Summary

Creates a new federal tax credit that helps veteran-owned small businesses pay for start-up costs. The credit equals 15% of up to $50,000 in qualified start-up expenditures (a maximum credit of $7,500) for an eligible veteran-owned business, can be elected only in the first two taxable years the business has deductible trade-or-business expenses, and applies for taxable years beginning after enactment. The bill defines who counts as an applicable veteran-owned small business, sets size limits and underserved-area rules, requires aggregation for controlled groups, reduces the tax basis of property for which the credit is claimed, adds the credit to existing general business credit rules, and directs periodic evaluations by the Treasury Inspector General for Tax Administration.

• Creates a 15% tax credit for veteran-owned small business start-up expenditures, capped at $50,000 of expenditures per year (max $7,500 credit).
• Taxpayers must elect the credit and may claim it only in the first two taxable years with deductible trade-or-business expenses.
• Defines eligible veteran-owned small businesses with gross receipts and employee-size limits and includes rules for underserved-area qualification.
• Requires aggregation for controlled groups and reduces the basis of property for which the credit is claimed.
• Adds the new credit to the general business credit rules so it interacts with other business tax credits.
• Includes periodic oversight: Treasury Inspector General for Tax Administration must evaluate the credit at least once every four years.
• Effective for taxable years beginning after enactment.