Save Hotel Jobs Act
This bill requires the Department of the Treasury to award grants to hotel owners and operators to assist with payroll costs.
Applicants for a grant must provide Treasury with certain assurances, including that (1) the hotel, if in operation, experienced at least a 40% decline in revenue during a three-month period in calendar year 2020 as compared to the corresponding period in 2019; and (2) the hotel owner or operator has a policy to offer employees who have been laid off during the COVID-19 public health emergency any same or similar positions that become available as a result of receiving a grant. All grant funds must be expended during the 270-day period beginning on the date the funds are disbursed.
If the hotel owner or operator receives loans through the Paycheck Protection Program, the grant must be reduced by the amount of such loans that are forgiven under the program, including loans received on or before enactment of this bill. For federal tax purposes, the grants are not included as part of the gross income of the hotel owner or operator.
The bill also establishes a tax credit equal to 50% of the expenses a hotel owner or operator incurs for qualified personal protective equipment (up to a maximum of $25,000).
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3093 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 3093
To provide assistance to the hotel industry, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2021
Mr. Crist introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide assistance to the hotel industry, and for other purposes.
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 ``Save Hotel Jobs Act''.
SEC. 2. SUPPORTING HOTEL OPERATORS AND WORKERS THROUGH GRANTS FOR
PAYROLL COSTS.
(a) Definitions.--In this section:
(1) Covered period.--The term ``covered period'', with
respect to a grant, means the 270-day period beginning on the
date on which the grant funds have been disbursed.
(2) COVID-19 public health emergency.--The term ``COVID-19
public health emergency'' means the public health emergency
declared by the Secretary of Health and Human Services under
section 319 of the Public Health Service Act (42 U.S.C. 247d)
on January 31, 2020, with respect to COVID-19.
(3) Hotel owner or operator.--The term ``hotel owner or
operator'' means a group which is primarily engaged in owning
or operating an establishment known to the public as a hotel
that provides lodging for the general public.
(4) Laid-off employee.--The term ``laid-off employee''
means an individual whose employment with a hotel owner or
operator has been terminated during the COVID-19 public health
emergency.
(5) Payroll costs.--The term ``payroll costs'', with
respect to a hotel owner or operator--
(A) means, except as provided in subparagraph (B)--
(i) the sum of payments of any compensation
with respect to employees of the owner or
operator that is--
(I) a salary, wage, commission, or
similar compensation;
(II) a payment of cash tip or
equivalent;
(III) a payment for vacation,
parental, family, medical, or sick
leave;
(IV) an allowance for dismissal or
separation;
(V) a payment required for the
provisions of group health care or
group life, disability, vision, or
dental insurance benefits, including
insurance premiums;
(VI) a payment of any retirement
benefit; or
(VII) a payment of State or local
tax assessed on the compensation of
employees; and
(ii) the sum of payments of any
compensation with respect to employees paid by
a hotel owner or operator to a third-party
hotel management company operating the hotel
that is compensation for any of the items
described in subclauses (I) through (VII) of
clause (i); and
(iii) the sum of payments of any
compensation provided by the hotel owner or
operator to or as income of a sole proprietor
or independent contractor that is a wage,
commission, income, net earnings from self-
employment, or similar compensation; and
(B) shall not include--
(i) with respect to an individual employee,
any total payments described in subclause (I)
or (II) of subparagraph (A)(i) that are in
excess of $100,000 on an annualized basis, as
prorated for the period during which the
payments are made or the obligation to make the
payments are incurred;
(ii) with respect to a sole proprietor or
independent contractor, any total payments
described in subparagraph (A)(iii) that are in
excess of $100,000 on an annualized basis, as
prorated as described in clause (i);
(iii) taxes imposed or withheld under
chapter 21, 22, or 24 of the Internal Revenue
Code of 1986;
(iv) any compensation of an employee whose
principal place of residence is outside of the
United States;
(v) qualified sick leave wages for which a
credit is allowed under section 7001 of the
Families First Coronavirus Response Act (Public
Law 116-127); or
(vi) qualified family leave wages for which
a credit is allowed under section 7003 of the
Families First Coronavirus Response Act (Public
Law 116-127).
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(b) Grants.--
(1) In general.--The Secretary shall award grants under
this section to hotel owners or operators for the purpose of
assisting with payroll costs during the covered period in
accordance with subsection (d).
