II 

116TH CONGRESS 

2D SESSION S. 5067 

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 SENATE OF THE UNITED STATES 

DECEMBER 18, 2020 

Ms. ROSEN (for herself and Mr. CRAMER) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Filtering and Retro5 fitting the Environment for Safe and Healthy Activities 

6 Indoors and Revenue (FRESH AIR) for Businesses Act’’. 


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1 SEC. 2. BUSINESS VENTILATION TAX CREDIT. 

2 (a) IN GENERAL.—In the case of an employer, there 

3 shall be allowed as a credit against applicable employment 

4 taxes for each calendar quarter an amount equal to 50 

5 percent of the qualified ventilation, zoning, and air filtra6 tion and purification expenses paid or incurred by the em7 ployer during such calendar quarter. 

8 (b) LIMITATIONS AND REFUNDABILITY.— 

9 (1) OVERALL DOLLAR LIMITATION ON CRED10 IT.—The amount of the credit allowed under sub11 section (a) with respect to any employer for all cal12 endar quarters with respect to any qualified location 

13 shall not exceed $15,000. 

14 (2) CREDIT LIMITED TO EMPLOYMENT

15 TAXES.—The credit allowed by subsection (a) with 

16 respect to any calendar quarter shall not exceed the 

17 applicable employment taxes (reduced by any credits 

18 allowed under subsections (e) and (f) of section 

19 3111 of the Internal Revenue Code of 1986, sections 

20 7001 and 7003 of the Families First Coronavirus 

21 Response Act, and section 2301 of the CARES Act) 

22 on the wages paid with respect to the employment 

23 of all the employees of the employer for such cal24 endar quarter. 

25 (3) REFUNDABILITY OF EXCESS CREDIT.— 


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1 (A) IN GENERAL.—If the amount of the 

2 credit under subsection (a) exceeds the limita3 tion of paragraph (2) for any calendar quarter, 

4 such excess shall be treated as an overpayment 

5 that shall be refunded under sections 6402(a) 

6 and 6413(b) of the Internal Revenue Code of 

7 1986. 

8 (B) TREATMENT OF PAYMENTS.—For pur9 poses of section 1324 of title 31, United States 

10 Code, any amounts due to the employer under 

11 this paragraph shall be treated in the same 

12 manner as a refund due from a credit provision 

13 referred to in subsection (b)(2) of such section. 

14 (c) QUALIFIED VENTILATION, ZONING, AND AIR FIL15 TRATION AND PURIFICATION EXPENSES; QUALIFIED LO16 CATION.—For purposes of this section— 

17 (1) IN GENERAL.—The term ‘‘qualified ventila18 tion, zoning, and air filtration and purification ex19 penses’’ means amounts paid or incurred by the em20 ployer for— 

21 (A) the purchase and installation of a 

22 heating, ventilation, and air conditioning sys23 tem— 

24 (i) which is placed in service at a 

25 qualified location, 


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1 (ii) which includes indoor air quality 

2 sensors and controls, and 

3 (iii) which— 

4 (I) is designed to filter air at a 

5 rate equivalent to or in excess of a 

6 MERV 13 or equivalent level of filtra7 tion, 

8 (II) uses UV-based purification, 

9 or 

10 (III) provides a fresh air supply 

11 at least 17 cubic feet per minute per 

12 occupant, the ability to conduct zon13 ing and sub-zoning, and the ability to 

14 direct air via directional and con15 trolled air outlets in order to minimize 

16 draft air exchange between neigh17 boring occupants or zones, 

18 (B) upgrading a heating, ventilation, and 

19 air conditioning system at a qualified location 

20 which does not meet the requirements of any 

21 item of subparagraph (A)(iii) so that the sys22 tem meets such requirements, 

23 (C) the purchase of any— 

24 (i) air filter— 


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1 (I) which is used in a heating, 

2 ventilation, and air conditioning sys3 tem at a qualified location, and 

4 (II) which filters air at a rate 

5 equivalent to or in excess of a MERV 

6 13 or equivalent level of filtration, or 

7 (ii) UV light bulb which is used in a 

8 heating, ventilation, and air conditioning 

9 system at a qualified location, 

10 (D) the purchase of any stand alone air 

11 cleaner or air purifier— 

12 (i) which is placed in service at such 

13 qualified location by the employer, 

14 (ii) which is capable of providing at 

15 least 5 air changes per hour at such quali16 fied location, and 

17 (iii) which— 

18 (I) is capable of using HEPA fil19 ters, 

20 (II) uses UV-based purification, 

21 or 

22 (III) uses electronic air cleaners 

23 or ionizers to clean air at a rate 

24 equivalent to a HEPA filter, and 

25 (E) the purchase of any— 


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1 (i) HEPA filter used in an air cleaner 

2 described in subparagraph (D)(iii)(I), 

3 (ii) UV light bulb used in an air puri4 fier described in subparagraph (D)(iii)(II), 

5 or 

6 (iii) purification component used in an 

7 air purifier described in subparagraph 

8 (D)(iii)(III). 

9 (2) TERMINATION.—Such term shall not in10 clude any expenses for property placed in service 

11 after December 31, 2021. 

12 (d) OTHER DEFINITIONS.—For purposes of this sec13 tion— 

14 (1) APPLICABLE EMPLOYMENT TAXES.—The 

15 term ‘‘applicable employment taxes’’ means the fol16 lowing: 

17 (A) The taxes imposed under section 

18 3111(a) of the Internal Revenue Code of 1986. 

