Restore America's Main Street Act

To amend the Internal Revenue Code of 1986 to provide advance tax refunds to small businesses, and for other purposes. 1. Short title This Act may be cited as the Restore America’s Main Street Act 2. Small business rebate (a) In general Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 6428 the following new section: 6428A. Small Business Rebate (a) Allowance of credit (1) In general In the case of a qualifying business, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the lesser of— (A) 30 percent of qualified gross receipts of such qualifying business for the first taxable year beginning in 2019, or (B) $120,000. (2) Special rule In the case of— (A) a qualifying business which did not file a tax return for the taxable year described in paragraph (1)(A), or (B) a sole proprietorship for which gross receipts were not reported on a return of tax for such taxable year, such paragraph shall be applied by substituting 2018 2019 (3) Qualified gross receipts For purposes of paragraph (1)(A), the term qualified gross receipts qualifying business nonresident alien individual or a foreign corporation foreign corporation (A) in the case of a qualifying business which is a partnership, the return required to be filed under section 6031, (B) in the case of a qualifying business which is an S corporation, the return required to be filed under section 6037, and (C) in the case of any other qualifying business, the return of tax for the taxable year. (b) Qualifying business (1) In general For purposes of this section, the term qualifying business (A) meets the gross receipts test of subsection (c) of section 448 for the applicable taxable year under subsection (a)(1)(A), except that subsection (c) of section 448 shall be applied— (i) without regard to paragraph (4) of such subsection, and (ii) by substituting $1,500,000 $25,000,000 (B) with respect to the preceding calendar year, employed an average of not greater than 50 full-time employees (as such term is defined in paragraph (4) of section 4980H(c)) on business days during such calendar year. (2) Special rule For purposes of paragraph (1)(A), in the case of any taxpayer which is not a corporation or a partnership, the gross receipts test of section 448(c) shall be applied in the same manner as if such taxpayer were a corporation or partnership. (3) Full-time equivalents For purposes of paragraph (1)(B), the number of full-time employees shall be determined pursuant to rules similar to the rules described in paragraph (2)(E) of section 4980H(c). (4) Aggregation rules All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single person for purposes of paragraph (1)(B). (5) Qualified organizations (A) Inclusion as qualifying business (i) In general For purposes of this section, the term qualifying business (ii) Definition For purposes of this paragraph, the term qualified organization (I) is described in section 501(c)(3) and exempt from tax under section 501(a), (II) is described in section 170(b)(1)(A), (III) is not described in section 509(a)(3), and (IV) satisfies the requirements under subparagraphs (A) and (B) of paragraph (1). (B) Qualified gross receipts (i) In general For purposes of subsection (a)(1)(A), in the case of a qualified organization, the term qualified gross receipts (ii) Special rule In the case of a qualified organization which did not file a tax return for the taxable year described in subsection (a)(1)(A), such subsection shall be applied by substituting 2018 2019 (iii) Organization exempt from filing (I) In general In the case of an organization which is exempt from filing a return pursuant to section 6033(a) or which is not required to include in such return the information necessary to determine the amount of the credit allowed under this section, such organization may submit to the Secretary (in such form and manner as is deemed appropriate by the Secretary) any information required for purposes of determining— (aa) whether such organization satisfies the requirements under subparagraphs (A) and (B) of paragraph (1), and (bb) the amount of the credit allowed under subsection (a)(1). (II) Publicity of information For purposes of section 6104, any information submitted by an organization under subclause (I) shall be deemed to be information required to be furnished by such organization pursuant to section 6033. (c) Treatment of credit The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. (d) Coordination with advance refunds of credit The amount of credit which would (but for this subsection) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). (e) Advance refunds and credits (1) In general Any person which was a qualifying business for such person’s last taxable year ending before January 1, 2020, shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year, regardless of whether such tax would have been imposed on such person. (2) Advance refund amount For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (d) and this subsection) had applied to such taxable year. (3) Timing of payments The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2020. (4) No interest No interest shall be allowed on any overpayment attributable to this section. . (b) Conforming amendments (1) Definition of deficiency Section 6211(b)(4)(A) and 36B, 168(k)(4) 36B, and 6428A (2) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting “6428A,” after “54B(h),”. (3) The table of sections for subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6428 the following: Sec. 6428A. Small business rebate. .

Summary: Restore America's Main Street Act This bill provides a small business with $1.5 million or less in gross receipts and not more than 50 full-time employees a refundable tax credit (rebate) equal to the lesser of 30% of its gross receipts for the first taxable year beginning in 2019, or $120,000. The credit is also available to certain charitable organizations.