170 
credit under this section for such taxable year if this 
section (other than subsection (f) and this sub-
section) had applied to such taxable year. 
‘‘(3) TIMING AND MANNER OF PAYMENTS.— 
‘‘(A) TIMING.—The Secretary shall, sub-
ject to the provisions of this title, refund or 
credit any overpayment attributable to this sec-
tion as rapidly as possible. No refund or credit 
shall be made or allowed under this subsection 
after December 31, 2020. 
‘‘(B) DELIVERY OF PAYMENTS.—Notwith-
standing any other provision of law, the Sec-
retary may certify and disburse refunds payable 
under this subsection electronically to any ac-
count to which the payee authorized, on or after 
January 1, 2018, the delivery of a refund of 
taxes under this title or of a Federal payment 
(as defined in section 3332 of title 31, United 
States Code). 
‘‘(C) WAIVER OF CERTAIN RULES.—Not-
withstanding section 3325 of title 31, United 
States Code, or any other provision of law, with 
respect to any payment of a refund under this 
subsection, a disbursing official in the executive 
branch of the United States Government may
171 
modify payment information received from an 
officer 
or 
employee 
described 
in 
section 
3325(a)(1)(B) of such title for the purpose of 
facilitating the accurate and efficient delivery of 
such payment. Except in cases of fraud or reck-
less neglect, no liability under sections 3325, 
3527, 3528, or 3529 of title 31, United States 
Code, shall be imposed with respect to pay-
ments made under this subparagraph. 
‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sec-
tion. 
‘‘(5) APPLICATION
TO
INDIVIDUALS
WHO
DO 
NOT FILE A RETURN OF TAX FOR 2019.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who, at the time of any determination 
made pursuant to paragraph (3), has not filed 
a tax return for the year described in para-
graph (1), the Secretary shall— 
‘‘(i) apply paragraph (1) by sub-
stituting ‘2018’ for ‘2019’, and 
‘‘(ii) in the case of a specified indi-
vidual who has not filed a tax return for 
such individual’s first taxable year begin-
ning in 2018, determine the advance re-
172 
fund amount with respect to such indi-
vidual without regard to subsections (d) 
and on the basis of information with re-
spect to such individual which is provided 
by— 
‘‘(I) in the case of a specified so-
cial security beneficiary or a specified 
supplemental security income recipi-
ent, the Commissioner of Social Secu-
rity, 
‘‘(II) in the case of a specified 
railroad retirement beneficiary, the 
Railroad Retirement Board, and 
‘‘(III) in the case of a specified 
veterans beneficiary, the Secretary of 
Veterans 
Affairs 
(in 
coordination 
with, and with the assistance of, the 
Commissioner of Social Security if ap-
propriate). 
‘‘(B) SPECIFIED
INDIVIDUAL.—For pur-
poses of this paragraph, the term ‘specified in-
dividual’ means any individual who is— 
‘‘(i) a specified social security bene-
ficiary,
173 
‘‘(ii) a specified supplemental security 
income recipient, 
‘‘(iii) a specified railroad retirement 
beneficiary, or 
‘‘(iv) a specified veterans beneficiary. 
‘‘(C) SPECIFIED SOCIAL SECURITY BENE-
FICIARY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied social security beneficiary’ means any 
individual who, for the last month that 
ends prior to the date of enactment of this 
section, is entitled to any monthly insur-
ance benefit payable under title II of the 
Social Security Act (42 U.S.C. 401 et 
seq.), including payments made pursuant 
to sections 202(d), 223(g), and 223(i)(7) 
of such Act. 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such benefit is 
not payable for such month by reason of 
section 202(x) of the Social Security Act 
(42 U.S.C. 402(x)) or section 1129A of 
such Act (42 U.S.C. 1320a–8a).
174 
‘‘(D) SPECIFIED
SUPPLEMENTAL
SECU-
RITY INCOME RECIPIENT.—For purposes of this 
paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied supplemental security income recipi-
ent’ means any individual who, for the last 
month that ends prior to the date of enact-
ment of this section, is eligible for a 
monthly benefit payable under title XVI of 
the Social Security Act (42 U.S.C. 1381 et 
seq.) (other than a benefit to an individual 
described in section 1611(e)(1)(B) of such 
Act (42 U.S.C. 1382(e)(1)(B)), includ-
ing— 
‘‘(I) payments made pursuant to 
section 1614(a)(3)(C) of such Act (42 
U.S.C. 1382c(a)(3)(C)), 
‘‘(II) payments made pursuant to 
section 1619(a) (42 U.S.C. 1382h) or 
subsections (a)(4), (a)(7), or (p)(7) of 
section 1631 (42 U.S.C. 1383) of 
such Act, and 
‘‘(III) State supplementary pay-
ments of the type referred to in sec-
tion 1616(a) of such Act (42 U.S.C.
175 
1382e(a)) (or payments of the type 
described in section 212(a) of Public 
Law 93–66) which are paid by the 
Commissioner under an agreement re-
ferred to in such section 1616(a) (or 
section 212(a) of Public Law 93–66). 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such monthly 
benefit is not payable for such month by 
reason of subsection (e)(1)(A) or (e)(4) of 
section 1611 (42 U.S.C. 1382) or section 
1129A of such Act (42 U.S.C. 1320a–8a). 
‘‘(E) SPECIFIED
RAILROAD
RETIREMENT 
BENEFICIARY.—For purposes of this para-
graph, the term ‘specified railroad retirement 
beneficiary’ means any individual who, for the 
last month that ends prior to the date of enact-
ment of this section, is entitled to a monthly 
annuity or pension payment payable (without 
regard to section 5(a)(ii) of the Railroad Retire-
ment Act of 1974 (45 U.S.C. 231d(a)(ii))) 
under— 
‘‘(i) section 2(a)(1) of such Act (45 
U.S.C. 231a(a)(1)),
176 
‘‘(ii) section 2(c) of such Act (45 
U.S.C. 231a(c)), 
‘‘(iii) section 2(d)(1) of such Act (45 
U.S.C. 231a(d)(1)), or 
‘‘(iv) section 7(b)(2) of such Act (45 
U.S.C. 231f(b)(2)) with respect to any of 
the benefit payments described in subpara-
graph (C)(i). 
‘‘(F) 
SPECIFIED
VETERANS
BENE-
FICIARY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied veterans beneficiary’ means any indi-
vidual who, for the last month that ends 
prior to the date of enactment of this sec-
tion, is entitled to a compensation or pen-
sion payment payable under— 
‘‘(I) section 1110, 1117, 1121, 
1131, 1141, or 1151 of title 38, 
United States Code, 
‘‘(II) section 1310, 1312, 1313, 
1315, 1316, or 1318 of title 38, 
United States Code, 
‘‘(III) section 1513, 1521, 1533, 
1536, 1537, 1541, 1542, or 1562 of 
title 38, United States Code, or
177 
‘‘(IV) section 1805, 1815, or 
1821 of title 38, United States Code, 
to a veteran, surviving spouse, child, or 
parent as described in paragraph (2), (3), 
(4)(A)(ii), or (5) of section 101, title 38, 
United States Code. 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such com-
pensation or pension payment is not pay-
able, or was reduced, for such month by 
reason of section 1505, 5313, or 5313B of 
title 38, United States Code. 
‘‘(G) SUBSEQUENT DETERMINATIONS AND 
REDETERMINATIONS
NOT
TAKEN
INTO
AC-
COUNT.—For purposes of this section, any indi-
vidual’s status as a specified social security ben-
eficiary, a specified supplemental security in-
come recipient, a specified railroad retirement 
beneficiary, or a specified veterans beneficiary 
shall be unaffected by any determination or re-
determination of any entitlement to, or eligi-
bility for, any benefit, payment, or compensa-
tion, if such determination or redetermination 
occurs after the last month that ends prior to 
the date of enactment of this section.
178 
‘‘(H) PAYMENT TO REPRESENTATIVE PAY-
EES AND FIDUCIARIES.— 
‘‘(i) IN
GENERAL.—If the benefit, 
payment, or compensation referred to in 
subparagraph (C)(i), (D)(i), (E), or (F)(i) 
with respect to any specified individual is 
paid to a representative payee or fiduciary, 
payment by the Secretary under paragraph 
(3) with respect to such specified indi-
vidual shall be made to such individual’s 
representative payee or fiduciary and the 
entire payment shall be used only for the 
benefit of the individual who is entitled to 
the payment. 
‘‘(ii) APPLICATION OF ENFORCEMENT 
PROVISIONS.— 
‘‘(I) In the case of a payment de-
scribed in clause (i) which is made 
with respect to a specified social secu-
rity beneficiary or a specified supple-
mental security income recipient, sec-
tion 1129(a)(3) of the Social Security 
Act (42 U.S.C. 1320a–8(a)(3)) shall 
apply to such payment in the same 
manner as such section applies to a
179 
payment under title II or XVI of such 
Act. 
‘‘(II) In the case of a payment 
described in clause (i) which is made 
with respect to a specified railroad re-
tirement beneficiary, section 13 of the 
Railroad Retirement Act (45 U.S.C. 
231l) shall apply to such payment in 
the same manner as such section ap-
plies to a payment under such Act. 
‘‘(III) In the case of a payment 
described in clause (i) which is made 
with respect to a specified veterans 
beneficiary, sections 5502, 6106, and 
6108 of title 38, United States Code, 
shall apply to such payment in the 
same manner as such sections apply 
to a payment under such title. 
‘‘(6) NOTICE TO TAXPAYER.—Not later than 15 
days after the date on which the Secretary distrib-
uted any payment to an eligible taxpayer pursuant 
to this subsection, notice shall be sent by mail to 
such taxpayer’s last known address. Such notice 
shall indicate the method by which such payment 
was made, the amount of such payment, and a
180 
phone number for the appropriate point of contact 
at the Internal Revenue Service to report any error 
with respect to such payment. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section, 
including— 
‘‘(1) regulations or other guidance providing 
taxpayers the opportunity to provide the Secretary 
information sufficient to allow the Secretary to make 
payments to such taxpayers under subsection (g) 
(including the determination of the amount of such 
payment) if such information is not otherwise avail-
able to the Secretary, and 
‘‘(2) regulations or other guidance providing for 
the proper treatment of joint returns and taxpayers 
with dependents to ensure that an individual is not 
taken into account more than once in determining 
the amount of any credit under subsection (a) and 
any credit or refund under subsection (g). 