(2) Initial awards.--
(A) In general.--Each hotel owner or operator that
applies for an initial grant under this section and
meets the requirements under subsection (c) shall,
subject to funding available under subsection (h),
receive such grant.
(B) Amounts.--
(i) In general.--The Secretary shall
determine the amount of an initial grant
awarded under this section on an individualized
basis with respect to each hotel owner or
operator and in accordance with this
subparagraph.
(ii) Standard maximum amount.--The maximum
amount of an initial grant awarded under this
section to a hotel owner or operator shall,
except as provided in clause (iii), be the
lesser of--
(I) subject to clause (iv),
$20,000,000; or
(II)(aa) in the case of a grant
with respect to a hotel that was
operating for a 3-month period during
calendar year 2019, the product
obtained by multiplying by 3 the
average total monthly payments for
payroll costs of the hotel incurred in
a 3-month period, selected by the owner
or operator, during calendar year 2019;
or
(bb) in the case of a grant with
respect to a hotel that was not
operating for a 3-month period during
calendar year 2019 and was operating
for a 3-month period during calendar
year 2020, the product obtained by
multiplying by 3 the average total
monthly payments for payroll costs of
the hotel, incurred in a 3-month
period, selected by the owner or
operator, during calendar year 2020.
(iii) Special circumstances.--
(I) In general.--In the case of a
grant for a hotel that was not in
operation for a 3-month period in
calendar year 2019 or 2020, the maximum
amount of an initial grant awarded
under this section shall be the lesser
of--
(aa) subject to clause
(iv), $20,000,000; or
(bb) the amount applicable
under subclause (II), (III), or
(IV).
(II) Operating in 2019 and 2020.--
In the case of a grant with respect to
a hotel that was in operation in
calendar years 2019 and 2020, but not
in operation for a 3-month period in
either of those calendar years, the
applicable amount for purposes of
subclause (I)(bb) is--
(aa) the difference
between--
(AA) the product
obtained by multiplying
the average monthly
gross receipts of the
hotel in calendar year
2019 by 12; and
(BB) the product
obtained by multiplying
the average monthly
gross receipts of the
hotel in 2020 by 12; or
(bb) an amount based on a
formula determined by the
Secretary.
(III) Operations beginning in 2020
and prior to submission of the
application.--In the case of a grant
with respect to a hotel that began
operating during the period beginning
on January 1, 2020, and ending on the
day before the date on which the
application for the grant was submitted
under subsection (c) and that was not
in operation for a 3-month period in
calendar year 2020, the applicable
amount for purposes of subclause
(I)(bb) is--
(aa) the total amount of
fixed and operating expenses
that were incurred for the
hotel prior to the submission
of the application minus any
gross receipts received; or
(bb) an amount based on a
formula determined by the
Secretary.
(IV) Hotels not in operation as of
submission of the application.--In the
case of a grant with respect to a hotel
that is not in operation on the date on
which the application for the grant was
submitted under subsection (c), but has
incurred payroll costs as of the date
of enactment of this Act, the amount
applicable for purposes of subclause
(I)(bb) is--
(aa) the amount of such
payroll costs; or
(bb) an amount based on a
formula determined by the
Secretary.
(iv) Reduction in award for ppp loans.--In
the case that a hotel owner or operator
receives a loan guaranteed under paragraph (36)
or (37) of section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) before, on, or after the
date of enactment of this Act and is approved
for a grant under this section, the amount of
$20,000,000 applicable under clauses (ii)(I)
and (iii)(I)(aa) shall be reduced by the total
amount of loans to such owner or operator
guaranteed under such paragraph (36) or (37)
that is forgiven under--
(I) section 1106 of the CARES Act
(as in effect on the day before the
date of enactment of the Consolidated
Appropriations Act, 2021 (Public Law
116-260));
(II) section 7A of the Small
Business Act (15 U.S.C. 636m); or
(III) paragraph (37)(J) of section
7(a) of the Small Business Act (15
U.S.C. 636(a)).
(3) Supplemental awards.--
(A) In general.--The Secretary may make a
supplemental grant in accordance with this section to a
hotel owner or operator that has received an initial
grant under paragraph (2) if, in the 3-month period
following the disbursement of amounts from the initial
grant, the revenue of the hotel owner or operator is
not more than 50 percent of the revenue of the hotel
owner or operator for the corresponding 3-month period
during 2019, due to the COVID-19 pandemic.
