[United States Statutes at Large, Volume 125, 112th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 112-56
112th Congress

An Act


 
To amend the Internal Revenue Code of 1986 to repeal the imposition of 3
percent withholding on certain payments made to vendors by government
entities, to modify the calculation of modified adjusted gross income
for purposes of determining eligibility for certain healthcare-related
programs, 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. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Table of Contents.

TITLE I--THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT

Sec. 101. Short title.
Sec. 102. Repeal of imposition of 3 percent withholding on certain
payments made to vendors by government entities.

TITLE II--VOW TO HIRE HEROES

Sec. 201. Short title.

Subtitle A--Retraining Veterans

Sec. 211. Veterans retraining assistance program.

Subtitle B--Improving the Transition Assistance Program

Sec. 221. Mandatory participation of members of the Armed Forces in the
Transition Assistance Program of Department of Defense.
Sec. 222. Individualized assessment for members of the Armed Forces
under transition assistance on equivalence between skills
developed in military occupational specialties and
qualifications required for civilian employment with the
private sector.
Sec. 223. Transition Assistance Program contracting.
Sec. 224. Contracts with private entities to assist in carrying out
Transition Assistance Program of Department of Defense.
Sec. 225. Improved access to apprenticeship programs for members of the
Armed Forces who are being separated from active duty or
retired.
Sec. 226. Comptroller General review.

Subtitle C--Improving the Transition of Veterans to Civilian Employment

Sec. 231. Two-year extension of authority of Secretary of Veterans
Affairs to provide rehabilitation and vocational benefits to
members of the Armed Forces with severe injuries or
illnesses.
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to pay
employers for providing on-job training to veterans who have
not been rehabilitated to point of employability.
Sec. 233. Training and rehabilitation for veterans with service-
connected disabilities who have exhausted rights to
unemployment benefits under State law.
Sec. 234. Collaborative veterans' training, mentoring, and placement
program.
Sec. 235. Appointment of honorably discharged members and other
employment assistance.
Sec. 236. Department of Defense pilot program on work experience for
members of the Armed Forces on terminal leave.

[[Page 712]]

Sec. 237. Enhancement of demonstration program on credentialing and
licensing of veterans.
Sec. 238. Inclusion of performance measures in annual report on veteran
job counseling, training, and placement programs of the
Department of Labor.
Sec. 239. Clarification of priority of service for veterans in
Department of Labor job training programs.
Sec. 240. Evaluation of individuals receiving training at the National
Veterans' Employment and Training Services Institute.
Sec. 241. Requirements for full-time disabled veterans' outreach program
specialists and local veterans' employment representatives.

Subtitle D--Improvements to Uniformed Services Employment and
Reemployment Rights

Sec. 251. Clarification of benefits of employment covered under USERRA.

Subtitle E--Other Matters

Sec. 261. Returning heroes and wounded warriors work opportunity tax
credits.
Sec. 262. Extension of reduced pension for certain veterans covered by
Medicaid plans for services furnished by nursing facilities.
Sec. 263. Reimbursement rate for ambulance services.
Sec. 264. Extension of authority for Secretary of Veterans Affairs to
obtain information from Secretary of Treasury and
Commissioner of Social Security for income verification
purposes.
Sec. 265. Modification of loan guaranty fee for certain subsequent
loans.

TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

Sec. 301. One hundred percent levy for payments to Federal vendors
relating to property.
Sec. 302. Study and report on reducing the amount of the tax gap owed by
Federal contractors.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME
FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

Sec. 401. Modification of calculation of modified adjusted gross income
for determining certain healthcare program eligibility.

TITLE V--BUDGETARY EFFECTS

Sec. 501. Statutory Pay-As-You-Go Act of 2010.

TITLE I--THREE <>
PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT
SEC. 101. <> SHORT TITLE.

This title may be cited as the ``3% Withholding Repeal and Job
Creation Act''.
SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON CERTAIN
PAYMENTS MADE TO VENDORS BY GOVERNMENT
ENTITIES.

(a) In General.--Section 3402 of the Internal Revenue Code of
1986 <>  is amended by striking subsection (t).

(b) Effective <>  Date.--The amendment made
by this section shall apply to payments made after December 31, 2011.

TITLE II--VOW <>  TO HIRE HEROES
SEC. 201. <>  SHORT TITLE.

This title may be cited as the ``VOW to Hire Heroes Act of 2011''.

[[Page 713]]

Subtitle A--Retraining Veterans

SEC. 211. <>  VETERANS RETRAINING
ASSISTANCE PROGRAM.

(a) Program Authorized.--
(1) In <> general.--Not later than July 1,
2012, the Secretary of Veterans Affairs shall, in collaboration
with the Secretary of Labor, establish and commence a program of
retraining assistance for eligible veterans.
(2) Number <>  of eligible veterans.--
The number of unique eligible veterans who participate in the
program established under paragraph (1) may not exceed--
(A) 45,000 during fiscal year 2012; and
(B) 54,000 during the period beginning October 1,
2012, and ending March 31, 2014.

(b) Retraining Assistance.--Except as provided by subsection (k),
each veteran who participates in the program established under
subsection (a)(1) shall be entitled to up to 12 months of retraining
assistance provided by the Secretary of Veterans Affairs. Such
retraining assistance may only be used by the veteran to pursue a
program of education (as such term is defined in section 3452(b) of
title 38, United States Code) for training, on a full-time basis, that--
(1) is approved under chapter 36 of such title;
(2) is offered by a community college or technical school;
(3) leads to an associate degree or a certificate (or other
similar evidence of the completion of the program of education
or training);
(4) is designed to provide training for a high-demand
occupation, as determined by the Commissioner of Labor
Statistics; and
(5) begins on or after July 1, 2012.

(c) Monthly Certification.--Each veteran who participates in the
program established under subsection (a)(1) shall certify to the
Secretary of Veterans Affairs the enrollment of the veteran in a program
of education described in subsection (b) for each month in which the
veteran participates in the program.
(d) Amount of Assistance.--The monthly amount of the retraining
assistance payable under this section is the amount in effect under
section 3015(a)(1) of title 38, United States Code.
(e) Eligibility.--
(1) In general.--For purposes of this section, an eligible
veteran is a veteran who--
(A) as of the date of the submittal of the
application for assistance under this section, is at
least 35 years of age but not more than 60 years of age;
(B) was last discharged from active duty service in
the Armed Forces under conditions other than
dishonorable;
(C) as of the date of the submittal of the
application for assistance under this section, is
unemployed;
(D) as of the date of the submittal of the
application for assistance under this section, is not
eligible to receive educational assistance under chapter
30, 31, 32, 33, or 35 of title 38, United States Code,
or chapter 1606 or 1607 of title 10, United States Code;

