I 

116TH CONGRESS 

2D SESSION H. R. 7658 

To provide a payroll tax credit for certain costs of providing employees 

with testing for COVID-19. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2020 

Mr. SCHWEIKERT introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To provide a payroll tax credit for certain costs of providing 

employees with testing for 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. EMPLOYEE TESTING 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 qualified employee testing expenses paid or 

8 incurred by the employer during such calendar quarter. 

9 (b) LIMITATIONS AND REFUNDABILITY.— 


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1 (1) OVERALL DOLLAR LIMITATION ON CRED2 IT.— 

3 (A) IN GENERAL.—The amount of the 

4 credit allowed under subsection (a) with respect 

5 to any employer for any calendar quarter shall 

6 not exceed the excess (if any) of— 

7 (i) the applicable dollar limit with re8 spect to such employer for such calendar 

9 quarter, over 

10 (ii) the aggregate credits allowed 

11 under subsection (a) with respect to such 

12 employer for all preceding calendar quar13 ters. 

14 (B) APPLICABLE DOLLAR LIMIT.—The 

15 term ‘‘applicable dollar limit’’ means, with re16 spect to any employer for any calendar quarter, 

17 the sum of— 

18 (i) $500, multiplied so much of the 

19 average number of full-time employees (as 

20 determined for purposes of determining 

21 whether an employer is an applicable large 

22 employer for purposes of section 

23 4980H(c)(2) of the Internal Revenue Code 

24 of 1986, except that an individual shall not 

25 be taken into account as employee for any 


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1 period during which substantially all of the 

2 services provided by such individual as an 

3 employee are provided outside the United 

4 States) employed by such employer during 

5 such calendar quarter as does not exceed 

6 500, plus 

7 (ii) $375, multiplied by so much of 

8 such average number of full-time employ9 ees as exceeds 500 but does not exceed 

10 1,000, plus 

11 (iii) $250, multiplied by so much of 

12 such average number of full-time employ13 ees as exceeds 1,000. 

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 eligible employer for such 

24 calendar 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 EMPLOYEE TESTING EXPENSES.— 

15 For purposes of this section, the term ‘‘qualified employee 

16 testing expenses’’ means amounts paid or incurred by the 

17 employer for testing employees of the employer for 

18 COVID-19 or SARS-CoV-2 (including on a periodic 

19 basis). 

20 (d) OTHER DEFINITIONS.—For purposes of this sec21 tion— 

22 (1) APPLICABLE EMPLOYMENT TAXES.—The 

23 term ‘‘applicable employment taxes’’ means the fol24 lowing: 


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1 (A) The taxes imposed under section 

2 3111(a) of the Internal Revenue Code of 1986. 

3 (B) So much of the taxes imposed under 

4 section 3221(a) of such Code as are attrib5 utable to the rate in effect under section 

6 3111(a) of such Code. 

7 (2) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of the Treasury or the Secretary’s del9 egate. 

10 (3) OTHER TERMS.—Any term used in this sec11 tion (other than subsection (b)(1)(B)) which is also 

12 used in chapter 21 or 22 of the Internal Revenue 

13 Code of 1986 shall have the same meaning as when 

14 used in such chapter. 

15 (e) CERTAIN GOVERNMENTAL EMPLOYERS.—This 

16 credit shall not apply to the Government of the United 

17 States, the government of any State or political subdivi18 sion thereof, or any agency or instrumentality of any of 

19 the foregoing. 

20 (f) SPECIAL RULES.— 

21 (1) AGGREGATION RULE.—All persons treated 

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

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

24 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) DENIAL OF DOUBLE BENEFIT.—Rules simi4 lar to the rules of section 280C(a) of the Internal 

5 Revenue Code of 1986 shall apply for purposes of 

6 this section. 

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

8 under this section shall be treated as a credit de9 scribed in section 3511(d)(2) of such Code. 

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

11 This section shall not apply with respect to any eligi12 ble employer for any calendar quarter if such em13 ployer elects (at such time and in such manner as 

14 the Secretary may prescribe) not to have this section 

15 apply. 

16 (g) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

17 are hereby appropriated to the Federal Old-Age and Sur18 vivors Insurance Trust Fund and the Federal Disability 

19 Insurance Trust Fund established under section 201 of 

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

21 Security Equivalent Benefit Account established under 

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

23 (45 U.S.C. 14 231n–1(a)) amounts equal to the reduction 

24 in revenues to the Treasury by reason of this section 

25 (without regard to this subsection). Amounts appropriated 


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1 by the preceding sentence shall be transferred from the 

2 general fund at such times and in such manner as to rep3 licate to the extent possible the transfers which would have 

4 occurred to such Trust Fund or Account had this section 

5 not been enacted. 

6 (h) 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 this section. 

12 (i) REGULATIONS AND GUIDANCE.—The Secretary 

13 shall prescribe such regulations and other guidance as 

14 may be necessary or appropriate to carry out the purposes 

15 of this section, including— 

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

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

18 professional employer organizations, certified profes19 sional employer organizations, or agents under sec20 tion 3504 of the Internal Revenue Code of 1986), 

21 regulations or other guidance allowing such payors 

22 to submit documentation necessary to substantiate 

23 the amount of the credit allowed under subsection 

24 (a), and 


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1 (2) regulations or other guidance to prevent 

2 abusive transactions. 

3 (j) APPLICATION.—This section shall only apply to 

4 amounts paid or incurred after March 12, 2020, and be5 fore January 1, 2021. 

Æ 


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