‘‘(i) OUTREACH.—The Secretary shall carry out a ro-
bust and comprehensive outreach program to ensure that 
all taxpayers described in subsection (h)(1) learn of their 
eligibility for the advance refunds and credits under sub-
section (g); are advised of the opportunity to receive such
181 
advance refunds and credits as provided under subsection 
(h)(1); and are provided assistance in applying for such 
advance refunds and credits. In conducting such outreach 
program, the Secretary shall coordinate with other govern-
ment, State, and local agencies; federal partners; and com-
munity-based nonprofit organizations that regularly inter-
face with such taxpayers.’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the 
amendments made by this section if a mirror code
182 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 6428A of the Internal Revenue 
Code of 1986 (as added by this section), nor shall 
any credit or refund be made or allowed under sub-
section (g) of such section, to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (2). 
(4) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by
183 
reference to the income tax laws of the United 
States as if such possession were the United States. 
(c) ADMINISTRATIVE PROVISIONS.— 
(1) 
DEFINITION
OF
DEFICIENCY.—Section 
6211(b)(4)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘and 6428’’ and inserting 
‘‘6428, and 6428A’’. 
(2) MATHEMATICAL OR CLERICAL ERROR AU-
THORITY.—Section 6213(g)(2) of such Code is 
amended— 
(A) by inserting ‘‘or section 6428A (relat-
ing to additional recovery rebates to individ-
uals)’’ before the comma at the end of subpara-
graph (H), and 
(B) by striking ‘‘or 6428’’ in subparagraph 
(L) and inserting ‘‘6428, or 6428A’’. 
(3) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any credit or refund allowed or made to any 
individual by reason of section 6428A of the Internal 
Revenue Code of 1986 (as added by this section) or 
by reason of subsection (b) of this section shall not 
be— 
(A) subject to reduction or offset pursuant 
to section 3716 or 3720A of title 31, United 
States Code,
184 
(B) subject to reduction or offset pursuant 
to subsection (c), (d), (e), or (f) of section 6402 
of the Internal Revenue Code of 1986, or 
(C) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
(4) ASSIGNMENT OF BENEFITS.— 
(A) IN
GENERAL.—Any applicable pay-
ment shall not be subject to transfer, assign-
ment, execution, levy, attachment, garnishment, 
or other legal process, or the operation of any 
bankruptcy or insolvency law, to the same ex-
tent as payments described in section 207 of 
the Social Security Act (42 U.S.C. 407) without 
regard to subsection (b) thereof. 
(B) ENCODING OF PAYMENTS.—As soon as 
practicable after the date of the enactment of 
the paragraph, the Secretary of the Treasury 
shall encode applicable payments that are paid 
electronically to any account— 
(i) with a unique identifier that is rea-
sonably sufficient to allow a financial insti-
tution to identify the payment as a pay-
ment protected under subparagraph (A), 
and
185 
(ii) pursuant to the same specifica-
tions as required for a benefit payment to 
which part 212 of title 31, Code of Federal 
regulations applies. 
(C) GARNISHMENT.— 
(i) ENCODED
PAYMENTS.—Upon re-
ceipt of a garnishment order that applies 
to an account that has received an applica-
ble payment that is encoded as provided in 
subparagraph (B), a financial institution 
shall follow the requirements and proce-
dures set forth in part 212 of title 31, 
Code of Federal Regulations. This para-
graph shall not alter the status of pay-
ments as tax refunds or other nonbenefit 
payments for purpose of any reclamation 
rights of the Department of Treasury or 
the Internal Revenue Serves as per part 
210 of title 31 of the Code of Federal Reg-
ulations. 
(ii) OTHER PAYMENTS.—If a financial 
institution receives a garnishment order 
(other than an order that has been served 
by the United States) that applies to an 
account into which an applicable payment
186 
that has not been encoded as provided in 
subparagraph (B) has been deposited on 
any date in the prior 60 days (including 
any date before the date of the enactment 
of this paragraph), the financial institu-
tion, upon the request of the account hold-
er or for purposes of complying in good 
faith with a State order, State law, court 
order, or interpretation by a State Attor-
ney General relating to garnishment order, 
may, but is not required to, treat the 
amount of the payment as exempt under 
law from garnishment without requiring 
the account holder to assert any right of 
garnishment exemption or requiring the 
consent of the judgment creditor. 
(iii) LIABILITY.—A financial institu-
tion that complies in good faith with clause 
(i) or that acts in good faith in reliance on 
clause (ii) shall not be liable under any 
Federal or State law, regulation, or court 
or other order to a creditor that initiates 
an order for any protected amounts, to an 
account holder for any frozen amounts or 
garnishment order applied.
187 
(D) DEFINITIONS.—For purposes of this 
paragraph— 
(i) ACCOUNT
HOLDER.—The term 
‘‘account holder’’ means a natural person 
against whom a garnishment order is 
issued and whose name appears in a finan-
cial institution’s records. 
(ii) 
APPLICABLE
PAYMENT.—The 
term ‘‘applicable payment’’ means any pay-
ment of credit or refund by reason of sec-
tion 6428 of such Code (as so added) or by 
reason of subsection (c) of this section. 
(iii) GARNISHMENT.—The term ‘‘gar-
nishment’’ means execution, levy, attach-
ment, garnishment, or other legal process. 
(iv) 
GARNISHMENT
ORDER.—The 
term ‘‘garnishment order’’ means a writ, 
order, notice, summons, judgment, levy, or 
similar written instruction issued by a 
court, a State or State agency, a munici-
pality or municipal corporation, or a State 
child support enforcement agency, includ-
ing a lien arising by operation of law for 
overdue child support or an order to freeze
188 
the assets in an account, to effect a gar-
nishment against a debtor. 
(5) TREATMENT OF CREDIT AND ADVANCE PAY-
MENTS.—For purposes of section 1324 of title 31, 
United States Code, any credit under section 
6428A(a) of the Internal Revenue Code of 1986, any 
credit or refund under section 6428A(g) of such 
Code, and any payment under subsection (b) of this 
section, shall be treated in the same manner as a re-
fund due from a credit provision referred to in sub-
section (b)(2) of such section 1324. 
(6) AGENCY INFORMATION SHARING AND AS-
SISTANCE.—The Commissioner of Social Security, 
the Railroad Retirement Board, and the Secretary of 
Veterans Affairs shall each provide the Secretary of 
the Treasury (or the Secretary’s delegate) such in-
formation and assistance as the Secretary of the 
Treasury (or the Secretary’s delegate) may require 
for purposes of making payments under section 
6428A(g) of the Internal Revenue Code of 1986 to 
individuals described in paragraph (5)(A)(ii) thereof. 
(7) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 of the Internal 
Revenue Code of 1986 is amended by inserting after
189 
the item relating to section 6428 the following new 
item: 
‘‘Sec. 6428A. Additional recovery rebates to individuals.’’. 
(d) APPROPRIATIONS
TO CARRY OUT THIS SEC-
TION.— 
(1) IN GENERAL.—Immediately upon the enact-
ment of this Act, the following sums are appro-
priated, out of any money in the Treasury not other-
wise appropriated, for the fiscal year ending Sep-
tember 30, 2020— 
(A) SOCIAL SECURITY ADMINISTRATION.— 
For an additional amount for ‘‘Social Security 
Administration—Limitation on Administrative 
Expenses’’, $40,500,000, to remain available 
until September 30, 2021: Provided, that 
$2,500,000, to remain available until Sep-
tember 30, 2024, shall be transferred to ‘‘Social 
Security Administration—Office of Inspector 
General’’ for necessary expenses in carrying out 
the provisions of the Inspector General Act of 
1978. 
(B) RAILROAD RETIREMENT BOARD.—For 
an additional amount for ‘‘Railroad Retirement 
Board—Limitation on Administration’’, $8,300, 
to remain available until September 30, 2021.
190 
(2) REPORTS.—Beginning 90 days after enact-
ment of this Act, the Secretary of the Treasury shall 
submit a quarterly report to the Committees on Ap-
propriations of the House of Representatives and the 
Senate detailing the actual expenditure of Internal 
Revenue Service funds in this Act, and the expected 
expenditure of such funds in the subsequent quarter. 
(e) CERTAIN REQUIREMENTS RELATED TO RECOV-
ERY REBATES AND ADDITIONAL RECOVERY REBATES.— 
(1) SIGNATURES
ON
CHECKS
AND
NOTICES, 
ETC., BY THE DEPARTMENT OF THE TREASURY.— 
Any check issued to an individual by the Depart-
ment of the Treasury pursuant to section 6428 or 
6428A of the Internal Revenue Code of 1986, and 
any notice issued pursuant to section 6428(f)(6) or 
section 6428A(g)(6) of such Code, may not be 
signed by or otherwise bear the name, signature, 
image or likeness of the President, the Vice Presi-
dent or any elected official or cabinet level officer of 
the United States, or any individual who, with re-
spect to any of the aforementioned individuals, bears 
any relationship described in subparagraphs (A) 
through (G) of section 152(d)(2) of the Internal 
Revenue Code of 1986.
191 
(2) EFFECTIVE
DATE.—Paragraph (1) shall 
apply to checks and notices issued after the date of 
the enactment of this Act. 
(f) REPORTS TO CONGRESS.—Each week beginning 
after the date of the enactment of this Act and beginning 
before December 31, 2020, on Friday of such week, not 
later than 3 p.m. Eastern Time, the Secretary of the 
Treasury shall provide a written report to the Committee 
on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate. Such report shall 
include the following information with respect to payments 
made pursuant to each of sections 6428 and 6428A of 
the Internal Revenue Code of 1986: 
(1) The number of scheduled payments sent to 
the Bureau of Fiscal Service for payment by direct 
deposit or paper check for the following week (stated 
separately for direct deposit and paper check). 