[[Page 714]]

(E) is not in receipt of compensation for a service-
connected disability rated totally disabling by reason
of unemployability;
(F) was <>  not and is not
enrolled in any Federal or State job training program at
any time during the 180-day period ending on the date of
the submittal of the application for assistance under
this section; and
(G) <> by not later than October 1,
2013, submits to the Secretary of Labor an application
for assistance under this section containing such
information and assurances as that Secretary may
require.
(2) Determination of eligibility.--
(A) Determination by secretary of labor.--
(i) In general.--For each application for
assistance under this section received by the
Secretary of Labor from an applicant, the
Secretary of Labor shall determine whether the
applicant is eligible for such assistance under
subparagraphs (A), (C), (F), and (G) of paragraph
(1).
(ii) Referral to secretary of veterans
affairs.--If the Secretary of Labor determines
under clause (i) that an applicant is eligible for
assistance under this section, the Secretary of
Labor shall forward the application of such
applicant to the Secretary of Veterans Affairs in
accordance with the terms of the agreement
required by subsection (h).
(B) Determination by secretary of veterans
affairs.--For each application relating to an applicant
received by the Secretary of Veterans Affairs under
subparagraph (A)(ii), the Secretary of Veterans Affairs
shall determine under subparagraphs (B), (D), and (E) of
paragraph (1) whether such applicant is eligible for
assistance under this section.

(f) Employment <>  Assistance.--For each veteran
who participates in the program established under subsection (a)(1), the
Secretary of Labor shall contact such veteran not later than 30 days
after the date on which the veteran completes, or terminates
participation in, such program to facilitate employment of such veteran
and availability or provision of employment placement services to such
veteran.

(g) Charging of Assistance Against Other Entitlement.--Assistance
provided under this section shall be counted against the aggregate
period for which section 3695 of title 38, United States Code, limits
the individual's receipt of educational assistance under laws
administered by the Secretary of Veterans Affairs.
(h) Joint Agreement.--
(1) In general.--The Secretary of Veterans Affairs and the
Secretary of Labor shall enter into an agreement to carry out
this section.
(2) Appeals process.--The agreement required by paragraph
(1) shall include establishment of a process for resolving
disputes relating to and appeals of decisions of the Secretaries
under subsection (e)(2).

(i) Report.--
(1) In general.--Not later than July 1, 2014, the Secretary
of Veterans Affairs shall, in collaboration with the Secretary
of Labor, submit to the appropriate committees of Congress

[[Page 715]]

a report on the retraining assistance provided under this
section.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) The total number of--
(i) eligible veterans who participated; and
(ii) associates degrees or certificates
awarded (or other similar evidence of the
completion of the program of education or training
earned).
(B) Data related to the employment status of
eligible veterans who participated.

(j) Funding.--Payments under this section shall be made from amounts
appropriated to or otherwise made available to the Department of
Veterans Affairs for the payment of readjustment benefits. Not more than
$2,000,000 shall be made available from such amounts for information
technology expenses (not including personnel costs) associated with the
administration of the program established under subsection (a)(1).
(k) Termination of Authority.--The authority to make payments under
this section shall terminate on March 31, 2014.
(l) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Veterans' Affairs and the Committee on
Health, Education, Labor, and Pension of the Senate; and
(2) the Committee on Veterans' Affairs and the Committee on
Education and the Workforce of the House of Representatives.

Subtitle B--Improving the Transition Assistance Program

SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED FORCES
IN THE TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.

(a) In General.--Subsection (c) of section 1144 of title 10, United
States Code, is amended to read as follows:
``(c) Participation.--(1) Except as provided in paragraph (2), the
Secretary of Defense and the Secretary of Homeland Security shall
require the participation in the program carried out under this section
of the members eligible for assistance under the program.
``(2) The <>  Secretary of
Defense and the Secretary of Homeland Security may, under regulations
such Secretaries shall prescribe, waive the participation requirement of
paragraph (1) with respect to--
``(A) such groups or classifications of members as the
Secretaries determine, after consultation with the Secretary of
Labor and the Secretary of Veterans Affairs, for whom
participation is not and would not be of assistance to such
members based on the Secretaries' articulable justification that
there is extraordinarily high reason to believe the exempted
members are unlikely to face major readjustment, health care,
employment, or other challenges associated with transition to
civilian life; and

[[Page 716]]

``(B) individual members possessing specialized skills who,
due to unavoidable circumstances, are needed to support a unit's
imminent deployment.''.

(b) Required Use of Employment Assistance, Job Training Assistance,
and Other Transitional Services in Preseparation Counseling.--Section
1142(a)(2) of such title is amended by striking ``may'' and inserting
``shall''.
(c) Effective <>  Date.--The amendments
made by subsections (a) and (b) shall take effect on the date that is 1
year after the date of the enactment of this Act.
SEC. 222. <> INDIVIDUALIZED ASSESSMENT
FOR MEMBERS OF THE ARMED FORCES UNDER
TRANSITION ASSISTANCE ON EQUIVALENCE
BETWEEN SKILLS DEVELOPED IN MILITARY
OCCUPATIONAL SPECIALTIES AND
QUALIFICATIONS REQUIRED FOR CIVILIAN
EMPLOYMENT WITH THE PRIVATE SECTOR.

(a) Study on Equivalence Required.--
(1) In <> general.--The Secretary of Labor
shall, in consultation with the Secretary of Defense and the
Secretary of Veterans Affairs, enter into a contract with a
qualified organization to conduct a study to identify any
equivalences between the skills developed by members of the
Armed Forces through various military occupational specialties
(MOS), successful completion of resident training courses,
attaining various military ranks or rates, or other military
experiences and the qualifications required for various
positions of civilian employment in the private sector.
(2) Cooperation of federal agencies.--The departments and
agencies of the Federal Government, including the Office of
Personnel Management, the General Services Administration, the
Government Accountability Office, the Department of Education,
and other appropriate departments and agencies, shall cooperate
with the contractor under paragraph (1) to conduct the study
required under that paragraph.
(3) Report.--Upon completion of the study conducted under
paragraph (1), the contractor under that paragraph shall submit
to the Secretary of Defense, the Secretary of Veterans Affairs,
and the Secretary of Labor a report setting forth the results of
the study. The report shall include such information as the
Secretaries shall specify in the contract under paragraph (1)
for purposes of this section.
(4) Transmittal to congress.--The Secretary of Labor shall
transmit to the appropriate committees of Congress the report
submitted under paragraph (3), together with such comments on
the report as the Secretary considers appropriate.
(5) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means--
(A) the Committee on Veterans' Affairs, the
Committee on Armed Services, and the Committee on
Health, Education, Labor, and Pension of the Senate; and
(B) the Committee on Veterans' Affairs, the
Committee on Armed Services, and the Committee on
Education and the Workforce of the House of
Representatives.

