INVEST Act in plain language
1: Short title
This section would let the bill be called the "Incentives for our Nation's Veterans in Energy Sustainability Technologies Act," or the "INVEST Act," for short.
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1. Short title This Act may be cited as the Incentives for our Nation’s Veterans in Energy Sustainability Technologies Act or as the INVEST Act .
2: Work opportunity tax credit for veterans hired in the field of renewable energy
This section would replace section 51(d)(14) of the Internal Revenue Code of 1986 with a new rule about certain veterans hired in the field of renewable energy. Under the new rule, a hired individual could be treated as a member of a targeted group for the work opportunity tax credit if the individual is a "specified veteran," but only wages paid for services the veteran performs in the field of renewable energy would count as qualified wages for the credit. A veteran would qualify as a "specified veteran" if the designated local agency certifies that the veteran meets any one of three conditions: the veteran received a Department of Defense credential or certification for a military occupational specialty or skill in renewable energy, or in advanced manufacturing, machinist or welding work, or engineering; or the veteran completed a vocational degree in a field of renewable energy within the one-year period ending on the veteran's hiring date; or the veteran completed a LEED certification with the United States Green Building Council. The section would define renewable energy as resources whose fuel sources restore themselves over short periods and do not diminish, giving the sun, wind, moving water, organic plant and waste material, and the earth's heat as examples. The section would also require the Secretary of the Treasury to pay each United States possession that has a mirror code tax system, meaning its residents' income tax liability is set by reference to United States tax law as if the possession were the United States, an amount equal to the revenue the possession loses because of this amendment, based on information the possession's government supplies. For a possession without a mirror code tax system, the Secretary would have to pay the amount Treasury estimates the possession would have lost if it had used a mirror code system, but only if the possession shows Treasury that it has put in place, or at Treasury's discretion will put in place, an income tax benefit substantially equivalent to this credit. The federal credit allowed to a person for a taxable year with respect to a qualified veteran would have to be reduced by any credit or equivalent tax benefit that same person already received against a possession's income taxes for that same veteran and taxable year, so the benefit could not be claimed twice. For these purposes, "possession of the United States" would include American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the United States Virgin Islands. Payments the Treasury makes to possessions under this section would be treated the same as tax refunds paid from the permanent appropriation for income tax refunds under section 1324(b)(2) of title 31 of the United States Code. This section would apply only to individuals who begin work for the employer after December 31, 2025.
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2. Work opportunity tax credit for veterans hired in the field of renewable energy (a) In general Section 51(d)(14) of the Internal Revenue Code of 1986 is amended to read as follows: (14) Certain veterans hired in the field of renewable energy (A) In general For purposes of this subpart, an individual shall be treated as a member of a targeted group if such individual is a specified veteran, but qualified wages with respect to such individual shall include only wages attributable to services rendered in a field of renewable energy. (B) Specified veteran For purposes of this paragraph, the term specified veteran means any veteran (as defined in paragraph (3)) who is certified by the designated local agency as— (i) having received a credential or certification from the Department of Defense of military occupational specialty or skill in a field of renewable energy or with respect to advanced manufacturing, machinist or welding, or engineering, (ii) having completed a vocational degree in a field of renewable energy during the 1-year period ending on the hiring date, or (iii) having completed a LEED certification with the United States Green Building Council. (C) Renewable energy For purposes of this paragraph, renewable energy means resources that rely on fuel sources that restore themselves over short periods of time and do not diminish, including the Sun, wind, moving water, organic plant and waste material, and the Earth’s heat. . (b) Treatment of possessions (1) Payments to possessions (A) Mirror code possessions The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendment made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession of the United States. (B) Other possessions The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system the amount estimated by the Secretary of the Treasury as being equal to the loss to that possession that would have occurred by reason of the amendment made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession establishes to the satisfaction of the Secretary that the possession has implemented (or, at the discretion of the Secretary, will implement) an income tax benefit which is substantially equivalent to the income tax credit in effect after the amendments made by this section. (2) Coordination with credit allowed against united states income taxes The credit allowed against United States income taxes for any taxable year under the amendment made by this section to section 51 of the Internal Revenue Code of 1986 to any person with respect to any qualified veteran shall be reduced by the amount of any credit (or other tax benefit described in paragraph (1)(B)) allowed to such person against income taxes imposed by the possession of the United States by reason of this subsection with respect to such qualified veteran for such taxable year. (3) Definitions and special rules (A) Possession of the united states For purposes of this subsection, the term possession of the United States includes American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the United States Virgin Islands. (B) Mirror code tax system For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) Treatment of payments For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from credit provisions described in such section. (c) Effective date The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2025.