placed in service during the taxable year and used in the active conduct of a trade or business. (d) Special rules For purposes of this section— (1) Year of election The taxpayer may elect the application of this section only for the first 2 taxable years for which ordinary and necessary expenses paid or incurred in carrying on such trade or business are allowable as a deduction by the taxpayer under section 162. (2) Controlled groups and common control All persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. (3) No double benefit If a credit is determined under this section with respect to any property, the basis of such property shall be reduced by the amount of the credit attributable to such property. . (b) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45V. Veteran small business start-up credit. . (c) Made part of general business credit Section 38(b) of such Code is amended by striking plus at the end of paragraph (38), by striking the period at the end of paragraph (39) and inserting , plus , and by adding at the end the following new paragraph: (40) the veteran small business start-up credit determined under section 45V. . (d) Report by Treasury Inspector General for Tax Administration Every fourth year after the date of the enactment of this Act, the Treasury Inspector General for Tax Administration shall include in one of the semiannual reports under section 5 of the Inspector General Act of 1978 with respect to such year, an evaluation of the program under section 45V of the Internal Revenue Code of 1986 (as added by this section), including an evaluation of the success of, and accountability with respect to, such program. (e) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 5007. Inspector General report on participation in FAA programs