(2) The total dollar amount of the scheduled 
payments described in paragraph (1). 
(3) The number of direct deposit payments re-
turned to the Department of the Treasury and the 
total dollar value of such payments, for the week 
ending on the day prior to the day on which the re-
port is provided.
192 
(4) The total number of letters related to pay-
ments under section 6428 or 6428A of such Code 
mailed to taxpayers during the week ending on the 
day prior to the day on which the report is provided. 
Subtitle C—Earned Income Tax 
Credit 
SEC. 20121. STRENGTHENING THE EARNED INCOME TAX 
CREDIT FOR INDIVIDUALS WITH NO QUALI-
FYING CHILDREN. 
(a) SPECIAL RULES FOR 2020.—Section 32 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(n) SPECIAL RULES FOR INDIVIDUALS WITHOUT 
QUALIFYING CHILDREN.—In the case of any taxable year 
beginning after December 31, 2019, and before January 
1, 2021— 
‘‘(1) DECREASE IN MINIMUM AGE FOR CRED-
IT.— 
‘‘(A) 
IN
GENERAL.—Subsection 
(c)(1)(A)(ii)(II) shall be applied by substituting 
‘the applicable minimum age’ for ‘age 25’. 
‘‘(B) APPLICABLE
MINIMUM
AGE.—For 
purposes of this paragraph, the term ‘applicable 
minimum age’ means—
193 
‘‘(i) except as otherwise provided in 
this subparagraph, age 19, 
‘‘(ii) in the case of a full-time student 
(other than a qualified former foster youth 
or a qualified homeless youth), age 25, and 
‘‘(iii) in the case of a qualified former 
foster youth or a qualified homeless youth, 
age 18. 
‘‘(C) FULL-TIME STUDENT.—For purposes 
of this paragraph, the term ‘full-time student’ 
means, with respect to any taxable year, an in-
dividual who is an eligible student (as defined 
in section 25A(b)(3)) during at least 5 calendar 
months during the taxable year. 
‘‘(D) 
QUALIFIED
FORMER
FOSTER 
YOUTH.—For purposes of this paragraph, the 
term ‘qualified former foster youth’ means an 
individual who— 
‘‘(i) on or after the date that such in-
dividual attained age 14, was in foster care 
provided under the supervision or adminis-
tration of a State or tribal agency admin-
istering (or eligible to administer) a plan 
under part B or part E of the Social Secu-
rity Act (without regard to whether Fed-
194 
eral assistance was provided with respect 
to such child under such part E), and 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for State 
and tribal agencies which administer a 
plan under part B or part E of the Social 
Security Act to disclose to the Secretary 
information related to the status of such 
individual as a qualified former foster 
youth. 
‘‘(E) QUALIFIED HOMELESS YOUTH.—For 
purposes of this paragraph, the term ‘qualified 
homeless youth’ means, with respect to any tax-
able year, an individual who— 
‘‘(i) is certified by a local educational 
agency or a financial aid administrator 
during such taxable year as being either an 
unaccompanied youth who is a homeless 
child or youth, or as unaccompanied, at 
risk of homelessness, and self-supporting. 
Terms used in the preceding sentence 
which are also used in section 480(d)(1) of 
the Higher Education Act of 1965 shall 
have the same meaning as when used in 
such section, and
195 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for local 
educational agencies and financial aid ad-
ministrators to disclose to the Secretary in-
formation related to the status of such in-
dividual as a qualified homeless youth. 
‘‘(2) INCREASE IN MAXIMUM AGE FOR CRED-
IT.—Subsection (c)(1)(A)(ii)(II) shall be applied by 
substituting ‘age 66’ for ‘age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER-
CENTAGES.—The table contained in subsection 
(b)(1) shall be applied by substituting ‘15.3’ for 
‘7.65’ each place it appears therein. 
‘‘(4) INCREASE
IN
EARNED
INCOME
AND 
PHASEOUT AMOUNTS.— 
‘‘(A) IN GENERAL.—The table contained in 
subsection (b)(2)(A) shall be applied— 
‘‘(i) by substituting ‘$9,720’ for 
‘$4,220’, and 
‘‘(ii) by substituting ‘$11,490’ for 
‘$5,280’. 
‘‘(B) COORDINATION WITH INFLATION AD-
JUSTMENT.—Subsection (j) shall not apply to 
any dollar amount specified in this paragraph.’’.
196 
(b) INFORMATION RETURN MATCHING.—As soon as 
practicable, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall develop and implement procedures 
to use information returns under section 6050S (relating 
to returns relating to higher education tuition and related 
expenses) to check the status of individuals as full-time 
students for purposes of section 32(n)(1)(B)(ii) of the In-
ternal Revenue Code of 1986 (as added by this section). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 20122. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED 
INCOME CREDIT IN CASE OF QUALIFYING 
CHILDREN WHO FAIL TO MEET CERTAIN 
IDENTIFICATION REQUIREMENTS. 
(a) IN GENERAL.—Section 32(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (F). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 20123. CREDIT ALLOWED IN CASE OF CERTAIN SEPA-
RATED SPOUSES. 
(a) IN GENERAL.—Section 32(d) of the Internal Rev-
enue Code of 1986 is amended—
197 
(1) by striking ‘‘MARRIED INDIVIDUALS.—In 
the case of’’ and inserting the following: ‘‘MARRIED 
INDIVIDUALS.— 
‘‘(1) IN GENERAL.—In the case of’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) DETERMINATION OF MARITAL STATUS.— 
For purposes of this section— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), marital status shall be deter-
mined under section 7703(a). 
‘‘(B) SPECIAL
RULE
FOR
SEPARATED 
SPOUSE.—An individual shall not be treated as 
married if such individual— 
‘‘(i) is married (as determined under 
section 7703(a)) and does not file a joint 
return for the taxable year, 
‘‘(ii) lives with a qualifying child of 
the individual for more than one-half of 
such taxable year, and 
‘‘(iii)(I) during the last 6 months of 
such taxable year, does not have the same 
principal place of abode as the individual’s 
spouse, or
198 
‘‘(II) has a decree, instrument, or 
agreement (other than a decree of divorce) 
described in section 121(d)(3)(C) with re-
spect to the individual’s spouse and is not 
a member of the same household with the 
individual’s spouse by the end of the tax-
able year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 32(c)(1)(A) of such Code is amend-
ed by striking the last sentence. 
(2) Section 32(c)(1)(E)(ii) of such Code is 
amended by striking ‘‘(within the meaning of section 
7703)’’. 
(3) Section 32(d)(1) of such Code, as amended 
by subsection (a), is amended by striking ‘‘(within 
the meaning of section 7703)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 20124. ELIMINATION OF DISQUALIFIED INVESTMENT 
INCOME TEST. 
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (i). 
(b) CONFORMING AMENDMENTS.—
199 
(1) Section 32(j)(1) of such Code is amended 
by striking ‘‘subsections (b)(2) and (i)(1)’’ and in-
serting ‘‘subsection (b)(2)’’. 
(2) Section 32(j)(1)(B)(i) of such Code is 
amended by striking ‘‘subsections (b)(2)(A) and 
(i)(1)’’ and inserting ‘‘subsection (b)(2)(A)’’. 
(3) Section 32(j)(2) of such Code is amended— 
(A) by striking subparagraph (B), and 
(B) by striking ‘‘ROUNDING.—’’ and all 
that follows through ‘‘If any dollar amount’’ 
and inserting the following: ‘‘ROUNDING.—If 
any dollar amount’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 20125. APPLICATION OF EARNED INCOME TAX CREDIT 
IN POSSESSIONS OF THE UNITED STATES. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 7530. APPLICATION OF EARNED INCOME TAX CREDIT 
TO POSSESSIONS OF THE UNITED STATES. 
‘‘(a) PUERTO RICO.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the
200 
Secretary shall, except as otherwise provided in this 
subsection, make payments to Puerto Rico equal 
to— 
‘‘(A) the specified matching amount for 
such calendar year, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by Puerto 
Rico during such calendar year for edu-
cation efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to the earned income tax credit, or 
‘‘(ii) $1,000,000. 
‘‘(2) REQUIREMENT TO REFORM EARNED IN-
COME TAX CREDIT.—The Secretary shall not make 
any payments under paragraph (1) with respect to 
any calendar year unless Puerto Rico has in effect 
an earned income tax credit for taxable years begin-
ning in or with such calendar year which (relative to 
the earned income tax credit which was in effect for 
taxable years beginning in or with calendar year 
2019) increases the percentage of earned income 
which is allowed as a credit for each group of indi-
viduals with respect to which such percentage is sep-
201 
arately stated or determined in a manner designed 
to substantially increase workforce participation. 
‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
matching amount’ means, with respect to any 
calendar year, the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with such 
calendar year, over 
‘‘(II) the base amount for such 
calendar year, or 
‘‘(ii) the product of 3, multiplied by 
the base amount for such calendar year. 
‘‘(B) BASE AMOUNT.— 
‘‘(i) BASE AMOUNT FOR 2020.—In the 
case of calendar year 2020, the term ‘base 
amount’ means the greater of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with cal-
endar year 2019 (rounded to the 
nearest multiple of $1,000,000), or
202 
‘‘(II) $200,000,000. 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any calendar year after 2021, 
the term ‘base amount’ means the dollar 
amount determined under clause (i) in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by— 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘calendar year 2020’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount determined under this clause 
shall be rounded to the nearest multiple of 
$1,000,000. 
