PLUS Act of 2020

To amend the Internal Revenue Code of 1986 to provide a credit for the uncollectible accounts of eligible wholesale distributors. 1. Short title This Act may be cited as the Providing Liquidity for Uncollectible Sales Act of 2020 PLUS Act of 2020 2. Credit for uncollectible accounts of eligible wholesale distributors (a) In general Subpart D of part IV of subchapter A of chapter 1 45U. Wholesale distributor uncollectible accounts credit (a) In general For purposes of section 38, in the case of an eligible wholesale distributor, the wholesale distributor uncollectible accounts credit determined under this section for the taxable year is an amount equal to the qualified accounts receivables of such distributor which become uncollectible during such taxable year. (b) Eligible wholesale distributor For purposes of this section, the term eligible wholesale distributor (c) Qualified accounts receivable For purposes of this section— (1) In general The term qualified accounts receivable (2) Normal payment terms An amount shall be treated as accrued pursuant to normal payment terms if it is accrued under the applicable payment terms in effect on March 25, 2020, under an agreement established prior to that date between the eligible wholesale distributor and the qualified food and beverage establishment. (3) Presumption of uncollectability For purposes of this section, a qualified accounts receivable shall be treated as becoming uncollectible during the taxable year of the eligible wholesale distributor which includes July 15, 2020, if— (A) the qualified food and beverage establishment to which such qualified accounts receivable relates does not provide on-premises consumption pursuant to an order or recommendation of an applicable Federal, State, or municipal authority for at least 30 days during the period beginning on March 25, 2020, and ending on July 15, 2020, and (B) such qualified accounts receivable is not paid before the close of such taxable year. (d) Qualified food and beverage establishment For purposes of this section— (1) Qualified food and beverage establishment The term qualified food and beverage establishment (2) Food and beverage establishment The term food and beverage establishment (e) Inventory For purposes of this section, the term inventory (f) Coordination with deduction for bad debts Any amount allowed as a credit under this section will not be allowable as a deduction under section 166. . (b) Conforming amendments Section 38(b) plus , plus (34) in the case of an eligible wholesale distributor (as defined in section 45U(b)), the wholesale distributor uncollectible accounts credit determined under section 45U(a). . (c) Effective date The amendments made by this sections shall apply to taxable years ending after March 25, 2020.

Summary: Providing Liquidity for Uncollectible Sales Act of 2020 or as the PLUS Act of 2020 This bill allows a new tax credit for the uncollectible accounts receivable of an eligible wholesale distributor. The bill defines an eligible wholesale distributor as any person engaged in the trade or business of selling inventory to a food and beverage establishment that ceases to provide on-premises consumption of food and beverage on or after March 25, 2020, pursuant to an order or recommendation of an applicable governmental authority.