[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2443 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2443
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 24, 2025
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.
<all>