S. 2443: Veterans Jobs Opportunity Act

This bill, known as the Veterans Jobs Opportunity Act, proposes an amendment to the Internal Revenue Code to establish a new tax credit aimed at supporting veterans who are starting small businesses in underserved communities.

Key Features of the Bill

• Veteran Small Business Start-Up Credit: The bill introduces a tax credit of 15% on qualified start-up expenditures incurred by veteran-owned businesses, up to a maximum of $50,000.
• Definitions of Eligibility:
  • Applicable Veteran-Owned Small Business: A business that is owned and controlled by one or more veterans or their spouses and has its main operations in an underserved community.
  • Qualified Start-Up Expenditures: Includes various start-up costs as defined by the existing tax code, costs related to the purchase or lease of property, and other necessary expenses to actively start and run a business.
  • Underserved Community: Defined as areas meeting certain criteria, such as low-income neighborhoods, HUBZones, empowerment zones, or regions with persistent poverty.
• Size of Business: To qualify as a "small business" under this bill, a business must either have less than $5 million in gross receipts or must employ no more than 50 full-time employees.
• Election to Claim the Credit: Businesses must elect to take advantage of this tax credit, which can only be claimed for the first two taxable years of operation where expenses are deductible.
• Verification and Reporting: The bill mandates that the Secretary of the Treasury, in consultation with the Small Business Administration, must verify that businesses meet the necessary criteria to qualify for the credit. Additionally, a report evaluating the success and accountability of the credit will be required every four years.
• Effective Date: Changes from the bill will apply to taxable years that begin after the date the Act is enacted.

Relevant Companies

None found