[Congressional Record Volume 166, Number 119 (Monday, June 29, 2020)]
[Senate]
[Page S3714]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2267. Ms. ROSEN (for herself and Mr. Daines) submitted an
amendment intended to be proposed by her to the bill S. 4049, to
authorize appropriations for fiscal year 2021 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. 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. 45U. VETERAN SMALL BUSINESS START-UP CREDIT.
``(a) In General.--For purposes of section 38, in the case
of an applicable veteran-owned business which elects the
application of this section, 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 of the taxpayer as does not
exceed $50,000.
``(b) Applicable Veteran-Owned Small Business.--For
purposes of this section--
``(1) In general.--The term `applicable veteran-owned small
business' means a small business owned and controlled by one
or more veterans or spouses of veterans and the principal
place of business of which is in an underserved community.
``(2) Ownership and control.--The term `owned and
controlled' means--
``(A) management and operation of the daily business, and--
``(B)(i) in the case of a sole proprietorship, sole
ownership,
``(ii) in the case of a corporation, ownership (by vote or
value) of not less than 51 percent of the stock in such
corporation, or
``(iii) in the case of a partnership or joint venture,
ownership of not less than 51 percent of the profits
interests or capital interests in such partnership or joint
venture.
``(3) Small business.--The term `small business' means,
with respect to any taxable year, any person engaged in a
trade or business in the United States which is a small
business concern (as defined under section 3 of the Small
Business Act (15 U.S.C. 632)).
``(4) 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))),
``(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).
``(5) 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)(iii) of the Small Business Act (15 U.S.C.
636(a)(31)(G)(iii)).
``(c) Qualified Start-Up Expenditures.--For purposes of
this section--
``(1) In general.--The term `qualified start-up
expenditures' means--
``(A) any start-up expenditures (as defined in section
195(c)), or
``(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.
``(d) Special Rules.--For purposes of this section--
``(1) 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.
``(2) 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.
``(3) 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.''.
(b) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
``Sec. 45U. Veteran small business start-up credit.''.
(c) Made Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of
paragraph (33) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(34) the veteran small business start-up credit
determined under section 45U.''.
(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 program under
section 45U 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 program.
(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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