I 

117TH CONGRESS 

1ST SESSION H. R. 312 

To provide a Federal income tax credit for State income taxes paid by 

individuals temporarily providing certain health or emergency services 

in the State, and to provide a corresponding reduction in Federal highway funds to the State. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2021 

Mr. POSEY introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Transportation 

and Infrastructure, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To provide a Federal income tax credit for State income 

taxes paid by individuals temporarily providing certain 

health or emergency services in the State, and to provide 

a corresponding reduction in Federal highway funds to 

the State. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•HR 312 IH

1 SECTION 1. CREDIT FOR STATE INCOME TAXES PAID BY IN2 DIVIDUALS TEMPORARILY PROVIDING CER3 TAIN HEALTH OR EMERGENCY SERVICES. 

4 (a) IN GENERAL.—Subpart C of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to refundable credits) is amended by insert7 ing after section 36B the following new section: 

8 ‘‘SEC. 36C. CREDIT FOR STATE INCOME TAXES PAID BY IN9 DIVIDUALS TEMPORARILY PROVIDING CER10 TAIN HEALTH OR EMERGENCY SERVICES. 

11 ‘‘(a) IN GENERAL.—In the case of an eligible indi12 vidual, there shall be allowed as a credit against the tax 

13 imposed by this subtitle for any taxable year an amount 

14 equal to the income taxes imposed by a service-recipient 

15 State on the wages (as defined in section 3401) paid to 

16 such eligible individual for providing specified health or 

17 emergency services in such State on a temporary basis 

18 during such taxable year. 

19 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 

20 section, the term ‘eligible individual’ means any individual 

21 legally domiciled in a State who provides specified health 

22 or emergency services in another State on a temporary 

23 basis. 

24 ‘‘(c) SPECIFIED HEALTH OR EMERGENCY SERV25 ICES.—For purposes of this section, the term ‘specified 

26 health or emergency services’ means service as a first reVerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H312.IH H312

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1 sponder, doctor, nurse, or such other health or emergency 

2 service as may be specified by the Secretary for purposes 

3 of this section. 

4 ‘‘(d) SERVICE-RECIPIENT STATE.—For purposes of 

5 this section, the term ‘service-recipient State’ means the 

6 State referred to in subsection (b) in which the eligible 

7 individual provides specified health or emergency services 

8 on a temporary basis. 

9 ‘‘(e) DETERMINATION OF TAX.—The amount of the 

10 income tax referred to in subsection (a) shall be equal to 

11 the excess (if any) of— 

12 ‘‘(1) the amount of income taxes imposed by 

13 the service-recipient State on the income of such eli14 gible individual, over 

15 ‘‘(2) the amount of such income taxes which 

16 would be imposed without regard to the wages re17 ferred to in subsection (a). 

18 ‘‘(f) TERMINATION.—Subsection (a) shall not apply 

19 with respect to wages paid for services which are provided 

20 after the date on which the Secretary certifies that the 

21 COVID–19 emergency has concluded.’’. 

22 (b) CORRESPONDING REDUCTION IN FEDERAL

23 HIGHWAY FUNDS PAID TO SERVICE-RECIPIENT

24 STATES.—The amount made available by the Federal 

25 Government as Federal highway funds to any service-reVerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H312.IH H312

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1 cipient State (as defined in section 36C(d) of the Internal 

2 Revenue Code of 1986) shall be reduced by the aggregate 

3 amount of credits (as estimated by the Secretary of the 

4 Treasury) allowed under section 36C of the Internal Rev5 enue Code of 1986 with respect to income taxes imposed 

6 by such State. 

7 (c) CONFORMING AMENDMENTS.— 

8 (1) Section 6211(b)(4)(A) of such Code is 

9 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

10 (2) Section 1324(b)(2) of title 31, United 

11 States Code, is amended by inserting ‘‘36C,’’ after 

12 ‘‘36B,’’. 

13 (3) The table of sections for subpart C of part 

14 IV of subchapter A of chapter 1 of the Internal Rev15 enue Code of 1986 is amended by inserting after the 

16 item relating to section 36B the following new item: 

‘‘Sec. 36C. Credit for State income taxes paid by individuals temporarily providing certain health or emergency services.’’. 

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

18 this section shall apply to wages paid for services provided 

19 after March 16, 2020. 

Æ 


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