H.R. 1298

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to establish a small business start-up tax credit for veterans creating businesses in underserved communities.

IN THE HOUSE OF REPRESENTATIVES · February 13, 2025 · Sponsor: Mr. Davis of North Carolina · Committee: Committee on Ways and Means

Table of contents

• H.R. 1298
  • Sec. 45BB. Veteran small business start-up credit.

Sec. 45BB. Veteran small business start-up credit.

• (a) In general
  • For purposes of section 38, 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 paid or incurred by the taxpayer during such taxable year with respect to an applicable veteran-owned business as does not exceed $50,000.
• (b) Definitions
  • For purposes of this section—
    • The term applicable veteran-owned small business means a small business—
    • The term owned and controlled means—
    • The term qualified start-up expenditures means—
    • The term underserved community means any area located within—
    • The term veteran or spouse of a veteran has the meaning given such term by section 7(a)(31)(G)(ii) of the Small Business Act (, as in effect on the date of enactment of this section). 15 U.S.C. 636(a)(31)(G)(ii)
• (c) Special rules
  • For purposes of this section—
  • (1) Election to take credit
    • No credit shall be allowed under subsection (a) for any expenditures unless the taxpayer elects to have this section apply to such expenditures.
  • (2) 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.
  • (3) 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.
  • (4) 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.