II 

116TH CONGRESS 

2D SESSION S. 4807 

To amend the Internal Revenue Code of 1986 to create a refundable tax 

credit for travel expenditures, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 19, 2020 

Ms. CORTEZ MASTO (for herself and Mr. CRAMER) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to create 

a refundable tax credit for travel expenditures, and for 

other purposes. 

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 ‘‘Hospitality and Com5 merce Job Recovery Act of 2020’’. 

6 SEC. 2. ESTABLISHMENT OF TAX CREDIT TO SUPPORT THE 

7 CONVENTION AND TRADE SHOW INDUSTRY. 

8 (a) IN GENERAL.—For purposes of section 38 of the 

9 Internal Revenue Code of 1986, the convention and trade 

10 show restart credit shall be treated as a credit listed at 


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1 the end of subsection (b) of such section. For purposes 

2 of this section, the convention and trade show restart cred3 it for any taxable year is an amount equal to the sum 

4 of— 

5 (1) 50 percent of the qualified participation 

6 costs paid or incurred by a taxpayer during such 

7 taxable year, and 

8 (2) in the case of an eligible provider, 100 per9 cent of the qualified restart costs paid or incurred 

10 by such provider during such taxable year. 

11 (b) QUALIFIED PARTICIPATION COSTS.—For pur12 poses of this section, the term ‘‘qualified participation 

13 costs’’ means any costs or expenses paid or incurred by 

14 the taxpayer after December 31, 2020, for any employee 

15 or officer of the taxpayer to attend a qualified event, in16 cluding registration fees, lodging, and costs with respect 

17 to carrying out an exhibition relating to the taxpayer. 

18 Such term shall not include any costs which are not nec19 essary for the attendance of such employee or officer at 

20 such event. 

21 (c) ELIGIBLE PROVIDER; QUALIFIED RESTART

22 COSTS.—In this section— 

23 (1) ELIGIBLE PROVIDER.—The term ‘‘eligible 

24 provider’’ means any person which— 


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1 (A) provides facilities at which a qualified 

2 event may be held, or 

3 (B) sponsors or is otherwise responsible for 

4 the administration of a qualified event. 

5 (2) QUALIFIED RESTART COSTS.—The term 

6 ‘‘qualified restart costs’’ means any costs paid or in7 curred by an eligible provider after December 31, 

8 2020, in reopening after such date a facility de9 scribed in paragraph (1)(A) which was closed or 

10 forced to reduce services due to the virus SARS– 

11 CoV–2 or coronavirus disease 2019 (referred to in 

12 this section as ‘‘COVID–19’’), including— 

13 (A) any renovation, remediation, or addi14 tional labor and rental costs related to pre15 venting individuals present in such facility from 

16 contracting COVID–19, and 

17 (B) any testing of employees of the tax18 payer or guests of such facility for symptoms of 

19 COVID–19. 

20 (d) QUALIFIED EVENT.— 

21 (1) IN GENERAL.—In this section, the term 

22 ‘‘qualified event’’ means— 

23 (A) a convention, seminar, or similar meet24 ing (as such terms are used in section 274 of 

25 the Internal Revenue Code of 1986), 


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1 (B) a business meeting (as such term is 

2 used in such section), or 

3 (C) a trade show, 

4 which takes place after December 31, 2020. 

5 (2) TRADE SHOW.—For purposes of this sub6 section, the term ‘‘trade show’’ means any exhibition 

7 at which different businesses within a particular in8 dustry promote their products and services. 

9 (e) DENIAL OF DOUBLE BENEFIT.—No deduction 

10 shall be allowed under any provision of chapter 1 of the 

11 Internal Revenue Code of 1986 with respect to any 

12 amount taken in account in determining the credit allowed 

13 to a taxpayer under this section. 

