Filtering and Retrofitting the Environment for Safe and Healthy Activities Indoors and Revenue (FRESH AIR) for Businesses Act
This bill allows employers a payroll tax credit in each calendar quarter through 2021 equal to 50% of the cost of qualified ventilation, zoning, and air filtration and purification expenses. This includes the purchase and installation of a heating, ventilation, and air conditioning system, updates to such systems, and the purchase of any air filter, air cleaner, or air purifier. The maximum amount of this credit for any employer may not exceed $15,000 for all calendar quarters.
The bill requires the Environmental Protection Agency to establish a framework and guidelines for a voluntary label to certify that air pressure, ventilation, zoning, fresh air intake, purification, or filtration systems meet the standards established by this bill.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1398 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1398
To provide a credit against payroll taxes to businesses and nonprofit
organizations that purchase or upgrade ventilation and air filtration
systems to help prevent the spread of COVID-19 and other airborne
communicable diseases.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2021
Ms. Bourdeaux (for herself and Mrs. Steel) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide a credit against payroll taxes to businesses and nonprofit
organizations that purchase or upgrade ventilation and air filtration
systems to help prevent the spread of COVID-19 and other airborne
communicable diseases.
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 ``Filtering and Retrofitting the
Environment for Safe and Healthy Activities Indoors and Revenue (FRESH
AIR) for Businesses Act''.
SEC. 2. BUSINESS VENTILATION TAX CREDIT.
(a) In General.--In the case of an employer, there shall be allowed
as a credit against applicable employment taxes for each calendar
quarter an amount equal to 50 percent of the qualified ventilation,
zoning, and air filtration and purification expenses paid or incurred
by the employer during such calendar quarter.
(b) Limitations and Refundability.--
(1) Overall dollar limitation on credit.--The amount of the
credit allowed under subsection (a) with respect to any
employer for all calendar quarters with respect to any
qualified location shall not exceed $15,000.
(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 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) Qualified Ventilation, Zoning, and Air Filtration and
Purification Expenses; Qualified Location.--For purposes of this
section--
(1) In general.--The term ``qualified ventilation, zoning,
and air filtration and purification expenses'' means amounts
paid or incurred by the employer for--
(A) the purchase and installation of a heating,
ventilation, and air conditioning system--
(i) which is placed in service at a
qualified location,
(ii) which includes indoor air quality
sensors and controls, and
(iii) which--
(I) is designed to filter air at a
rate equivalent to or in excess of a
MERV 13 or equivalent level of
filtration,
(II) uses UV-based purification, or
(III) provides a fresh air supply
at least 17 cubic feet per minute per
occupant, the ability to conduct zoning
and sub-zoning, and the ability to
direct air via directional and
controlled air outlets in order to
minimize draft air exchange between
neighboring occupants or zones,
(B) upgrading a heating, ventilation, and air
conditioning system at a qualified location which does
not meet the requirements of any item of subparagraph
(A)(iii) so that the system meets such requirements,
(C) the purchase of any--
(i) air filter--
(I) which is used in a heating,
ventilation, and air conditioning
system at a qualified location, and
(II) which filters air at a rate
equivalent to or in excess of a MERV 13
or equivalent level of filtration, or
(ii) UV light bulb which is used in a
heating, ventilation, and air conditioning
system at a qualified location,
(D) the purchase of any stand alone air cleaner or
air purifier--
(i) which is placed in service at such
qualified location by the employer,
(ii) which is capable of providing at least
5 air changes per hour at such qualified
location, and
(iii) which--
(I) is capable of using HEPA
filters,
(II) uses UV-based purification, or
(III) uses electronic air cleaners
or ionizers to clean air at a rate
equivalent to a HEPA filter, and
(E) the purchase of any--
(i) HEPA filter used in an air cleaner
described in subparagraph (D)(iii)(I),
(ii) UV light bulb used in an air purifier
described in subparagraph (D)(iii)(II), or
(iii) purification component used in an air
purifier described in subparagraph
(D)(iii)(III).
(2) Termination.--Such term shall not include any expenses
for property placed in service after December 31, 2021.
(d) Other 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) Qualified location.--The term ``qualified location''
means any location in the United States--
(A) which is leased or owned by the employer, and
(B) at which an employer conducts business.
(3) COVID-19.--Except where the context clearly indicates
otherwise, any reference in this section to COVID-19 shall be
treated as including a reference to the virus which causes
COVID-19.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or such 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.
(e) Certain Governmental Employers.--This section shall not apply
to the Government of the United States, the government of any State or
political subdivision thereof, or any agency or instrumentality of any
of the foregoing.
(f) Rules Relating to Employer, etc.--
(1) 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.
(2) Third-party payors.--Any credit allowed under
subsection (a) shall be treated as a credit described in
section 3511(d)(2) of such Code.
(g) 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 subsection (a).
(h) Denial of Double Benefit.--For purposes of chapter 1 of such
Code--
(1) the gross income of any 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, and
(2) no deduction or other benefit shall be denied or
reduced by reason of expenses taking into account for purposes
of determining the amount of the credit allowed under this
section.
(i) Election Not To Have Section Apply.--This section shall not
apply with respect to any 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.
(j) Transfers to Certain Trust Funds.--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. 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.
(k) Regulations and Guidance.--The Secretary shall prescribe such
regulations and other guidance as may be necessary or appropriate to
carry out the purposes of this section, including--
(1) 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), regulations or other guidance allowing
such payors to submit documentation necessary to substantiate
the amount of the credit allowed under subsection (a),
(2) regulations or other guidance for recapturing the
benefit of credits determined under subsection (a) in cases
where there is a subsequent adjustment to the credit determined
under such subsection, and
(3) regulations or other guidance to prevent abuse of the
purposes of this section.
(l) Application.--
(1) In general.--This section shall only apply to amounts
paid or incurred after January 31, 2020, and before January 1,
2022.
(2) Special rule for certain amounts paid or incurred in
calendar quarters ending before the date of the enactment of
this act.--For purposes of this section, in the case of any
amount paid or incurred after January 31, 2020, and on or
before the last day of the last calendar quarter ending before
the date of the enactment of this Act, such amount shall be
treated as paid or incurred on such date of enactment.
(m) Voluntary Labeling.--Not later than 90 days after the date of
the enactment of this Act, the Administrator of the Environmental
Protection Agency, in consultation with the Director of the Centers for
Disease Control and Prevention and other appropriate agencies, shall
establish a framework and guidelines for a voluntary label to certify
that air pressure ventilation, zoning, fresh air intake, purification,
or filtration systems meet the applicable standards provided under
subsection (c)(1).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Health.
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