Building Businesses Back Act of 2020

To provide much needed liquidity to America’s job creators. 1. Short title This Act may be cited as the Building Businesses Back Act of 2020 2. Monetization of general business credits (a) In general Section 38 (e) Special rules for eligible years (1) In general If a taxpayer elects the application of this subsection for any eligible taxable year— (A) the limitation under subsection (c) shall be increased by an amount equal to the excess (if any) of— (i) the credit allowed under subsection (a) for the taxable year (determined without regard to subsection (c)), over (ii) the credit allowed under subsection (a) for such taxable year (determined after the application of subsection (c)), and (B) the amount of the credit determined under section 41(a) for such taxable year shall be determined without regard to the limitation in the first sentence of section 41(g). (2) Treatment of credit For purposes of this title (other than this section and section 39), the excess of— (A) amount of the credit allowed solely by reason of this subsection, over (B) net income tax (as defined in subsection (c)(1)) reduced by credits allowable under subparts D (without regard to this subsection) and G, shall be treated as an overpayment of tax for the taxable year. (3) Eligible taxable year For purposes of this subsection, the term eligible taxable year (4) Election An election under paragraph (1) shall be made at such time and in such manner as the Secretary may prescribe. (5) Guidance and regulations The Secretary shall prescribe such regulations and guidance as may be necessary to carry out this subsection, including regulations or guidance to prevent any double counting of credits allowable under this section. . (b) Allowance of refunds Section 1324(b)(2) of title 31, United States Code, is amended by inserting 38(e) 36B (c) Conforming amendment Section 6211(b)(4)(A) 38(e), 36B, (d) Credits not subject to sequestration Section 255(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 905(d) (1) by striking Payments (1) In general Payments , and (2) by adding at the end the following: (2) General business credits Payments made under subsection (e) of section 38 . (e) Special rule for refunds (1) In general For purposes of the Internal Revenue Code of 1986, a credit or refund for which an application described in paragraph (2)(A) is filed shall be treated as made under section 6411 of such Code. (2) Tentative Refund (A) Application A taxpayer may file an application for a tentative credit or refund of any amount for which a credit or refund for any taxable year is due by reason of section 38(e) (i) be verified in the same manner as an application under section 6411(a) of such Code, (ii) be filed not later than the date that is 120 days after the date of the enactment of this Act, and (iii) set forth— (I) the amount of the credit claimed under section 38(e) of such Code for such taxable year, and (II) the amount of the refund claimed. (B) Allowance of adjustments Within a period of 90 days from the date on which an application is filed under subparagraph (A), the Secretary of the Treasury (or the Secretary’s delegate) shall— (i) review the application, (ii) determine the amount of the overpayment, and (iii) apply, credit, or refund such overpayment, in a manner similar to the manner provided in section 6411(b) (C) Consolidated returns The provisions of section 6411(c) (3) Application for adjustment of overpayment of estimated income tax An application for adjustment of overpayment of estimated income tax under section 6425 (f) Effective date The amendments made by this section shall apply to taxable years ending after December 31, 2018.

Summary: Building Businesses Back Act of 2020 This bill allows taxpayers an election to increase the amount of their general business tax credit for taxable years ending in 2019 or 2020.