‘‘(4) RULES RELATED TO PAYMENTS AND RE-
PORTS.— 
‘‘(A) TIMING
OF
PAYMENTS.—The Sec-
retary shall make payments under paragraph 
(1) for any calendar year— 
‘‘(i) after receipt of the report de-
scribed in subparagraph (B) for such cal-
endar year, and
203 
‘‘(ii) except as provided in clause (i), 
within a reasonable period of time before 
the due date for individual income tax re-
turns (as determined under the laws of 
Puerto Rico) for taxable years which began 
on the first day of such calendar year. 
‘‘(B) ANNUAL REPORTS.—With respect to 
calendar year 2021 and each calendar year 
thereafter, Puerto Rico shall provide to the Sec-
retary a report which shall include— 
‘‘(i) an estimate of the costs described 
in paragraphs (1)(B)(i) and (3)(A)(i)(I) 
with respect to such calendar year, and 
‘‘(ii) a statement of such costs with 
respect to the preceding calendar year. 
‘‘(C) ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—In the event that 
any estimate of an amount is more or less 
than the actual amount as later deter-
mined and any payment under paragraph 
(1) was determined on the basis of such 
estimate, proper payment shall be made 
by, or to, the Secretary (as the case may 
be) as soon as practicable after the deter-
mination that such estimate was inac-
204 
curate. Proper adjustment shall be made in 
the amount of any subsequent payments 
made under paragraph (1) to the extent 
that proper payment is not made under the 
preceding sentence before such subsequent 
payments. 
‘‘(ii) 
ADDITIONAL
REPORTS.—The 
Secretary may require such additional peri-
odic reports of the information described in 
subparagraph (B) as the Secretary deter-
mines appropriate to facilitate timely ad-
justments under clause (i). 
‘‘(D) 
DETERMINATION
OF
COST
OF 
EARNED INCOME TAX CREDIT.—For purposes 
of this subsection, the cost to Puerto Rico of 
the earned income tax credit shall be deter-
mined by the Secretary on the basis of the laws 
of Puerto Rico and shall include reductions in 
revenues received by Puerto Rico by reason of 
such credit and refunds attributable to such 
credit, but shall not include any administrative 
costs with respect to such credit. 
‘‘(E) PREVENTION OF MANIPULATION OF 
BASE AMOUNT.—No payments shall be made 
under paragraph (1) if the earned income tax
205 
credit as in effect in Puerto Rico for taxable 
years beginning in or with calendar year 2019 
is modified after the date of the enactment of 
this subsection. 
‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
subsection, make payments to the Virgin Islands, 
Guam, and the Commonwealth of the Northern Mar-
iana Islands equal to— 
‘‘(A) 75 percent of the cost to such posses-
sion of the earned income tax credit for taxable 
years beginning in or with such calendar year, 
plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by such 
possession during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to such earned income tax credit, or 
‘‘(ii) $50,000.
206 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C), 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(c) AMERICAN SAMOA.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
subsection, make payments to American Samoa 
equal to— 
‘‘(A) the lesser of— 
‘‘(i) 75 percent of the cost to Amer-
ican Samoa of the earned income tax cred-
it for taxable years beginning in or with 
such calendar year, or 
‘‘(ii) $12,000,000, plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by Amer-
ican Samoa during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to such earned income tax credit, or 
‘‘(ii) $50,000.
207 
‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN 
AN EARNED INCOME TAX CREDIT.—The Secretary 
shall not make any payments under paragraph (1) 
with respect to any calendar year unless American 
Samoa has in effect an earned income tax credit for 
taxable years beginning in or with such calendar 
year which allows a refundable tax credit to individ-
uals on the basis of the taxpayer’s earned income 
which is designed to substantially increase workforce 
participation. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any calendar year after 2020, the $12,000,000 
amount in paragraph (1)(A)(ii) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by— 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, determined by substituting ‘calendar year 
2019’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause shall be 
rounded to the nearest multiple of $100,000. 
‘‘(4) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C),
209 
(b) EARNED INCOME.— 
(1) IN GENERAL.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given 
such term under section 32(c) of the Internal Rev-
enue Code of 1986. 
(2) APPLICATION
TO
JOINT
RETURNS.—For 
purposes of subsection (a), in the case of a joint re-
turn, the earned income of the taxpayer for the pre-
ceding taxable year shall be the sum of the earned 
income of each spouse for such preceding taxable 
year. 
(c) SPECIAL RULES.— 
(1) ERRORS
TREATED
AS
MATHEMATICAL 
ERROR.—For purposes of section 6213 of the Inter-
nal Revenue Code of 1986, an incorrect use on a re-
turn of earned income pursuant to subsection (a) 
shall be treated as a mathematical or clerical error. 
(2) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
subsection, the Internal Revenue Code of 1986 shall 
be applied without regard to any substitution under 
subsection (a). 
(d) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
210 
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the application of the provisions of this section 
(other than this subsection) with respect to section 
32 of the Internal Revenue Code of 1986. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the pro-
visions of this section (other than this subsection) 
with respect to section 32 of the Internal Revenue 
Code of 1986 if a mirror code tax system had been 
in effect in such possession. The preceding sentence 
shall not apply unless the respective possession has 
a plan, which has been approved by the Secretary of 
the Treasury, under which such possession will 
promptly distribute such payments to its residents.
211 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this section shall be treated in the 
same manner as a refund due from a credit provi-
sion referred to in subsection (b)(2) of such section. 
Subtitle D—Child Tax Credit 
SEC. 20131. CHILD TAX CREDIT IMPROVEMENTS FOR 2020. 
(a) IN GENERAL.—Section 24 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(i) SPECIAL RULES FOR 2020.—In the case of any 
taxable year beginning in 2020— 
‘‘(1) REFUNDABLE CREDIT.—Subsection (h)(5) 
shall not apply and the increase determined under 
the first sentence of subsection (d)(1) shall be the 
amount determined under subsection (d)(1)(A) (de-
termined without regard to subsection (h)(4)).
212 
‘‘(2) CREDIT AMOUNT.—Subsection (h)(2) shall 
not apply and subsection (a) shall be applied by sub-
stituting ‘$3,000 ($3,600 in the case of a qualifying 
child who has not attained age 6 as of the close of 
the calendar year in which the taxable year of the 
taxpayer begins)’ for ‘$1,000’. 
‘‘(3) 17-YEAR-OLDS ELIGIBLE FOR TREATMENT 
AS QUALIFYING CHILDREN.—This section shall be 
applied— 
‘‘(A) by substituting ‘age 18’ for ‘age 17’ 
in subsection (c)(1), and 
‘‘(B) by substituting ‘described in sub-
section (c) (determined after the application of 
subsection (i)(3)(A))’ for ‘described in sub-
section (c)’ in subsection (h)(4)(A).’’. 
(b) ADVANCE PAYMENT OF CREDIT.— 
(1) IN GENERAL.—Chapter 77 of such Code is 
amended by inserting after section 7527 the fol-
lowing new section: 
‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—As soon as practicable after the 
date of the enactment of this Act, the Secretary shall es-
tablish a program for making advance payments of the 
credit allowed under subsection (a) of section 24 on a 
monthly basis (determined without regard to subsection
213 
(i)(4)) of such section), or as frequently as the Secretary 
determines to be administratively feasible, to taxpayers de-
termined to be eligible for advance payment of such credit. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The Secretary may make 
payments under subsection (a) only to the extent 
that the total amount of such payments made to any 
taxpayer during the taxable year does not exceed an 
amount equal to the excess, if any, of— 
‘‘(A) subject to paragraph (2), the amount 
determined under subsection (a) of section 24 
with respect to such taxpayer (determined with-
out regard to subsection (i)(4)) of such section) 
for such taxable year, over 
‘‘(B) the estimated tax imposed by subtitle 
A, as reduced by the credits allowable under 
subparts A and C (other than section 24) of 
such part IV, with respect to such taxpayer for 
such taxable year, as determined in such man-
ner as the Secretary deems appropriate. 
‘‘(2) APPLICATION
OF
THRESHOLD
AMOUNT 
LIMITATION.—The program described in subsection 
(a) shall make reasonable efforts to apply the limita-
tion of section 24(b) with respect to payments made 
under such program.
214 
‘‘(c) APPLICATION.—The advance payments de-
scribed in this section shall only be made with respect to 
credits allowed under section 24 for taxable years begin-
ning during 2020.’’. 
(2) RECONCILIATION OF CREDIT AND ADVANCE 
CREDIT.—Section 24(i) of such Code, as amended by 
subsection (a), is amended by adding at the end the 
following new paragraph: 
‘‘(4) RECONCILIATION
OF
CREDIT
AND
AD-
VANCE CREDIT.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowed under this section for any taxable 
year shall be reduced (but not below zero) by 
the aggregate amount of any advance payments 
of such credit under section 7527A for such 
taxable year. 
‘‘(B) EXCESS ADVANCE PAYMENTS.—If the 
aggregate amount of advance payments under 
section 7527A for the taxable year exceeds the 
amount of the credit allowed under this section 
for such taxable year (determined without re-
gard to subparagraph (A)), the tax imposed by 
this chapter for such taxable year shall be in-
creased by the amount of such excess.’’.
216 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.—No credit shall be allowed under this 
section for any taxable year to any individual to 
whom a credit is allowable against taxes im-
posed by a possession with a mirror code tax 
system by reason of the application of this sec-
tion in such possession for such taxable year. 
‘‘(C) MIRROR
CODE
TAX
SYSTEM.—For 
purposes of this paragraph, the term ‘mirror 
code tax system’ means, with respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
‘‘(2) PUERTO RICO.—In the case of any bona 
fide resident of Puerto Rico (within the meaning of 
section 937(a))— 
‘‘(A) the credit determined under this sec-
tion shall be allowable to such resident, 
‘‘(B) in the case of any taxable year begin-
ning during 2020, the increase determined 
under the first sentence of subsection (d)(1)
217 
shall be the amount determined under sub-
section (d)(1)(A) (determined without regard to 
subsection (h)(4)), 
‘‘(C) in the case of any taxable year begin-
ning after December 31, 2020, and before Jan-
uary 1, 2026, the increase determined under 
the first sentence of subsection (d)(1) shall be 
the lesser of— 
‘‘(i) the amount determined under 
subsection (d)(1)(A) (determined without 
regard to subsection (h)(4)), or 
‘‘(ii) the dollar amount in effect under 
subsection (h)(5), and 
‘‘(D) in the case of any taxable year after 
December 31, 2025, the increase determined 
under the first sentence of subsection (d)(1) 
shall be the amount determined under sub-
section (d)(1)(A). 
