in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted. (5) Application to Railroad Retirement Taxes (A) In general Section 3221 of the Internal Revenue Code of 1986 is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: (d) Special exemption for certain veterans (1) In general In the case of first-year compensation paid by a qualified employer after the date of the enactment of this subsection with respect to having a specified veteran in the employer’s employ for services rendered to such qualified employer, the applicable percentage under subsection (a) shall be equal to the rate of tax in effect under section 3111(b) for the calendar year. (2) Limitation With respect to any specified veteran employed by a qualified employer, the amount of compensation to which paragraph (1) applies shall not exceed— (A) $125,490 in the case of an individual who is a qualified veteran by reason of section 51(d)(3)(A)(ii)(II), (B) $73,203 in the case of an individual who is a qualified veteran by reason of section 51(d)(3)(A)(iv), (C) $62,745 in the case of an individual who is a qualified veteran by reason of section 51(d)(3)(A)(ii)(I), and (D) $31,373 in the case of any other qualified veteran. (3) Qualified employer The term ‘qualified employer’ means any employer other than the United States, any State, or any political subdivision thereof, or any instrumentality of the foregoing. (4) Specified veteran For purposes of this subsection— (A) In general The term specified veteran means any individual who— (i) begins employment with a qualified employer after the date of the enactment of this subsection, (ii) certifies by signed affidavit, under penalties of perjury, that such individual is a qualified veteran and whether such individual is a qualified veteran described in subparagraph (A), (B), or (C) of paragraph (2), (iii) is not employed by the qualified