II 

116TH CONGRESS 

2D SESSION S. 4214 

To provide a payroll tax credit for certain expenses associated with protecting 

employees from COVID–19. 

IN THE SENATE OF THE UNITED STATES 

JULY 20, 2020 

Mr. PORTMAN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide a payroll tax credit for certain expenses 

associated with protecting employees from COVID–19. 

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

3 SECTION 1. HEALTHY WORKPLACE TAX CREDIT. 

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

5 shall be allowed as a credit against applicable employment 

6 taxes for each calendar quarter an amount equal to 50 

7 percent of the sum of— 

8 (1) the qualified employee protection expenses 

9 paid or incurred by the employer during such cal10 endar quarter, and 


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1 (2) the qualified workplace reconfiguration ex2 penses paid or incurred by the employer during such 

3 calendar quarter. 

4 (b) LIMITATIONS AND REFUNDABILITY.— 

5 (1) OVERALL DOLLAR LIMITATION ON CRED6 IT.— 

7 (A) IN GENERAL.—The amount of the 

8 credit allowed under subsection (a) with respect 

9 to any employer for any calendar quarter shall 

10 not exceed the excess (if any) of— 

11 (i) the applicable dollar limit with re12 spect to such employer for such calendar 

13 quarter, over 

14 (ii) the aggregate credits allowed 

15 under subsection (a) with respect to such 

16 employer for all preceding calendar quar17 ters. 

18 (B) APPLICABLE DOLLAR LIMIT.—The 

19 term ‘‘applicable dollar limit’’ means, with re20 spect to any employer for any calendar quarter, 

21 the sum of— 

22 (i) $1,000, multiplied by so much of 

23 the average number of full-time employees 

24 (as determined for purposes of determining 

25 whether an employer is an applicable large 


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1 employer for purposes of section 

2 4980H(c)(2) of the Internal Revenue Code 

3 of 1986, except that an individual shall not 

4 be taken into account as an employee for 

5 any period during which substantially all of 

6 the services provided by such individual as 

7 an employee are provided outside the 

8 United States) employed by such employer 

9 during such calendar quarter as does not 

10 exceed 500, plus 

11 (ii) $750, multiplied by so much of 

12 such average number of full-time employ13 ees as exceeds 500 but does not exceed 

14 1,000, plus 

15 (iii) $500, multiplied by so much of 

16 such average number of full-time employ17 ees as exceeds 1,000. 

18 (2) CREDIT LIMITED TO EMPLOYMENT

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

20 respect to any calendar quarter shall not exceed the 

21 applicable employment taxes (reduced by any credits 

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

23 3111 of the Internal Revenue Code of 1986, sections 

24 7001 and 7003 of the Families First Coronavirus 

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


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1 on the wages paid with respect to the employment 

2 of all the employees of the employer for such cal3 endar quarter. 

4 (3) REFUNDABILITY OF EXCESS CREDIT.— 

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

6 credit under subsection (a) exceeds the limita7 tion of paragraph (2) for any calendar quarter, 

8 such excess shall be treated as an overpayment 

9 that shall be refunded under sections 6402(a) 

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

11 1986. 

12 (B) TREATMENT OF PAYMENTS.—For pur13 poses of section 1324 of title 31, United States 

14 Code, any amounts due to the employer under 

15 this paragraph shall be treated in the same 

16 manner as a refund due from a credit provision 

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

18 (c) QUALIFIED EMPLOYEE PROTECTION EX19 PENSES.—For purposes of this section, the term ‘‘quali20 fied employee protection expenses’’ means amounts (other 

21 than any qualified workplace reconfiguration expense) 

22 paid or incurred by the employer for— 

23 (1) testing employees of the employer for 

24 COVID–19 (including on a periodic basis), 


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1 (2) equipment to protect employees of the em2 ployer from contracting COVID–19, including 

3 masks, gloves, and disinfectants, and 

4 (3) cleaning products or services (whether pro5 vided by an employee of the taxpayer or a cleaning 

6 service provider) related to preventing the spread of 

7 COVID–19. 

8 (d) QUALIFIED WORKPLACE RECONFIGURATION EX9 PENSES.—For purposes of this section— 

10 (1) IN GENERAL.—The term ‘‘qualified work11 place reconfiguration expenses’’ means amounts paid 

12 or incurred by the employer to design and recon13 figure retail space, work areas, break areas, or other 

14 areas that employees or customers regularly use in 

15 the ordinary course of the employer’s trade or busi16 ness if such design and reconfiguration— 

17 (A) has a primary purpose of preventing 

18 the spread of COVID–19, 

19 (B) is with respect to an area that is lo20 cated in the United States and that is leased or 

21 owned by the employer, 

22 (C) is consistent with the ordinary use of 

23 the property immediately before the reconfig24 uration, 


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1 (D) is commensurate with the risks faced 

2 by the employees or customers or is consistent 

3 with recommendations made by the Centers for 

4 Disease Control and Prevention or the Occupa5 tional Safety and Health Administration, 

6 (E) is completed pursuant to a reconfig7 uration plan and no comparable reconfiguration 

8 plan was in place before March 13, 2020, and 

9 (F) is completed before January 1, 2021. 

