S.Amdt. 929

SA 929. Mr. CASEY submitted an amendment intended to be proposed to
amendment SA 927 proposed by Mr. Reid (for Mr. Tester (for himself,
Mrs. Murray, Mr. Baucus, Ms. Stabenow, Mr. Brown of Ohio, Mr. Reid, Mr.
Akaka, Ms. Cantwell, Mr. Leahy, Mr. Casey, Mr. Coons, Mr. Menendez, Mr.
Kerry, Mr. Lautenberg, Mr. Merkley, Mr. Sanders, Mrs. Shaheen, Mr.
Bennet, Mr. Webb, Mr. Begich, Ms. Landrieu, Mr. Schumer, and Mr. Brown,
of Massachusetts)) to the bill H.R. 674, to amend the Internal Revenue
Code of 1986 to repeal the imposition of 3 percent withholding on
certain payments made to vendors by government entities, to modify the
calculation of modified adjusted gross income for purposes of
determining eligibility for certain healthcare-related programs, and
for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. VETERANS FRANCHISE FEE CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:

``SEC. 45S. VETERANS FRANCHISE FEE CREDIT.

``(a) Veterans Franchise Fee Credit.--
``(1) In general.--For purposes of section 38, the veterans
franchise fee credit determined under this section for the
taxable year is an amount equal to 25 percent of the
qualified franchise fees paid or incurred by a veteran during
the taxable year.
``(2) Limitation.--The amount allowed as a credit under
paragraph (1) with respect to the purchase of any franchise
shall not exceed $100,000.
``(b) Reduction Where Franchise Not 100 Percent Veteran-
owned.--In the case of any franchise in which veterans do not
own 100 percent of the stock or of the capital or profits
interests of the franchise, the credit under subsection (a)
shall be the credit amount determined under such subsection,
multiplied by the same ratio as--
``(1) the stock or capital or profits interests of the
franchise held by veterans, bears
``(2) to the total stock or capital or profits interests of
the franchise.

For purposes of this subsection, the spouse of a veteran
shall be treated as a veteran.
``(c) Qualified Franchise Fee.--For purposes of this
section, the term `qualified franchise fee' means any one-
time fee required by the franchisor when entering into a
franchise agreement with a veteran as the franchisee.
``(d) Other Definitions.--For purposes of this section, the
terms `franchise', `franchisee', `franchisor', and `franchise
fee' have the meanings given such terms in part 436 of title
16, Code of Federal Regulations (as in effect on January 1,
2009).
``(e) Veteran.--The term `veteran' has the meaning given
such term by section 101 of title 38, United States Code.
``(f) Election.--This section shall not apply to a taxpayer
for any taxable year if such taxpayer elects to have this
section not apply for such taxable year.''.
(b) Credit To Be Part of General Business Credit.--Section
38(b) of the Internal Revenue Code of 1986 is amended by
striking ``plus'' at the end of paragraph (35), by striking
the period at the end of paragraph (36) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(37) the veterans franchise fee credit determined under
section 45S(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new item:

``Sec. 45S. Veterans franchise fee credit.''

(d) Effective Date.--The amendments made by this section
shall apply to taxable years ending after December 31, 2010.
(e) Publication of Information by Department of Veterans
Affairs and Small Business Administration.--The Administrator
of the Small Business Administration and the Secretary of
Veterans Affairs shall publicize in mailings and brochures
sent to veterans service organizations and veteran advocacy
groups information regarding discounted franchise fees under
section 45S of the Internal Revenue Code of 1986 and other
information about the program established under amendments
made by this Act.

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