14 (f) LOCATION REQUIREMENT.—No credit shall be al15 lowed under this section with respect to any qualified 

16 event unless such event is held within the United States 

17 (including any territory or possession of the United 

18 States). 

19 (g) PAYROLL CREDIT FOR NONPROFIT EMPLOY20 ERS.— 

21 (1) IN GENERAL.—In the case of an organiza22 tion which is described in section 501(c) of the In23 ternal Revenue Code of 1986 and exempt from tax 

24 under section 501(a) of such Code, the credit deter25 mined under this section shall be allowed as a credit 


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1 against applicable employment taxes paid by such 

2 organization for calendar quarters in the taxable 

3 year, and not treated as a credit listed at the end 

4 of section 38(b) of such Code. 

5 (2) LIMITATIONS AND REFUNDABILITY.— 

6 (A) CREDIT LIMITED TO EMPLOYMENT

7 TAXES.—The credit allowed by paragraph (1) 

8 with respect to calendar quarters in any taxable 

9 year shall not exceed the applicable employment 

10 taxes (reduced by any credits allowed under 

11 subsections (e) and (f) of section 3111 of the 

12 Internal Revenue Code of 1986 and sections 

13 7001 and 7003 of the Families First 

14 Coronavirus Response Act) on the wages paid 

15 with respect to the employment of all the em16 ployees of the organization for such taxable 

17 year. 

18 (B) REFUNDABILITY OF EXCESS CRED19 IT.— 

20 (i) IN GENERAL.—If the amount of 

21 the credit under paragraph (1) exceeds the 

22 limitation of subparagraph (A) for any cal23 endar quarter, such excess shall be treated 

24 as an overpayment that shall be refunded 


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1 under sections 6402(a) and 6413(b) of the 

2 Internal Revenue Code of 1986. 

3 (ii) TREATMENT OF PAYMENTS.—For 

4 purposes of section 1324 of title 31, 

5 United States Code, any amounts due to 

6 the employer under this paragraph shall be 

7 treated in the same manner as a refund 

8 due from a credit provision referred to in 

9 subsection (b)(2) of such section. 

10 (3) APPLICABLE EMPLOYMENT TAXES.—For 

11 purposes of this subsection, the term ‘‘applicable em12 ployment taxes’’ means the following: 

13 (A) The taxes imposed under section 

14 3111(a) of the Internal Revenue Code of 1986. 

15 (B) So much of the taxes imposed under 

16 section 3221(a) of such Code as are attrib17 utable to the rate in effect under section 

18 3111(a) of such Code. 

19 (h) REGULATIONS AND GUIDANCE.—The Secretary 

20 of the Treasury (or the Secretary’s delegate) may pre21 scribe such regulations and other guidance as may be ap22 propriate or necessary to carry out the purposes of this 

23 section. 


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1 (i) TERMINATION.—This section shall not apply to 

2 any costs paid or incurred in taxable years beginning after 

3 December 31, 2023. 

4 SEC. 3. IMPROVEMENTS TO EMPLOYEE RETENTION TAX 

5 CREDIT. 

6 (a) INCREASE IN CREDIT PERCENTAGE.—Section 

7 2301(a) of the CARES Act (Public Law 116–136) is 

8 amended by striking ‘‘50 percent’’ and inserting ‘‘80 per9 cent’’. 

10 (b) INCREASE IN PER EMPLOYEE LIMITATION.—Sec11 tion 2301(b)(1) of the CARES Act is amended by striking 

12 ‘‘for all calendar quarters shall not exceed $10,000.’’ and 

13 inserting ‘‘shall not exceed— 

14 ‘‘(A) $15,000 in any calendar quarter, and 

15 ‘‘(B) $45,000 in the aggregate for all cal16 endar quarters.’’. 

17 (c) MODIFICATION OF THRESHOLD FOR TREATMENT

18 AS A LARGE EMPLOYER.— 

19 (1) IN GENERAL.—Section 2301(c)(3)(A) of the 

20 CARES Act is amended— 

21 (A) by striking ‘‘for which the average 

22 number of full-time employees (within the 

23 meaning of section 4980H of the Internal Rev24 enue Code of 1986) employed by such eligible 

25 employer during 2019 was greater than 100’’ in 


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1 clause (i) and inserting ‘‘which is a large em2 ployer’’, and 

3 (B) by striking ‘‘for which the average 

4 number of full-time employees (within the 

5 meaning of section 4980H of the Internal Rev6 enue Code of 1986) employed by such eligible 

7 employer during 2019 was not greater than 

8 100’’ in clause (ii) and inserting ‘‘which is not 

9 a large employer’’. 

