I 

116TH CONGRESS 

2D SESSION H. R. 7707 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

uncollectible accounts of eligible wholesale distributors. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2020 

Mr. LAHOOD (for himself and Mr. PANETTA) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit for the uncollectible accounts of eligible wholesale distributors. 

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 ‘‘Providing Liquidity 

5 for Uncollectible Sales Act of 2020’’ or as the ‘‘PLUS Act 

6 of 2020’’. 

7 SEC. 2. CREDIT FOR UNCOLLECTIBLE ACCOUNTS OF ELIGI8 BLE WHOLESALE DISTRIBUTORS. 

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding after section 45T the following 

2 new section: 

3 ‘‘SEC. 45U. WHOLESALE DISTRIBUTOR UNCOLLECTIBLE AC4 COUNTS CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

6 the case of an eligible wholesale distributor, the wholesale 

7 distributor uncollectible accounts credit determined under 

8 this section for the taxable year is an amount equal to 

9 the qualified accounts receivables of such distributor which 

10 become uncollectible during such taxable year. 

11 ‘‘(b) ELIGIBLE WHOLESALE DISTRIBUTOR.—For 

12 purposes of this section, the term ‘eligible wholesale dis13 tributor’ means any person engaged in the trade or busi14 ness of selling inventory to food and beverage establish15 ments. 

16 ‘‘(c) QUALIFIED ACCOUNTS RECEIVABLE.—For pur17 poses of this section— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified ac19 counts receivable’ means any accounts receivable 

20 which was accrued pursuant to normal payment 

21 terms by an eligible wholesale distributor for the sale 

22 of inventory delivered on or before March 25, 2020, 

23 to a qualified food and beverage establishment. 

24 ‘‘(2) NORMAL PAYMENT TERMS.—An amount 

25 shall be treated as accrued pursuant to normal payVerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707

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1 ment terms if it is accrued under the applicable pay2 ment terms in effect on March 25, 2020, under an 

3 agreement established prior to that date between the 

4 eligible wholesale distributor and the qualified food 

5 and beverage establishment. 

6 ‘‘(3) PRESUMPTION OF UNCOLLECTABILITY.— 

7 For purposes of this section, a qualified accounts re8 ceivable shall be treated as becoming uncollectible 

9 during the taxable year of the eligible wholesale dis10 tributor which includes July 15, 2020, if— 

11 ‘‘(A) the qualified food and beverage estab12 lishment to which such qualified accounts re13 ceivable relates does not provide on-premises 

14 consumption pursuant to an order or rec15 ommendation of an applicable Federal, State, 

16 or municipal authority for at least 30 days dur17 ing the period beginning on March 25, 2020, 

18 and ending on July 15, 2020, and 

19 ‘‘(B) such qualified accounts receivable is 

20 not paid before the close of such taxable year. 

21 ‘‘(d) QUALIFIED FOOD AND BEVERAGE ESTABLISH22 MENT.—For purposes of this section— 

23 ‘‘(1) QUALIFIED FOOD AND BEVERAGE ESTAB24 LISHMENT.—The term ‘qualified food and beverage 

25 establishment’ means a food and beverage establishVerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707

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1 ment within the United States that ceases to provide 

2 on-premises consumption of food and beverage on or 

3 after March 25, 2020, pursuant to an order or rec4 ommendation of an applicable Federal, State, or mu5 nicipal authority. 

6 ‘‘(2) FOOD AND BEVERAGE ESTABLISHMENT.— 

7 The term ‘food and beverage establishment’ means 

8 a commercial establishment engaged in the trade or 

9 business of preparing food and beverage for con10 sumption on-premises or off-premises. 

11 ‘‘(e) INVENTORY.—For purposes of this section, the 

12 term ‘inventory’ means property described in section 

13 1221(a)(1) in the hands of the food and beverage estab14 lishments to which sold by the eligible wholesale dis15 tributor. 

16 ‘‘(f) COORDINATION WITH DEDUCTION FOR BAD

17 DEBTS.—Any amount allowed as a credit under this sec18 tion will not be allowable as a deduction under section 

19 166.’’. 

20 (b) CONFORMING AMENDMENTS.—Section 38(b) of 

21 the Internal Revenue Code of 1986 is amended by striking 

22 ‘‘plus’’ at the end of paragraph (32), by striking the period 

23 at the end of paragraph (33) and inserting ‘‘, plus’’, and 

24 by adding after paragraph (33) the following new para25 graph: 


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1 ‘‘(34) in the case of an eligible wholesale dis2 tributor (as defined in section 45U(b)), the whole3 sale distributor uncollectible accounts credit deter4 mined under section 45U(a).’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this sections shall apply to taxable years ending after 

7 March 25, 2020. 

Æ 


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