Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1298 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1298
5	5	To amend the Internal Revenue Code of 1986 to establish a small business
6	6	start-up tax credit for veterans creating businesses in underserved com-
7	7	munities.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	FEBRUARY13, 2025
10	10	Mr. D
11	11	AVISof North Carolina (for himself and Mr. NUNNof Iowa) introduced
12	12	the following bill; which was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to establish
15	15	a small business start-up tax credit for veterans creating
16	16	businesses in underserved communities.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Veterans Jobs Oppor-4
21	21	tunity Act’’. 5
22	22	SEC. 2. VETERAN SMALL BUSINESS START-UP CREDIT. 6
23	23	(a) I
24	24	NGENERAL.—Subpart D of part IV of sub-7
25	25	chapter A of chapter 1 of the Internal Revenue Code of 8
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28	28	•HR 1298 IH
29	29	1986 is amended by adding at the end the following new 1
30	30	section: 2
31	31	‘‘SEC. 45BB. VETERAN SMALL BUSINESS START-UP CREDIT. 3
32	32	‘‘(a) I
33	33	NGENERAL.—For purposes of section 38, the 4
34	34	veteran small business start-up credit determined under 5
35	35	this section for any taxable year is an amount equal to 6
36	36	15 percent of so much of the qualified start-up expendi-7
37	37	tures paid or incurred by the taxpayer during such taxable 8
38	38	year with respect to an applicable veteran-owned business 9
39	39	as does not exceed $50,000. 10
40	40	‘‘(b) D
41	41	EFINITIONS.—For purposes of this section— 11
42	42	‘‘(1) A
43	43	PPLICABLE VETERAN -OWNED SMALL 12
44	44	BUSINESS.—The term ‘applicable veteran-owned 13
45	45	small business’ means a small business— 14
46	46	‘‘(A) owned and controlled by 1 or more 15
47	47	veterans or spouses of veterans, and 16
48	48	‘‘(B) the principal place of business of 17
49	49	which is in an underserved community. 18
50	50	‘‘(2) O
51	51	WNERSHIP AND CONTROL .—The term 19
52	52	‘owned and controlled’ means— 20
53	53	‘‘(A) with respect to any of the individuals 21
54	54	described in paragraph (1)(A), that the conduct 22
55	55	of any trade or business of the small business 23
56	56	is not a passive activity (as defined in section 24
57	57	469(c)), and 25
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61	61	‘‘(B) with respect to the small business— 1
62	62	‘‘(i) such small business is a sole pro-2
63	63	prietorship, 3
64	64	‘‘(ii) if such small business is a cor-4
65	65	poration, ownership (by vote or value) by 5
66	66	the individuals described in paragraph 6
67	67	(1)(A) of greater than 50 percent of the 7
68	68	stock in such corporation, or 8
69	69	‘‘(iii) if such small business is a part-9
70	70	nership, ownership by the individuals de-10
71	71	scribed in paragraph (1)(A) of greater 11
72	72	than 50 percent of the profits interests or 12
73	73	capital interests in such partnership. 13
74	74	‘‘(3) Q
75	75	UALIFIED START-UP EXPENDITURES .— 14
76	76	The term ‘qualified start-up expenditures’ means— 15
77	77	‘‘(A) any start-up expenditures (as defined 16
78	78	in section 195(c)), and 17
79	79	‘‘(B) any amounts paid or incurred during 18
80	80	the taxable year for the purchase or lease of 19
81	81	real property, or the purchase of personal prop-20
82	82	erty, placed in service during the taxable year 21
83	83	and used in the active conduct of a trade or 22
84	84	business. 23
85	85	‘‘(4) S
86	86	MALL BUSINESS.— 24
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89	89	•HR 1298 IH
90	90	‘‘(A) IN GENERAL.—The term ‘small busi-1
91	91	ness’ means, with respect to any taxable year, 2
92	92	any person engaged in a trade or business in 3
93	93	the United States if— 4
94	94	‘‘(i) the gross receipts of such person 5
95	95	for the preceding taxable year did not ex-6
96	96	ceed $5,000,000, or 7
97	97	‘‘(ii) in the case of a person to which 8
98	98	clause (i) does not apply, such person em-9
99	99	ployed not more than 50 full-time employ-10
100	100	ees during the preceding taxable year. 11
101	101	‘‘(B) F
102	102	ULL-TIME EMPLOYEE .—For pur-12
103	103	poses of subparagraph (A)(ii), an employee 13
