    (a) Study on Equivalence Required.--
        (1) In general.--The Secretary of Labor shall, in consultation 
    with the Secretary of Defense and the Secretary of Veterans 
    Affairs, enter into a contract with a qualified organization to 
    conduct a study to identify any equivalences between the skills 
    developed by members of the Armed Forces through various military 
    occupational specialties (MOS), successful completion of resident 
    training courses, attaining various military ranks or rates, or 
    other military experiences and the qualifications required for 
    various positions of civilian employment in the private sector.
        (2) Cooperation of federal agencies.--The departments and 
    agencies of the Federal Government, including the Office of 
    Personnel Management, the General Services Administration, the 
    Government Accountability Office, the Department of Education, and 
    other appropriate departments and agencies, shall cooperate with 
    the contractor under paragraph (1) to conduct the study required 
    under that paragraph.
        (3) Report.--Upon completion of the study conducted under 
    paragraph (1), the contractor under that paragraph shall submit to 
    the Secretary of Defense, the Secretary of Veterans Affairs, and 
    the Secretary of Labor a report setting forth the results of the 
    study. The report shall include such information as the Secretaries 
    shall specify in the contract under paragraph (1) for purposes of 
    this section.
        (4) Transmittal to congress.--The Secretary of Labor shall 
    transmit to the appropriate committees of Congress the report 
    submitted under paragraph (3), together with such comments on the 
    report as the Secretary considers appropriate.
        (5) Appropriate committees of congress defined.--In this 
    subsection, the term ``appropriate committees of Congress'' means--
            (A) the Committee on Veterans' Affairs, the Committee on 
        Armed Services, and the Committee on Health, Education, Labor, 
        and Pension of the Senate; and
            (B) the Committee on Veterans' Affairs, the Committee on 
        Armed Services, and the Committee on Education and the 
        Workforce of the House of Representatives.
    (b) Publication.--The secretaries described in subsection (a)(1) 
shall ensure that the equivalences identified under subsection (a)(1) 
are--
        (1) made publicly available on an Internet website; and
        (2) regularly updated to reflect the most recent findings of 
    the secretaries with respect to such equivalences.
    (c) Individualized Assessment of Civilian Positions Available 
Through Military Experiences.--The Secretary of Defense shall ensure 
that each member of the Armed Forces who is participating in the 
Transition Assistance Program (TAP) of the Department of Defense 
receives, as part of such member's participation in that program, an 
individualized assessment of the various positions of civilian 
employment in the private sector for which such member may be qualified 
as a result of the skills developed by such member through various 
military occupational specialties (MOS), successful completion of 
resident training courses, attaining various military ranks or rates, 
or other military experiences. The assessment shall be performed using 
the results of the study conducted under subsection (a) and such other 
information as the Secretary of Defense, in consultation with the 
Secretary of Veterans Affairs and the Secretary of Labor, considers 
appropriate for that purpose.
    (d) Further Use in Employment-related Transition Assistance.--
        (1) Transmittal of assessment.--The Secretary of Defense shall 
    make the individualized assessment provided a member under 
    subsection (a) available electronically to the Secretary of 
    Veterans Affairs and the Secretary of Labor.
        (2) Use in assistance.--The Secretary of Veterans Affairs and 
    the Secretary of Labor may use an individualized assessment with 
    respect to an individual under paragraph (1) for employment-related 
    assistance in the transition from military service to civilian life 
    provided the individual by such Secretary and to otherwise 
    facilitate and enhance the transition of the individual from 
    military service to civilian life.
    (e) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.
    SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING.
    (a) Transition Assistance Program Contracting.--
        (1) In general.--Section 4113 of title 38, United States Code, 
    is amended to read as follows:
``Sec. 4113. Transition Assistance Program personnel
    ``(a) Requirement to Contract.--In accordance with section 1144 of 
title 10, the Secretary shall enter into a contract with an appropriate 
private entity or entities to provide the functions described in 
subsection (b) at all locations where the program described in such 
section is carried out.
    ``(b) Functions.--Contractors under subsection (a) shall provide to 
members of the Armed Forces who are being separated from active duty 
(and the spouses of such members) the services described in section 
1144(a)(1) of title 10, including the following:
        ``(1) Counseling.
        ``(2) Assistance in identifying employment and training 
    opportunities and help in obtaining such employment and training.
        ``(3) Assessment of academic preparation for enrollment in an 
    institution of higher learning or occupational training.
        ``(4) Other related information and services under such 
    section.
        ``(5) Such other services as the Secretary considers 
    appropriate.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 41 of title 38, United States Code, is amended by 
    striking the item relating to section 4113 and inserting the 
    following new item:

``4113. Transition Assistance Program personnel.''.