[[Page 717]]

(b) Publication.--The <>
secretaries described in subsection (a)(1) shall ensure that the
equivalences identified under subsection (a)(1) are--
(1) made publicly available on an Internet website; and
(2) regularly updated to reflect the most recent findings of
the secretaries with respect to such equivalences.

(c) Individualized Assessment of Civilian Positions Available
Through Military Experiences.--The Secretary of Defense shall ensure
that each member of the Armed Forces who is participating in the
Transition Assistance Program (TAP) of the Department of Defense
receives, as part of such member's participation in that program, an
individualized assessment of the various positions of civilian
employment in the private sector for which such member may be qualified
as a result of the skills developed by such member through various
military occupational specialties (MOS), successful completion of
resident training courses, attaining various military ranks or rates, or
other military experiences. The assessment shall be performed using the
results of the study conducted under subsection (a) and such other
information as the Secretary of Defense, in consultation with the
Secretary of Veterans Affairs and the Secretary of Labor, considers
appropriate for that purpose.
(d) Further Use in Employment-related Transition Assistance.--
(1) Transmittal of assessment.--The Secretary of Defense
shall make the individualized assessment provided a member under
subsection (a) available electronically to the Secretary of
Veterans Affairs and the Secretary of Labor.
(2) Use in assistance.--The Secretary of Veterans Affairs
and the Secretary of Labor may use an individualized assessment
with respect to an individual under paragraph (1) for
employment-related assistance in the transition from military
service to civilian life provided the individual by such
Secretary and to otherwise facilitate and enhance the transition
of the individual from military service to civilian life.

(e) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING.

(a) Transition Assistance Program Contracting.--
(1) In general.--Section 4113 of title 38, United States
Code, is amended to read as follows:
``Sec. 4113. Transition Assistance Program personnel

``(a) Requirement to Contract.--In accordance with section 1144 of
title 10, the Secretary shall enter into a contract with an appropriate
private entity or entities to provide the functions described in
subsection (b) at all locations where the program described in such
section is carried out.
``(b) Functions.--Contractors under subsection (a) shall provide to
members of the Armed Forces who are being separated from active duty
(and the spouses of such members) the services described in section
1144(a)(1) of title 10, including the following:
``(1) Counseling.

[[Page 718]]

``(2) Assistance in identifying employment and training
opportunities and help in obtaining such employment and
training.
``(3) Assessment of academic preparation for enrollment in
an institution of higher learning or occupational training.
``(4) Other related information and services under such
section.
``(5) Such other services as the Secretary considers
appropriate.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 41 of title 38, United States Code, is
amended by striking the item relating to section 4113 and
inserting the following new item:

``4113. Transition Assistance Program personnel.''.

(b) Deadline <>  for Implementation.--The
Secretary of Labor shall enter into the contract required by section
4113 of title 38, United States Code, as added by subsection (a), not
later than two years after the date of the enactment of this Act.
SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CARRYING
OUT TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.

Section 1144(d) of title 10, United States Code, is amended--
(1) in paragraph (5), by striking ``public or private
entities; and'' and inserting ``public entities;'';
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5), the following new
paragraph (6):
``(6) enter into contracts with private entities,
particularly with qualified private entities that have
experience with instructing members of the armed forces eligible
for assistance under the program carried out under this section
on--
``(A) private sector culture, resume writing, career
networking, and training on job search technologies;
``(B) academic readiness and educational
opportunities; or
``(C) other relevant topics; and''.
SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR MEMBERS
OF THE ARMED FORCES WHO ARE BEING
SEPARATED FROM ACTIVE DUTY OR RETIRED.

Section 1144 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(e) Participation in Apprenticeship Programs.--As part of the
program carried out under this section, the Secretary of Defense and the
Secretary of Homeland Security may permit a member of the armed forces
eligible for assistance under the program to participate in an
apprenticeship program registered under the Act of August 16, 1937
(commonly known as the `National Apprenticeship Act'; 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.), or a pre-apprenticeship program that
provides credit toward a program registered under such Act, that
provides members of the armed forces with the education, training, and
services necessary to transition to meaningful employment that leads to
economic self-sufficiency.''.

[[Page 719]]

SEC. 226. COMPTROLLER GENERAL REVIEW.

Not <> later than two years after the date
of the enactment of this Act, the Comptroller General of the United
States shall conduct a review of the Transition Assistance Program (TAP)
and submit to Congress a report on the results of the review and any
recommendations of the Comptroller General for improving the program.

Subtitle C--Improving the Transition of Veterans to Civilian Employment

SEC. 231. TWO-YEAR <>  EXTENSION OF
AUTHORITY OF SECRETARY OF VETERANS AFFAIRS
TO PROVIDE REHABILITATION AND VOCATIONAL
BENEFITS TO MEMBERS OF THE ARMED FORCES
WITH SEVERE INJURIES OR ILLNESSES.

Section 1631(b)(2) of the Wounded Warrior Act (title XVI of Public
Law 110-181; 10 U.S.C. 1071 note) is amended by striking ``December 31,
2012'' and inserting ``December 31, 2014''.
SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS AFFAIRS
TO PAY EMPLOYERS FOR PROVIDING ON-JOB
TRAINING TO VETERANS WHO HAVE NOT BEEN
REHABILITATED TO POINT OF EMPLOYABILITY.

Section 3116(b)(1) of title 38, United States Code, is amended by
striking ``who have been rehabilitated to the point of employability''.
SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-
CONNECTED DISABILITIES WHO HAVE EXHAUSTED
RIGHTS TO UNEMPLOYMENT BENEFITS UNDER
STATE LAW.

(a) Entitlement to Additional Rehabilitation Programs.--
(1) In general.--Section 3102 of title 38, United States
Code, is amended--
(A) in the matter before paragraph (1), by striking
``A person'' and inserting the following:

``(a) In General.--A person''; and
(B) by adding at the end the following new
paragraph:

``(b) Additional Rehabilitation Programs for Persons Who Have
Exhausted Rights to Unemployment Benefits Under State Law.--(1) Except
as provided in paragraph (4), a person who has completed a
rehabilitation program under this chapter shall be entitled to an
additional rehabilitation program under the terms and conditions of this
chapter if--
``(A) the person is described by paragraph (1) or (2) of
subsection (a); and
``(B) the person--
``(i) has exhausted all rights to regular
compensation under the State law or under Federal law
with respect to a benefit year;
``(ii) has no rights to regular compensation with
respect to a week under such State or Federal law; and
``(iii) is not receiving compensation with respect
to such week under the unemployment compensation law of
Canada; and

[[Page 720]]

``(C) begins <>  such additional
rehabilitation program within six months of the date of such
exhaustion.