10 (2) REGULATIONS.—The Secretary shall pre11 scribe such regulations and other guidance as may 

12 be necessary or appropriate to carry out the pur13 poses of this subsection, including guidance defining 

14 primary purpose and reconfiguration plan. 

15 (e) OTHER DEFINITIONS.—For purposes of this sec16 tion— 

17 (1) APPLICABLE EMPLOYMENT TAXES.—The 

18 term ‘‘applicable employment taxes’’ means the fol19 lowing: 

20 (A) The taxes imposed under section 

21 3111(a) of the Internal Revenue Code of 1986. 

22 (B) So much of the taxes imposed under 

23 section 3221(a) of such Code as are attrib24 utable to the rate in effect under section 

25 3111(a) of such Code. 


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1 (2) COVID–19.—Except where the context 

2 clearly indicates otherwise, any reference in this sec3 tion to COVID–19 shall be treated as including a 

4 reference to the virus which causes COVID–19. 

5 (3) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of the Treasury or the Secretary’s del7 egate. 

8 (4) OTHER TERMS.—Any term used in this sec9 tion (other than subsection (b)(1)(B)) which is also 

10 used in chapter 21 or 22 of the Internal Revenue 

11 Code of 1986 shall have the same meaning as when 

12 used in such chapter. 

13 (f) CERTAIN GOVERNMENTAL EMPLOYERS.—This 

14 section shall not apply to the Government of the United 

15 States, the government of any State or political subdivi16 sion thereof, or any agency or instrumentality of any of 

17 the foregoing. 

18 (g) SPECIAL RULES.— 

19 (1) AGGREGATION RULE.—All persons treated 

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

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

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

23 shall be treated as one employer for purposes of this 

24 section. 


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1 (2) DENIAL OF DOUBLE BENEFIT.—Rules simi2 lar to the rules of section 280C(a) of the Internal 

3 Revenue Code of 1986 shall apply for purposes of 

4 this section. 

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

6 under this section shall be treated as a credit de7 scribed in section 3511(d)(2) of such Code. 

8 (4) ELECTION NOT TO HAVE SECTION APPLY.— 

9 This section shall not apply with respect to any em10 ployer for any calendar quarter if such employer 

11 elects (at such time and in such manner as the Sec12 retary may prescribe) not to have this section apply. 

13 (h) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

14 are hereby appropriated to the Federal Old-Age and Sur15 vivors Insurance Trust Fund and the Federal Disability 

16 Insurance Trust Fund established under section 201 of 

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

18 Security Equivalent Benefit Account established under 

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

20 (45 U.S.C. 14 231n–1(a)) amounts equal to the reduction 

21 in revenues to the Treasury by reason of this section 

22 (without regard to this subsection). Amounts appropriated 

23 by the preceding sentence shall be transferred from the 

24 general fund at such times and in such manner as to rep25 licate to the extent possible the transfers which would have 


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1 occurred to such Trust Fund or Account had this section 

2 not been enacted. 

3 (i) TREATMENT OF DEPOSITS.—The Secretary shall 

4 waive any penalty under section 6656 of the Internal Rev5 enue Code of 1986 for any failure to make a deposit of 

6 any applicable employment taxes if the Secretary deter7 mines that such failure was due to the reasonable anticipa8 tion of the credit allowed under this section. 

9 (j) REGULATIONS AND GUIDANCE.—The Secretary 

10 shall prescribe such regulations and other guidance as 

11 may be necessary or appropriate to carry out the purposes 

12 of this section, including— 

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

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

15 professional employer organizations, certified profes16 sional employer organizations, or agents under sec17 tion 3504 of the Internal Revenue Code of 1986), 

18 regulations or other guidance allowing such payors 

19 to submit documentation necessary to substantiate 

20 the amount of the credit allowed under subsection 

21 (a), and 

22 (2) regulations or other guidance to prevent 

23 abusive transactions. 


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1 (k) APPLICATION.—This section shall only apply to 

2 amounts paid or incurred after March 12, 2020, and be3 fore January 1, 2021. 

Æ 


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