10 (2) LARGE EMPLOYER DEFINED.—Section 

11 2301(c) of the CARES Act is amended by redesig12 nating paragraph (6) as paragraph (7) and by in13 serting after paragraph (5) the following new para14 graph: 

15 ‘‘(6) LARGE EMPLOYER.—The term ‘large em16 ployer’ means any eligible employer if— 

17 ‘‘(A) the average number of full-time em18 ployees (as determined for purposes of section 

19 4980H(c)(2) of the Internal Revenue Code of 

20 1986) employed by such eligible employer dur21 ing calendar year 2019 was greater than 1,500, 

22 and 

23 ‘‘(B) the gross receipts (within the mean24 ing of section 448(c) of the Internal Revenue 

25 Code of 1986) of such eligible employer during 


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1 calendar year 2019 was greater than 

2 $41,500,000.’’. 

3 (d) PHASE-IN OF ELIGIBILITY BASED ON REDUC4 TION IN GROSS RECEIPTS.— 

5 (1) REDUCTION OF DECLINE IN GROSS RE6 CEIPTS NECESSARY TO QUALIFY FOR CREDIT.—Sec7 tion 2301(c)(2)(B) of the CARES Act is amended— 

8 (A) by striking ‘‘50 percent’’ in clause (i) 

9 and inserting ‘‘90 percent’’, and 

10 (B) by striking ‘‘80 percent’’ in clause (ii) 

11 and inserting ‘‘90 percent’’. 

12 (2) PHASE-IN OF CREDIT IF REDUCTION IN

13 GROSS RECEIPTS IS LESS THAN 50 PERCENT.—Sec14 tion 2301(c)(2) of the CARES Act is amended by 

15 adding at the end the following new subparagraph: 

16 ‘‘(D) PHASE-IN OF CREDIT WHERE BUSI17 NESS NOT SUSPENDED AND REDUCTION IN

18 GROSS RECEIPTS LESS THAN 50 PERCENT.— 

19 ‘‘(i) IN GENERAL.—In the case of any 

20 calendar quarter with respect to which an 

21 eligible employer would not be an eligible 

22 employer if subparagraph (B)(i) were ap23 plied by substituting ‘50 percent’ for ‘90 

24 percent’, the amount of the credit allowed 

25 under subsection (a) shall be reduced by 


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1 the amount which bears the same ratio to 

2 the amount of such credit (determined 

3 without regard to this subparagraph) as— 

4 ‘‘(I) the excess gross receipts per5 centage point amount, bears to 

6 ‘‘(II) 40 percentage points. 

7 ‘‘(ii) EXCESS GROSS RECEIPTS PER8 CENTAGE POINT AMOUNT.—For purposes 

9 of this subparagraph, the term ‘excess 

10 gross receipts percentage point amount’ 

11 means, with respect to any calendar quar12 ter, the excess of— 

13 ‘‘(I) the lowest of the gross re14 ceipts percentage point amounts with 

15 respect to any calendar quarter occur16 ring during the period described in 

17 clause (iii), over 

18 ‘‘(II) 50 percentage points. 

19 ‘‘(iii) PERIOD DESCRIBED.—For pur20 poses of applying clause (ii) to any cal21 endar quarter, the period described in this 

22 clause is the period ending with such cal23 endar quarter and beginning with the first 

24 calendar quarter during the period de25 scribed in subparagraph (B). 


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1 ‘‘(iv) GROSS RECEIPTS PERCENTAGE

2 POINT AMOUNTS.—For purposes of this 

3 subparagraph, the term ‘gross receipts per4 centage point amount’ means, with respect 

5 to any calendar quarter, the percentage 

6 (expressed as a number of percentage 

7 points) obtained by dividing— 

8 ‘‘(I) the gross receipts (within 

9 the meaning of subparagraph (B)) for 

10 such calendar quarter, by 

11 ‘‘(II) the gross receipts for the 

12 same calendar quarter in calendar 

13 year 2019.’’. 