``(2) For purposes of paragraph (1)(B)(i), a person shall be
considered to have exhausted such person's rights to regular
compensation under a State law when--
``(A) no payments of regular compensation can be made under
such law because such person has received all regular
compensation available to such person based on employment or
wages during such person's base period; or
``(B) such person's rights to such compensation have been
terminated by reason of the expiration of the benefit year with
respect to which such rights existed.

``(3) In this subsection, the terms `compensation', `regular
compensation', `benefit year', `State', `State law', and `week' have the
respective meanings given such terms under section 205 of the Federal-
State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note).
``(4) No <> person shall be entitled to an
additional rehabilitation program under paragraph (1) from whom the
Secretary receives an application therefor after March 31, 2014.''.
(2) Duration of additional rehabilitation program.--Section
3105(b) of such title is amended--
(A) by striking ``Except as provided in subsection
(c) of this section,'' and inserting ``(1) Except as
provided in paragraph (2) and in subsection (c),''; and
(B) by adding at the end the following new
paragraph:

``(2) The period of a vocational rehabilitation program pursued by a
veteran under section 3102(b) of this title following a determination of
the current reasonable feasibility of achieving a vocational goal may
not exceed 12 months.''.
(b) Extension of Period of Eligibility.--Section 3103 of such title
is amended--
(1) in subsection (a), by striking ``in subsection (b), (c),
or (d)'' and inserting ``in subsection (b), (c), (d), or (e)'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection (e):

``(e)(1) The limitation in subsection (a) shall not apply to a
rehabilitation program described in paragraph (2).
``(2) A rehabilitation program described in this paragraph is a
rehabilitation program pursued by a veteran under section 3102(b) of
this title.''.
(c) Effective <>  Date.--The amendments
made by subsections (a) and (b) shall take effect on June 1, 2012, and
shall apply with respect to rehabilitation programs beginning after such
date.

(d) Comptroller <>  General Review.--Not
later than two years after the date of the enactment of this Act, the
Comptroller General of the United States shall--
(1) conduct a review of the training and rehabilitation
under chapter 31 of title 38, United States Code; and
(2) submit to Congress a report on the findings of the
Comptroller General with respect to the review and any
recommendations of the Comptroller General for improving such
training and rehabilitation.

[[Page 721]]

SEC. 234. <> COLLABORATIVE VETERANS' TRAINING,
MENTORING, AND PLACEMENT PROGRAM.

(a) In General.--Chapter 41 of title 38, United States Code, is
amended by inserting after section 4104 the following new section:
``Sec. 4104A. <> Collaborative veterans'
training, mentoring, and placement program

``(a) Grants.--The Secretary shall award grants to eligible
nonprofit organizations to provide training and mentoring for eligible
veterans who seek employment. The Secretary <>
shall award the grants to not more than three organizations, for periods
of two years.

``(b) Collaboration and Facilitation.--The Secretary shall ensure
that the recipients of the grants--
``(1) collaborate with--
``(A) the appropriate disabled veterans' outreach
specialists (in carrying out the functions described in
section 4103A(a)) and the appropriate local veterans'
employment representatives (in carrying out the
functions described in section 4104); and
``(B) the appropriate State boards and local boards
(as such terms are defined in section 101 of the
Workforce Investment Act of 1998 (29 U.S.C. 2801)) for
the areas to be served by recipients of the grants; and
``(2) based on the collaboration, facilitate the placement
of the veterans that complete the training in meaningful
employment that leads to economic self-sufficiency.

``(c) Application.--To <>  be
eligible to receive a grant under this section, a nonprofit organization
shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may require. At
a minimum, the information shall include--
``(1) information describing how the organization will--
``(A) collaborate with disabled veterans' outreach
specialists and local veterans' employment
representatives and the appropriate State boards and
local boards (as such terms are defined in section 101
of the Workforce Investment Act of 1998 (29 U.S.C.
2801));
``(B) based on the collaboration, provide training
that facilitates the placement described in subsection
(b)(2); and
``(C) make available, for each veteran receiving the
training, a mentor to provide career advice to the
veteran and assist the veteran in preparing a resume and
developing job interviewing skills; and
``(2) an assurance that the organization will provide the
information necessary for the Secretary to prepare the reports
described in subsection (d).

``(d) Reports.--(1) Not <>  later than six months
after the date of the enactment of the VOW to Hire Heroes Act of 2011,
the Secretary shall prepare and submit to the appropriate committees of
Congress a report that describes the process for awarding grants under
this section, the recipients of the grants, and the collaboration
described in subsections (b) and (c).

``(2) Not <>  later than 18 months after the date
of enactment of the VOW to Hire Heroes Act of 2011, the Secretary
shall--
``(A) conduct an assessment of the performance of the grant
recipients, disabled veterans' outreach specialists, and local

[[Page 722]]

veterans' employment representatives in carrying out activities
under this section, which assessment shall include collecting
information on the number of--
``(i) veterans who applied for training under this
section;
``(ii) veterans who entered the training;
``(iii) veterans who completed the training;
``(iv) veterans who were placed in meaningful
employment under this section; and
``(v) veterans who remained in such employment as of
the date of the assessment; and
``(B) submit to the appropriate committees of Congress a
report that includes--
``(i) a description of how the grant recipients used
the funds made available under this section;
``(ii) the results of the assessment conducted under
subparagraph (A); and
``(iii) the recommendations of the Secretary as to
whether amounts should be appropriated to carry out this
section for fiscal years after 2013.

``(e) Authorization <>  of Appropriations.--
There is authorized to be appropriated to carry out this section
$4,500,000 for the period consisting of fiscal years 2012 and 2013.

``(f) Definitions.--In this section--
``(1) the term `appropriate committees of Congress' means--
``(A) the Committee on Veterans' Affairs and the
Committee on Health, Education, Labor, and Pension of
the Senate; and
``(B) the Committee on Veterans' Affairs and the
Committee on Education and Workforce of the House of
Representatives; and
``(2) the term `nonprofit organization' means an
organization that is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and that is exempt from taxation
under section 501(a) of such Code.''.

(b) Conforming Amendment.--Section 4103A(a) of title 38, United
States Code, is amended--
(1) in paragraph (1), by inserting ``and facilitate
placements'' after ``intensive services''; and
(2) by adding at the end the following:

``(3) In facilitating placement of a veteran under this program, a
disabled veterans' outreach program specialist shall help to identify
job opportunities that are appropriate for the veteran's employment
goals and assist that veteran in developing a cover letter and resume
that are targeted for those particular jobs.''.
(c) Clerical Amendment.--The table of sections at the beginning of
chapter 41 of such title is amended by inserting after the item relating
to section 4104 the following new item:

``4104A. Collaborative veterans' training, mentoring, and placement
program.''.

SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND OTHER
EMPLOYMENT ASSISTANCE.

(a) Appointments to Competitive Service Positions.--
(1) In general.--Chapter 21 of title 5, United States Code,
is amended by inserting after section 2108 the following:

[[Page 723]]

``Sec. 2108a. <> Treatment of certain
individuals as veterans, disabled veterans,
and preference eligibles

``(a) Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a veteran defined under
section 2108(1) for purposes of making an appointment in the
competitive service, if the individual--
``(A) meets the definition of a veteran under
section 2108(1), except for the requirement that the
individual has been discharged or released from active
duty in the armed forces under honorable conditions; and
``(B) submits a certification described under
paragraph (2) to the Federal officer making the
appointment.
``(2) Certification.--A <>  certification
referred to under paragraph (1) is a certification that the
individual is expected to be discharged or released from active
duty in the armed forces under honorable conditions not later
than 120 days after the date of the submission of the
certification.

``(b) Disabled Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a disabled veteran defined
under section 2108(2) for purposes of making an appointment in
the competitive service, if the individual--
``(A) meets the definition of a disabled veteran
under section 2108(2), except for the requirement that
the individual has been separated from active duty in
the armed forces under honorable conditions; and
``(B) submits a certification described under
paragraph (2) to the Federal officer making the
appointment.
``(2) Certification.--A <> certification
referred to under paragraph (1) is a certification that the
individual is expected to be separated from active duty in the
armed forces under honorable conditions not later than 120 days
after the date of the submission of the certification.

``(c) Preference <> Eligible.--Subsections (a)
and (b) shall apply with respect to determining whether an individual is
a preference eligible under section 2108(3) for purposes of making an
appointment in the competitive service.''.
(2) Technical and conforming amendments.--
(A) Definitions.--Section 2108 of title 5, United
States Code, is amended--
(i) in paragraph (1), in the matter following
subparagraph (D), by inserting ``, except as
provided under section 2108a,'' before ``who has
been'';
(ii) in paragraph (2), by inserting ``(except
as provided under section 2108a)'' before ``has
been separated''; and
(iii) in paragraph (3), in the matter
preceding subparagraph (A), by inserting ``or
section 2108a(c)'' after ``paragraph (4) of this
section''.
(B) Table of sections.--The table of sections for
chapter 21 of title 5, United States Code, is amended

[[Page 724]]

by adding after the item relating to section 2108 the
following:

``2108a. Treatment of certain individuals as veterans, disabled
veterans, and preference eligibles.''.

(b) Employment <>  Assistance: Other
Federal Agencies.--
(1) Definitions.--In this subsection--
(A) the term ``agency'' has the meaning given the
term ``Executive agency'' in section 105 of title 5,
United States Code; and
(B) the term ``veteran'' has the meaning given that
term in section 101 of title 38, United States Code.
(2) Responsibilities of office of personnel management.--
The <>  Director of the Office of Personnel
Management shall--
(A) designate agencies that shall establish a
program to provide employment assistance to members of
the Armed Forces who are being separated from active
duty in accordance with paragraph (3); and
(B) ensure that the programs established under this
subsection are coordinated with the Transition
Assistance Program (TAP) of the Department of Defense.
(3) Elements of program.--The head of each agency designated
under paragraph (2)(A), in consultation with the Director of the
Office of Personnel Management, and acting through the Veterans
Employment Program Office of the agency established under
Executive Order 13518 (74 Fed. Reg. 58533; relating to
employment of veterans in the Federal Government), or any
successor thereto, shall--
(A) establish a program to provide employment
assistance to members of the Armed Forces who are being
separated from active duty, including assisting such
members in seeking employment with the agency;
(B) provide such members with information regarding
the program of the agency established under subparagraph
(A); and
(C) promote the recruiting, hiring, training and
development, and retention of such members and veterans
by the agency.
(4) Other office.--If an agency designated under paragraph
(2)(A) does not have a Veterans Employment Program Office, the
head of the agency, in consultation with the Director of the
Office of Personnel Management, shall select an appropriate
office of the agency to carry out the responsibilities of the
agency under paragraph (3).
SEC. 236. <> DEPARTMENT OF DEFENSE PILOT
PROGRAM ON WORK EXPERIENCE FOR MEMBERS OF
THE ARMED FORCES ON TERMINAL LEAVE.

(a) In General.--The Secretary of Defense may establish a pilot
program to assess the feasibility and advisability of providing to
members of the Armed Forces on terminal leave work experience with
civilian employees and contractors of the Department of Defense to
facilitate the transition of the individuals from service in the Armed
Forces to employment in the civilian labor market.
(b) Duration.--The pilot program shall be carried out during the
two-year period beginning on the date of the commencement of the pilot
program.

[[Page 725]]

(c) Report.--Not later than 540 days after the date of the
commencement of the pilot program, the Secretary shall submit to the
Committee on Armed Services and the Committee on Veterans' Affairs of
the Senate and the Committee on Armed Services and the Committee on
Veterans' Affairs of the House of Representatives an interim report on
the pilot program that includes the findings of the Secretary with
respect to the feasibility and advisability of providing covered
individuals with work experience as described in subsection (a).
SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON CREDENTIALING
AND LICENSING OF VETERANS.

(a) In General.--Section 4114 of title 38, United States Code, is
amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``Assistant Secretary shall''
and inserting ``Assistant Secretary for Veterans'
Employment and Training shall, in consultation
with the Assistant Secretary for Employment and
Training,'';
(ii) by striking ``not less than 10 military''
and inserting ``not more than five military''; and
(iii) by inserting ``for Veterans' Employment
and Training'' after ``selected by the Assistant
Secretary''; and
(B) in paragraph (2), by striking ``consult with
appropriate Federal, State, and industry officials to''
and inserting ``enter into a contract with an
appropriate entity representing a coalition of State
governors to consult with appropriate Federal, State,
and industry officials and''; and
(3) by striking subsections (d) through (h) and inserting
the following:

``(d) Period <>  of Project.--The period
during which the Assistant Secretary shall carry out the demonstration
project under this section shall be the two-year period beginning on the
date of the enactment of the VOW to Hire Heroes Act of 2011.''.

