Veterans Jobs Opportunity Act

“45S. Veteran small business start-up credit

“(a) In general—For purposes of section 38, in the case of an applicable veteran-owned business which elects the application of this section, the veteran small business start-up credit determined under this section for any taxable year is an amount equal to 15 percent of so much of the qualified start-up expenditures of the taxpayer as does not exceed $80,000.

“(b) Applicable veteran-Owned small business—For purposes of this section—

“(1) In general—The term applicable veteran-owned small business means a small business owned and controlled by one or more veterans or spouses of veterans and the principal place of business of which is in an underserved community.

“(2) Ownership and control—The term owned and controlled means—

“(A) management and operation of the daily business, and—

“(B)

“(i) in the case of a sole proprietorship, sole ownership,

“(ii) in the case of a corporation, ownership (by vote or value) of not less than 51 percent of the stock in such corporation, or

“(iii) in the case of a partnership or joint venture, ownership of not less than 51 percent of the profits interests or capital interests in such partnership or joint venture.

“(3) Small business—The term small business means, with respect to any taxable year, any person engaged in a trade or business in the United States if—

“(A) the gross receipts of such person for the preceding taxable year did not exceed $5,000,000, or

“(B) in the case of a person to which subparagraph (A) does not apply, such person employed not more than 100 full-time employees during the preceding taxable year.

“(4) Underserved community—The term “underserved community” means any area located within—

“(A) a HUBZone (as defined in section 3(p) of the Small Business Act (15 U.S.C. 632(p))),

“(B) an empowerment zone, or enterprise community, designated under section 1391 (and without regard to whether or not such designation remains in effect),

“(C) an area of low income or moderate income (as recognized by the Federal Financial Institutions Examination Council), or

“(D) a county with persistent poverty (as classified by the Economic Research Service of the Department of Agriculture).

“(5) Veteran or spouse of veteran—The term “veteran or spouse of a veteran” has the meaning given such term by section 7(a)(31)(G)(iii) of the Small Business Act (15 U.S.C. 636(a)(31)(G)(iii)).

“(c) Qualified start-Up expenditures—For purposes of this section—

“(1) In general—The term qualified start-up expenditures means—

“(A) any start-up expenditures (as defined in section 195(c)), or

“(B) any amounts paid or incurred during the taxable year for the purchase or lease of real property, or the purchase of personal property, placed in service during the taxable year and used in the active conduct of a trade or business.

“(d) Special rules—For purposes of this section—

“(1) Year of election—The taxpayer may elect the application of this section only for the first 2 taxable years for which ordinary and necessary expenses paid or incurred in carrying on such trade or business are allowable as a deduction by the taxpayer under section 162.

“(2) Controlled groups and common control—All persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person.

“(3) No double benefit—If a credit is determined under this section with respect to any property, the basis of such property shall be reduced by the amount of the credit attributable to such property.”

“(37) the veteran small business start-up credit determined under section 45S.”