Helping Small Businesses Reopen Safely Act of 2020

To provide a payroll tax credit for personal protective equipment for use by employees and customers. 1. Short title This Act may be cited as the Helping Small Businesses Reopen Safely Act of 2020 2. Payroll tax credit for personal protective equipment (a) In general In the case of an eligible employer, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to 90 percent of the amount paid or incurred by such employer during such calendar quarter for eligible personal protective equipment provided free of charge by such employer for the use or for the benefit of employees and customers of such employer. (b) Limitations and refundability (1) Dollar limitation The amount of the credit allowed under subsection (a) with respect to any eligible employer for any calendar quarter shall not exceed the lesser of— (A) $6,250, or (B) the greater of— (i) 2 percent of the employer’s gross receipts for such calendar quarter, or (ii) 0.5 percent of the employer’s gross receipts for the employer’s last taxable year ending in 2019. (2) Credit limited to employment taxes The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the applicable employment taxes (reduced by any credits allowed under subsections (e) and (f) of section 3111 (3) Refundability of excess credit (A) In general If the amount of the credit under subsection (a) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of the Internal Revenue Code of 1986. (B) Treatment of payments For purposes of section 1324 of title 31, United States Code, any amounts due to the employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. (c) Definitions For purposes of this section— (1) Applicable employment taxes The term applicable employment taxes (A) The taxes imposed under section 3111(a) (B) So much of the taxes imposed under section 3221(a) of such Code as are attributable to the rate in effect under section 3111(a) of such Code. (2) Eligible employer (A) In general The term eligible employer (i) which was carrying on a trade or business during such calendar quarter, and (ii) the average number of full-time employees (within the meaning of section 4980H (B) Certain tax-exempt organizations and governmental employers In the case of an organization which is described in section 501(c) (C) Exclusion of certain tax-exempt organizations The term eligible employer (D) Exclusion of Federal and foreign governments The term eligible employer (3) Eligible personal protective equipment The term eligible personal protective equipment (4) Secretary The term Secretary (5) Other terms Any term used in this section which is also used in chapter 21 or 22 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such chapter. (d) Aggregation rule All persons treated as a single employer under subsection (a) or (b) of section 52 (e) Denial of double benefit For purposes of chapter 1 of such Code, the gross income of any eligible employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. (f) Election not To have section apply This section shall not apply with respect to any eligible employer for any calendar quarter if such employer elects (at such time and in such manner as the Secretary may prescribe) not to have this section apply. (g) Third-Party payors Any credit allowed under this section shall be treated as a credit described in section 3511(d)(2) of such Code. (h) Transfers to Federal Old-Age and Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 45 U.S.C. 14 (i) Treatment of deposits The Secretary shall waive any penalty under section 6656 (j) Regulations and guidance The Secretary shall issue such forms, instructions, regulations, and guidance as are necessary— (1) to allow the advance payment of the credit under subsection (a), subject to the limitations provided in this section, based on such information as the Secretary shall require, (2) to provide for the reconciliation of such advance payment with the amount advanced at the time of filing the return of tax for the applicable calendar quarter or taxable year, and (3) with respect to the application of the credit under subsection (a) to third-party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504 (k) Application This section shall only apply to calendar quarters beginning after December 31, 2019, and before January 1, 2022.

Summary: Helping Small Businesses Reopen Safely Act of 2020 This bill allows certain small business employers, tax-exempt organizations, and governmental employers a payroll tax credit for 90% of the cost of providing eligible personal protective equipment for the benefit of their employees and customers. The bill defines eligible personal protective equipment to include masks or face coverings, hand sanitizers, surface cleaners, or other items for reducing the spread of infectious diseases.