    (b) Deadline for Implementation.--The Secretary of Labor shall 
enter into the contract required by section 4113 of title 38, United 
States Code, as added by subsection (a), not later than two years after 
the date of the enactment of this Act.
    SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CARRYING OUT 
      TRANSITION ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE.
    Section 1144(d) of title 10, United States Code, is amended--
        (1) in paragraph (5), by striking ``public or private entities; 
    and'' and inserting ``public entities;'';
        (2) by redesignating paragraph (6) as paragraph (7); and
        (3) by inserting after paragraph (5), the following new 
    paragraph (6):
        ``(6) enter into contracts with private entities, particularly 
    with qualified private entities that have experience with 
    instructing members of the armed forces eligible for assistance 
    under the program carried out under this section on--
            ``(A) private sector culture, resume writing, career 
        networking, and training on job search technologies;
            ``(B) academic readiness and educational opportunities; or
            ``(C) other relevant topics; and''.
    SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR MEMBERS OF 
      THE ARMED FORCES WHO ARE BEING SEPARATED FROM ACTIVE DUTY OR 
      RETIRED.
    Section 1144 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Participation in Apprenticeship Programs.--As part of the 
program carried out under this section, the Secretary of Defense and 
the Secretary of Homeland Security may permit a member of the armed 
forces eligible for assistance under the program to participate in an 
apprenticeship program registered under the Act of August 16, 1937 
(commonly known as the `National Apprenticeship Act'; 50 Stat. 664, 
chapter 663; 29 U.S.C. 50 et seq.), or a pre-apprenticeship program 
that provides credit toward a program registered under such Act, that 
provides members of the armed forces with the education, training, and 
services necessary to transition to meaningful employment that leads to 
economic self-sufficiency.''.
    SEC. 226. COMPTROLLER GENERAL REVIEW.
    Not later than two years after the date of the enactment of this 
Act, the Comptroller General of the United States shall conduct a 
review of the Transition Assistance Program (TAP) and submit to 
Congress a report on the results of the review and any recommendations 
of the Comptroller General for improving the program.

