Summary

Creates a new business tax credit — the "veteran small business start-up credit" — that allows eligible veteran-owned small businesses to claim 15% of qualifying start-up expenses, up to $50,000. Eligibility is limited by veteran (or spouse) ownership/control, small‑business size caps, and a requirement that the business be located in an underserved community. The credit is added to the general business credit rules and applies to taxable years beginning after enactment.

Key Points

• Creates a new "veteran small business start-up credit" equal to 15% of qualifying start‑up expenses, capped at $50,000 per business.
• Credit is available only to eligible veteran (or veteran‑spouse) owners who meet ownership/control and small‑business size requirements and operate in an underserved community.
• Qualifying start‑up expenses are defined in the law; taxpayers must make a statutory election and the election can be made only for limited years.
• The credit is added to the general business credit rules (affecting refundability, limitation against tax liability, and carryforward/carryback interactions).
• Treasury Inspector General for Tax Administration must evaluate the credit every four years and report on findings.
• Applies to taxable years beginning after the date of enactment.
• Targets incentives to encourage veteran entrepreneurship and new business formation in underserved communities.
• Administrative and verification requirements (veteran status, ownership, community designation) may increase compliance tasks for both taxpayers and IRS.

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