1. Short title This Act may be cited as the Veteran Entrepreneurs Act of 2017 . 2. Veterans franchising credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section: 45S. Veterans franchising credit (a) Veterans franchise fee credit (1) In general For purposes of section 38 and subject to the limitation set forth in paragraph (2), in the case of an eligible veteran or business owned by an eligible veteran, the veterans franchise fee credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified franchise fee paid or incurred by an eligible veteran in connection with the purchase of a franchise. (2) Limitation The amount of qualified franchise fee taken into account under paragraph (1) shall not exceed $400,000. (b) Reduction where franchise not 100-Percent veteran owned In the case of any franchise in which veterans do not own 100 percent of the stock or the capital or profits interests of the franchisee, the veterans franchise fee credit under subsection (a) shall be the amount which bears the same ration to the amount determined under subsection (a) (without regard to this subsection) as— (1) the stock or capital or profits interests of the franchise held by veterans, bears to (2) the total stock or capital or profits interests of the franchisee. For purposes of this subsection, the spouse of a veteran shall be treated as a veteran. (c) Qualified franchise fee For purposes of this section, the term qualified franchise fee means any one-time fee required by the franchisor when entering into a franchise agreement with a veteran as the franchisee. (d) Other definitions For purposes of this section, the terms franchise , franchisee , franchisor , and franchise fee have the meanings given such terms in part 436 of title 16, Code of Federal Regulations. (e) Eligible veteran For purposes of this section, the term eligible veteran