Subtitle C--Improving the Transition of Veterans to Civilian Employment

    SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF VETERANS 
      AFFAIRS TO PROVIDE REHABILITATION AND VOCATIONAL BENEFITS TO 
      MEMBERS OF THE ARMED FORCES WITH SEVERE INJURIES OR ILLNESSES.
    Section 1631(b)(2) of the Wounded Warrior Act (title XVI of Public 
Law 110-181; 10 U.S.C. 1071 note) is amended by striking ``December 31, 
2012'' and inserting ``December 31, 2014''.
    SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS AFFAIRS 
      TO PAY EMPLOYERS FOR PROVIDING ON-JOB TRAINING TO VETERANS WHO 
      HAVE NOT BEEN REHABILITATED TO POINT OF EMPLOYABILITY.
    Section 3116(b)(1) of title 38, United States Code, is amended by 
striking ``who have been rehabilitated to the point of employability''.
    SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-
      CONNECTED DISABILITIES WHO HAVE EXHAUSTED RIGHTS TO UNEMPLOYMENT 
      BENEFITS UNDER STATE LAW.
    (a) Entitlement to Additional Rehabilitation Programs.--
        (1) In general.--Section 3102 of title 38, United States Code, 
    is amended--
            (A) in the matter before paragraph (1), by striking ``A 
        person'' and inserting the following:
    ``(a) In General.--A person''; and
            (B) by adding at the end the following new paragraph:
    ``(b) Additional Rehabilitation Programs for Persons Who Have 
Exhausted Rights to Unemployment Benefits Under State Law.--(1) Except 
as provided in paragraph (4), a person who has completed a 
rehabilitation program under this chapter shall be entitled to an 
additional rehabilitation program under the terms and conditions of 
this chapter if--
        ``(A) the person is described by paragraph (1) or (2) of 
    subsection (a); and
        ``(B) the person--
            ``(i) has exhausted all rights to regular compensation 
        under the State law or under Federal law with respect to a 
        benefit year;
            ``(ii) has no rights to regular compensation with respect 
        to a week under such State or Federal law; and
            ``(iii) is not receiving compensation with respect to such 
        week under the unemployment compensation law of Canada; and
        ``(C) begins such additional rehabilitation program within six 
    months of the date of such exhaustion.
    ``(2) For purposes of paragraph (1)(B)(i), a person shall be 
considered to have exhausted such person's rights to regular 
compensation under a State law when--
        ``(A) no payments of regular compensation can be made under 
    such law because such person has received all regular compensation 
    available to such person based on employment or wages during such 
    person's base period; or
        ``(B) such person's rights to such compensation have been 
    terminated by reason of the expiration of the benefit year with 
    respect to which such rights existed.
    ``(3) In this subsection, the terms `compensation', `regular 
compensation', `benefit year', `State', `State law', and `week' have 
the respective meanings given such terms under section 205 of the 
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note).
    ``(4) No person shall be entitled to an additional rehabilitation 
program under paragraph (1) from whom the Secretary receives an 
application therefor after March 31, 2014.''.
        (2) Duration of additional rehabilitation program.--Section 
    3105(b) of such title is amended--
            (A) by striking ``Except as provided in subsection (c) of 
        this section,'' and inserting ``(1) Except as provided in 
        paragraph (2) and in subsection (c),''; and
            (B) by adding at the end the following new paragraph:
    ``(2) The period of a vocational rehabilitation program pursued by 
a veteran under section 3102(b) of this title following a determination 
of the current reasonable feasibility of achieving a vocational goal 
may not exceed 12 months.''.
    (b) Extension of Period of Eligibility.--Section 3103 of such title 
is amended--
        (1) in subsection (a), by striking ``in subsection (b), (c), or 
    (d)'' and inserting ``in subsection (b), (c), (d), or (e)'';
        (2) by redesignating subsection (e) as subsection (f); and
        (3) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e)(1) The limitation in subsection (a) shall not apply to a 
rehabilitation program described in paragraph (2).
    ``(2) A rehabilitation program described in this paragraph is a 
rehabilitation program pursued by a veteran under section 3102(b) of 
this title.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on June 1, 2012, and shall apply with respect to 
rehabilitation programs beginning after such date.
    (d) Comptroller General Review.--Not later than two years after the 
date of the enactment of this Act, the Comptroller General of the 
United States shall--
        (1) conduct a review of the training and rehabilitation under 
    chapter 31 of title 38, United States Code; and
        (2) submit to Congress a report on the findings of the 
    Comptroller General with respect to the review and any 
    recommendations of the Comptroller General for improving such 
    training and rehabilitation.
    SEC. 234. COLLABORATIVE VETERANS' TRAINING, MENTORING, AND 
      PLACEMENT PROGRAM.
    (a) In General.--Chapter 41 of title 38, United States Code, is 
amended by inserting after section 4104 the following new section:
``Sec. 4104A. Collaborative veterans' training, mentoring, and 
     placement program
    ``(a) Grants.--The Secretary shall award grants to eligible 
nonprofit organizations to provide training and mentoring for eligible 
veterans who seek employment. The Secretary shall award the grants to 
not more than three organizations, for periods of two years.
    ``(b) Collaboration and Facilitation.--The Secretary shall ensure 
that the recipients of the grants--
        ``(1) collaborate with--
            ``(A) the appropriate disabled veterans' outreach 
        specialists (in carrying out the functions described in section 
        4103A(a)) and the appropriate local veterans' employment 
        representatives (in carrying out the functions described in 
        section 4104); and
            ``(B) the appropriate State boards and local boards (as 
        such terms are defined in section 101 of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801)) for the areas to be 
        served by recipients of the grants; and
        ``(2) based on the collaboration, facilitate the placement of 
    the veterans that complete the training in meaningful employment 
    that leads to economic self-sufficiency.
    ``(c) Application.--To be eligible to receive a grant under this 
section, a nonprofit organization shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require. At a minimum, the information shall 
include--
        ``(1) information describing how the organization will--
            ``(A) collaborate with disabled veterans' outreach 
        specialists and local veterans' employment representatives and 
        the appropriate State boards and local boards (as such terms 
        are defined in section 101 of the Workforce Investment Act of 
        1998 (29 U.S.C. 2801));
            ``(B) based on the collaboration, provide training that 
        facilitates the placement described in subsection (b)(2); and
            ``(C) make available, for each veteran receiving the 
        training, a mentor to provide career advice to the veteran and 
        assist the veteran in preparing a resume and developing job 
        interviewing skills; and
        ``(2) an assurance that the organization will provide the 
    information necessary for the Secretary to prepare the reports 
    described in subsection (d).
    ``(d) Reports.--(1) Not later than six months after the date of the 
enactment of the VOW to Hire Heroes Act of 2011, the Secretary shall 
prepare and submit to the appropriate committees of Congress a report 
that describes the process for awarding grants under this section, the 
recipients of the grants, and the collaboration described in 
subsections (b) and (c).
    ``(2) Not later than 18 months after the date of enactment of the 
VOW to Hire Heroes Act of 2011, the Secretary shall--
        ``(A) conduct an assessment of the performance of the grant 
    recipients, disabled veterans' outreach specialists, and local 
    veterans' employment representatives in carrying out activities 
    under this section, which assessment shall include collecting 
    information on the number of--
            ``(i) veterans who applied for training under this section;
            ``(ii) veterans who entered the training;
            ``(iii) veterans who completed the training;
            ``(iv) veterans who were placed in meaningful employment 
        under this section; and
            ``(v) veterans who remained in such employment as of the 
        date of the assessment; and
        ``(B) submit to the appropriate committees of Congress a report 
    that includes--
            ``(i) a description of how the grant recipients used the 
        funds made available under this section;
            ``(ii) the results of the assessment conducted under 
        subparagraph (A); and
            ``(iii) the recommendations of the Secretary as to whether 
        amounts should be appropriated to carry out this section for 
        fiscal years after 2013.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $4,500,000 for the period 
consisting of fiscal years 2012 and 2013.
    ``(f) Definitions.--In this section--
        ``(1) the term `appropriate committees of Congress' means--
            ``(A) the Committee on Veterans' Affairs and the Committee 
        on Health, Education, Labor, and Pension of the Senate; and
            ``(B) the Committee on Veterans' Affairs and the Committee 
        on Education and Workforce of the House of Representatives; and
        ``(2) the term `nonprofit organization' means an organization 
    that is described in section 501(c)(3) of the Internal Revenue Code 
    of 1986 and that is exempt from taxation under section 501(a) of 
    such Code.''.
    (b) Conforming Amendment.--Section 4103A(a) of title 38, United 
States Code, is amended--
        (1) in paragraph (1), by inserting ``and facilitate 
    placements'' after ``intensive services''; and
        (2) by adding at the end the following:
    ``(3) In facilitating placement of a veteran under this program, a 
disabled veterans' outreach program specialist shall help to identify 
job opportunities that are appropriate for the veteran's employment 
goals and assist that veteran in developing a cover letter and resume 
that are targeted for those particular jobs.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 41 of such title is amended by inserting after the item 
relating to section 4104 the following new item:

