(e). (7) Election A qualified employer may elect to have this subsection not apply with respect to the first-year wages of any individual. Such election shall be made in such manner as the Secretary may require. . (2) Coordination with work opportunity credit Section 51(c) of such Code is amended by adding at the end the following new paragraph: (6) Coordination with payroll tax exemption for qualified veterans The credit determined under this section with respect to any qualified veteran for any taxable year shall be reduced by an amount equal to 7.65 percent of the qualified first-year wages paid or incurred by the taxpayer to such veteran during such taxable year to which section 3111(g) or 3221(d) applied. . (3) Coordination with credit for employment of qualified veterans by qualified tax-exempt organizations Section 3111(e) of such Code is amended by adding at the end the following new paragraph: (6) Election (A) In general A qualified tax-exempt organization may elect to determine the credit allowed under this section without regard to the qualified first-year wages of any individual. (B) Coordination with exemption for first-year wages of specified veterans For exemption for first-year wages of specified veterans to which this subsection does not apply, see subsection (f). . (4) Transfers to Federal Old-Age and Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 ) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraph (1). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and 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