‘‘(3) AMERICAN SAMOA.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to American Samoa amounts estimated by 
the Secretary as being equal to the aggregate 
benefits that would have been provided to resi-
dents of American Samoa by reason of the ap-
plication of this section for taxable years begin-
218 
ning after 2019 if the provisions of this section 
had been in effect in American Samoa. 
‘‘(B) DISTRIBUTION REQUIREMENT.—Sub-
paragraph (A) shall not apply unless American 
Samoa has a plan, which has been approved by 
the Secretary, under which American Samoa 
will promptly distribute such payments to the 
residents of American Samoa in a manner 
which replicates to the greatest degree prac-
ticable the benefits that would have been so 
provided to each such resident. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year with respect to which a plan 
is approved under subparagraph (B), this 
section (other than this subsection) shall 
not apply to any individual eligible for a 
distribution under such plan. 
‘‘(ii) APPLICATION
OF
SECTION
IN 
EVENT
OF
ABSENCE
OF
APPROVED 
PLAN.—In the case of a taxable year with 
respect to which a plan is not approved 
under subparagraph (B), rules similar to
219 
the rules of paragraph (2) shall apply with 
respect to bona fide residents of American 
Samoa (within the meaning of section 
937(a)). 
‘‘(4) TREATMENT
OF
PAYMENTS.—The pay-
ments made under this subsection shall be treated in 
the same manner for purposes of section 1324(b)(2) 
of title 31, United States Code, as refunds due from 
the credit allowed under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
Subtitle E—Dependent Care 
Assistance 
SEC. 20141. REFUNDABILITY AND ENHANCEMENT OF CHILD 
AND DEPENDENT CARE TAX CREDIT. 
(a) IN GENERAL.—Section 21 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(g) SPECIAL RULES FOR 2020.—In the case of any 
taxable year beginning after December 31, 2019, and be-
fore January 1, 2021— 
‘‘(1) CREDIT MADE REFUNDABLE.—In the case 
of an individual other than a nonresident alien, the 
credit allowed under subsection (a) shall be treated
220 
as a credit allowed under subpart C (and not allowed 
under this subpart). 
‘‘(2) INCREASE IN APPLICABLE PERCENTAGE.— 
Subsection (a)(2) shall be applied— 
‘‘(A) by substituting ‘50 percent’ for ‘35 
percent ’, and 
‘‘(B) 
by 
substituting 
‘$120,000’ 
for 
‘$15,000’. 
‘‘(3) INCREASE IN DOLLAR LIMIT ON AMOUNT 
CREDITABLE.—Subsection (c) shall be applied— 
‘‘(A) by substituting ‘$6,000’ for ‘$3,000’ 
in paragraph (1) thereof, and 
‘‘(B) by substituting ‘twice the amount in 
effect under paragraph (1)’ for ‘$6,000’ in 
paragraph (2) thereof.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) 
of title 31, United States Code, is amended by inserting 
‘‘21 (by reason of subsection (g) thereof),’’ before ‘‘25A’’. 
(c) COORDINATION WITH POSSESSION TAX SYS-
TEMS.—Section 21(g)(1) of the Internal Revenue Code of 
1986 (as added by this section) shall not apply to any per-
son— 
(1) to whom a credit is allowed against taxes 
imposed by a possession with a mirror code tax sys-
tem by reason of the application of section 21 of
221 
such Code in such possession for such taxable year, 
or 
(2) to whom a credit would be allowed against 
taxes imposed by a possession which does not have 
a mirror code tax system if the provisions of section 
21 of such Code had been in effect in such posses-
sion for such taxable year. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 20142. INCREASE IN EXCLUSION FOR EMPLOYER-PRO-
VIDED DEPENDENT CARE ASSISTANCE. 
(a) IN GENERAL.—Section 129(a)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(D) SPECIAL
RULE
FOR
2020.—In the 
case of any taxable year beginning during 2020, 
subparagraph (A) shall be applied be sub-
stituting ‘$10,500 (half such dollar amount’ for 
‘$5,000 ($2,500’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
(c) RETROACTIVE PLAN AMENDMENTS.—A plan or 
other arrangement that otherwise satisfies all applicable
222 
requirements of sections 106, 125, and 129 of the Internal 
Revenue Code of 1986 (including any rules or regulations 
thereunder) shall not fail to be treated as a cafeteria plan 
or dependent care flexible spending arrangement merely 
because such plan or arrangement is amended pursuant 
to a provision under this section and such amendment is 
retroactive, if— 
(1) such amendment is adopted no later than 
the last day of the plan year in which the amend-
ment is effective, and 
(2) the plan or arrangement is operated con-
sistent with the terms of such amendment during 
the period beginning on the effective date of the 
amendment and ending on the date the amendment 
is adopted. 
Subtitle F—Flexibility for Certain 
Employee Benefits 
SEC. 20151. INCREASE IN CARRYOVER FOR HEALTH FLEXI-
BLE SPENDING ARRANGEMENTS. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all of the applicable requirements of 
sections 106 and 125 of the Internal Revenue Code of 
1986 (including any rules or regulations thereunder) shall 
not fail to be treated as a cafeteria plan or health flexible 
spending arrangement merely because such plan or ar-
223 
rangement permits participants to carry over an amount 
not in excess of $2,750 of unused benefits or contributions 
remaining in a health flexible spending arrangement from 
the plan year ending in 2020 to the plan year ending in 
2021. 
(b) DEFINITIONS.—Any term used in this section 
which is also used in section 106 or 125 of the Internal 
Revenue Code of 1986 or the rules or regulations there-
under shall have the same meaning as when used in such 
section or rules or regulations. 
SEC. 20152. CARRYOVER FOR DEPENDENT CARE FLEXIBLE 
SPENDING ARRANGEMENTS. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all applicable requirements of sections 
106, 125, and 129 of the Internal Revenue Code of 1986 
(including any rules or regulations thereunder) shall not 
fail to be treated as a cafeteria plan or dependent care 
flexible spending arrangement merely because such plan 
or arrangement permits participants to carry over (under 
rules similar to the rules applicable to health flexible 
spending arrangements) an amount, not in excess of the 
amount in effect under section 129(a)(2)(A) of such Code, 
of unused benefits or contributions remaining in a depend-
ent care flexible spending arrangement from the plan year 
ending in 2020 to the plan year ending in 2021.
224 
(b) DEFINITIONS.—Any term used in this section 
which is also used in section 106, 125, or 129 of the Inter-
nal Revenue Code of 1986 or the rules or regulations 
thereunder shall have the same meaning as when used in 
such section or rules or regulations. 
SEC. 20153. CARRYOVER OF PAID TIME OFF. 
(a) IN GENERAL.—A plan that otherwise satisfies all 
applicable requirements of section 125 of the Internal Rev-
enue Code of 1986 (including any rules or regulations 
thereunder) shall not fail to be treated as a cafeteria plan 
merely because such plan permits participants to carry 
over (under rules similar to the rules applicable to health 
flexible spending arrangements) any amount of paid time 
off (without limitation) from the plan year ending in 2020 
to the plan year ending in 2021. 
(b) DEFINITIONS.—Any term used in this section 
which is also used in section 125 of the Internal Revenue 
Code of 1986 or the rules or regulations thereunder shall 
have the same meaning as when used in such section or 
rules or regulations. 
SEC. 20154. CHANGE IN ELECTION AMOUNT. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all applicable requirements of sections 
106 and 125 of the Internal Revenue Code of 1986 (in-
cluding any rules or regulations thereunder) shall not fail
225 
to be treated as a cafeteria plan or health flexible spending 
arrangement merely because such plan or arrangement al-
lows an employee to make, with respect to the remaining 
portion of a period of coverage within the applicable pe-
riod— 
(1) an election modifying the amount of such 
employee’s contributions to such a health flexible 
spending arrangement (without regard to any 
change in status), or 
(2) an election modifying the amount of such 
employee’s elective paid time off. 
Any election as modified under paragraph (1) shall not 
exceed the limitation applicable under section 125(i) for 
the taxable year. 
(b) ONE-TIME APPLICATION.—Paragraphs (1) and 
(2) of subsection (a) shall each apply to only 1 election 
change described in such paragraph with respect to an em-
ployee (in addition to any other election changes during 
a period of coverage permitted under the plan or arrange-
ment without regard to this section). 
(c) APPLICABLE PERIOD.—For purposes of this sec-
tion, the term ‘‘applicable period’’ means the period begin-
ning on the date of the enactment of this Act and ending 
on December 31, 2020.
226 
(d) DEFINITIONS.—Any term used in this section 
which is also used in section 106 or 125 of the Internal 
Revenue Code of 1986 or the rules or regulations there-
under shall have the same meaning as when used in such 
section or rules or regulations. 
SEC. 20155. EXTENSION OF GRACE PERIODS, ETC. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all applicable requirements of sections 
106, 125, or 129 of the Internal Revenue Code (including 
any rules or regulations thereunder) shall not fail to be 
treated as a cafeteria plan, health flexible spending ar-
rangement, or dependent care flexible spending arrange-
ment (whichever is applicable) merely because such plan 
or arrangement extends the grace period for the plan year 
ending in 2020 to 12 months after the end of such plan 
year, with respect to unused benefits or contributions re-
maining in a health flexible spending arrangement or a 
dependent care flexible spending arrangement. 