``4104A. Collaborative veterans' training, mentoring, and placement 
          program.''.
    SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND OTHER 
      EMPLOYMENT ASSISTANCE.
    (a) Appointments to Competitive Service Positions.--
        (1) In general.--Chapter 21 of title 5, United States Code, is 
    amended by inserting after section 2108 the following:
``Sec. 2108a. Treatment of certain individuals as veterans, disabled 
     veterans, and preference eligibles
    ``(a) Veteran.--
        ``(1) In general.--Except as provided under paragraph (3), an 
    individual shall be treated as a veteran defined under section 
    2108(1) for purposes of making an appointment in the competitive 
    service, if the individual--
            ``(A) meets the definition of a veteran under section 
        2108(1), except for the requirement that the individual has 
        been discharged or released from active duty in the armed 
        forces under honorable conditions; and
            ``(B) submits a certification described under paragraph (2) 
        to the Federal officer making the appointment.
        ``(2) Certification.--A certification referred to under 
    paragraph (1) is a certification that the individual is expected to 
    be discharged or released from active duty in the armed forces 
    under honorable conditions not later than 120 days after the date 
    of the submission of the certification.
    ``(b) Disabled Veteran.--
        ``(1) In general.--Except as provided under paragraph (3), an 
    individual shall be treated as a disabled veteran defined under 
    section 2108(2) for purposes of making an appointment in the 
    competitive service, if the individual--
            ``(A) meets the definition of a disabled veteran under 
        section 2108(2), except for the requirement that the individual 
        has been separated from active duty in the armed forces under 
        honorable conditions; and
            ``(B) submits a certification described under paragraph (2) 
        to the Federal officer making the appointment.
        ``(2) Certification.--A certification referred to under 
    paragraph (1) is a certification that the individual is expected to 
    be separated from active duty in the armed forces under honorable 
    conditions not later than 120 days after the date of the submission 
    of the certification.
    ``(c) Preference Eligible.--Subsections (a) and (b) shall apply 
with respect to determining whether an individual is a preference 
eligible under section 2108(3) for purposes of making an appointment in 
the competitive service.''.
        (2) Technical and conforming amendments.--
            (A) Definitions.--Section 2108 of title 5, United States 
        Code, is amended--
                (i) in paragraph (1), in the matter following 
            subparagraph (D), by inserting ``, except as provided under 
            section 2108a,'' before ``who has been'';
                (ii) in paragraph (2), by inserting ``(except as 
            provided under section 2108a)'' before ``has been 
            separated''; and
                (iii) in paragraph (3), in the matter preceding 
            subparagraph (A), by inserting ``or section 2108a(c)'' 
            after ``paragraph (4) of this section''.
            (B) Table of sections.--The table of sections for chapter 
        21 of title 5, United States Code, is amended by adding after 
        the item relating to section 2108 the following:

``2108a. Treatment of certain individuals as veterans, disabled 
          veterans, and preference eligibles.''.

