S. 2443

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 SENATE OF THE UNITED STATES · July 24, 2025 · Sponsor: Ms. Rosen · Committee: Committee on Finance

Table of contents

• S. 2443
  • 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.
  • (5) Verification
    • For purposes of determining whether an entity qualifies as an applicable veteran-owned small business for purposes of this section, the Secretary, in consultation with the Administrator of the Small Business Administration, shall verify that the requirements described in subsection (b)(1) have been satisfied.