HR1298119th CongressWALLET

Veterans Jobs Opportunity Act

Sponsored By: Representative Rep. Davis, Donald G. [D-NC-1]

Introduced

Summary

This bill would create a new tax credit for veteran-owned small business start-up expenses. It would let eligible veteran-owned small businesses in underserved communities claim 15 percent of qualifying start-up costs, capped at $50,000 of expenses in a taxable year.

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  • Veterans and spouses: Eligible businesses owned and controlled by one or more veterans or their spouses could use the credit for qualified start-up expenditures, including certain startup costs and purchases or leases of property used in the business. The credit equals 15 percent of those expenditures up to $50,000.
  • Small businesses and location rules: A firm qualifies as a small business if it had no more than $5 million in prior-year gross receipts or no more than 50 full-time employees. The business must have its principal place of business in an underserved community such as HUBZones, empowerment or enterprise communities, FFIEC low or moderate income areas, or counties with persistent poverty.
  • Claiming rules and oversight: Taxpayers must elect to take the credit and may do so only in the first two taxable years when ordinary deductible business expenses are allowed. The provision would be added to the general business credit rules and requires the Treasury Inspector General for Tax Administration to report every four years on the credit’s effectiveness and accountability.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

New tax credit for veteran startups

This bill would create a start-up tax credit for veteran-owned small businesses in underserved areas. The credit would be 15% of qualifying start-up costs, up to $50,000 each year (max $7,500). The business must be owned and controlled by veterans or their spouses and meet size tests: $5,000,000 or less in last year’s receipts, or no more than 50 full-time employees. You would need to elect the credit, and it would apply only in your first two taxable years with ordinary business expenses. Qualified costs would include section 195 start-up costs and property you buy or lease and place in service; if you claim it on property, you must reduce that property’s tax basis. It would apply to tax years starting after enactment.

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Sponsors & CoSponsors

Sponsor

Rep. Davis, Donald G. [D-NC-1]

NC • D

Cosponsors

  • Rep. Nunn, Zachary [R-IA-3]

    IA • R

    Sponsored 2/13/2025

Roll Call Votes

No roll call votes available for this bill.

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