    (b) Employment Assistance: Other Federal Agencies.--
        (1) Definitions.--In this subsection--
            (A) the term ``agency'' has the meaning given the term 
        ``Executive agency'' in section 105 of title 5, United States 
        Code; and
            (B) the term ``veteran'' has the meaning given that term in 
        section 101 of title 38, United States Code.
        (2) Responsibilities of office of personnel management.--The 
    Director of the Office of Personnel Management shall--
            (A) designate agencies that shall establish a program to 
        provide employment assistance to members of the Armed Forces 
        who are being separated from active duty in accordance with 
        paragraph (3); and
            (B) ensure that the programs established under this 
        subsection are coordinated with the Transition Assistance 
        Program (TAP) of the Department of Defense.
        (3) Elements of program.--The head of each agency designated 
    under paragraph (2)(A), in consultation with the Director of the 
    Office of Personnel Management, and acting through the Veterans 
    Employment Program Office of the agency established under Executive 
    Order 13518 (74 Fed. Reg. 58533; relating to employment of veterans 
    in the Federal Government), or any successor thereto, shall--
            (A) establish a program to provide employment assistance to 
        members of the Armed Forces who are being separated from active 
        duty, including assisting such members in seeking employment 
        with the agency;
            (B) provide such members with information regarding the 
        program of the agency established under subparagraph (A); and
            (C) promote the recruiting, hiring, training and 
        development, and retention of such members and veterans by the 
        agency.
        (4) Other office.--If an agency designated under paragraph 
    (2)(A) does not have a Veterans Employment Program Office, the head 
    of the agency, in consultation with the Director of the Office of 
    Personnel Management, shall select an appropriate office of the 
    agency to carry out the responsibilities of the agency under 
    paragraph (3).
    SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK EXPERIENCE 
      FOR MEMBERS OF THE ARMED FORCES ON TERMINAL LEAVE.
    (a) In General.--The Secretary of Defense may establish a pilot 
program to assess the feasibility and advisability of providing to 
members of the Armed Forces on terminal leave work experience with 
civilian employees and contractors of the Department of Defense to 
facilitate the transition of the individuals from service in the Armed 
Forces to employment in the civilian labor market.
    (b) Duration.--The pilot program shall be carried out during the 
two-year period beginning on the date of the commencement of the pilot 
program.
    (c) Report.--Not later than 540 days after the date of the 
commencement of the pilot program, the Secretary shall submit to the 
Committee on Armed Services and the Committee on Veterans' Affairs of 
the Senate and the Committee on Armed Services and the Committee on 
Veterans' Affairs of the House of Representatives an interim report on 
the pilot program that includes the findings of the Secretary with 
respect to the feasibility and advisability of providing covered 
individuals with work experience as described in subsection (a).
    SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON CREDENTIALING AND 
      LICENSING OF VETERANS.
    (a) In General.--Section 4114 of title 38, United States Code, is 
amended--
        (1) in subsection (a), by striking ``may'' and inserting 
    ``shall'';
        (2) in subsection (b)--
            (A) in paragraph (1)--
                (i) by striking ``Assistant Secretary shall'' and 
            inserting ``Assistant Secretary for Veterans' Employment 
            and Training shall, in consultation with the Assistant 
            Secretary for Employment and Training,'';
                (ii) by striking ``not less than 10 military'' and 
            inserting ``not more than five military''; and
                (iii) by inserting ``for Veterans' Employment and 
            Training'' after ``selected by the Assistant Secretary''; 
            and
            (B) in paragraph (2), by striking ``consult with 
        appropriate Federal, State, and industry officials to'' and 
        inserting ``enter into a contract with an appropriate entity 
        representing a coalition of State governors to consult with 
        appropriate Federal, State, and industry officials and''; and
        (3) by striking subsections (d) through (h) and inserting the 
    following:
    ``(d) Period of Project.--The period during which the Assistant 
Secretary shall carry out the demonstration project under this section 
shall be the two-year period beginning on the date of the enactment of 
the VOW to Hire Heroes Act of 2011.''.
    (b) Study Comparing Costs Incurred by Secretary of Defense for 
Training for Military Occupational Specialties Without Credentialing or 
Licensing With Costs Incurred by Secretary of Veterans Affairs and 
Secretary of Labor in Providing Employment-related Assistance.--
        (1) In general.--Not later than 180 days after the conclusion 
    of the period described in subsection (d) of section 4114 of title 
    38, United States Code, as added by subsection (a), the Assistant 
    Secretary of Labor of Veterans' Employment and Training shall, in 
    consultation with the Secretary of Defense and the Secretary of 
    Veterans Affairs, complete a study comparing the costs incurred by 
    the Secretary of Defense in training members of the Armed Forces 
    for the military occupational specialties selected by the Assistant 
    Secretary of Labor of Veterans' Employment and Training pursuant to 
    the demonstration project provided for in such section 4114, as 
    amended by subsection (a), with the costs incurred by the Secretary 
    of Veterans Affairs and the Secretary of Labor in providing 
    employment-related assistance to veterans who previously held such 
    military occupational specialties, including--
            (A) providing educational assistance under laws 
        administered by the Secretary of Veterans Affairs to veterans 
        to obtain credentialing and licensing for civilian occupations 
        that are similar to such military occupational specialties;
            (B) providing assistance to unemployed veterans who, while 
        serving in the Armed Forces, were trained in a military 
        occupational specialty; and
            (C) providing vocational training or counseling to veterans 
        described in subparagraph (B).
        (2) Report.--
            (A) In general.--Not later than 180 days after the 
        conclusion of the period described in subsection (d) of section 
        4114 of title 38, United States Code, as added by subsection 
        (a), the Assistant Secretary of Labor of Veterans' Employment 
        and Training shall submit to Congress a report on the study 
        carried out under paragraph (1).
            (B) Elements.--The report required by subparagraph (A) 
        shall include the following:
                (i) The findings of the Assistant Secretary with 
            respect to the study required by paragraph (1).
                (ii) A detailed description of the costs compared under 
            the study required by paragraph (1).
    SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT ON 
      VETERAN JOB COUNSELING, TRAINING, AND PLACEMENT PROGRAMS OF THE 
      DEPARTMENT OF LABOR.
    Section 4107(c) of title 38, United States Code, is amended--
        (1) in paragraph (2), by striking ``clause (1)'' and inserting 
    ``paragraph (1)'';
        (2) in paragraph (5), by striking ``and'' at the end;
        (3) in paragraph (6), by striking the period and inserting ``; 
    and''; and
        (4) by adding at the end the following new paragraph:
        ``(7) performance measures for the provision of assistance 
    under this chapter, including--
            ``(A) the percentage of participants in programs under this 
        chapter who find employment before the end of the first 90-day 
        period following their completion of the program;
            ``(B) the percentage of participants described in 
        subparagraph (A) who are employed during the first 180-day 
        period following the period described in such subparagraph;
            ``(C) the median earnings of participants described in 
        subparagraph (A) during the period described in such 
        subparagraph;
            ``(D) the median earnings of participants described in 
        subparagraph (B) during the period described in such 
        subparagraph; and
            ``(E) the percentage of participants in programs under this 
        chapter who obtain a certificate, degree, diploma, licensure, 
        or industry-recognized credential relating to the program in 
        which they participated under this chapter during the third 90-
        day period following their completion of the program.''.
    SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS IN 
      DEPARTMENT OF LABOR JOB TRAINING PROGRAMS.
    Section 4215 of title 38, United States Code, is amended--
        (1) in subsection (a)(3), by adding at the end the following: 
    ``Such priority includes giving access to such services to a 
    covered person before a non-covered person or, if resources are 
    limited, giving access to such services to a covered person instead 
    of a non-covered person.''; and
        (2) by amending subsection (d) to read as follows:
    ``(d) Addition to Annual Report.--(1) In the annual report required 
under section 4107(c) of this title for the program year beginning in 
2003 and each subsequent program year, the Secretary of Labor shall 
evaluate whether covered persons are receiving priority of service and 
are being fully served by qualified job training programs. Such 
evaluation shall include--
        ``(A) an analysis of the implementation of providing such 
    priority at the local level;
        ``(B) whether the representation of veterans in such programs 
    is in proportion to the incidence of representation of veterans in 
    the labor market, including within groups that the Secretary may 
    designate for priority under such programs, if any; and
        ``(C) performance measures, as determined by the Secretary, to 
    determine whether veterans are receiving priority of service and 
    are being fully served by qualified job training programs.
    ``(2) The Secretary may not use the proportion of representation of 
veterans described in subparagraph (B) of paragraph (1) as the basis 
for determining under such paragraph whether veterans are receiving 
priority of service and are being fully served by qualified job 
training programs.''.
    SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE 
      NATIONAL VETERANS' EMPLOYMENT AND TRAINING SERVICES INSTITUTE.
    (a) In General.--Section 4109 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) The Secretary shall require that each disabled veterans' 
outreach program specialist and local veterans' employment 
representative who receives training provided by the Institute, or its 
successor, is given a final examination to evaluate the specialist's or 
representative's performance in receiving such training.
    ``(2) The results of such final examination shall be provided to 
the entity that sponsored the specialist or representative who received 
the training.''.
    (b) Effective Date.--Subsection (d) of section 4109 of title 38, 
United States Code, as added by subsection (a), shall apply with 
respect to training provided by the National Veterans' Employment and 
Training Services Institute that begins on or after the date that is 
180 days after the date of the enactment of this Act.
    SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VETERANS' OUTREACH 
      PROGRAM SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT 
      REPRESENTATIVES.
    (a) Disabled Veterans' Outreach Program Specialists.--Section 4103A 
of title 38, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Additional Requirement for Full-time Employees.--(1) A full-
time disabled veterans' outreach program specialist shall perform only 
duties related to meeting the employment needs of eligible veterans, as 
described in subsection (a), and shall not perform other non-veteran-
related duties that detract from the specialist's ability to perform 
the specialist's duties related to meeting the employment needs of 
eligible veterans.
    ``(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an audit, the 
Secretary determines that a State is not in compliance with paragraph 
(1), the Secretary may reduce the amount of a grant made to the State 
under section 4102A(b)(5) of this title.''.
    (b) Local Veterans' Employment Representatives.--Section 4104 of 
such title is amended--
        (1) by redesignating subsection (e) as subsection (f); and
        (2) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e) Additional Requirements for Full-time Employees.--(1) A full-
time local veterans' employment representative shall perform only 
duties related to the employment, training, and placement services 
under this chapter, and shall not perform other non-veteran-related 
duties that detract from the representative's ability to perform the 
representative's duties related to employment, training, and placement 
services under this chapter.
    ``(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an audit, the 
Secretary determines that a State is not in compliance with paragraph 
(1), the Secretary may reduce the amount of a grant made to the State 
under section 4102A(b)(5) of this title.''.
    (c) Consolidation.--Section 4102A of such title is amended by 
adding at the end the following new subsection:
    ``(h) Consolidation of Disabled Veterans' Outreach Program 
Specialists and Veterans' Employment Representatives.--The Secretary 
may allow the Governor of a State receiving funds under subsection 
(b)(5) to support specialists and representatives as described in such 
subsection to consolidate the functions of such specialists and 
representatives if--
        ``(1) the Governor determines, and the Secretary concurs, that 
    such consolidation--
            ``(A) promotes a more efficient administration of services 
        to veterans with a particular emphasis on services to disabled 
        veterans; and
            ``(B) does not hinder the provision of services to veterans 
        and employers; and
        ``(2) the Governor submits to the Secretary a proposal therefor 
    at such time, in such manner, and containing such information as 
    the Secretary may require.''.