14 (3) GROSS RECEIPTS OF TAX-EXEMPT ORGANI15 ZATIONS.—Section 2301(c)(2)(C) of the CARES Act 

16 is amended— 

17 (A) by striking ‘‘of such Code, clauses (i) 

18 and (ii)(I)’’ and inserting of such Code— 

19 ‘‘(i) clauses (i) and (ii)(I)’’, 

20 (B) by striking the period at the end and 

21 inserting ‘‘, and’’, and 

22 (C) by adding at the end the following new 

23 clause: 

24 ‘‘(ii) any reference in this section to 

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1 erence to gross receipts within the meaning 

2 of section 6033 of such Code.’’. 

3 (e) MODIFICATION OF TREATMENT OF HEALTH

4 PLAN EXPENSES.— 

5 (1) IN GENERAL.—Section 2301(c)(5) of the 

6 CARES Act is amended to read as follows: 

7 ‘‘(5) WAGES.— 

8 ‘‘(A) IN GENERAL.—The term ‘wages’ 

9 means wages (as defined in section 3121(a) of 

10 the Internal Revenue Code of 1986) and com11 pensation (as defined in section 3231(e) of such 

12 Code). 

13 ‘‘(B) ALLOWANCE FOR CERTAIN HEALTH

14 PLAN EXPENSES.— 

15 ‘‘(i) IN GENERAL.—Such term shall 

16 include amounts paid or incurred by the el17 igible employer to provide and maintain a 

18 group health plan (as defined in section 

19 5000(b)(1) of the Internal Revenue Code 

20 of 1986), but only to the extent that such 

21 amounts are excluded from the gross in22 come of employees by reason of section 

23 106(a) of such Code. 

24 ‘‘(ii) ALLOCATION RULES.—For pur25 poses of this section, amounts treated as 


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1 wages under clause (i) shall be treated as 

2 paid with respect to any employee (and 

3 with respect to any period) to the extent 

4 that such amounts are properly allocable to 

5 such employee (and to such period) in such 

6 manner as the Secretary may prescribe. 

7 Except as otherwise provided by the Sec8 retary, such allocation shall be treated as 

9 properly made if made on the basis of 

10 being pro rata among periods of cov11 erage.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 2301(c)(3) of the CARES Act is amended by strik14 ing subparagraph (C). 

15 (f) QUALIFIED WAGES PERMITTED TO INCLUDE

16 AMOUNTS FOR TIP REPLACEMENT.— 

17 (1) IN GENERAL.—Section 2301(c)(3)(B) of the 

18 CARES Act is amended by inserting ‘‘(including tips 

19 which would have been deemed to be paid by the em20 ployer under section 3121(q))’’ after ‘‘would have 

21 been paid’’. 

22 (2) CONFORMING AMENDMENT.—Section 

23 2301(h)(2) of the CARES Act is amended by insert24 ing ‘‘45B or’’ before ‘‘45S’’. 


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1 (g) CERTAIN GOVERNMENTAL EMPLOYERS ELIGIBLE

2 FOR CREDIT.— 

3 (1) IN GENERAL.—Section 2301(f) of the 

4 CARES Act is amended to read as follows: 

5 ‘‘(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 

6 ‘‘(1) IN GENERAL.—The credit under this sec7 tion shall not be allowed to the Federal Government 

8 or any agency or instrumentality thereof. 

9 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

10 apply to any organization which is described in sec11 tion 501(c)(1) of the Internal Revenue Code of 1986 

12 and exempt from tax under section 501(a) of such 

13 Code. 

14 ‘‘(3) SPECIAL RULES.—In the case of any State 

15 government, Indian tribal government, or any agen16 cy, instrumentality, or political subdivision of the 

17 foregoing— 

18 ‘‘(A) clauses (i) and (ii)(I) of subsection 

19 (c)(2)(A) shall apply to all operations of such 

20 entity, and 

21 ‘‘(B) subclause (II) of subsection 

22 (c)(2)(A)(ii) shall not apply.’’. 

