I 

116TH CONGRESS 

2D SESSION H. R. 7615 

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

employees from COVID-19. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2020 

Mr. RICE of South Carolina introduced the following bill; which was referred 

to the Committee on Ways and Means 

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, 


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

3 calendar quarter, and 

4 (3) the qualified workplace technology expenses 

5 paid or incurred by the employer during such cal6 endar quarter. 

7 (b) LIMITATIONS AND REFUNDABILITY.— 

8 (1) OVERALL DOLLAR LIMITATION ON CRED9 IT.— 

10 (A) IN GENERAL.—The amount of the 

11 credit allowed under subsection (a) with respect 

12 to any employer for any calendar quarter shall 

13 not exceed the excess (if any) of— 

14 (i) the applicable dollar limit with re15 spect to such employer for such calendar 

16 quarter, over 

17 (ii) the aggregate credits allowed 

18 under subsection (a) with respect to such 

19 employer for all preceding calendar quar20 ters. 

21 (B) APPLICABLE DOLLAR LIMIT.—The 

22 term ‘‘applicable dollar limit’’ means, with re23 spect to any employer for any calendar quarter, 

24 the sum of— 


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1 (i) $1,000, multiplied so much of the 

2 average number of employees employed by 

3 such employer during such calendar quar4 ter as does not exceed 500, plus 

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

6 such average number of employees as ex7 ceeds 500 but does not exceed 1,000, plus 

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

9 such average number of employees as ex10 ceeds 1,000. 

11 (2) CREDIT LIMITED TO EMPLOYMENT

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

13 respect to any calendar quarter shall not exceed the 

14 applicable employment taxes (reduced by any credits 

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

16 3111 of the Internal Revenue Code of 1986, sections 

17 7001 and 7003 of the Families First Coronavirus 

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

19 on the wages paid with respect to the employment 

20 of all the employees of the eligible employer for such 

21 calendar quarter. 

22 (3) REFUNDABILITY OF EXCESS CREDIT.— 

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

24 credit under subsection (a) exceeds the limita25 tion of paragraph (2) for any calendar quarter, 


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1 such excess shall be treated as an overpayment 

2 that shall be refunded under sections 6402(a) 

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

4 1986. 

5 (B) TREATMENT OF PAYMENTS.—For pur6 poses of section 1324 of title 31, United States 

7 Code, any amounts due to the employer under 

8 this paragraph shall be treated in the same 

9 manner as a refund due from a credit provision 

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

11 (c) QUALIFIED EMPLOYEE PROTECTION EX12 PENSES.—For purposes of this section, the term ‘‘quali13 fied employee protection expenses’’ means amounts paid 

14 or incurred by the employer for— 

15 (1) testing employees of the employer for 

16 COVID-19 (including on a periodic basis), 

17 (2) equipment to protect employees of the em18 ployer from contracting COVID-19, including masks, 

19 gloves, and disinfectants, and 

20 (3) cleaning products or services (whether pro21 vided by an employee of the taxpayer or a cleaning 

22 service provider) related to preventing the spread of 

23 COVID-19. 

24 (d) QUALIFIED WORKPLACE RECONFIGURATION EX25 PENSES.—For purposes of this section— 


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1 (1) IN GENERAL.—The term ‘‘qualified work2 place reconfiguration expenses’’ means amounts paid 

3 or incurred by the employer to design and recon4 figure retail space, work areas, break areas, or other 

5 areas that employees or customers regularly use in 

6 the ordinary course of the employer’s trade or busi7 ness if such design and reconfiguration— 

8 (A) has a primary purpose of preventing 

9 the spread of COVID-19, 

10 (B) is with respect to an area that is lo11 cated in the United States and that is leased or 

12 owned by the employer, 

13 (C) is consistent with the purpose of the 

14 property immediately before the reconfigura15 tion, 

16 (D) is commensurate with the risks faced 

17 by the employees or customers or is consistent 

18 with recommendations made by the Centers for 

19 Disease Control and Prevention or the Occupa20 tional Safety and Health Administration, 

21 (E) is completed pursuant to a reconfig22 uration plan and no comparable reconfiguration 

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

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


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1 (2) REGULATIONS.—The Secretary shall pre2 scribe such regulations and other guidance as may 

3 be necessary or appropriate to carry out the pur4 poses of this subsection, including guidance defining 

5 primary purpose and reconfiguration plan. 