     Subtitle D--Improvements to Uniformed Services Employment and 
                          Reemployment Rights

    SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED UNDER 
      USERRA.
    Section 4303(2) of title 38, United States Code, is amended by 
inserting ``the terms, conditions, or privileges of employment, 
including'' after ``means''.

                       Subtitle E--Other Matters

    SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY 
      TAX CREDITS.
    (a) In General.--Paragraph (3) of section 51(b) of the Internal 
Revenue Code of 1986 is amended by striking ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii))'' and inserting ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any 
individual who is a qualified veteran by reason of subsection 
(d)(3)(A)(iv), and $24,000 per year in the case of any individual who 
is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))''.
    (b) Returning Heroes Tax Credits.--Subparagraph (A) of section 
51(d)(3) of the Internal Revenue Code of 1986 is amended--
        (1) by striking ``or'' at the end of clause (i),
        (2) by striking the period at the end of clause (ii)(II), and
        (3) by adding at the end the following new clauses:
                ``(iii) having aggregate periods of unemployment during 
            the 1-year period ending on the hiring date which equal or 
            exceed 4 weeks (but less than 6 months), or
                ``(iv) having aggregate periods of unemployment during 
            the 1-year period ending on the hiring date which equal or 
            exceed 6 months.''.
    (c) Simplified Certification.--Paragraph (13) of section 51(d) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
            ``(D) Credit for unemployed veterans.--
                ``(i) In general.--Notwithstanding subparagraph (A), 
            for purposes of paragraph (3)(A)--

                    ``(I) a veteran will be treated as certified by the 
                designated local agency as having aggregate periods of 
                unemployment meeting the requirements of clause 
                (ii)(II) or (iv) of such paragraph (whichever is 
                applicable) if such veteran is certified by such agency 
                as being in receipt of unemployment compensation under 
                State or Federal law for not less than 6 months during 
                the 1-year period ending on the hiring date, and
                    ``(II) a veteran will be treated as certified by 
                the designated local agency as having aggregate periods 
                of unemployment meeting the requirements of clause 
                (iii) of such paragraph if such veteran is certified by 
                such agency as being in receipt of unemployment 
                compensation under State or Federal law for not less 
                than 4 weeks (but less than 6 months) during the 1-year 
                period ending on the hiring date.