23 (2) COORDINATION WITH APPLICATION OF CER24 TAIN DEFINITIONS.— 


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1 (A) IN GENERAL.—Section 2301(c)(5)(A) 

2 of the CARES Act, as amended by the pre3 ceding provisions of this Act, is amended by 

4 adding at the end the following: ‘‘For purposes 

5 of the preceding sentence (other than for pur6 poses of subsection (b)(2)), wages as defined in 

7 section 3121(a) of the Internal Revenue Code 

8 of 1986 shall be determined without regard to 

9 paragraphs (1), (5), (6), (7), (8), (10), (13), 

10 (18), (19), and (22) of section 3212(b) of such 

11 Code (except with respect to services performed 

12 in a penal institution by an inmate thereof).’’. 

13 (B) CONFORMING AMENDMENTS.—Sec14 tions 2301(c)(6) of the CARES Act is amended 

15 by striking ‘‘Any term’’ and inserting ‘‘Except 

16 as otherwise provided in this section, any 

17 term’’. 

18 (h) APPLICATION OF CREDIT TO EMPLOYERS OF DO19 MESTIC WORKERS.— 

20 (1) IN GENERAL.—Section 2301(c)(2) of the 

21 CARES Act, as amended by the preceding provisions 

22 of this Act, is amended by adding at the end the fol23 lowing new subparagraph: 

24 ‘‘(E) EMPLOYERS OF DOMESTIC WORK25 ERS.—In the case of an employer with one or 


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1 more employees who perform domestic service 

2 (within the meaning of section 3121(a)(7) of 

3 such Code) in the private home of such em4 ployer, with respect to such employees— 

5 ‘‘(i) subparagraph (A) shall be ap6 plied— 

7 ‘‘(I) by substituting ‘employing 

8 an employee who performs domestic 

9 service in the private home of such 

10 employer’ for ‘carrying on a trade or 

11 business’ in clause (i) thereof, and 

12 ‘‘(II) by substituting ‘such em13 ployment’ for ‘the operation of the 

14 trade or business described in clause 

15 (i)’ in clause (ii)(I) thereof, 

16 ‘‘(III) without regard to clause 

17 (ii)(II), and 

18 ‘‘(ii) such employer shall be treated as 

19 a large employer.’’. 

20 (2) DENIAL OF DOUBLE BENEFIT.—Section 

21 2301(h)(2) of the CARES Act, as amended by pre22 ceding provisions of this Act, is amended— 

23 (A) by striking ‘‘shall not be taken into ac24 count for purposes of’’ and inserting shall not 

25 be taken into account— 


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1 ‘‘(A) for purposes of’’, 

2 (B) by striking the period at the end and 

3 inserting ‘‘, and’’, and 

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

5 ‘‘(B) if such wages are paid for domestic 

6 service described in subsection (c)(2)(E), as em7 ployment-related expenses for purposes of sec8 tion 21 of such Code. 

9 In the case of any individual who pays wages for do10 mestic service described in subsection (c)(2)(E) and 

11 receives a reimbursement for such wages which is 

12 excludible from gross income under section 129 of 

13 such Code, such wages shall not be treated as quali14 fied wages for purposes of this section.’’. 

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

16 this section shall take effect as if included in section 2301 

17 of the CARES Act. 

18 SEC. 4. REPEAL OF LIMITATION ON ENTERTAINMENT, ETC. 

19 EXPENSES RELATED TO TRADE OR BUSINESS. 

20 (a) IN GENERAL.—Section 274 of the Internal Rev21 enue Code of 1986 is amended— 

22 (1) by redesignating subsection (o) as sub23 section (p), 


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1 (2) by redesignating subsection (l), as added by 

2 section 13304(c) of Public Law 115–97, as sub3 section (o), and 

4 (3) by moving such subsection (o), as so redes5 ignated, to the location after subsection (n). 