(b) POST-TERMINATION REIMBURSEMENTS FROM 
HEALTH FSAS.—A plan or other arrangement that other-
wise satisfies all applicable requirements of sections 106 
and 125 of the Internal Revenue Code of 1986 (including 
any rules or regulations thereunder) shall not fail to be 
treated as a cafeteria plan or health flexible spending ar-
rangement merely because such plan or arrangement al-
227 
lows (under rules similar to the rules applicable to depend-
ent care flexible spending arrangements) an employee who 
ceases participation in the plan during calendar year 2020 
to continue to receive reimbursements from unused bene-
fits or contributions through the end of the plan year (in-
cluding any grace period, taking into account any modi-
fication of a grace period permitted under subsection (a)). 
(c) DEFINITIONS.—Any term used in this section 
which is also used in section 106, 125, or 129 of the Inter-
nal Revenue Code of 1986 or the rules or regulations 
thereunder shall have the same meaning as when used in 
such section or rules or regulations. 
SEC. 20156. PLAN AMENDMENTS. 
A plan or other arrangement that otherwise satisfies 
all applicable requirements of sections 106, 125, and 129 
of the Internal Revenue Code of 1986 (including any rules 
or regulations thereunder) shall not fail to be treated as 
a cafeteria plan, health flexible spending arrangement, or 
dependent care flexible spending arrangement merely be-
cause such plan or arrangement is amended pursuant to 
a provision under this subtitle and such amendment is ret-
roactive, if— 
(1) such amendment is adopted no later than 
the last day of the plan year in which the amend-
ment is effective, and
228 
(2) the plan or arrangement is operated con-
sistent with the terms of such amendment during 
the period beginning on the effective date of the 
amendment and ending on the date the amendment 
is adopted. 
Subtitle G—Deduction of State and 
Local Taxes 
SEC. 20161. ELIMINATION FOR 2020 AND 2021 OF LIMITA-
TION ON DEDUCTION OF STATE AND LOCAL 
TAXES. 
(a) IN GENERAL.—Section 164(b)(6)(B) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘in 
the case of a taxable year beginning before January 1, 
2020, or after December 31, 2021,’’ before ‘‘the aggregate 
amount of taxes’’. 
(b) CONFORMING AMENDMENTS.—Section 164(b)(6) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subparagraph 
(B)’’ and inserting ‘‘For purposes of this section’’, 
(2) by striking ‘‘January 1, 2018’’ and insert-
ing ‘‘January 1, 2022’’, 
(3) by striking ‘‘December 31, 2017, shall’’ and 
inserting ‘‘December 31, 2021, shall’’, and 
(4) by adding at the end the following: ‘‘For 
purposes of this section, in the case of State or local
229 
taxes with respect to any real or personal property 
paid during a taxable year beginning in 2020 or 
2021, the Secretary shall prescribe rules which treat 
all or a portion of such taxes as paid in a taxable 
year or years other than the taxable year in which 
actually paid as necessary or appropriate to prevent 
the avoidance of the limitations of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxes paid or accrued in taxable 
years beginning after December 31, 2019. 
TITLE II—ADDITIONAL RELIEF 
FOR WORKERS 
Subtitle A—Additional Relief 
SEC. 20201. INCREASE IN ABOVE-THE-LINE DEDUCTION FOR 
CERTAIN EXPENSES OF ELEMENTARY AND 
SECONDARY SCHOOL TEACHERS. 
(a) INCREASE.—Section 62(a)(2)(D) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$250’’ and 
inserting ‘‘$500’’. 
(b) CONFORMING AMENDMENTS.—Section 62(d)(3) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘2015’’ and inserting ‘‘2020’’, 
(2) by striking ‘‘$250’’ and inserting ‘‘$500’’, 
and
230 
(3) in subparagraph (B), by striking ‘‘2014’’ 
and inserting ‘‘2019’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 20202. ABOVE-THE-LINE DEDUCTION ALLOWED FOR 
CERTAIN EXPENSES OF FIRST RESPONDERS. 
(a) IN GENERAL.—Section 62(a)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(F) CERTAIN
EXPENSES
OF
FIRST
RE-
SPONDERS.—The deductions allowed by section 
162 which consist of expenses, not in excess of 
$500, paid or incurred by a first responder— 
‘‘(i) as tuition or fees for the partici-
pation of the first responder in profes-
sional development courses related to serv-
ice as a first responder, or 
‘‘(ii) for uniforms used by the first re-
sponder in service as a first responder.’’. 
(b) FIRST RESPONDER DEFINED.—Section 62(d) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) FIRST RESPONDER.—For purposes of sub-
section (a)(2)(F), the term ‘first responder’ means,
231 
with respect to any taxable year, any employee who 
provides at least 1000 hours of service during such 
taxable year as a law enforcement officer, firefighter, 
paramedic, or emergency medical technician.’’. 
(c) INFLATION ADJUSTMENT.—Section 62(d)(3) of 
the Internal Revenue Code of 1986, as amended by the 
preceding provisions of this Act, is further amended by 
striking ‘‘the $500 amount in subsection (a)(2)(D)’’ and 
inserting ‘‘the $500 amount in each of subparagraphs (D) 
and (F) of subsection (a)(2)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 20203. TEMPORARY ABOVE-THE-LINE DEDUCTION FOR 
SUPPLIES AND EQUIPMENT OF FIRST RE-
SPONDERS AND COVID–19 FRONT LINE EM-
PLOYEES. 
(a) IN GENERAL.—Section 62(d) of the Internal Rev-
enue Code of 1986, as amended by the preceding provi-
sions of this Act, is amended by adding at the end of the 
following new paragraph: 
‘‘(5) TEMPORARY RULE FOR FIRST RESPOND-
ERS AND COVID–19 FRONT LINE EMPLOYEES.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in 2020—
232 
‘‘(i) subsection (a)(2)(F)(ii) shall be 
applied by substituting ‘uniforms, supplies, 
or equipment’ for ‘uniforms’, and 
‘‘(ii) 
for 
purposes 
of 
subsection 
(a)(2)(F), the term ‘first responder’ shall 
include any COVID–19 front line em-
ployee. 
‘‘(B) 
COVID–19 
FRONT
LINE
EM-
PLOYEE.—For purposes of this paragraph, the 
term ‘COVID–19 front line employee’ means, 
with respect to any taxable year, any individual 
who performs at least 1000 hours of essential 
work (as defined in the COVID–19 Heroes 
Fund Act of 2020 except without regard to the 
time period during which such work is per-
formed) during such taxable year as an em-
ployee in a trade or business of an employer.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 20204. PAYROLL CREDIT FOR CERTAIN PANDEMIC-RE-
LATED EMPLOYEE BENEFIT EXPENSES PAID 
BY EMPLOYERS. 
(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against applicable employment
233 
taxes for each calendar quarter an amount equal to the 
applicable percentage of the qualified pandemic-related 
employee benefit expenses paid by such employer with re-
spect to such calendar quarter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) DOLLAR LIMITATION PER EMPLOYEE.—The 
qualified pandemic-related employee benefit expenses 
which may be taken into account under subsection 
(a) with respect to any employee for any calendar 
quarter shall not exceed $5,000. 
(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes for such calendar quar-
ter (reduced by any credits allowed under sub-
sections (e) and (f) of section 3111 of such Code, 
sections 7001 and 7003 of the Families First 
Coronavirus Response Act, and section 2301 of the 
CARES Act, for such quarter) on the wages paid 
with respect to the employment of all the employees 
of the employer for such calendar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quarter,
234 
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 pur-
poses of section 1324 of title 31, United States 
Code, any amounts due to an 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. 
(4) 
COORDINATION
WITH
GOVERNMENT 
GRANTS.—The qualified pandemic-related employee 
benefit expenses taken into account under this sec-
tion by any employer shall be reduced by any 
amounts provided by and Federal, State, or local 
government for purposes of making or reimbursing 
such expenses. 
(c) QUALIFIED
PANDEMIC-RELATED
EMPLOYEE 
BENEFIT EXPENSES.—For purposes of this section, the 
term ‘‘qualified pandemic-related employee benefit ex-
penses’’ means any amount paid to or for the benefit of 
an employee in the employment of the employer if— 
(1) such amount is excludible from the gross in-
come of the employee under section 139 of the Inter-
nal Revenue Code of 1986 by reason of being a
235 
qualified disaster relief payment described in sub-
section (b)(1) of such section with respect to a quali-
fied disaster described in subsection (c)(2) of such 
section which was declared by reason of COVID–19, 
and 
(2) the employer elects (at such time and in 
such manner as the Secretary may provide) to treat 
such amount as a qualified pandemic-related em-
ployee benefit expense. 
(d) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
(1) IN GENERAL.—The term ‘‘applicable per-
centage’’ means— 
(A) 50 percent, in the case of qualified 
pandemic-related employee benefit expenses 
paid with respect to an essential employee, and 
(B) 30 percent, in any other case. 
(2) ESSENTIAL EMPLOYEE.—The term ‘‘essen-
tial employee’’ means, with respect to any employer 
for any calendar quarter, any employee of such em-
ployer if a substantial portion of the services per-
formed by such employee for such employer during 
such calendar quarter are essential work (as defined 
in the COVID–19 Heroes Fund Act of 2020 except
237 
(4) APPLICABLE
EMPLOYMENT
TAXES.—For 
purposes of this section, the term ‘‘applicable em-
ployment taxes’’ means the following: 
(A) The taxes imposed under section 
3111(a) of the Internal Revenue Code of 1986. 
(B) So much of the taxes imposed under 
section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 
3111(a) of such Code. 
(5) SECRETARY.—For purposes of this section, 
the term ‘‘Secretary’’ means the Secretary of the 
Treasury or the Secretary’s delegate. 
(6) CERTAIN TERMS.— 
(A) IN GENERAL.—Any term used in this 
section which is also used in chapter 21 or 22 
of such Code shall have the same meaning as 
when used in such chapter (as the case may 
be). 
