[Congressional Record Volume 147, Number 93 (Friday, June 29, 2001)]
[Senate]
[Page S7200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 1145. 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; to the Committee on Finance.
  Mrs. BOXER. Mr. President, I am introducing legislation to help the 
estimated 1.5 million veterans who are now living in poverty by giving 
a tax credit to those employers who hire them and put them on the road 
to financial independence. This idea was proposed and is supported by 
the National Coalition for Homeless Veterans and the Non-Commissioned 
Officers Association.
  This legislation is based upon the current tax credit offered for 
employers who hire those coming off welfare. Veterans groups tell me 
that the current tax credit is underutilized by veterans because many 
are not receiving food stamps or are not on welfare. Because the bill I 
am introducing today bases eligibility on the poverty level, more 
veterans will be able to benefit from this credit.
  My bill would allow employers to receive a hiring tax credit of 50 
percent of the veteran's first year wages and a retention credit of 25 
percent of the veteran's second year wages. Only the first $20,000 of 
wages per year will count toward the credit.
  I offered this legislation as an amendment to the tax bill. While my 
amendment failed on a procedural vote, 49-50, opponents indicated that 
enacting this legislation would be a good thing to do. This being the 
case, I am hopeful that the Senate will take up and pass the bill I am 
introducing today in a bipartisan manner. It is the least we can do for 
our veterans who so bravely served our Nation and deserve our help.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1145

       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.
                                 ______