(b) Study Comparing Costs Incurred by Secretary of Defense for
Training for Military Occupational Specialties Without Credentialing or
Licensing With Costs Incurred by Secretary of Veterans Affairs and
Secretary of Labor in Providing Employment-related Assistance.--
(1) In <> general.--Not later than 180 days
after the conclusion of the period described in subsection (d)
of section 4114 of title 38, United States Code, as added by
subsection (a), the Assistant Secretary of Labor of Veterans'
Employment and Training shall, in consultation with the
Secretary of Defense and the Secretary of Veterans Affairs,
complete a study comparing the costs incurred by the Secretary
of Defense in training members of the Armed Forces for the
military occupational specialties selected by the Assistant
Secretary of Labor of Veterans' Employment and Training pursuant
to the demonstration project provided for in such section 4114,
as amended by subsection (a), with the costs incurred by the
Secretary of Veterans Affairs and the Secretary of Labor in
providing employment-related assistance to veterans who
previously held such military occupational specialties,
including--

[[Page 726]]

(A) providing educational assistance under laws
administered by the Secretary of Veterans Affairs to
veterans to obtain credentialing and licensing for
civilian occupations that are similar to such military
occupational specialties;
(B) providing assistance to unemployed veterans who,
while serving in the Armed Forces, were trained in a
military occupational specialty; and
(C) providing vocational training or counseling to
veterans described in subparagraph (B).
(2) Report.--
(A) In general.--Not later than 180 days after the
conclusion of the period described in subsection (d) of
section 4114 of title 38, United States Code, as added
by subsection (a), the Assistant Secretary of Labor of
Veterans' Employment and Training shall submit to
Congress a report on the study carried out under
paragraph (1).
(B) Elements.--The report required by subparagraph
(A) shall include the following:
(i) The findings of the Assistant Secretary
with respect to the study required by paragraph
(1).
(ii) A detailed description of the costs
compared under the study required by paragraph
(1).
SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT ON
VETERAN JOB COUNSELING, TRAINING, AND
PLACEMENT PROGRAMS OF THE DEPARTMENT OF
LABOR.

Section <>  4107(c) of title 38, United States
Code, is amended--
(1) in paragraph (2), by striking ``clause (1)'' and
inserting ``paragraph (1)'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period and inserting
``; and''; and
(4) by adding at the end the following new paragraph:
``(7) performance measures for the provision of assistance
under this chapter, including--
``(A) the percentage of participants in programs
under this chapter who find employment before the end of
the first 90-day period following their completion of
the program;
``(B) the percentage of participants described in
subparagraph (A) who are employed during the first 180-
day period following the period described in such
subparagraph;
``(C) the median earnings of participants described
in subparagraph (A) during the period described in such
subparagraph;
``(D) the median earnings of participants described
in subparagraph (B) during the period described in such
subparagraph; and
``(E) the percentage of participants in programs
under this chapter who obtain a certificate, degree,
diploma, licensure, or industry-recognized credential
relating to the program in which they participated under
this chapter during the third 90-day period following
their completion of the program.''.

[[Page 727]]

SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS IN
DEPARTMENT OF LABOR JOB TRAINING PROGRAMS.

Section 4215 of title 38, United States Code, is amended--
(1) in subsection (a)(3), by adding at the end the
following: ``Such priority includes giving access to such
services to a covered person before a non-covered person or, if
resources are limited, giving access to such services to a
covered person instead of a non-covered person.''; and
(2) by amending subsection (d) to read as follows:

``(d) Addition to Annual Report.--(1) In the annual report required
under section 4107(c) of this title for the program year beginning in
2003 and each subsequent program year, the Secretary of Labor shall
evaluate whether covered persons are receiving priority of service and
are being fully served by qualified job training programs. Such
evaluation shall include--
``(A) an analysis of the implementation of providing such
priority at the local level;
``(B) whether the representation of veterans in such
programs is in proportion to the incidence of representation of
veterans in the labor market, including within groups that the
Secretary may designate for priority under such programs, if
any; and
``(C) performance measures, as determined by the Secretary,
to determine whether veterans are receiving priority of service
and are being fully served by qualified job training programs.

``(2) The Secretary may not use the proportion of representation of
veterans described in subparagraph (B) of paragraph (1) as the basis for
determining under such paragraph whether veterans are receiving priority
of service and are being fully served by qualified job training
programs.''.
SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE
NATIONAL VETERANS' EMPLOYMENT AND TRAINING
SERVICES INSTITUTE.

(a) In General.--Section 4109 of title 38, United States Code, is
amended by adding at the end the following new subsection:
``(d)(1) The Secretary shall require that each disabled veterans'
outreach program specialist and local veterans' employment
representative who receives training provided by the Institute, or its
successor, is given a final examination to evaluate the specialist's or
representative's performance in receiving such training.
``(2) The results of such final examination shall be provided to the
entity that sponsored the specialist or representative who received the
training.''.
(b) Effective <>  Date.--
Subsection (d) of section 4109 of title 38, United States Code, as added
by subsection (a), shall apply with respect to training provided by the
National Veterans' Employment and Training Services Institute that
begins on or after the date that is 180 days after the date of the
enactment of this Act.

[[Page 728]]

SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VETERANS' OUTREACH
PROGRAM SPECIALISTS AND LOCAL VETERANS'
EMPLOYMENT REPRESENTATIVES.

(a) Disabled Veterans' Outreach Program Specialists.--Section 4103A
of title 38, United States Code, is amended by adding at the end the
following new subsection:
``(d) Additional Requirement for Full-time Employees.--(1) A full-
time disabled veterans' outreach program specialist shall perform only
duties related to meeting the employment needs of eligible veterans, as
described in subsection (a), and shall not perform other non-veteran-
related duties that detract from the specialist's ability to perform the
specialist's duties related to meeting the employment needs of eligible
veterans.
``(2) The <> Secretary shall conduct regular audits
to ensure compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in compliance with
paragraph (1), the Secretary may reduce the amount of a grant made to
the State under section 4102A(b)(5) of this title.''.

(b) Local Veterans' Employment Representatives.--Section 4104 of
such title is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection (e):

``(e) Additional Requirements for Full-time Employees.--(1) A full-
time local veterans' employment representative shall perform only duties
related to the employment, training, and placement services under this
chapter, and shall not perform other non-veteran-related duties that
detract from the representative's ability to perform the
representative's duties related to employment, training, and placement
services under this chapter.
``(2) The <> Secretary shall conduct regular audits
to ensure compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in compliance with
paragraph (1), the Secretary may reduce the amount of a grant made to
the State under section 4102A(b)(5) of this title.''.

(c) Consolidation.--Section 4102A of such title is amended by adding
at the end the following new subsection:
``(h) Consolidation of Disabled Veterans' Outreach Program
Specialists and Veterans' Employment Representatives.--
The <>  Secretary may allow the Governor
of a State receiving funds under subsection (b)(5) to support
specialists and representatives as described in such subsection to
consolidate the functions of such specialists and representatives if--
``(1) the Governor determines, and the Secretary concurs,
that such consolidation--
``(A) promotes a more efficient administration of
services to veterans with a particular emphasis on
services to disabled veterans; and
``(B) does not hinder the provision of services to
veterans and employers; and
``(2) the Governor submits to the Secretary a proposal
therefor at such time, in such manner, and containing such
information as the Secretary may require.''.