(B) CERTAIN
PROVISIONS
NOT
TAKEN 
INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM-
ITING CREDIT TO EMPLOYMENT TAXES.—For 
purposes of subparagraph (A) (other than with 
respect to subsection (b)(2)), section 3121(b) of 
such Code shall be applied without regard to 
paragraphs (1), (5), (6), (7), (8), (10), (13),
238 
(18), (19), and (22) thereof (except with re-
spect to services performed in a penal institu-
tion by an inmate thereof) and section 
3231(e)(1) shall be applied without regard to 
the sentence that begins ‘‘Such term does not 
include remuneration’’. 
(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government or 
any agency or instrumentality thereof. 
(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. 
(g) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of such Code for 
any failure to make a deposit of applicable employment 
taxes if the Secretary determines that such failure was due 
to the anticipation of the credit allowed under this section. 
(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carry out the purposes of this section, including regula-
tions or other guidance— 
(1) to allow the advance payment of the credit 
determined under subsection (a), subject to the limi-
239 
tations provided in this section, based on such infor-
mation as the Secretary shall require, 
(2) to provide for the reconciliation of such ad-
vance payment with the amount of the credit at the 
time of filing the return of tax for the applicable 
quarter or taxable year, 
(3) for recapturing the benefit of credits deter-
mined under this section in cases where there is a 
subsequent adjustment to the credit determined 
under subsection (a), and 
(4) with respect to the application of the credit 
to third party payors (including professional em-
ployer organizations, certified professional employer 
organizations, or agents under section 3504 of such 
Code), including to allow such payors to submit doc-
umentation necessary to substantiate eligibility for, 
and the amount of, the credit allowed under this sec-
tion. 
(i) APPLICATION OF SECTION.—This section shall 
apply only to qualified pandemic-related employee benefit 
expenses paid after March 12, 2020, and before January 
1, 2021. 
(j) TRANSFERS TO CERTAIN TRUST FUNDS.—There 
are hereby appropriated to the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disability
240 
Insurance Trust Fund established under section 201 of 
the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under 
section 15A(a) of the Railroad Retirement Act of 1974 
(45 U.S.C. 231n–1(a)) amounts equal to the reduction in 
revenues to the Treasury by reason of this section (without 
regard to this subsection). Amounts appropriated by the 
preceding sentence shall be transferred from the general 
fund at such times and in such manner as to replicate 
to the extent possible the transfers which would have oc-
curred to such Trust Fund or Account had this section 
not been enacted. 
Subtitle B—Tax Credits to Prevent 
Business Interruption 
SEC. 20211. IMPROVEMENTS TO EMPLOYEE RETENTION 
CREDIT. 
(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
241 
‘‘(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-
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:
242 
‘‘(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.’’. 
(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) of the CARES Act is amended— 
(A) by striking ‘‘50 percent’’ in clause (i) 
and inserting ‘‘90 percent’’, and 
(B) by striking ‘‘80 percent’’ in clause (ii) 
and inserting ‘‘90 percent’’.
243 
(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 ‘90 
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— 
‘‘(I) the excess gross receipts per-
centage point amount, bears to 
‘‘(II) 40 percentage points. 
‘‘(ii) EXCESS GROSS RECEIPTS PER-
CENTAGE POINT AMOUNT.—For purposes 
of this subparagraph, the term ‘excess 
gross receipts percentage point amount’
244 
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— 
‘‘(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.’’.
245 
(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.— 
‘‘(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).
246 
‘‘(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-
retary, such allocation shall be treated as 
properly made if made on the basis of 
being pro rata among periods of cov-
erage.’’.
247 
(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. 
‘‘(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.
248 
‘‘(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 
Code (except with respect to services performed 
in a penal institution by an inmate thereof).’’. 
(B) 
CONFORMING
AMENDMENTS.—Sec-
tions 2301(c)(6) of the CARES Act is amended
249 
by striking ‘‘Any term’’ and inserting ‘‘Except 
as otherwise provided in this section, any 
term’’. 
(h) APPLICATION OF CREDIT TO EMPLOYERS OF DO-
MESTIC WORKERS.— 
(1) IN
GENERAL.—Section 2301(c)(2) of the 
CARES Act, as amended by the preceding provisions 
of this Act, is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) EMPLOYERS
OF
DOMESTIC
WORK-
ERS.—In the case of an employer with one or 
more employees who perform domestic service 
(within the meaning of section 3121(a)(7) of 
such Code) in the private home of such em-
ployer, with respect to such employees— 
‘‘(i) subparagraph (A) shall be ap-
plied— 
‘‘(I) by substituting ‘employing 
an employee who performs domestic 
service in the private home of such 
employer’ for ‘carrying on a trade or 
business’ in clause (i) thereof, and 
‘‘(II) by substituting ‘such em-
ployment’ for ‘the operation of the
250 
trade or business’ in clause (ii)(I) 
thereof. 
‘‘(ii) subclause (II) of subparagraph 
(A)(ii) shall not apply, and 
‘‘(iii) such employer shall be treated 
as a large employer.’’. 
(2) DENIAL
OF
DOUBLE
BENEFIT.—Section 
2301(h)(2) of the CARES Act, as amended by pre-
ceding provisions of this Act, is amended— 
(A) by striking ‘‘shall not be taken into ac-
count for purposes of’’ and inserting ‘‘shall not 
be taken into account— 
‘‘(A) for purposes of’’, 
(B) by striking the period at the end and 
inserting ‘‘, and’’ , and 
(C) by adding at the end the following: 
‘‘(B) if such wages are paid for domestic 
service described in subsection (c)(2)(E), as em-
ployment-related expenses for purposes of sec-
tion 21 of such Code. 
In the case of any individual who pays wages for do-
mestic service described in subsection (c)(2)(E) and 
receives a reimbursement for such wages which is 
excludible from gross income under section 129 of
251 
such Code, such wages shall not be treated as quali-
fied wages for purposes of this section.’’. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 2301 
of the CARES Act. 
SEC. 20212. PAYROLL CREDIT FOR CERTAIN FIXED EX-
PENSES OF EMPLOYERS SUBJECT TO CLO-
SURE BY REASON OF COVID–19. 
(a) IN GENERAL.—In the case of an eligible em-
ployer, there shall be allowed as a credit against applicable 
employment taxes for each calendar quarter an amount 
equal to 50 percent of the qualified fixed expenses paid 
or incurred by such employer during such calendar quar-
ter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) LIMITATION.—The qualified fixed expenses 
which may be taken into account under subsection 
(a) by any eligible employer for any calendar quarter 
shall not exceed the least of— 
(A) the qualified fixed expenses paid by the 
eligible employer in the same calendar quarter 
of calendar year 2019, 
(B) $50,000, or 
(C) the greater of—
252 
(i) 25 percent of the wages paid with 
respect to the employment of all the em-
ployees of the eligible employer for such 
calendar quarter, or 
(ii) 6.25 percent of the gross receipts 
of the eligible employer for calendar year 
2019. 
(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes for such calendar quar-
ter (reduced by any credits allowed under sub-
sections (e) and (f) of section 3111 of such Code, 
sections 7001 and 7003 of the Families First 
Coronavirus Response Act, section 2301 of the 
CARES Act, and section 20204 of this division, for 
such quarter) on the wages paid with respect to the 
employment of all the employees of the eligible em-
ployer for such calendar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quarter, 
such excess shall be treated as an overpayment 
that shall be refunded under sections 6402(a)
253 
and 6413(b) of the Internal Revenue Code of 
1986. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any amounts due to an 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’’ means the fol-
lowing: 
(A) The taxes imposed under section 
3111(a) of the Internal Revenue Code of 1986. 
(B) So much of the taxes imposed under 
section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 
3111(a) of such Code. 
(2) ELIGIBLE EMPLOYER.— 
(A) IN GENERAL.—The term ‘‘eligible em-
ployer’’ means any employer— 
(i) which was carrying on a trade or 
business during calendar year 2020, 
(ii) which had either—
254 
(I) not more than 1,500 full-time 
equivalent employees (as determined 
for purposes of determining whether 
an employer is an applicable large em-
ployer 
for 
purposes 
of 
section 
4980H(c)(2) of the Internal Revenue 
Code of 1986) for calendar year 2019, 
or 
(II) not more than $41,500,000 
of gross receipts in the last taxable 
year ending in 2019, and 
(iii) with respect to any calendar 
quarter, for which— 
(I) the operation of the trade or 
business described in clause (i) is fully 
or partially suspended during the cal-
endar quarter due to orders from an 
appropriate governmental authority 
limiting commerce, travel, or group 
meetings (for commercial, social, reli-
gious, or other purposes) due to the 
coronavirus disease 2019 (COVID– 
19), or
255 
(II) such calendar quarter is 
within the period described in sub-
paragraph (B). 
(B) SIGNIFICANT DECLINE IN GROSS RE-
CEIPTS.—The period described in this subpara-
graph is the period— 
(i) beginning with the first calendar 
quarter beginning after December 31, 
2019, for which gross receipts (within the 
meaning of section 448(c) of the Internal 
Revenue Code of 1986) for the calendar 
quarter are less than 90 percent of gross 
receipts for the same calendar quarter in 
the prior year, and 
(ii) ending with the calendar quarter 
following the first calendar quarter begin-
ning after a calendar quarter described in 
clause (i) for which gross receipts of such 
employer are greater than 90 percent of 
gross receipts for the same calendar quar-
ter in the prior year. 
(C) TAX-EXEMPT ORGANIZATIONS.—In the 
case of an organization which is described in 
section 501(c) of the Internal Revenue Code of
256 
1986 and exempt from tax under section 501(a) 
of such Code— 
(i) any reference in this section to a 
trade or business shall be treated as a ref-
erence to all operations of such organiza-
tion, and 
(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 the Internal Revenue 
Code of 1986. 
(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 ‘‘90 
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—
257 
(I) the excess gross receipts per-
centage point amount, bears to 
(II) 40 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 
percentage point amount’’ means, with re-
spect to any calendar quarter, the percent-
age (expressed as a number of percentage 
points) obtained by dividing—
258 
(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) QUALIFIED FIXED EXPENSES.— 
(A) IN
GENERAL.—The term ‘‘qualified 
fixed expenses’’ means the payment or accrual, 
in the ordinary course of the eligible employer’s 
trade or business, of any covered mortgage obli-
gation, covered rent obligation, or covered util-
ity payment. Such term shall not include the 
prepayment of any obligation for a period in ex-
cess of a month unless the payment for such 
period is customarily due in advance. 
