Bipartisan legislation has been introduced into the US House of Representatives which would encourage veterans to enter into their own franchise small business. The legislation is called the Veterans Entrepreneurs Act of 2013 (HR3725). The Act provides a tax credit to veterans and their spouses equal to 25 percent of their initial franchise fee, with a cap of $100,000. If the franchised business is not 100 percent veteran-owned, the credit would be reduced to reflect the percentage of the business owned by the veteran(s). The legislation also charges the Small Business Administration and the Secretary of Veterans Affairs to publicize the availability of the tax credits in mailings and brochures sent to veterans service organizations and veteran advocacy groups. If this were to become law, the legislation would be effective for tax years beginning after December 31, 2013.