[[Page 729]]

Subtitle D--Improvements to Uniformed Services Employment and
Reemployment Rights

SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED UNDER
USERRA.

Section 4303(2) of title 38, United States Code, is amended by
inserting ``the terms, conditions, or privileges of employment,
including'' after ``means''.

Subtitle E--Other Matters

SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY
TAX CREDITS.

(a) In General.--Paragraph (3) of section 51(b) of the Internal
Revenue Code of 1986 is <>  amended by striking
``($12,000 per year in the case of any individual who is a qualified
veteran by reason of subsection (d)(3)(A)(ii))'' and inserting
``($12,000 per year in the case of any individual who is a qualified
veteran by reason of subsection (d)(3)(A)(ii)(I), $14,000 per year in
the case of any individual who is a qualified veteran by reason of
subsection (d)(3)(A)(iv), and $24,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(II))''.

(b) Returning <>  Heroes Tax Credits.--
Subparagraph (A) of section 51(d)(3) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``or'' at the end of clause (i),
(2) by striking the period at the end of clause (ii)(II),
and
(3) by adding at the end the following new clauses:
``(iii) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 4 weeks (but
less than 6 months), or
``(iv) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 6 months.''.

(c) Simplified <>  Certification.--Paragraph
(13) of section 51(d) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(D) Credit for unemployed veterans.--
``(i) In general.--Notwithstanding
subparagraph (A), for purposes of paragraph
(3)(A)--
``(I) a veteran will be treated as
certified by the designated local agency
as having aggregate periods of
unemployment meeting the requirements of
clause (ii)(II) or (iv) of such
paragraph (whichever is applicable) if
such veteran is certified by such agency
as being in receipt of unemployment
compensation under State or Federal law
for not less than 6 months during the 1-
year period ending on the hiring date,
and
``(II) a veteran will be treated as
certified by the designated local agency
as having aggregate

[[Page 730]]

periods of unemployment meeting the
requirements of clause (iii) of such
paragraph if such veteran is certified
by such agency as being in receipt of
unemployment compensation under State or
Federal law for not less than 4 weeks
(but less than 6 months) during the 1-
year period ending on the hiring date.
``(ii) Regulatory authority.--The Secretary
may provide alternative methods for certification
of a veteran as a qualified veteran described in
clause (ii)(II), (iii), or (iv) of paragraph
(3)(A), at the Secretary's discretion.''.

(d) Extension of Credit.--Subparagraph (B) of section 51(c)(4) of
the Internal Revenue Code of 1986 <>  is amended to
read as follows:
``(B) after--
``(i) December 31, 2012, in the case of a
qualified veteran, and
``(ii) December 31, 2011, in the case of any
other individual.''.

(e) Credit Made Available to Tax-exempt Organizations in Certain
Circumstances.--
(1) In general.--Subsection (c) of section 52 of the
Internal Revenue Code of 1986 <>  is amended--
(A) by inserting ``(1) In general.--'' before ``No
credit'', and
(B) by adding at the end the following new
paragraph:

``(2) Credit Made Available to Qualified Tax-exempt Organizations
Employing Qualified Veterans.--For credit against payroll taxes for
employment of qualified veterans by qualified tax-exempt organizations,
see section 3111(e).''.
(2) Credit allowable.--Section 3111 of such Code <>  is amended by adding at the end the following new
subsection:

``(e) Credit for Employment of Qualified Veterans.--
``(1) In general.--If a qualified tax-exempt organization
hires a qualified veteran with respect to whom a credit would be
allowable under section 38 by reason of section 51 if the
organization were not a qualified tax-exempt organization, then
there shall be allowed as a credit against the tax imposed by
subsection (a) on wages paid with respect to employment of all
employees of the organization during the applicable period an
amount equal to the credit determined under section 51 (after
application of the modifications under paragraph (3)) with
respect to wages paid to such qualified veteran during such
period.
``(2) Overall limitation.--The aggregate amount allowed as a
credit under this subsection for all qualified veterans for any
period with respect to which tax is imposed under subsection (a)
shall not exceed the amount of the tax imposed by subsection (a)
on wages paid with respect to employment of all employees of the
organization during such period.
``(3) Modifications.--For <>  purposes
of paragraph (1), section 51 shall be applied--
``(A) by substituting `26 percent' for `40 percent'
in subsection (a) thereof,
``(B) by substituting `16.25 percent' for `25
percent' in subsection (i)(3)(A) thereof, and

[[Page 731]]

``(C) by only taking into account wages paid to a
qualified veteran for services in furtherance of the
activities related to the purpose or function
constituting the basis of the organization's exemption
under section 501.
``(4) Applicable period.--The term `applicable period'
means, with respect to any qualified veteran, the 1-year period
beginning with the day such qualified veteran begins work for
the organization.
``(5) Definitions.--For purposes of this subsection--
``(A) the term `qualified tax-exempt organization'
means an employer that is an organization described in
section 501(c) and exempt from taxation under section
501(a), and
``(B) the term `qualified veteran' has meaning given
such term by section 51(d)(3).''.
(3) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal Old-
Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the Social
Security Act (42 U.S.C. 401) amounts equal to the reduction in
revenues to the Treasury by reason of the amendments made by
paragraphs (1) and (2). Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent possible
the transfers which would have occurred to such Trust Fund had
such amendments not been enacted.

(f) Treatment <>  of Possessions.--
(1) Payments to possessions.--
(A) Mirror <>  code
possessions.--The Secretary of the Treasury shall pay to
each possession of the United States with a mirror code
tax system amounts equal to the loss to that possession
by reason of the amendments made by this section. Such
amounts shall be determined by the Secretary of the
Treasury based on information provided by the government
of the respective possession of the United States.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States which does not have a mirror code tax system the
amount estimated by the Secretary of the Treasury as
being equal to the loss to that possession that would
have occurred by reason of the amendments made by this
section if a mirror code tax system had been in effect
in such possession. The preceding sentence shall not
apply with respect to any possession of the United
States unless such possession establishes to the
satisfaction of the Secretary that the possession has
implemented (or, at the discretion of the Secretary,
will implement) an income tax benefit which is
substantially equivalent to the income tax credit in
effect after the amendments made by this section.
(2) Coordination with credit allowed against united states
income taxes.--The credit allowed against United States income
taxes for any taxable year under the amendments made by this
section to section 51 of the Internal Revenue Code of 1986 to
any person with respect to any qualified veteran shall be
reduced by the amount of any credit (or other tax benefit
described in paragraph (1)(B)) allowed to such person

[[Page 732]]

against income taxes imposed by the possession of the United
States by reason of this subsection with respect to such
qualified veteran for such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes American Samoa, Guam, the Commonwealth
of the Northern Mariana Islands, the Commonwealth of
Puerto Rico, and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States, the
income tax system of such possession if the income tax
liability of the residents of such possession under such
system is determined by reference to the income tax laws
of the United States as if such possession were the
United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same
manner as a refund due from credit provisions described
in such section.

