II 

116TH CONGRESS 

2D SESSION S. 4290 

To provide much needed liquidity to America’s job creators. 

IN THE SENATE OF THE UNITED STATES 

JULY 23, 2020 

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

to the Committee on Finance 

A BILL 

To provide much needed liquidity to America’s job creators. 

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 ‘‘Building Businesses 

5 Back Act of 2020’’. 

6 SEC. 2. MONETIZATION OF GENERAL BUSINESS CREDITS. 

7 (a) IN GENERAL.—Section 38 of the Internal Rev8 enue Code of 1986 is amended by inserting after sub9 section (d) the following: 

10 ‘‘(e) SPECIAL RULES FOR ELIGIBLE YEARS.— 


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1 ‘‘(1) IN GENERAL.—If a taxpayer elects the ap2 plication of this subsection for any eligible taxable 

3 year— 

4 ‘‘(A) the limitation under subsection (c) 

5 shall be increased by an amount equal to the 

6 excess (if any) of— 

7 ‘‘(i) the credit allowed under sub8 section (a) for the taxable year (deter9 mined without regard to subsection (c)), 

10 over 

11 ‘‘(ii) the credit allowed under sub12 section (a) for such taxable year (deter13 mined after the application of subsection 

14 (c)), and 

15 ‘‘(B) the amount of the credit determined 

16 under section 41(a) for such taxable year shall 

17 be determined without regard to the limitation 

18 in the first sentence of section 41(g). 

19 ‘‘(2) TREATMENT OF CREDIT.—For purposes of 

20 this title (other than this section and section 39), 

21 the excess of— 

22 ‘‘(A) amount of the credit allowed solely by 

23 reason of this subsection, over 

24 ‘‘(B) net income tax (as defined in sub25 section (c)(1)) reduced by credits allowable 


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1 under subparts D (without regard to this sub2 section) and G, 

3 shall be treated as an overpayment of tax for the 

4 taxable year. 

5 ‘‘(3) ELIGIBLE TAXABLE YEAR.—For purposes 

6 of this subsection, the term ‘eligible taxable year’ 

7 means any taxable year ending in 2019 or 2020. 

8 ‘‘(4) ELECTION.—An election under paragraph 

9 (1) shall be made at such time and in such manner 

10 as the Secretary may prescribe. 

11 ‘‘(5) GUIDANCE AND REGULATIONS.—The Sec12 retary shall prescribe such regulations and guidance 

13 as may be necessary to carry out this subsection, in14 cluding regulations or guidance to prevent any dou15 ble counting of credits allowable under this section.’’. 

16 (b) ALLOWANCE OF REFUNDS.—Section 1324(b)(2) 

17 of title 31, United States Code, is amended by inserting 

18 ‘‘38(e)’’ after ‘‘36B’’. 

19 (c) CONFORMING AMENDMENT.—Section 

20 6211(b)(4)(A) of the Internal Revenue Code of 1986 is 

21 amended by inserting ‘‘38(e),’’ after ‘‘36B,’’. 

22 (d) CREDITS NOT SUBJECT TO SEQUESTRATION.— 

23 Section 255(d) of the Balanced Budget and Emergency 

24 Deficit Control Act of 1985 (2 U.S.C. 905(d)) is amend25 ed— 


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1 (1) by striking ‘‘Payments’’ and inserting the 

2 following: 

3 ‘‘(1) IN GENERAL.—Payments’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(2) GENERAL BUSINESS CREDITS.—Payments 

6 made under subsection (e) of section 38 of the Inter7 nal Revenue Code of 1986 shall be exempt from re8 duction under any order issued under this part.’’. 

9 (e) SPECIAL RULE FOR REFUNDS.— 

10 (1) IN GENERAL.—For purposes of the Internal 

11 Revenue Code of 1986, a credit or refund for which 

12 an application described in paragraph (2)(A) is filed 

13 shall be treated as made under section 6411 of such 

14 Code. 

15 (2) TENTATIVE REFUND.— 

16 (A) APPLICATION.—A taxpayer may file an 

17 application for a tentative credit or refund of 

18 any amount for which a credit or refund for 

19 any taxable year is due by reason of section 

20 38(e) of the Internal Revenue Code of 1986. 

21 Such application shall be in such manner and 

22 form as the Secretary of the Treasury (or the 

23 Secretary’s delegate) may prescribe and shall— 


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1 (i) be verified in the same manner as 

2 an application under section 6411(a) of 

3 such Code; 

4 (ii) be filed not later than the date 

5 that is 120 days after the date of the en6 actment of this Act; and 

7 (iii) set forth— 

8 (I) the amount of the credit 

9 claimed under section 38(e) of such 

10 Code for such taxable year; and 

11 (II) the amount of the refund 

12 claimed. 

13 (B) ALLOWANCE OF ADJUSTMENTS.— 

14 Within a period of 90 days from the date on 

15 which an application is filed under subpara16 graph (A), the Secretary of the Treasury (or 

17 the Secretary’s delegate) shall— 

18 (i) review the application; 

19 (ii) determine the amount of the over20 payment; and 

21 (iii) apply, credit, or refund such over22 payment, 

23 in a manner similar to the manner provided in 

24 section 6411(b) of the Internal Revenue Code 

25 of 1986. 


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1 (C) CONSOLIDATED RETURNS.—The provi2 sions of section 6411(c) of the Internal Revenue 

3 Code of 1986 shall apply to an adjustment 

4 under this paragraph to the same extent and 

5 manner as the Secretary of the Treasury (or 

6 the Secretary’s delegate) may provide. 

7 (3) APPLICATION FOR ADJUSTMENT OF OVER8 PAYMENT OF ESTIMATED INCOME TAX.—An applica9 tion for adjustment of overpayment of estimated in10 come tax under section 6425 of the Internal Rev11 enue Code of 1986 by reason of section 38(e) of 

12 such Code shall not fail to be treated as timely filed 

13 if filed not later than the date which is 120 days 

14 after the date of the enactment of this Act. 

15 (f) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years ending after De17 cember 31, 2018. 

Æ 


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