HR 2330 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for hiring veterans.CommentsClose CommentsPermalink

May 15, 2007

Mr. MCCOTTER (for himself, Mr. CARTER, Mr. PEARCE, Mr. RENZI, Mr. PORTER, Mrs. MILLER of Michigan, Mr. SHUSTER, Mr. JONES of North Carolina, Mr. MANZULLO, Mr. PAUL, and Mrs. MYRICK) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for hiring veterans.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Veterans' Employment Transition Support Act of 2007' or the `VETS Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR EMPLOYERS HIRING VETERANS.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 45O. CREDIT FOR EMPLOYERS HIRING VETERANS.

`(a) General Rule- For purposes of section 38, the military service personnel employment credit for the taxable year shall be equal to--CommentsClose CommentsPermalink





`(1) in the case of a qualified veteran, 40 percent of the qualified first-year wages with respect to such veteran for such year, andCommentsClose CommentsPermalink





`(2) in the case of a qualified disabled veteran, the applicable percentage of the qualified first-year wages with respect to such veteran for such year.CommentsClose CommentsPermalink





`(b) Veteran Taken Into Account Only Once- No credit shall be determined under subsection (a) with respect to any veteran unless such veteran has elected (in such form and manner as the Secretary may require) to have his qualified first-year wages taken into account with respect to the employer paying such wages. A veteran may make only one election under this subsection. The Secretary shall require such reporting as the Secretary determines is necessary to carry out the purposes of this subsection.CommentsClose CommentsPermalink





`(c) Qualified Wages- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified wages' means, with respect to any individual, the wages paid or incurred by the employer during the taxable year to such individual.CommentsClose CommentsPermalink





`(2) 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.CommentsClose CommentsPermalink





`(3) WAGES- The term `wages' has the meaning given such term by section 51(c), without regard to paragraph (4) thereof.CommentsClose CommentsPermalink





`(d) Qualified Veteran; Hiring Date- For purposes of this section--CommentsClose CommentsPermalink





`(1) QUALIFIED VETERAN- The term `qualified veteran' means any individual who is certified by the designated local agency (as defined in section 51(d)(11)) as being a veteran (as defined in section 51(d)(3)(B)).CommentsClose CommentsPermalink





`(2) HIRING DATE- The term `hiring date' has the meaning given such term by section 51(d).CommentsClose CommentsPermalink





`(e) Qualified Disabled Veteran; Applicable Percentage-CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified disabled veteran' means any qualified veteran who is certified by the designated local agency (as defined in section 51(d)(11)) as having a disability that has been determined under the laws administered by the Secretary of Veterans Affairs to be service-connected and that is rated by such Secretary (as of the date of the certification) as 10 percent or more disabling.CommentsClose CommentsPermalink





`(2) APPLICABLE PERCENTAGE- The term `applicable percentage' means the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

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`Percentage of disability: Applicable percentage: CommentsClose CommentsPermalink

      At least 10 but not over 20                            41 CommentsClose CommentsPermalink

      At least 20 but not over 30                            42 CommentsClose CommentsPermalink

      At least 30 but not over 40                            43 CommentsClose CommentsPermalink

      At least 40 but not over 50                            44 CommentsClose CommentsPermalink

      At least 50 but not over 60                            45 CommentsClose CommentsPermalink

      At least 60 but not over 70                            46 CommentsClose CommentsPermalink

      At least 70 but not over 80                            47 CommentsClose CommentsPermalink

      At least 80 but not over 90                            48 CommentsClose CommentsPermalink

     At least 90 but not over 100                            49 CommentsClose CommentsPermalink

                      100 percent                            50 CommentsClose CommentsPermalink

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`(f) Certain Rules To Apply- Rules similar to the rules of section 52, and subsections (d)(11), (f), (g), (i) (as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997), (j), and (k) of section 51, shall apply for purposes of this section.CommentsClose CommentsPermalink





`(g) Coordination With Work Opportunity Credit- The credit allowed under this section with respect to any qualified first-year wages shall be in addition to any credit allowed under section 51 with respect to such wages.'.CommentsClose CommentsPermalink





(b) Credit To Be Part of General Business Credit- Subsection (b) of section 38 of such Code is amended by striking `plus' at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting `, plus', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(32) the military service personnel employment credit determined under section 45O(a).'.CommentsClose CommentsPermalink





(c) Technical Amendments-CommentsClose CommentsPermalink





(1) Clause (iii) of section 41(b)(2)(D) of such Code is amended to read as follows:CommentsClose CommentsPermalink





`(iii) EXCLUSION FOR WAGES TO WHICH EMPLOYMENT CREDITS APPLY- The term `wages' shall not include any amount taken into account in determining the credit under section 45O(a) or 51(a).'.CommentsClose CommentsPermalink





(2) Subparagraph (B) of section 45A(b)(1) of such Code is amended to read as follows:CommentsClose CommentsPermalink





`(B) COORDINATION WITH OTHER EMPLOYMENT CREDITS- The term `qualified wages' shall not include wages attributable to service rendered during the 1-year period beginning with the day the individual begins work for the employer if any portion of such wages is taken into account in determining the credit under section 45O or 51.'.CommentsClose CommentsPermalink





(3) Subsection (a) of section 280C of such Code is amended by inserting `45O(a),' after `45A(a),'.CommentsClose CommentsPermalink





(4) Paragraph (3) of section 1396(c) of such Code is amended to read as follows:CommentsClose CommentsPermalink





`(3) COORDINATION WITH OTHER EMPLOYMENT CREDITS-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `qualified wages' shall not include wages taken into account in determining the credit under section 45O or 51.CommentsClose CommentsPermalink





`(B) COORDINATION WITH PARAGRAPH (2)- The $15,000 amount in paragraph (2) shall be reduced for any calendar year by the amount of wages paid or incurred during such year which are taken into account in determining the credits under sections 45O and 51.'.CommentsClose CommentsPermalink





(d) 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:CommentsClose CommentsPermalink





`Sec. 45O. Credit for employers hiring veterans.'.CommentsClose CommentsPermalink





(e) 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.CommentsClose CommentsPermalink