Veterans Jobs Opportunity Act

This bill creates a new federal income tax credit to help veterans start small businesses in underserved communities. It lets eligible owners count 15% of their qualified start-up costs, up to $50,000 in costs, as a credit on their taxes—so the maximum credit is $7,500 . To use it, the owner has to choose (elect) the credit, and it can only be taken for the first two tax years when normal business expenses are allowed as deductions .

There are guardrails. Related businesses under common control are treated as one business for the limit. If you claim the credit for certain property, you must reduce the property’s cost basis by the credit amount. The government, working with the Small Business Administration, will verify that a business really qualifies as a veteran-owned small business in an underserved area .

• Who is affected: Veterans (and in some cases spouses) who own and control a small business in an underserved community
• What changes: A new start-up tax credit equal to 15% of up to $50,000 in eligible start-up costs (max $7,500 credit)
• When it applies: Only for the first two tax years when the business starts taking normal expense deductions, and only if the owner elects to use it
• Other rules: Single limit for commonly controlled businesses, basis reduction to avoid double benefits, and federal/SBA verification of eligibility