[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4856 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4856

    To amend the Internal Revenue Code of 1986 to establish a small 
   business start-up tax credit for veterans creating businesses in 
                        underserved communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2024

 Ms. Rosen (for herself and Mr. Moran) 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 establish a small 
   business start-up tax credit for veterans creating businesses in 
                        underserved communities.

    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 Jobs Opportunity Act''.

SEC. 2. VETERAN SMALL BUSINESS START-UP CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. VETERAN SMALL BUSINESS START-UP CREDIT.

    ``(a) In General.--For purposes of section 38, the veteran small 
business start-up credit determined under this section for any taxable 
year is an amount equal to 15 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 $50,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Applicable veteran-owned small business.--The term 
        `applicable veteran-owned small business' means a small 
        business--
                    ``(A) owned and controlled by 1 or more veterans or 
                spouses of veterans, and
                    ``(B) the principal place of business of which is 
                in an underserved community.
            ``(2) Ownership and control.--The term `owned and 
        controlled' means--
                    ``(A) with respect to any of the individuals 
                described in paragraph (1)(A), that the conduct of any 
                trade or business of the small business is not a 
                passive activity (as defined in section 469(c)), and
                    ``(B) with respect to the small business--
                            ``(i) such small business is a sole 
                        proprietorship,
                            ``(ii) if such small business is a 
                        corporation, ownership (by vote or value) by 
                        the individuals described in paragraph (1)(A) 
                        of greater than 50 percent of the stock in such 
                        corporation, or
                            ``(iii) if such small business is a 
                        partnership, ownership by the individuals 
                        described in paragraph (1)(A) of greater than 
                        50 percent of the profits interests or capital 
                        interests in such partnership.
            ``(3) Qualified start-up expenditures.--The term `qualified 
        start-up expenditures' means--
                    ``(A) any start-up expenditures (as defined in 
                section 195(c)), and
                    ``(B) any amounts paid or incurred during the 
                taxable year for the purchase or lease of real 
                property, or the purchase of personal property, placed 
                in service during the taxable year and used in the 
                active conduct of a trade or business.
            ``(4) Small business.--
                    ``(A) In general.--The term `small business' means, 
                with respect to any taxable year, any person engaged in 
                a trade or business in the United States if--
                            ``(i) the gross receipts of such person for 
                        the preceding taxable year did not exceed 
                        $5,000,000, or
                            ``(ii) in the case of a person to which 
                        clause (i) does not apply, such person employed 
                        not more than 50 full-time employees during the 
                        preceding taxable year.
                    ``(B) Full-time employee.--For purposes of 
                subparagraph (A)(ii), an employee shall be considered 
                full-time if such employee is employed at least 30 
                hours per week for 20 or more calendar weeks in the 
                taxable year.
            ``(5) Underserved community.--The term `underserved 
        community' means any area located within--
                    ``(A) a HUBZone (as defined in section 3(p) of the 
                Small Business Act (15 U.S.C. 632(p)), as in effect on 
                the date of enactment of this section),
                    ``(B) an empowerment zone, or enterprise community, 
                designated under section 1391 (and without regard to 
                whether or not such designation remains in effect),
                    ``(C) an area of low income or moderate income (as 
                recognized by the Federal Financial Institutions 
                Examination Council), or
                    ``(D) a county with persistent poverty (as 
                classified by the Economic Research Service of the 
                Department of Agriculture).
            ``(6) Veteran or spouse of veteran.--The term `veteran or 
        spouse of a veteran' has the meaning given such term by section 
        7(a)(31)(G)(ii) of the Small Business Act (15 U.S.C. 
        636(a)(31)(G)(ii), as in effect on the date of enactment of 
        this section).
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Election to take credit.--No credit shall be allowed 
        under subsection (a) for any expenditures unless the taxpayer 
        elects to have this section apply to such expenditures.
            ``(2) Year of election.--The taxpayer may elect the 
        application of this section only for the first 2 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 162.
            ``(3) Controlled groups and common control.--All persons 
        treated as a single employer under subsections (a) and (b) of 
        section 52 shall be treated as 1 person.
            ``(4) No double benefit.--If a credit is determined under 
        this section with respect to any property, the basis of such 
        property shall be reduced by the amount of the credit 
        attributable to such property.
            ``(5) Verification.--For purposes of determining whether an 
        entity qualifies as an applicable veteran-owned small business 
        for purposes of this section, the Secretary, in consultation 
        with the Administrator of the Small Business Administration, 
        shall verify that the requirements described in subsection 
        (b)(1) have been satisfied.''.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45BB. Veteran small business start-up credit.''.
    (c) Part of General Business Credit.--Section 38(b) of the Internal 
Revenue Code of 1986, as amended by sections 13105, 13701, and 13704 of 
Public Law 117-169, is amended by striking ``plus'' at the end of 
paragraph (40), by striking the period at the end of paragraph (41) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(42) the veteran small business start-up credit 
        determined under section 45BB.''.
    (d) Report by Treasury Inspector General for Tax Administration.--
Every fourth year after the date of the enactment of this Act, the 
Treasury Inspector General for Tax Administration shall include in one 
of the semiannual reports under section 5 of the Inspector General Act 
of 1978 with respect to such year, an evaluation of the credit allowed 
under section 45BB of the Internal Revenue Code of 1986 (as added by 
this section), including an evaluation of the success of, and 
accountability with respect to, such credit.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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