To amend the Internal Revenue Code of 1986 to allow an increased work opportunity credit with respect to veterans, and for other purposes.

To amend the Internal Revenue Code of 1986 to allow an increased work opportunity credit with respect to 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.

SEC. 2. Work opportunity credit for veterans.

(a) In general.—Section 51(a) of the Internal Revenue Code of 1986 is amended by striking “equal to” and all that follows and inserting the following: “equal to—

“(1) in the case of a qualified veteran, 50 percent of the qualified first-year wages for such year, and

“(2) in all other cases, 40 percent of the qualified first-year wages for such year.”.

(b) Increased limitation on wages taken into account for veterans.—Section 51(b)(3) of such Code is amended—

(1) by striking “$12,000” and inserting “$18,000”,

(2) by striking “$14,000” and inserting “$21,000”, and

(3) by striking “$24,000” and inserting “$36,000”.

(c) Conforming amendments relating to individuals not meeting minimum employment periods.—Section 51(i)(3)(A) of such Code is amended by striking “employer” and all that follows and inserting the following: “employer—

“(i) subsection (a)(1) shall be applied by substituting ‘25 percent’ for ‘50 percent’, and

“(ii) subsection (a)(2) shall be applied by substituting ‘25 percent’ for ‘40 percent’.”.

(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.