6 (e) QUALIFIED WORKPLACE TECHNOLOGY EX7 PENSES.—For purposes of this section— 

8 (1) IN GENERAL.—The term ‘‘qualified work9 place technology expenses’’ means amounts paid or 

10 incurred by the employer for technology systems 

11 that employees or customers use in the ordinary 

12 course of the employer’s trade or business if such 

13 technology system— 

14 (A) has a primary purpose of preventing 

15 the spread of COVID-19, 

16 (B) is used for limiting physical contact 

17 between customers and employees in the United 

18 States, 

19 (C) is commensurate with the risks faced 

20 by the employees or customers or is consistent 

21 with recommendations made by the Centers for 

22 Disease Control and Prevention or the Occupa23 tional Safety and Health Administration, 

24 (D) is acquired by the taxpayer after 

25 March 12, 2020, and is not acquired pursuant 


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1 to a written binding contract entered into be2 fore such date, and 

3 (E) is placed in service by the taxpayer be4 fore January 1, 2021. 

5 (2) TECHNOLOGY SYSTEMS.—The term ‘‘tech6 nology systems’’ means computer software (as de7 fined in section 167(f)(1)) and qualified techno8 logical equipment (as defined in section 168(i)(2)). 

9 (3) REGULATIONS.—The Secretary shall pre10 scribe such regulations and other guidance as may 

11 be necessary or appropriate to carry out the pur12 poses of this subsection, including guidance defining 

13 primary purpose. 

14 (f) OTHER DEFINITIONS.—For purposes of this sec15 tion— 

16 (1) APPLICABLE EMPLOYMENT TAXES.—The 

17 term ‘‘applicable employment taxes’’ means the fol18 lowing: 

19 (A) The taxes imposed under section 

20 3111(a) of the Internal Revenue Code of 1986. 

21 (B) So much of the taxes imposed under 

22 section 3221(a) of such Code as are attrib23 utable to the rate in effect under section 

24 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 (g) CERTAIN GOVERNMENTAL EMPLOYERS.—This 

14 credit 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 (h) 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. 

25 (2) DENIAL OF DOUBLE BENEFIT.— 


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1 (A) IN GENERAL.—Rules similar to the 

2 rules of paragraphs (1) and (2) of section 

3 280C(b) shall apply for purposes of this section. 

4 (B) EXPENSES NOT TAKEN INTO ACCOUNT

5 MORE THAN ONCE.—Any qualified workplace 

6 reconfiguration expense or qualified workplace 

7 technology expense shall not be treated as a 

8 qualified employee protection expense and any 

9 qualified workplace technology expense shall not 

10 be treated as a qualified workplace reconfigura11 tion expense. 

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

13 under this section shall be treated as a credit de14 scribed in section 3511(d)(2) of such Code. 

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

16 This section shall not apply with respect to any eligi17 ble employer for any calendar quarter if such em18 ployer elects (at such time and in such manner as 

19 the Secretary may prescribe) not to have this section 

20 apply. 

21 (i) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

22 are hereby appropriated to the Federal Old-Age and Sur23 vivors Insurance Trust Fund and the Federal Disability 

24 Insurance Trust Fund established under section 201 of 

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


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1 Security Equivalent Benefit Account established under 

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

3 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

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

5 regard to this subsection). Amounts appropriated by the 

6 preceding sentence shall be transferred from the general 

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

8 to the extent possible the transfers which would have oc9 curred to such Trust Fund or Account had this section 

10 not been enacted. 

11 (j) TREATMENT OF DEPOSITS.—The Secretary shall 

12 waive any penalty under section 6656 of the Internal Rev13 enue Code of 1986 for any failure to make a deposit of 

14 any applicable employment taxes if the Secretary deter15 mines that such failure was due to the reasonable anticipa16 tion of the credit allowed under this section. 

17 (k) REGULATIONS AND GUIDANCE.—The Secretary 

18 shall prescribe such regulations and other guidance as 

19 may be necessary or appropriate to carry out the purposes 

20 of this section, including— 

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

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

23 professional employer organizations, certified profes24 sional employer organizations, or agents under sec25 tion 3504 of the Internal Revenue Code of 1986), 


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1 regulations or other guidance allowing such payors 

2 to submit documentation necessary to substantiate 

3 the amount of the credit allowed under subsection 

4 (a), and 

5 (2) regulations or other guidance to prevent 

6 abusive transactions. 

7 (l) APPLICATION.—This section shall only apply to 

8 amounts paid or incurred after March 12, 2020, and be9 fore January 1, 2021. 

Æ 


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