I 
116TH CONGRESS 
2D SESSION 
H. R. 6776 
To provide for improvements related to the employee retention tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2020 
Mrs. MURPHY of Florida (for herself, Mr. KATKO, Ms. DELBENE, Mr. 
FITZPATRICK, and Mr. PAPPAS) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committee on Small Business, 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 for improvements related to the employee 
retention tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Jumpstarting Our 
Businesses’ Success Credit Act of 2020’’ or as the ‘‘JOBS 
Credit Act of 2020’’. 
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SEC. 2. IMPROVEMENTS TO EMPLOYEE RETENTION CRED-
IT. 
(a) INCREASE
IN CREDIT PERCENTAGE.—Section 
2301(a) of the CARES Act is amended by striking ‘‘50 
percent’’ and inserting ‘‘80 percent’’. 
(b) INCREASE IN PER EMPLOYEE LIMITATION.—Sec-
tion 2301(b)(1) of the CARES Act is amended by striking 
‘‘for all calendar quarters shall not exceed $10,000.’’ and 
inserting ‘‘shall not exceed— 
‘‘(A) $15,000 in any calendar quarter, and 
‘‘(B) $45,000 in the aggregate for all cal-
endar quarters.’’. 
(c) MODIFICATION OF THRESHOLD FOR TREATMENT 
AS A LARGE EMPLOYER.— 
(1) IN GENERAL.—Section 2301(c)(3)(A) of the 
CARES Act is amended— 
(A) by striking ‘‘for which the average 
number of full-time employees (within the 
meaning of section 4980H of the Internal Rev-
enue Code of 1986) employed by such eligible 
employer during 2019 was greater than 100’’ in 
clause (i) and inserting ‘‘which is a large em-
ployer’’, and 
(B) by striking ‘‘for which the average 
number of full-time employees (within the 
meaning of section 4980H of the Internal Rev-
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enue Code of 1986) employed by such eligible 
employer during 2019 was not greater than 
100’’ in clause (ii) and inserting ‘‘which is not 
a large employer’’. 
(2) 
LARGE
EMPLOYER
DEFINED.—Section 
2301(c) of the CARES Act is amended by redesig-
nating paragraph (6) as paragraph (7) and by in-
serting after paragraph (5) the following new para-
graph: 
‘‘(6) LARGE EMPLOYER.—The term ‘large em-
ployer’ means any eligible employer if— 
‘‘(A) the average number of full-time em-
ployees (as determined for purposes of deter-
mining whether an employer is an applicable 
large 
employer 
for 
purposes 
of 
section 
4980H(c)(2) of the Internal Revenue Code of 
1986) employed by such eligible employer dur-
ing calendar year 2019 was greater than 1,500, 
and 
‘‘(B) the gross receipts (within the mean-
ing of section 448(c) of the Internal Revenue 
Code of 1986) of such eligible employer during 
calendar 
year 
2019 
was 
greater 
than 
$41,500,000.’’. 
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(d) PHASE-IN OF ELIGIBILITY BASED ON REDUC-
TION IN GROSS RECEIPTS.— 
(1) DECREASE OF REDUCTION IN GROSS RE-
CEIPTS NECESSARY TO QUALIFY FOR CREDIT.—Sec-
tion 2301(c)(2)(B)(i) of the CARES Act is amended 
by striking ‘‘50 percent’’ and inserting ‘‘80 per-
cent’’. 
(2) PHASE-IN
OF
CREDIT
IF
REDUCTION
IN 
GROSS RECEIPTS IS LESS THAN 50 PERCENT.—Sec-
tion 2301(c)(2) of the CARES Act is amended by 
adding at the end the following new subparagraph: 
‘‘(D) PHASE-IN OF CREDIT WHERE BUSI-
NESS
NOT
SUSPENDED
AND
REDUCTION
IN 
GROSS RECEIPTS LESS THAN 50 PERCENT.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar quarter with respect to which an 
eligible employer would not be an eligible 
employer if subparagraph (B)(i) were ap-
plied by substituting ‘50 percent’ for ‘80 
percent’, the amount of the credit allowed 
under subsection (a) shall be reduced by 
the amount which bears the same ratio to 
the amount of such credit (determined 
without regard to this subparagraph) as— 
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‘‘(I) the excess gross receipts per-
centage point amount, bears to 
‘‘(II) 30 percentage points. 
‘‘(ii) EXCESS GROSS RECEIPTS PER-
CENTAGE POINT AMOUNT.—For purposes 
of this subparagraph, the term ‘excess 
gross receipts percentage point amount’ 
means, with respect to any calendar quar-
ter, the excess of— 
‘‘(I) the lowest of the gross re-
ceipts percentage point amounts de-
termined with respect to any calendar 
quarter during the period ending with 
such calendar quarter and beginning 
with the first calendar quarter during 
the period described in subparagraph 
(B), over 
‘‘(II) 50 percentage points. 