104	104	shall be considered full-time if such employee is 14
105	105	employed at least 30 hours per week for 20 or 15
106	106	more calendar weeks in the taxable year. 16
107	107	‘‘(5) U
108	108	NDERSERVED COMMUNITY .—The term 17
109	109	‘underserved community’ means any area located 18
110	110	within— 19
111	111	‘‘(A) a HUBZone (as defined in section 20
112	112	3(p) of the Small Business Act (15 U.S.C. 21
113	113	632(p)), as in effect on the date of enactment 22
114	114	of this section), 23
115	115	‘‘(B) an empowerment zone, or enterprise 24
116	116	community, designated under section 1391 (and 25
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119	119	•HR 1298 IH
120	120	without regard to whether or not such designa-1
121	121	tion remains in effect), 2
122	122	‘‘(C) an area of low income or moderate in-3
123	123	come (as recognized by the Federal Financial 4
124	124	Institutions Examination Council), or 5
125	125	‘‘(D) a county with persistent poverty (as 6
126	126	classified by the Economic Research Service of 7
127	127	the Department of Agriculture). 8
128	128	‘‘(6) V
129	129	ETERAN OR SPOUSE OF VETERAN .—The 9
130	130	term ‘veteran or spouse of a veteran’ has the mean-10
131	131	ing given such term by section 7(a)(31)(G)(ii) of the 11
132	132	Small Business Act (15 U.S.C. 636(a)(31)(G)(ii), as 12
133	133	in effect on the date of enactment of this section). 13
134	134	‘‘(c) S
135	135	PECIALRULES.—For purposes of this sec-14
136	136	tion— 15
137	137	‘‘(1) E
138	138	LECTION TO TAKE CREDIT .—No credit 16
139	139	shall be allowed under subsection (a) for any ex-17
140	140	penditures unless the taxpayer elects to have this 18
141	141	section apply to such expenditures. 19
142	142	‘‘(2) Y
143	143	EAR OF ELECTION.—The taxpayer may 20
144	144	elect the application of this section only for the first 21
145	145	2 taxable years for which ordinary and necessary ex-22
146	146	penses paid or incurred in carrying on such trade or 23
147	147	business are allowable as a deduction by the tax-24
148	148	payer under section 162. 25
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152	152	‘‘(3) CONTROLLED GROUPS AND COMMON CON -1
153	153	TROL.—All persons treated as a single employer 2
154	154	under subsections (a) and (b) of section 52 shall be 3
155	155	treated as 1 person. 4
156	156	‘‘(4) N
157	157	O DOUBLE BENEFIT .—If a credit is de-5
158	158	termined under this section with respect to any 6
159	159	property, the basis of such property shall be reduced 7
160	160	by the amount of the credit attributable to such 8
161	161	property.’’. 9
162	162	(b) C
163	163	LERICALAMENDMENT.—The table of sections 10
164	164	for subpart D of part IV of subchapter A of chapter 1 11
165	165	of the Internal Revenue Code of 1986 is amended by add-12
166	166	ing at the end the following new item: 13
167	167	‘‘Sec. 45BB. Veteran small business start-up credit.’’.
168	168	(c) PART OFGENERALBUSINESSCREDIT.—Section 14
169	169	38(b) of such Code is amended by striking ‘‘plus’’ at the 15
170	170	end of paragraph (40), by striking the period at the end 16
171	171	of paragraph (41) and inserting ‘‘plus’’, and by adding 17
172	172	at the end the following new paragraph: 18
173	173	‘‘(42) the veteran small business start-up credit 19
174	174	determined under section 45BB.’’. 20
175	175	(d) R
176	176	EPORT BYTREASURYINSPECTORGENERAL 21
177	177	FORTAXADMINISTRATION.—Every fourth year after the 22
178	178	date of the enactment of this Act, the Treasury Inspector 23
179	179	General for Tax Administration shall include in one of the 24
180	180	semiannual reports under section 5 of the Inspector Gen-25
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183	183	•HR 1298 IH
184	184	eral Act of 1978 with respect to such year, an evaluation 1
185	185	of the credit allowed under section 45BB of the Internal 2
186	186	Revenue Code of 1986 (as added by this section), includ-3
187	187	ing an evaluation of the success of, and accountability with 4
188	188	respect to, such credit. 5
189	189	(e) E
190	190	FFECTIVEDATE.—The amendments made by 6
191	191	this section shall apply to taxable years beginning after 7
192	192	the date of the enactment of this Act. 8
193	193	Æ
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