19 (B) So much of the taxes imposed under 

20 section 3221(a) of such Code as are attrib21 utable to the rate in effect under section 

22 3111(a) of such Code. 

23 (2) QUALIFIED LOCATION.—The term ‘‘quali24 fied location’’ means any location in the United 

25 States— 


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1 (A) which is leased or owned by the em2 ployer, and 

3 (B) at which an employer conducts busi4 ness. 

5 (3) COVID–19.—Except where the context 

6 clearly indicates otherwise, any reference in this sec7 tion to COVID–19 shall be treated as including a 

8 reference to the virus which causes COVID–19. 

9 (4) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Treasury or such Secretary’s 

11 delegate. 

12 (5) OTHER TERMS.—Any term used in this sec13 tion which is also used in chapter 21 or 22 of the 

14 Internal Revenue Code of 1986 shall have the same 

15 meaning as when used in such chapter. 

16 (e) CERTAIN GOVERNMENTAL EMPLOYERS.—This 

17 section shall not apply to the Government of the United 

18 States, the government of any State or political subdivi19 sion thereof, or any agency or instrumentality of any of 

20 the foregoing. 

21 (f) RULES RELATING TO EMPLOYER, ETC.— 

22 (1) AGGREGATION RULE.—All persons treated 

23 as a single employer under subsection (a) or (b) of 

24 section 52 of the Internal Revenue Code of 1986, or 

25 subsection (m) or (o) of section 414 of such Code, 


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1 shall be treated as one employer for purposes of this 

2 section. 

3 (2) THIRD-PARTY PAYORS.—Any credit allowed 

4 under subsection (a) shall be treated as a credit de5 scribed in section 3511(d)(2) of such Code. 

6 (g) TREATMENT OF DEPOSITS.—The Secretary shall 

7 waive any penalty under section 6656 of the Internal Rev8 enue Code of 1986 for any failure to make a deposit of 

9 any applicable employment taxes if the Secretary deter10 mines that such failure was due to the reasonable anticipa11 tion of the credit allowed under subsection (a). 

12 (h) DENIAL OF DOUBLE BENEFIT.—For purposes of 

13 chapter 1 of such Code— 

14 (1) the gross income of any employer, for the 

15 taxable year which includes the last day of any cal16 endar quarter with respect to which a credit is al17 lowed under this section, shall be increased by the 

18 amount of such credit, and 

19 (2) no deduction or other benefit shall be de20 nied or reduced by reason of expenses taking into 

21 account for purposes of determining the amount of 

22 the credit allowed under this section. 

23 (i) ELECTION NOT TO HAVE SECTION APPLY.—This 

24 section shall not apply with respect to any employer for 

25 any calendar quarter if such employer elects (at such time 


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1 and in such manner as the Secretary may prescribe) not 

2 to have this section apply. 

3 (j) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

4 are hereby appropriated to the Federal Old-Age and Sur5 vivors Insurance Trust Fund and the Federal Disability 

6 Insurance Trust Fund established under section 201 of 

7 the Social Security Act (42 U.S.C. 401) and the Social 

8 Security Equivalent Benefit Account established under 

9 section 15A(a) of the Railroad Retirement Act of 1974 

10 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

11 revenues to the Treasury by reason of this section (without 

12 regard to this subsection). Amounts appropriated by the 

13 preceding sentence shall be transferred from the general 

14 fund at such times and in such manner as to replicate 

15 to the extent possible the transfers which would have oc16 curred to such Trust Fund or Account had this section 

17 not been enacted. 

18 (k) REGULATIONS AND GUIDANCE.—The Secretary 

19 shall prescribe such regulations and other guidance as 

20 may be necessary or appropriate to carry out the purposes 

21 of this section, including— 

22 (1) with respect to the application of the credit 

23 under subsection (a) to third-party payors (including 

24 professional employer organizations, certified profes25 sional employer organizations, or agents under secVerDate Sep 11 2014 02:15 Jan 10, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S5067.IS S5067

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1 tion 3504 of the Internal Revenue Code of 1986), 

2 regulations or other guidance allowing such payors 

3 to submit documentation necessary to substantiate 

4 the amount of the credit allowed under subsection 

5 (a), 

6 (2) regulations or other guidance for recap7 turing the benefit of credits determined under sub8 section (a) in cases where there is a subsequent ad9 justment to the credit determined under such sub10 section, and 

11 (3) regulations or other guidance to prevent 

12 abuse of the purposes of this section. 

13 (l) APPLICATION.— 

14 (1) IN GENERAL.—This section shall only apply 

15 to amounts paid or incurred after January 31, 2020, 

16 and before January 1, 2022. 

17 (2) SPECIAL RULE FOR CERTAIN AMOUNTS

18 PAID OR INCURRED IN CALENDAR QUARTERS END19 ING BEFORE THE DATE OF THE ENACTMENT OF

20 THIS ACT.—For purposes of this section, in the case 

21 of any amount paid or incurred after January 31, 

22 2020, and on or before the last day of the last cal23 endar quarter ending before the date of the enact24 ment of this Act, such amount shall be treated as 

25 paid or incurred on such date of enactment. 


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1 (m) VOLUNTARY LABELING.—Not later than 90 days 

2 after the date of the enactment of this Act, the Adminis3 trator of the Environmental Protection Agency, in con4 sultation with the Director of the Centers for Disease Con5 trol and Prevention and other appropriate agencies, shall 

6 establish a framework and guidelines for a voluntary label 

7 to certify that air pressure ventilation, zoning, fresh air 

8 intake, purification, or filtration systems meet the applica9 ble standards provided under subsection (c)(1). 

Æ 


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