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S.1540 - Help Veterans Own Franchises Act
A bill to amend the Internal Revenue Code of 1986 to allow credits for the purchase of franchises by veterans.
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SECTION 1. SHORT TITLE.
SEC. 2. VETERANS FRANCHISE FEE CREDIT.
‘SEC. 45S. VETERANS FRANCHISE FEE CREDIT.
‘(1) IN GENERAL- For purposes of section 38, the veterans franchise fee credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified franchise fees paid or incurred by a veteran during the taxable year.CommentsClose CommentsPermalink
‘(b) Reduction Where Franchise Not 100 Percent Veteran-Owned- In the case of any franchise in which veterans do not own 100 percent of the stock or of the capital or profits interests of the franchise, the credit under subsection (a) shall be the credit amount determined under such subsection, multiplied by the same ratio as--CommentsClose CommentsPermalink
‘(c) Qualified Franchise Fee- For purposes of this section, the term ‘qualified franchise fee’ means any one-time fee required by the franchisor when entering into a franchise agreement with a veteran as the franchisee.CommentsClose CommentsPermalink
‘(d) Other Definitions- For purposes of this section, the terms ‘franchise’, ‘franchisee’, ‘franchisor’, and ‘franchise fee’ have the meanings given such terms in part 436 of title 16, Code of Federal Regulations (as in effect on January 1, 2009).CommentsClose CommentsPermalink
(b) Credit To Be Part of General Business Credit- Section 38(b) of the Internal Revenue Code of 1986 is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink
(c) 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:CommentsClose CommentsPermalink
SEC. 3. PUBLICATION OF INFORMATION BY DEPARTMENT OF VETERANS AFFAIRS AND SMALL BUSINESS ADMINISTRATION.
The Administrator of the Small Business Administration and the Secretary of Veterans Affairs shall publicize in mailings and brochures sent to veterans service organizations and veteran advocacy groups information regarding discounted franchise fees under section 45S of the Internal Revenue Code of 1986 and other information about the program established under amendments made by this Act.CommentsClose CommentsPermalink