[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2138 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2138

       To provide a payroll tax holiday for newly hired veterans.


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                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2014

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

_______________________________________________________________________

                                 A BILL


 
       To provide a payroll tax holiday for newly hired veterans.

    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 Hiring Act''.

SEC. 2. EMPLOYEE PAYROLL TAX HOLIDAY FOR NEWLY HIRED VETERANS.

    (a) In General.--Subsection (d) of section 3111 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(d) Special Exemption for Eligible Veterans Hired During Certain 
Calendar Quarters.--
            ``(1) In general.--Subsection (a) shall not apply to 50 
        percent of the wages paid by the employer with respect to 
        employment during the holiday period of any eligible veteran 
        for services performed--
                    ``(A) in a trade or business of the employer, or
                    ``(B) in the case of an employer exempt from tax 
                under section 501(a), in furtherance of the activities 
                related to the purpose or function constituting the 
                basis of the employer's exemption under such section.
            ``(2) Holiday period.--For purposes of this subsection, the 
        term `holiday period' means the period of 4 consecutive 
        calendar quarters beginning with the first day of the first 
        calendar quarter beginning after the date of the enactment of 
        the Veterans Hiring Act.
            ``(3) Eligible veteran.--For purposes of this subsection--
                    ``(A) In general.--The term `eligible veteran' 
                means a veteran who--
                            ``(i) begins work for the employer during 
                        the holiday period,
                            ``(ii) was discharged or released from the 
                        Armed Forces of the United States under 
                        conditions other than dishonorable, and
                            ``(iii) is not an individual described in 
                        section 51(i)(1) (applied by substituting 
                        `employer' for `taxpayer' each place it 
                        appears).
                    ``(B) Veteran.--The term `veteran' means any 
                individual who--
                            ``(i) has served on active duty (other than 
                        active duty for training) in the Armed Forces 
                        of the United States for a period of more than 
                        180 days, or has been discharged or released 
                        from active duty in the Armed Forces of the 
                        United States for a service-connected 
                        disability (within the meaning of section 101 
                        of title 38, United States Code),
                            ``(ii) has not served on extended active 
                        duty (as such term is used in section 
                        51(d)(3)(B)) in the Armed Forces of the United 
                        States on any day during the 60-day period 
                        ending on the hiring date, and
                            ``(iii) provides to the employer a copy of 
                        the individual's DD Form 214, Certificate of 
                        Release or Discharge from Active Duty, that 
                        includes the nature and type of discharge.
            ``(4) Election.--An employer may elect not to have this 
        subsection apply. Such election shall be made in such manner as 
        the Secretary may require.
            ``(5) Coordination with work opportunity credit.--For 
        coordination with the work opportunity credit, see section 
        51(3)(D).''.
    (b) Coordination With Work Opportunity Credit.--
            (1) In general.--Paragraph (3) of section 51 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new subparagraph:
                    ``(D) Denial of credit for veterans subject to 50 
                percent payroll tax holiday.--If section 3111(d)(1) (as 
                amended by the Veterans Hiring Act) applies to any 
                wages paid by an employer, the term `qualified veteran' 
                does not include any individual who begins work for the 
                employer during the holiday period (as defined in 
                section 3111(d)(2)) unless the employer makes an 
                election not to have section 3111(d) apply.''.
            (2) Conforming amendment.--Subsection (c) of section 51 of 
        such Code is amended by striking paragraph (5).
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