1. Short title
This Act may be cited as the “Veterans Hiring Act”.
Veterans Hiring Act
A BILL
To provide a payroll tax holiday for newly hired veterans.
2. Employee payroll tax holiday for newly hired veterans
In general— Subsection (d) of section 3111 of the Internal Revenue Code of 1986 is amended to read as follows:
“(d) Special exemption for eligible veterans hired during certain calendar quarters
“(1) In general—Subsection (a) shall not apply to 50 percent of the wages paid by the employer with respect to employment during the holiday period of any eligible veteran for services performed—
“(A) in a trade or business of the employer, or
“(B) in the case of an employer exempt from tax under section 501(a), in furtherance of the activities related to the purpose or function constituting the basis of the employer's exemption under such section.
“(2) Holiday period—For purposes of this subsection, the term holiday period means the period of 4 consecutive calendar quarters beginning with the first day of the first calendar quarter beginning after the date of the enactment of the Veterans Hiring Act.
“(3) Eligible veteran—For purposes of this subsection—
“(A) In general—The term eligible veteran means a veteran who—
“(i) begins work for the employer during the holiday period,
“(ii) was discharged or released from the Armed Forces of the United States under conditions other than dishonorable, and
“(iii) is not an individual described in section 51(i)(1) (applied by substituting “employer” for “taxpayer” each place it appears).
“(B) Veteran—The term veteran means any individual who—
“(i) has served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of more than 180 days, or has been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability (within the meaning of section 101 of title 38, United States Code),
“(ii) has not served on extended active duty (as such term is used in section 51(d)(3)(B)) in the Armed Forces of the United States on any day during the 60-day period ending on the hiring date, and
“(iii) provides to the employer a copy of the individual's DD Form 214, Certificate of Release or Discharge from Active Duty, that includes the nature and type of discharge.
“(4) Election—An employer may elect not to have this subsection apply. Such election shall be made in such manner as the Secretary may require.
“(5) Coordination with work opportunity credit—For coordination with the work opportunity credit, see section 51(3)(D).”
Coordination with work opportunity credit—
In general— Paragraph (3) of section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
“(D) Denial of credit for veterans subject to 50 percent payroll tax holiday—If section 3111(d)(1) (as amended by the Veterans Hiring Act) applies to any wages paid by an employer, the term qualified veteran does not include any individual who begins work for the employer during the holiday period (as defined in section 3111(d)(2)) unless the employer makes an election not to have section 3111(d) apply.”
Conforming amendment— Subsection (c) of section 51 of such Code is amended by striking paragraph (5).