Helping Small Businesses Reopen Safely Act of 2020
This bill allows certain small business employers, tax-exempt organizations, and governmental employers a payroll tax credit for 90% of the cost of providing eligible personal protective equipment for the benefit of their employees and customers. The bill defines eligible personal protective equipment to include masks or face coverings, hand sanitizers, surface cleaners, or other items for reducing the spread of infectious diseases.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7431 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7431
To provide a payroll tax credit for personal protective equipment for
use by employees and customers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2020
Mr. Rouda (for himself and Mr. Mast) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide a payroll tax credit for personal protective equipment for
use by employees and customers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Helping Small Businesses Reopen
Safely Act of 2020''.
SEC. 2. PAYROLL TAX CREDIT FOR PERSONAL PROTECTIVE EQUIPMENT.
(a) In General.--In the case of an eligible employer, there shall
be allowed as a credit against applicable employment taxes for each
calendar quarter an amount equal to 90 percent of the amount paid or
incurred by such employer during such calendar quarter for eligible
personal protective equipment provided free of charge by such employer
for the use or for the benefit of employees and customers of such
employer.
(b) Limitations and Refundability.--
(1) Dollar limitation.--The amount of the credit allowed
under subsection (a) with respect to any eligible employer for
any calendar quarter shall not exceed the lesser of--
(A) $6,250, or
(B) the greater of--
(i) 2 percent of the employer's gross
receipts for such calendar quarter, or
(ii) 0.5 percent of the employer's gross
receipts for the employer's last taxable year
ending in 2019.
(2) Credit limited to employment taxes.--The credit allowed
by subsection (a) with respect to any calendar quarter shall
not exceed the applicable employment taxes (reduced by any
credits allowed under subsections (e) and (f) of section 3111
of the Internal Revenue Code of 1986, sections 7001 and 7003 of
the Families First Coronavirus Response Act, and section 2301
of the CARES Act) on the wages paid with respect to the
employment of all the employees of the eligible employer for
such calendar quarter.
(3) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (2)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to the employer under this paragraph shall be treated
in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such
section.
(c) Definitions.--For purposes of this section--
(1) Applicable employment taxes.--The term ``applicable
employment taxes'' means the following:
(A) The taxes imposed under section 3111(a) of the
Internal Revenue Code of 1986.
(B) So much of the taxes imposed under section
3221(a) of such Code as are attributable to the rate in
effect under section 3111(a) of such Code.
(2) Eligible employer.--
(A) In general.--The term ``eligible employer''
means, with respect to any calendar quarter, any
employer--
(i) which was carrying on a trade or
business during such calendar quarter, and
(ii) the average number of full-time
employees (within the meaning of section 4980H
of the Internal Revenue Code of 1986) employed
by such employer during such calendar quarter
was less than 500.
(B) Certain tax-exempt organizations and
governmental employers.--In the case of an organization
which is described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from tax under section
501(a) of such Code, or any governmental entity (other
than a governmental entity described in subparagraph
(D)), subparagraph (A)(i) shall apply to all operations
of such organization or government.
(C) Exclusion of certain tax-exempt
organizations.--The term ``eligible employer'' shall
not include any organization described in section
501(c)(4) of such Code unless such organization does
not participate in, or intervene in (including the
publishing or distributing of statements), any
political campaign on behalf of (or in opposition to)
any candidate for public office.
(D) Exclusion of federal and foreign governments.--
The term ``eligible employer'' shall not include the
Government of the United States, the government of any
foreign country, or any agency or instrumentality of
the foregoing.
(3) Eligible personal protective equipment.--The term
``eligible personal protective equipment'' means masks or face
coverings, goggles, face shields, respiratory protection,
gloves, gowns, shields or barriers, hand sanitizers, surface
cleaners or disinfectants, items that are intended to reduce
the spread of infectious disease, and any other supplies or
equipment that the Secretary determines appropriate for
purposes of this section after consultation with Secretary of
Health and Human Services and the Secretary of Labor.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(5) Other terms.--Any term used in this section which is
also used in chapter 21 or 22 of the Internal Revenue Code of
1986 shall have the same meaning as when used in such chapter.
(d) Aggregation Rule.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal Revenue Code
of 1986, or subsection (m) or (o) of section 414 of such Code, shall be
treated as one employer for purposes of this section.
(e) Denial of Double Benefit.--For purposes of chapter 1 of such
Code, the gross income of any eligible employer, for the taxable year
which includes the last day of any calendar quarter with respect to
which a credit is allowed under this section, shall be increased by the
amount of such credit.
(f) Election Not To Have Section Apply.--This section shall not
apply with respect to any eligible employer for any calendar quarter if
such employer elects (at such time and in such manner as the Secretary
may prescribe) not to have this section apply.
(g) Third-Party Payors.--Any credit allowed under this section
shall be treated as a credit described in section 3511(d)(2) of such
Code.
(h) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund established under section 201 of the Social Security Act (42
U.S.C. 401) and the Social Security Equivalent Benefit Account
established under section 15A(a) of the Railroad Retirement Act of 1974
(45 U.S.C. 14 231n-1(a)) amounts equal to the reduction in revenues to
the Treasury by reason of this section (without regard to this
subsection). 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 or Account had this section not been
enacted.
(i) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of the Internal Revenue Code of 1986 for any failure
to make a deposit of any applicable employment taxes if the Secretary
determines that such failure was due to the reasonable anticipation of
the credit allowed under this section.
(j) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and guidance as are necessary--
(1) to allow the advance payment of the credit under
subsection (a), subject to the limitations provided in this
section, based on such information as the Secretary shall
require,
(2) to provide for the reconciliation of such advance
payment with the amount advanced at the time of filing the
return of tax for the applicable calendar quarter or taxable
year, and
(3) with respect to the application of the credit under
subsection (a) to third-party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), including regulations or guidance
allowing such payors to submit documentation necessary to
substantiate the eligible employer status of employers that use
such payors.
(k) Application.--This section shall only apply to calendar
quarters beginning after December 31, 2019, and before January 1, 2022.
<all>
Sponsor introductory remarks on measure. (CR H2598)
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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