Veterans Jobs Opportunity Act
Veterans Jobs Opportunity Act
Plain Language Summary
# Veterans Jobs Opportunity Act Summary **What It Does** This bill would provide a tax credit to help veteran-owned small businesses get started in economically disadvantaged areas. Qualifying veterans could claim a tax credit equal to 15% of their start-up expenses, up to a maximum of $50,000. The credit would cover costs like investigating a business idea, creating the business, and pre-opening expenses. **Who It Affects and Key Requirements** The bill targets veteran-owned small businesses located in underserved communities—including low-income areas, historically underutilized business zones, and counties with persistent poverty. To qualify, a business must be owned and controlled by one or more veterans (or their spouses), have annual gross receipts of $5 million or less, and employ no more than 50 full-time employees.
The tax credit would help offset initial business expenses like research, setup costs, and equipment purchases. **Current Status** HR 1298 was introduced by Rep. Donald Davis (D-NC) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives. The bill has not advanced further at this time.
CRS Official Summary
Veterans Jobs Opportunity ActThis bill allows veteran-owned small businesses in underserved communities to claim a tax credit for qualified start-up expenses in the amount of 15% (up to $50,000) of such expenses. (Conditions and limitations apply.)Under the bill, a business qualifies for the veteran small business start-up tax credit if itis owned and controlled by one or more veterans (or spouses of veterans);is located in a Historically Underutilized Business Zone (HUBZone) program area, empowerment zone or enterprise community, an area of low or moderate income, or county with persistent poverty; andhas gross receipts for the prior tax year of $5 million or less (or employed 50 or fewer full-time employees in the prior tax year).The bill generally defines qualified start-up expenses as amounts incurred or paid toinvestigate the creation or acquisition of the business,create the business,engage in activities for the production of income before the day the business opens, andpurchase or lease real property (or purchase personal property) for use in the active conduct of a trade or business.However, under the bill, the veteran small business start-up tax credit is allowed only in the first two tax years for which a business may claim a tax deduction for ordinary and necessary trade or business expenses.Finally, the bill requires the Treasury Inspector General for Tax Administration to provide an evaluation of the veteran small business start-up tax credit to Congress every four years.
Latest Action
Referred to the House Committee on Ways and Means.