Tax credit legislation would help veterans open their own franchises

Posted on October 01, 2010 by Franchise Gator Admin

A piece of legislation in Congress aims to make it easier for veterans to start their own franchises by providing tax credits to former soldiers.

The Help Veterans Own Franchises Act, introduced by Representatives Aaron Schock of Illinois and Leonard Boswold of Iowa seeks to change a provision in the 1986 Internal Revenue Service Code and give franchises a tax credit for allowing veterans to become franchisees. The bill, which now has more than 45 co-sponsors, will give a 50 percent tax break for franchisees on the IRS's franchising fee.

A spokesman for Representative Schock said that many veterans find purchasing a franchise out of reach and that the legislation hopes to make it more attainable.

“While franchises provide emerging entrepreneurs with important risk protections, a ready-made clientele, additional resources and guidance on how to operate a successful business within their community, these benefits are often outside the reach of veterans due to expensive franchise fees," said Schock's spokesmen Dave Natonski. "By providing an incentive for franchises to discount the franchise fee for veterans, we can grow our nation’s small businesses and stimulate economic growth.”

After they serve their country, many veterans look to find success in the business world. With the help of the government, many may soon get added benefits when trying to open their own franchises.