(B) Amount.--A supplemental grant under this
paragraph shall be in the amount equal to 50 percent of
the amount of the grant received by the hotel owner or
operator under paragraph (2).
(C) Qualified owners or operators.--An owner or
operator may not receive a supplemental grant under
this paragraph if the owner or operator was not in
operation for the 3-month period in 2019 corresponding
to the 3-month period following the disbursement of
amounts from the initial grant under paragraph (2).
(c) Eligibility.--To be eligible to receive a grant under this
section, a hotel owner or operator shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary shall specify, including--
(1) in the case of an application for an initial grant, an
assurance that, if applicable, the hotel owner or operator had
a decline of not less than 40 percent in gross receipts during
any 3-month period in calendar year 2020, as compared to the
same 3-month period in calendar year 2019;
(2) an assurance the hotel owner or operator has a policy
for providing recall rights as described in subsection (e);
(3) an assurance that the hotel owner or operator will use
the funds of the grant during the covered period in accordance
with the requirement under subsection (d); and
(4) an assurance that--
(A) the hotel of the owner or operator was in
operation on the date of enactment of this Act; or
(B) if not in operation on such date, had incurred
payroll costs as of such date.
(d) Use of Funds.--A hotel owner or operator receiving a grant
under this section shall use the full amount of such grant during the
covered period for payroll costs.
(e) Recall Rights.--
(1) Policy.--
(A) In general.--The policy described in this
subsection shall, except as provided in paragraph (4),
include a requirement that the hotel owner or operator
offers to the laid-off employees of the hotel supported
by the grant all positions which become available after
the owner or operator receives funding under this
section for which the laid-off employees are qualified,
as described in subparagraph (C).
(B) Form.--The policy described in this subsection
shall be provided to laid-off employees in writing--
(i) by registered mail to the last known
physical addresses of such employees; and
(ii) by email and text message to the
extent the owner or operator possesses such
information.
(C) Qualifications for a position.--For purposes of
this subsection, a laid-off employee is qualified for a
position if the laid-off employee--
(i) held the same or a similar position
with the hotel at which the laid-off employee
was previously employed at the time of the
laid-off employee's most recent termination
from employment; or
(ii) has the requisite skill level required
for the position.
(D) Priority system.--In offering a position under
the policy described in this subsection, the hotel
owner or operator shall give priority to a laid-off
employee described in clause (i) of subparagraph (C)
over a laid-off employee described in clause (ii) of
such subparagraph. In the case that more than 1 laid-
off employee described in such clause (i), or more than
1 laid-off employee described in such clause (ii), is
eligible for the same available position, the hotel
owner or operator shall offer the position to the laid-
off employee with the greatest continued length of
service at the hotel at which the laid-off employee was
previously employed.
(E) Acceptance.--The hotel owner or operator shall
allow a laid-off employee who is offered a position
pursuant to the policy described in this subsection not
less than 7 days from the date the offer is sent to the
laid-off employee to accept or decline the offer.
(F) Multiple conditional offers.--Under the policy
described in this subsection, a hotel owner or operator
may make simultaneous, conditional offers of employment
to laid-off employees, with a final offer of employment
conditioned on application of the priority system under
subparagraph (D).
(G) Additional circumstances covered by the
policy.--A hotel owner or operator receiving a grant
under this section shall ensure that the policy under
this subsection will continue to apply in each of the
following:
(i) The ownership of the hotel is sold or
otherwise transferred to another entity
conducting the same or similar operations as
the hotel owner or operator receiving the grant
conducted prior to the sale or transfer,
including applicability with respect to any
laid-off employee who was terminated from
employment with the grant recipient prior to
the sale or transfer.
(ii) The form of organization of the hotel
owner or operator changes after the hotel owner
or operator receives the funding.
(iii) Substantially all of the assets of
the hotel owner or operator were acquired by
another entity which conducts the same or
similar operations using substantially the same
assets as the hotel owner or operator prior to
the acquisition.
(2) Rate of compensation.--A laid-off employee who returns
to employment for a hotel owner or operator pursuant to a
policy described in this subsection shall, in accordance with
paragraph (3), be compensated at a rate not less than the rate
of compensation the laid-off employee had prior to the
separation from employment.
(3) Duration of rights.--The rights described in paragraphs
(1) and (2) shall apply for a period that does not end prior to
the date that is 2 years after the date of enactment of this
Act.