‘‘(iii) GROSS RECEIPTS PERCENTAGE 
POINT
AMOUNTS.—For purposes of this 
subparagraph, the term ‘gross receipts per-
centage point amount’ means, with respect 
to any calendar quarter, the percentage 
(expressed as a number of percentage 
points) obtained by dividing— 
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‘‘(I) the gross receipts (within 
the meaning of subparagraph (B)) for 
such calendar quarter, by 
‘‘(II) the gross receipts for the 
same calendar quarter in calendar 
year 2019.’’. 
(3) GROSS RECEIPTS OF TAX-EXEMPT ORGANI-
ZATIONS.—Section 2301(c)(2)(C) of the CARES Act 
is amended— 
(A) by striking ‘‘of such Code, clauses (i) 
and (ii)(I)’’ and inserting ‘‘of such Code— 
‘‘(i) clauses (i) and (ii)(I)’’, 
(B) by striking the period at the end and 
inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) any reference in this section to 
gross receipts shall be treated as a ref-
erence to gross receipts within the meaning 
of section 6033 of such Code.’’. 
(e) MODIFICATION
OF TREATMENT
OF HEALTH 
PLAN EXPENSES.— 
(1) IN
GENERAL.—Section 2301(c)(5) of the 
CARES Act is amended to read as follows: 
‘‘(5) WAGES.— 
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‘‘(A) IN
GENERAL.—The term ‘wages’ 
means wages (as defined in section 3121(a) of 
the Internal Revenue Code of 1986) and com-
pensation (as defined in section 3231(e) of such 
Code). 
‘‘(B) ALLOWANCE FOR CERTAIN HEALTH 
PLAN EXPENSES.— 
‘‘(i) IN
GENERAL.—Such term shall 
include amounts paid or incurred by the el-
igible employer to provide and maintain a 
group health plan (as defined in section 
5000(b)(1) of the Internal Revenue Code 
of 1986), but only to the extent that such 
amounts are excluded from the gross in-
come of employees by reason of section 
106(a) of such Code. 
‘‘(ii) ALLOCATION RULES.—For pur-
poses of this section, amounts treated as 
wages under clause (i) shall be treated as 
paid with respect to any employee (and 
with respect to any period) to the extent 
that such amounts are properly allocable to 
such employee (and to such period) in such 
manner as the Secretary may prescribe. 
Except as otherwise provided by the Sec-
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retary, such allocation shall be treated as 
properly made if made on the basis of 
being pro rata among periods of cov-
erage.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2301(c)(3) of the CARES Act is amended by strik-
ing subparagraph (C). 
(f) QUALIFIED WAGES PERMITTED TO INCLUDE 
AMOUNTS FOR TIP REPLACEMENT.— 
(1) IN GENERAL.—Section 2301(c)(3)(B) of the 
CARES Act is amended by inserting ‘‘(including tips 
which would have been deemed to be paid by the em-
ployer under section 3121(q))’’ after ‘‘would have 
been paid’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2301(h)(2) of the CARES Act is amended by insert-
ing ‘‘45B or’’ before ‘‘45S’’. 
(g) CERTAIN GOVERNMENTAL EMPLOYERS ELIGIBLE 
FOR CREDIT.— 
(1) IN
GENERAL.—Section 2301(f) of the 
CARES Act is amended to read as follows: 
‘‘(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
‘‘(1) IN GENERAL.—The credit under this sec-
tion shall not be allowed to the Federal Government 
or any agency or instrumentality thereof. 
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‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to any organization described in section 
501(c)(1) of the Internal Revenue Code of 1986 and 
exempt from tax under section 501(a) of such Code. 
‘‘(3) SPECIAL RULES.—In the case of any State 
government, Indian tribal government, or any agen-
cy, instrumentality, or political subdivision of the 
foregoing— 
‘‘(A) clauses (i) and (ii)(I) of subsection 
(c)(2)(A) shall apply to all operations of such 
entity, and 
‘‘(B) 
subclause 
(II) 
of 
subsection 
(c)(2)(A)(ii) shall not apply.’’. 
(2) COORDINATION WITH APPLICATION OF CER-
TAIN DEFINITIONS.— 
(A) IN GENERAL.—Section 2301(c)(5)(A) 
of the CARES Act, as amended by the pre-
ceding provisions of this Act, is amended by 
adding at the end the following: ‘‘For purposes 
of the preceding sentence (other than for pur-
poses of subsection (b)(2)), wages as defined in 
section 3121(a) of the Internal Revenue Code 
of 1986 shall be determined without regard to 
paragraphs (1), (5), (6), (7), (8), (10), (13), 
(18), (19), and (22) of section 3212(b) of such 
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