6 (b) REPEAL.—The amendments made by subsections 

7 (a) and (b) of section 13304 of Public Law 115–97 are 

8 repealed and the provisions of law amended by such sub9 sections are restored as if such subsections had never been 

10 enacted. 

11 (c) CONFORMING AMENDMENT.—Subsection (d) of 

12 section 13304 of Public Law 115–97 is amended by strik13 ing ‘‘subsection (o) as subsection (p)’’ in paragraph (1) 

14 and inserting ‘‘subsections (o) and (p) as subsections (p) 

15 and (q), respectively’’. 

16 (d) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—The amendments made by 

18 subsections (a) and (c) and the repeal made by sub19 section (b) shall take effect on the date of the enact20 ment of this Act. 

21 (2) APPLICATION.—The provisions of law as re22 stored by subsection (b) shall apply to amounts paid 

23 or incurred in taxable years ending after the date of 

24 the enactment of this Act. 


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1 SEC. 5. ESTABLISHMENT OF TAX CREDIT TO SUPPORT THE 

2 RESTAURANT INDUSTRY. 

3 (a) IN GENERAL.—For purposes of section 38 of the 

4 Internal Revenue Code of 1986, in the case of an eligible 

5 taxpayer, the restaurant and dining restart credit shall be 

6 treated as a credit listed at the end of subsection (b) of 

7 such section. For purposes of this section, the restaurant 

8 and dining restart credit for any taxable year is an amount 

9 equal to the qualified restart costs paid or incurred by the 

10 eligible taxpayer during the taxable year. 

11 (b) ELIGIBLE TAXPAYER.—For purposes of this sec12 tion, the term ‘‘eligible taxpayer’’ means a taxpayer— 

13 (1) which owns a trade or business devoted to 

14 preparation and on-premises consumption of food 

15 and beverages, or 

16 (2) which owns property on which such a trade 

17 or business operates, if more than 50 percent of the 

18 square footage of such property is devoted to prepa19 ration of, and seating for on-premises consumption 

20 of, prepared meals. 

21 (c) QUALIFIED RESTART COSTS.—For purposes of 

22 this section, the term ‘‘qualified restart costs’’ means any 

23 costs paid or incurred by an eligible taxpayer on or after 

24 the date of the enactment of this Act in reopening a trade 

25 or business or property described in subsection (b), or in26 creasing meal and beverage services provided by such 


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1 trade or business or at such property, which was closed 

2 or forced to reduce services due to the virus SARS–CoV– 

3 2 or coronavirus disease 2019 (referred to in this section 

4 as ‘‘COVID–19’’), including— 

5 (1) any renovation, remediation, or additional 

6 labor and rental costs related to preventing individ7 uals present at such trade or business or on such 

8 property from contracting COVID–19; and 

9 (2) any testing of employees of the eligible tax10 payer or guests of such trade or business or such 

11 property for symptoms of COVID–19. 

12 For purposes of the preceding sentence, a trade or busi13 ness shall be treated as having reduced services if such 

14 trade or business reduced hours of operation, number of 

15 employees or employee hours, or capacity of seating areas, 

16 closed seating areas, or took any other measures which 

17 reduced services provided or operations of the trade or 

18 business as determined by the Secretary of the Treasury. 

19 (d) DENIAL OF DOUBLE BENEFIT.—No deduction 

20 shall be allowed under any provision of chapter 1 of the 

21 Internal Revenue Code of 1986 with respect to any 

22 amount taken in account in determining the credit allowed 

23 to a taxpayer under this section. 

24 (e) REGULATIONS AND GUIDANCE.—The Secretary 

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1 scribe such regulations and other guidance as may be ap2 propriate or necessary to carry out the purposes of this 

3 section. 

4 (f) TERMINATION.—This section shall not apply to 

5 any costs paid or incurred in taxable years beginning after 

6 December 31, 2022. 

7 SEC. 6. CREDIT FOR TRAVEL EXPENDITURES. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 is amended by inserting after section 36 the fol11 lowing new section: 

12 ‘‘SEC. 36A. CREDIT FOR TRAVEL EXPENDITURES. 