                ``(ii) Regulatory authority.--The Secretary may provide 
            alternative methods for certification of a veteran as a 
            qualified veteran described in clause (ii)(II), (iii), or 
            (iv) of paragraph (3)(A), at the Secretary's discretion.''.
    (d) Extension of Credit.--Subparagraph (B) of section 51(c)(4) of 
the Internal Revenue Code of 1986 is amended to read as follows:
            ``(B) after--
                ``(i) December 31, 2012, in the case of a qualified 
            veteran, and
                ``(ii) December 31, 2011, in the case of any other 
            individual.''.
    (e) Credit Made Available to Tax-exempt Organizations in Certain 
Circumstances.--
        (1) In general.--Subsection (c) of section 52 of the Internal 
    Revenue Code of 1986 is amended--
            (A) by inserting ``(1) In general.--'' before ``No 
        credit'', and
            (B) by adding at the end the following new paragraph:
    ``(2) Credit Made Available to Qualified Tax-exempt Organizations 
Employing Qualified Veterans.--For credit against payroll taxes for 
employment of qualified veterans by qualified tax-exempt organizations, 
see section 3111(e).''.
        (2) Credit allowable.--Section 3111 of such Code is amended by 
    adding at the end the following new subsection:
    ``(e) Credit for Employment of Qualified Veterans.--
        ``(1) In general.--If a qualified tax-exempt organization hires 
    a qualified veteran with respect to whom a credit would be 
    allowable under section 38 by reason of section 51 if the 
    organization were not a qualified tax-exempt organization, then 
    there shall be allowed as a credit against the tax imposed by 
    subsection (a) on wages paid with respect to employment of all 
    employees of the organization during the applicable period an 
    amount equal to the credit determined under section 51 (after 
    application of the modifications under paragraph (3)) with respect 
    to wages paid to such qualified veteran during such period.
        ``(2) Overall limitation.--The aggregate amount allowed as a 
    credit under this subsection for all qualified veterans for any 
    period with respect to which tax is imposed under subsection (a) 
    shall not exceed the amount of the tax imposed by subsection (a) on 
    wages paid with respect to employment of all employees of the 
    organization during such period.
        ``(3) Modifications.--For purposes of paragraph (1), section 51 
    shall be applied--
            ``(A) by substituting `26 percent' for `40 percent' in 
        subsection (a) thereof,
            ``(B) by substituting `16.25 percent' for `25 percent' in 
        subsection (i)(3)(A) thereof, and
            ``(C) by only taking into account wages paid to a qualified 
        veteran for services in furtherance of the activities related 
        to the purpose or function constituting the basis of the 
        organization's exemption under section 501.
        ``(4) Applicable period.--The term `applicable period' means, 
    with respect to any qualified veteran, the 1-year period beginning 
    with the day such qualified veteran begins work for the 
    organization.
        ``(5) Definitions.--For purposes of this subsection--
            ``(A) the term `qualified tax-exempt organization' means an 
        employer that is an organization described in section 501(c) 
        and exempt from taxation under section 501(a), and
            ``(B) the term `qualified veteran' has meaning given such 
        term by section 51(d)(3).''.
        (3) Transfers to federal old-age and survivors insurance trust 
    fund.--There are hereby appropriated to the Federal Old-Age and 
    Survivors Trust Fund and the Federal Disability Insurance Trust 
    Fund established under section 201 of the Social Security Act (42 
    U.S.C. 401) amounts equal to the reduction in revenues to the 
    Treasury by reason of the amendments made by paragraphs (1) and 
    (2). Amounts appropriated by the preceding sentence shall be 
    transferred from the general fund at such times and in such manner 
    as to replicate to the extent possible the transfers which would 
    have occurred to such Trust Fund had such amendments not been 
    enacted.
    (f) Treatment of Possessions.--
        (1) Payments to possessions.--
            (A) Mirror code possessions.--The Secretary of the Treasury 
        shall pay to each possession of the United States with a mirror 
        code tax system amounts equal to the loss to that possession by 
        reason of the amendments made by this section. Such amounts 
        shall be determined by the Secretary of the Treasury based on 
        information provided by the government of the respective 
        possession of the United States.
            (B) Other possessions.--The Secretary of the Treasury shall 
        pay to each possession of the United States which does not have 
        a mirror code tax system the amount estimated by the Secretary 
        of the Treasury as being equal to the loss to that possession 
        that would have occurred by reason of the amendments made by 
        this section if a mirror code tax system had been in effect in 
        such possession. The preceding sentence shall not apply with 
        respect to any possession of the United States unless such 
        possession establishes to the satisfaction of the Secretary 
        that the possession has implemented (or, at the discretion of 
        the Secretary, will implement) an income tax benefit which is 
        substantially equivalent to the income tax credit in effect 
        after the amendments made by this section.
        (2) Coordination with credit allowed against united states 
    income taxes.--The credit allowed against United States income 
    taxes for any taxable year under the amendments made by this 
    section to section 51 of the Internal Revenue Code of 1986 to any 
    person with respect to any qualified veteran shall be reduced by 
    the amount of any credit (or other tax benefit described in 
    paragraph (1)(B)) allowed to such person against income taxes 
    imposed by the possession of the United States by reason of this 
    subsection with respect to such qualified veteran for such taxable 
    year.
        (3) Definitions and special rules.--
            (A) Possession of the united states.--For purposes of this 
        subsection, the term ``possession of the United States'' 
        includes American Samoa, Guam, the Commonwealth of the Northern 
        Mariana Islands, the Commonwealth of Puerto Rico, and the 
        United States Virgin Islands.
            (B) Mirror code tax system.--For purposes of this 
        subsection, the term ``mirror code tax system'' means, with 
        respect to any possession of the United States, the income tax 
        system of such possession if the income tax liability of the 
        residents of such possession under such system is determined by 
        reference to the income tax laws of the United States as if 
        such possession were the United States.
            (C) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, the payments under 
        this subsection shall be treated in the same manner as a refund 
        due from credit provisions described in such section.
    (g) 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.
    SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS COVERED 
      BY MEDICAID PLANS FOR SERVICES FURNISHED BY NURSING FACILITIES.
    Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``May 31, 2015'' and inserting ``September 30, 2016''.
    SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES.
    Section 111(b)(3) of title 38, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C) In the case of transportation of a person under subparagraph 
(B) by ambulance, the Secretary may pay the provider of the 
transportation the lesser of the actual charge for the transportation 
or the amount determined by the fee schedule established under section 
1834(l) of the Social Security Act (42 U.S.C. 1395(l)) unless the 
Secretary has entered into a contract for that transportation with the 
provider.''.
    SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS AFFAIRS 
      TO OBTAIN INFORMATION FROM SECRETARY OF TREASURY AND COMMISSIONER 
      OF SOCIAL SECURITY FOR INCOME VERIFICATION PURPOSES.
    Section 5317(g) of title 38, United States Code, is amended by 
striking ``September 30, 2011'' and inserting ``September 30, 2016''.
    SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT 
      LOANS.
    (a) In General.--Section 3729(b)(2) of title 38, United States 
Code, is amended--
        (1) in subparagraph (A)--
            (A) in clause (iii), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016''; and
            (B) in clause (iv), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016'';
        (2) in subparagraph (B)--
            (A) in clause (i), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016'';
            (B) by striking clauses (ii) and (iii);
            (C) by redesignating clause (iv) as clause (ii); and
            (D) in clause (ii), as redesignated by subparagraph (C), by 
        striking ``October 1, 2013'' and inserting ``October 1, 2016'';
        (3) in subparagraph (C)--
            (A) in clause (i), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016''; and
            (B) in clause (ii), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016''; and
        (4) in subparagraph (D)--
            (A) in clause (i), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016''; and
            (B) in clause (ii), by striking ``November 18, 2011'' and 
        inserting ``October 1, 2016''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the later of--
        (1) November 18, 2011; or
        (2) the date of the enactment of this Act.

        TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

    SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL VENDORS 
      RELATING TO PROPERTY.
    (a) In General.--Section 6331(h)(3) of the Internal Revenue Code of 
1986 is amended by striking ``goods or services'' and inserting 
``property, goods, or services''.
    (b) Effective Date.--The amendment made by this section shall apply 
to levies issued after the date of the enactment of this Act.
    SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE TAX GAP 
      OWED BY FEDERAL CONTRACTORS.
    (a) Study.--
        (1) In general.--The Secretary of the Treasury, or the 
    Secretary's delegate, in consultation with the Director of the 
    Office of Management and Budget and the heads of such other Federal 
    agencies as the Secretary determines appropriate, shall conduct a 
    study on ways to reduce the amount of Federal tax owed but not paid 
    by persons submitting bids or proposals for the procurement of 
    property or services by the Federal government.
        (2) Matters studied.--The study conducted under paragraph (1) 
    shall include the following matters:
            (A) An estimate of the amount of delinquent taxes owed by 
        Federal contractors.
            (B) The extent to which the requirement that persons 
        submitting bids or proposals certify whether such persons have 
        delinquent tax debts has--
                (i) improved tax compliance; and
                (ii) been a factor in Federal agency decisions not to 
            enter into or renew contracts with such contractors.
            (C) In cases in which Federal agencies continue to contract 
        with persons who report having delinquent tax debt, the factors 
        taken into consideration in awarding such contracts.
            (D) The degree of the success of the Federal lien and levy 
        system in recouping delinquent Federal taxes from Federal 
        contractors.
            (E) The number of persons who have been suspended or 
        debarred because of a delinquent tax debt over the past 3 
        years.
            (F) An estimate of the extent to which the subcontractors 
        under Federal contracts have delinquent tax debt.
            (G) The Federal agencies which have most frequently awarded 
        contracts to persons notwithstanding any certification by such 
        person that the person has delinquent tax debt.
            (H) Recommendations on ways to better identify Federal 
        contractors with delinquent tax debts.
    (b) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
the Committee on Ways and Means of the House of Representatives, the 
Committee on Finance of the Senate, the Committee on Oversight and 
Government Reform of the House of Representatives, and the Committee on 
Homeland Security and Government Affairs of the Senate, a report on the 
study conducted under subsection (a), together with any legislative 
recommendations.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME 
         FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

    SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS 
      INCOME FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY.
    (a) In General.--Subparagraph (B) of section 36B(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (i), by striking the period at the end of clause (ii) and 
inserting ``, and'', and by adding at the end the following new clause:
                ``(iii) an amount equal to the portion of the 
            taxpayer's social security benefits (as defined in section 
            86(d)) which is not included in gross income under section 
            86 for the taxable year.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (c) No Impact on Social Security Trust Funds.--
        (1) Estimate of secretary.--The Secretary of the Treasury, or 
    the Secretary's delegate, shall annually estimate the impact that 
    the amendments made by subsection (a) have on the income and 
    balances of the trust funds established under section 201 of the 
    Social Security Act (42 U.S.C. 401).
        (2) Transfer of funds.--If, under paragraph (1), the Secretary 
    of the Treasury or the Secretary's delegate estimates that such 
    amendments have a negative impact on the income and balances of 
    such trust funds, the Secretary shall transfer, not less frequently 
    than quarterly, from the general fund an amount sufficient so as to 
    ensure that the income and balances of such trust funds are not 
    reduced as a result of such amendments.

                       TITLE V--BUDGETARY EFFECTS

    SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010.
    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.