(g) 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.
SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS
COVERED BY MEDICAID PLANS FOR SERVICES
FURNISHED BY NURSING FACILITIES.

Section 5503(d)(7) of title 38, United States Code, is amended by
striking ``May 31, 2015'' and inserting ``September 30, 2016''.
SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES.

Section 111(b)(3) of title 38, United States Code, is amended by
adding at the end the following new subparagraph:
``(C) In the case of transportation of a person under subparagraph
(B) by ambulance, the Secretary may pay the provider of the
transportation the lesser of the actual charge for the transportation or
the amount determined by the fee schedule established under section
1834(l) of the Social Security Act (42 U.S.C. 1395(l)) unless the
Secretary has entered into a contract for that transportation with the
provider.''.
SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS AFFAIRS
TO OBTAIN INFORMATION FROM SECRETARY OF
TREASURY AND COMMISSIONER OF SOCIAL
SECURITY FOR INCOME VERIFICATION PURPOSES.

Section 5317(g) of title 38, United States Code, is amended by
striking ``September 30, 2011'' and inserting ``September 30, 2016''.
SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT
LOANS.

(a) In General.--Section 3729(b)(2) of title 38, United States Code,
is amended--
(1) in subparagraph (A)--
(A) in clause (iii), by striking ``November 18,
2011'' and inserting ``October 1, 2016''; and

[[Page 733]]

(B) in clause (iv), by striking ``November 18,
2011'' and inserting ``October 1, 2016'';
(2) in subparagraph (B)--
(A) in clause (i), by striking ``November 18, 2011''
and inserting ``October 1, 2016'';
(B) by striking clauses (ii) and (iii);
(C) by redesignating clause (iv) as clause (ii); and
(D) in clause (ii), as redesignated by subparagraph
(C), by striking ``October 1, 2013'' and inserting
``October 1, 2016'';
(3) in subparagraph (C)--
(A) in clause (i), by striking ``November 18, 2011''
and inserting ``October 1, 2016''; and
(B) in clause (ii), by striking ``November 18,
2011'' and inserting ``October 1, 2016''; and
(4) in subparagraph (D)--
(A) in clause (i), by striking ``November 18, 2011''
and inserting ``October 1, 2016''; and
(B) in clause (ii), by striking ``November 18,
2011'' and inserting ``October 1, 2016''.

(b) Effective <>  Date.--The amendments
made by subsection (a) shall take effect on the later of--
(1) November 18, 2011; or
(2) the date of the enactment of this Act.

TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL VENDORS
RELATING TO PROPERTY.

(a) In General.--Section 6331(h)(3) of the Internal Revenue Code
of <>  1986 is amended by striking ``goods or
services'' and inserting ``property, goods, or services''.

(b) Effective <>  Date.--The amendment made
by this section shall apply to levies issued after the date of the
enactment of this Act.
SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE TAX GAP
OWED BY FEDERAL CONTRACTORS.

(a) Study.--
(1) In general.--The Secretary of the Treasury, or the
Secretary's delegate, in consultation with the Director of the
Office of Management and Budget and the heads of such other
Federal agencies as the Secretary determines appropriate, shall
conduct a study on ways to reduce the amount of Federal tax owed
but not paid by persons submitting bids or proposals for the
procurement of property or services by the Federal government.
(2) Matters studied.--The study conducted under paragraph
(1) shall include the following matters:
(A) An estimate of the amount of delinquent taxes
owed by Federal contractors.
(B) The extent to which the requirement that persons
submitting bids or proposals certify whether such
persons have delinquent tax debts has--
(i) improved tax compliance; and

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(ii) been a factor in Federal agency decisions
not to enter into or renew contracts with such
contractors.
(C) In cases in which Federal agencies continue to
contract with persons who report having delinquent tax
debt, the factors taken into consideration in awarding
such contracts.
(D) The degree of the success of the Federal lien
and levy system in recouping delinquent Federal taxes
from Federal contractors.
(E) The number of persons who have been suspended or
debarred because of a delinquent tax debt over the past
3 years.
(F) An estimate of the extent to which the
subcontractors under Federal contracts have delinquent
tax debt.
(G) The Federal agencies which have most frequently
awarded contracts to persons notwithstanding any
certification by such person that the person has
delinquent tax debt.
(H) Recommendations on ways to better identify
Federal contractors with delinquent tax debts.

(b) Report.--Not later than 12 months after the date of the
enactment of this Act, the Secretary of the Treasury shall submit to the
Committee on Ways and Means of the House of Representatives, the
Committee on Finance of the Senate, the Committee on Oversight and
Government Reform of the House of Representatives, and the Committee on
Homeland Security and Government Affairs of the Senate, a report on the
study conducted under subsection (a), together with any legislative
recommendations.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME
FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS
INCOME FOR DETERMINING CERTAIN HEALTHCARE
PROGRAM ELIGIBILITY.

(a) In General.--Subparagraph (B) of section 36B(d)(2) of the
Internal Revenue Code of 1986 <>  is amended by
striking ``and'' at the end of clause (i), by striking the period at the
end of clause (ii) and inserting ``, and'', and by adding at the end the
following new clause:
``(iii) an amount equal to the portion of the
taxpayer's social security benefits (as defined in
section 86(d)) which is not included in gross
income under section 86 for the taxable year.''.

(b) Effective <> Date.--The amendments made
by this section shall take effect on the date of the enactment of this
Act.

(c) No <> Impact on Social Security Trust
Funds.--
(1) Estimate <> of secretary.--The
Secretary of the Treasury, or the Secretary's delegate, shall
annually estimate the impact that the amendments made by
subsection (a) have on the income and balances of the trust
funds established under section 201 of the Social Security Act
(42 U.S.C. 401).

[[Page 735]]

(2) Transfer <>  of funds.--If, under
paragraph (1), the Secretary of the Treasury or the Secretary's
delegate estimates that such amendments have a negative impact
on the income and balances of such trust funds, the Secretary
shall transfer, not less frequently than quarterly, from the
general fund an amount sufficient so as to ensure that the
income and balances of such trust funds are not reduced as a
result of such amendments.

TITLE V--BUDGETARY EFFECTS

SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010.

The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.

Approved November 21, 2011.

LEGISLATIVE HISTORY--H.R. 674:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-253 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 157 (2011):
Oct. 27, considered and passed House.
Nov. 8-10, considered and passed Senate, amended.
Nov. 16, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2011):
Nov. 21, Presidential remarks.