1. Short title This Act may be cited as the Veteran Entrepreneurs Act of 2018 . 2. Veterans franchise fee credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45T. Veterans franchise fee credit (a) Veterans franchise fee credit (1) In general For purposes of section 38, the veterans franchise fee credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified franchise fees paid or incurred by a veteran during the taxable year. (2) Limitation The amount allowed as a credit under paragraph (1) with respect to the purchase of any franchise shall not exceed $100,000. (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 of the capital or profits interests of the franchise, the credit under subsection (a) shall be the credit amount determined under such subsection, multiplied by the same ratio as— (1) the stock or capital or profits interests of the franchise held by veterans, bears (2) to 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 initial 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 initial fee have the meanings given such terms in part 436 of title 16, Code of Federal Regulations (as in effect on January 1, 2018). (e) Veteran The term veteran has the meaning given such term by section 101 of title 38, United States Code. (f) Transfer of credit (1) In general With respect to the credit allowed under subsection (a) for any taxable year, in the case of a veteran who— (A) has received a reduction in