13 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in14 dividual who pays or incurs any qualified travel expenses 

15 during a taxable year, there shall be allowed as a credit 

16 against the tax imposed by this subtitle for such taxable 

17 year an amount equal to 50 percent of such expenses. 

18 ‘‘(b) LIMITATIONS.— 

19 ‘‘(1) DOLLAR LIMITATION.—The credit allowed 

20 under subsection (a) for any taxable year shall not 

21 exceed the sum of— 

22 ‘‘(A) $1,500 ($750 in the case of a mar23 ried individual filing a separate return), plus 


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1 ‘‘(B) $500 for each qualifying child (as de2 fined in section 152(c)) of the individual, but 

3 not to exceed $1,500. 

4 ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS

5 INCOME.— 

6 ‘‘(A) IN GENERAL.—The amount allowable 

7 as a credit under subsection (a) (after the ap8 plication of paragraph (1) and determined with9 out regard to this paragraph) for the taxable 

10 year shall be reduced (but not below zero) by 

11 $2 for every $50 by which the taxpayer’s modi12 fied adjusted gross income for such taxable year 

13 exceeds $75,000 ($150,000 in the case of a 

14 joint return). 

15 ‘‘(B) MODIFIED ADJUSTED GROSS IN16 COME.—The term ‘modified adjusted gross in17 come’ means the adjusted gross income of the 

18 taxpayer for the taxable year increased by any 

19 amount excluded from gross income under sec20 tion 911, 931, or 933. 

21 ‘‘(c) QUALIFIED TRAVEL EXPENSE.—For purposes 

22 of this section— 

23 ‘‘(1) IN GENERAL.—The term ‘qualified travel 

24 expense’ means any amount paid or incurred for 

25 travel within the United States which is at least 50 


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1 miles from the individual’s home and includes an 

2 overnight stay, including amounts paid or incurred 

3 for food and beverages, lodging, recreation, trans4 portation, amusement or entertainment, including 

5 live entertainment and sporting events, and gasoline. 

6 ‘‘(2) MINIMUM AMOUNT.—Any expense (deter7 mined by treating all items on a single receipt as 1 

8 expense) which is less than $25 shall not be taken 

9 into account under paragraph (1). 

10 ‘‘(3) UNITED STATES.—The term ‘United 

11 States’ includes the territories and possessions of the 

12 United States. 

13 ‘‘(4) EXCEPTION.—For purposes of paragraph 

14 (1), amounts paid with respect to a residence or 

15 other lodging owned by the individual shall not be 

16 treated as qualified travel expenses. 

17 ‘‘(d) ELECTION TO CARRY CREDIT TO PRECEDING

18 YEAR.—At the election of the taxpayer, any credit allow19 able under this section for a taxable year may be carried 

20 back (in its entirety) to the preceding taxable year and 

21 treated as a credit allowed under this subpart for such 

22 year. 

23 ‘‘(e) RESTRICTIONS.—No credit shall be allowed to 

24 an individual under subsection (a) with respect to a quali25 fied travel expense if— 


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•S 4807 IS

1 ‘‘(1) the individual receives a refund or reim2 bursement from any person for the expense, 

3 ‘‘(2) a deduction is allowed under section 162 

4 with respect to the expense, 

5 ‘‘(3) a deduction under section 151 with respect 

6 to individual is allowable to another taxpayer for 

7 such taxable year, or 

8 ‘‘(4) the individual does not attach sufficient 

9 evidence of the expense, as prescribed by the Sec10 retary, to the return of tax for such taxable year. 

11 ‘‘(f) TERMINATION.—This section shall not apply to 

12 any qualified travel expenses paid or incurred after De13 cember 31, 2023.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 for subpart C of part IV of subchapter A of chapter 1 

16 of the Internal Revenue Code of 1986 is amended by in17 serting after the item relating to section 36 the following 

18 new item: 

19 (c) CONFORMING AMENDMENT.—Section 

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

21 amended by inserting ‘‘, 36A’’ after ‘‘36’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to amounts paid or incurred after 

24 December 31, 2020. 

Æ 


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