(4) Exceptions.--The rights under this subsection shall not
apply--
(A) in the case of a laid-off employee whose
employment was terminated for cause;
(B) in the case of a laid-off employee who has
accepted another offer of employment after being
recalled pursuant to a policy under this subsection;
(C) in the case the position no longer exists due
to a change in circumstances of the hotel;
(D) in the case the hotel owner or operator has
made an offer of recall in accordance with the
requirements under this subsection and the laid-off
employee refuses or does not accept the position within
5 days of when the offer is sent; or
(E) in the case an applicable collective bargaining
agreement waives the rights to recall under this
subsection.
(f) Tax Treatment.--For purposes of the Internal Revenue Code of
1986--
(1) amounts awarded through a grant under this section
shall not be included in the gross income of the hotel owner or
operator that receives such amounts; and
(2) no deduction shall be denied, no tax attribute shall be
reduced, and no basis increase shall be denied, by reason of
the exclusion from gross income provided by paragraph (1).
(g) Regulations.--
(1) In general.--The Secretary shall prescribe regulations
to carry out this section, which shall include--
(A) remedial measures, including--
(i) the authority for the Secretary to
clawback funds provided through this section in
the case of violations of the requirements
under this section with respect to such funds;
and
(ii) the authority for the Secretary to
impose fines on recipients of funds under this
section who are in violation of such
requirements; and
(B) a requirement for recipients of funds under
this section to publicly disclose the amount of such
funds.
(2) Consultation with department of labor.--With respect to
the recall rights under subsection (e), the Secretary shall, in
prescribing regulations and enforcing the requirements under
this section, consult with the Secretary of Labor.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $20,000,000,000, for fiscal year 2021, to
remain available until expended, to make grants under this section.
SEC. 3. PERSONAL PROTECTIVE EQUIPMENT TAX 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:
``SEC. 45U. PERSONAL PROTECTIVE EQUIPMENT CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
personal protective equipment credit determined under this section for
the taxable year is an amount equal to 50 percent of the amount paid by
an eligible taxpayer for qualified personal protective equipment
expenses during such year.
``(b) Maximum Credit.--The credit determined under this section
with respect to any eligible taxpayer for any taxable year shall not
exceed $25,000.
``(c) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer'
means any person engaged in the business of owning or
operating a qualified hotel.
``(B) Qualified hotel.--
``(i) In general.--The term `qualified
hotel' means a lodging facility (as defined in
section 856(d)(9)(D)(ii)) for which, with
respect to each applicable month during the
taxable year, the average number of hours
worked by housekeeping staff at such facility
during such month is greater than or equal to
the average number of hours worked by the
housekeeping staff at such facility during
calendar year 2019 (as determined on an average
monthly basis).
``(ii) Applicable month.--The term
`applicable month' means any month beginning
after the date of enactment of the Save Hotel
Jobs Act.
``(C) Documentation requirements.--The Secretary
may establish such documentation requirements as are
necessary to determine eligibility for a credit under
this section.
``(2) Qualified personal protective equipment expenses.--
The term `qualified personal protective equipment expenses'
includes amounts paid or incurred--
``(A) for the purpose of reducing the risk of
Coronavirus Disease 2019 (COVID-19) transmission
between people on the premises of an eligible hotel,
including--
``(i) gloves, medical masks, N-95
respirators, eye protection, gowns and aprons,
boots or closed-toe work shoes, cleaning
detergents, hand sanitizers, cleaning products
and tools,
``(ii) retrofitting or installation of
equipment, and
``(iii) any other relevant expense the
Secretary, in consultation with the Secretary
of Health and Human Services, determines
necessary, and
``(B) at any time during a year in which, with
respect to COVID-19--
``(i) the President declares a national
emergency under the National Emergencies Act
(50 U.S.C. 1601 et seq.), or
``(ii) an emergency involving Federal
primary responsibility is determined to exist
by the President under the section 501(b) of
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5191(b)).
``(d) Denial of Double Benefit.--No deduction shall be allowed
under this chapter for any amount taken into account in determining the
credit under this section.
``(e) Denial of Credit for Counterfeit Items.--No credit shall be
allowed under this section with respect to any item if the Secretary
determines such item to be counterfeit or sold or distributed in bad
faith.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(34) the personal protective equipment credit determined
under section 45U.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Personal Protective Equipment Credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to expenses made or incurred after December 31, 2020, in taxable
years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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