(B) APPLICATION OF DEFINITIONS.—The 
terms ‘‘covered mortgage obligation’’, ‘‘covered 
rent obligation’’, and ‘‘covered utility payment’’ 
shall each have the same meaning as when used 
in section 1106 of the CARES Act. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
(5) WAGES.—
259 
(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). For purposes of the preceding sentence 
(other than for purposes of subsection (b)(2)), 
wages as defined in section 3121(a) of such 
Code shall be determined without regard to 
paragraphs (1), (8), (10), (13), (18), (19), and 
(22) of section 3121(b) of such Code. 
(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
(i) IN GENERAL.—Such term shall in-
clude amounts paid or incurred by the eli-
gible 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
260 
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-
retary, such allocation shall be treated as 
properly made if made on the basis of 
being pro rata among periods of coverage. 
(6) EMPLOYER.—The term ‘‘employer’’ means 
any employer (as defined in section 3401(d) of such 
Code) of at least one employee on any day in cal-
endar year 2020. 
(7) OTHER TERMS.—Except as otherwise pro-
vided in this section, any term used in this section 
which is also used in chapter 21 or 22 of the Inter-
nal 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 
of the Internal Revenue Code of 1986, or subsection (m) 
or (o) of section 414 of such Code, shall be treated as 
one employer for purposes of this section. 
(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
261 
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) CERTAIN GOVERNMENTAL EMPLOYERS.— 
(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government, the 
government of any State, of the District of Colum-
bia, or of any possession of the United States, any 
tribal government, or any political subdivision, agen-
cy, or instrumentality of any of the foregoing. 
(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. 
(g) ELECTION NOT TO HAVE SECTION APPLY.—This 
section shall not apply with respect to any eligible em-
ployer for any calendar quarter if such employer elects (at 
such time and in such manner as the Secretary may pre-
scribe) not to have this section apply. 
(h) TRANSFERS TO CERTAIN TRUST FUNDS.—There 
are hereby appropriated to the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund established under section 201 of 
the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under
262 
section 15A(a) of the Railroad Retirement Act of 1974 
(45 U.S.C. 231n–1(a)) amounts equal to the reduction in 
revenues to the Treasury by reason of this section (without 
regard to this subsection). Amounts appropriated by the 
preceding sentence shall be transferred from the general 
fund at such times and in such manner as to replicate 
to the extent possible the transfers which would have oc-
curred to such Trust Fund or Account had this section 
not been enacted. 
(i) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of such Code for 
any failure to make a deposit of applicable employment 
taxes if the Secretary determines that such failure was due 
to the anticipation of the credit allowed under this section. 
(j) THIRD PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit described 
in section 3511(d)(2) of such Code. 
(k) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and guid-
ance as are necessary— 
(1) to allow the advance payment of the credit 
under subsection (a), subject to the limitations pro-
vided in this section, based on such information as 
the Secretary shall require,
263 
(2) regulations or other guidance to provide for 
the reconciliation of such advance payment with the 
amount of the credit at the time of filing the return 
of tax for the applicable quarter or taxable year, 
(3) with respect to the application of the credit 
under subsection (a) to third party payors (including 
professional employer organizations, certified profes-
sional employer organizations, or agents under sec-
tion 3504 of the Internal Revenue Code of 1986), 
including regulations or guidance allowing such 
payors to submit documentation necessary to sub-
stantiate the eligible employer status of employers 
that use such payors, 
(4) for application of subsection (b)(1)(A) and 
subparagraphs (A)(ii)(II) and (B) of subsection 
(c)(2) in the case of any employer which was not 
carrying on a trade or business for all or part of the 
same calendar quarter in the prior year, and 
(5) for recapturing the benefit of credits deter-
mined under this section in cases where there is a 
subsequent adjustment to the credit determined 
under subsection (a). 
(l) APPLICATION OF SECTION.—This section shall 
apply only to qualified fixed expenses paid or accrued after 
March 12, 2020, and before January 1, 2021.
264 
SEC. 20213. BUSINESS INTERRUPTION CREDIT FOR CER-
TAIN SELF-EMPLOYED INDIVIDUALS. 
(a) CREDIT AGAINST TAX.—In the case of an eligible 
self-employed individual, there shall be allowed as a credit 
against the tax imposed by chapter 1 of subtitle A of the 
Internal Revenue Code of 1986 for the taxpayer’s first 
taxable year beginning in 2020 an amount equal to 90 
percent of the eligible self-employed individual’s qualified 
self-employment income. 
(b) LIMITATIONS.— 
(1) OVERALL
LIMITATION.—The amount of 
qualified self-employment income taken into account 
under subsection (a) with respect to any eligible self- 
employed individual shall not exceed $45,000. 
(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.— 
(A) IN
GENERAL.—The amount of the 
credit allowed by subsection (a) (after applica-
tion of paragraph (1)) shall be reduced (but not 
below zero) by 50 percent of so much of the 
taxpayer’s modified adjusted gross income for 
the taxpayer’s first taxable year beginning in 
2020 as exceeds $60,000 ($120,000 in the case 
of a joint return). 
(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of this section the term
265 
‘‘modified adjusted gross income’’ means ad-
justed gross income determined without regard 
to sections 911, 931, and 933 of such Code. 
(c) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For 
purposes of this section, the term ‘‘eligible self-employed 
individual’’ means an individual— 
(1) who— 
(A) regularly carries on one or more trades 
or businesses within the meaning of section 
1402 of such Code, or 
(B) is allocated income or loss described in 
section 702(a)(8) of such Code from any trade 
or business carried on by a partnership which 
is not excluded under section 1402 of such 
Code, and 
(2) for whom gross self-employment income 
during the first taxable year beginning in 2020 is 
less than 90 percent of such individual’s gross self- 
employment income during the first taxable year be-
ginning in 2019. 
(d) QUALIFIED SELF-EMPLOYMENT INCOME.—For 
purposes of this section— 
(1) IN GENERAL.—The term ‘‘qualified self-em-
ployment income’’ means the product of—
266 
(A) the specified gross self-employment in-
come reduction for the first taxable year begin-
ning in 2020, multiplied by 
(B) the ratio of— 
(i) self-employment income (as deter-
mined under section 1402(b) of such Code, 
but not below zero) for the first taxable 
year beginning in 2019, divided by 
(ii) gross self-employment income for 
the first taxable year beginning in 2019. 
(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.—In the case of any tax-
payer, qualified self-employment income shall not ex-
ceed the excess (if any) of— 
(A) modified adjusted gross income for the 
first taxable year beginning in 2019, over 
(B) modified adjusted gross income for the 
first taxable year beginning in 2020. 
(3) SPECIFIED GROSS SELF-EMPLOYMENT IN-
COME REDUCTION.—For purposes of paragraph (1), 
the term ‘‘specified gross self-employment income re-
duction’’ means, with respect to a taxable year, the 
excess (if any) of—
267 
(A) 90 percent of gross self-employment 
income for the taxable year preceding such tax-
able year, over 
(B) gross self-employment income for such 
taxable year. 
(e) GROSS SELF-EMPLOYMENT INCOME.—For pur-
poses of this section, the term ‘‘gross self-employment in-
come’’ means, with respect to any taxable year, the sum 
of— 
(1) the eligible self-employed individuals’ gross 
income derived from all trades or business carried on 
by such individual for purposes of determining net 
earnings from self-employment under section 1402 
of such Code for such taxable year, and 
(2) the eligible individual’s distributive share of 
gross income (as determined under section 702(c) of 
such Code) from any trade or business carried on by 
a partnership for purposes of determining net earn-
ings from self-employment under section 1402 of 
such Code (and which is not excluded under such 
section) for such taxable year. 
(f) SPECIAL RULES.— 
(1) CREDIT REFUNDABLE.— 
(A) IN GENERAL.—The credit determined 
under this section shall be treated as a credit
268 
allowed to the taxpayer under subpart C of part 
IV of subchapter A of chapter 1 of such Code. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any refund due from the credit allowed 
under this section shall be treated in the same 
manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(2) DOCUMENTATION.—No credit shall be al-
lowed under this section unless the taxpayer main-
tains such documentation as the Secretary of the 
Treasury (or the Secretary’s delegate) may prescribe 
to establish such individual as an eligible self-em-
ployed individual. 
(3) DENIAL OF DOUBLE BENEFIT.—Qualified 
self-employment income shall be reduced by— 
(A) the qualified sick leave equivalent 
amount for which a credit is allowed under sec-
tion 7002(a) of the Families First Coronavirus 
Response Act and the qualified family leave 
equivalent amount for which a credit is allowed 
under section 7004(a) of such Act, 
(B) the qualified wages for which a credit 
is allowed under section 2301 of the CARES 
Act,
269 
(C) the amount of the credit allowed under 
section 6432 of the Internal Revenue Code of 
1986 (as added by this Act), and 
(D) except to the extent taken into account 
in determining gross self-employment income, 
amounts from a covered loan under section 
7(a)(36) of the Small Business Act that are— 
(i) 
forgiven 
pursuant 
to 
section 
1106(b) of the CARES Act, and 
(ii) paid or distributed to the eligible 
self-employed individual as payroll costs 
described in section 7(a)(36)(A)(viii)(I) of 
the Small Business Act. 
(4) JOINT RETURNS.— 
(A) IN GENERAL.—In the case of a joint 
return, the taxpayer shall be treated for pur-
poses of this section as an eligible self-employed 
individual if either spouse is an eligible self-em-
ployed individual. 
(B) APPLICATION OF MODIFIED ADJUSTED 
GROSS
INCOME
LIMITATION
ON
QUALIFIED 
SELF-EMPLOYMENT
INCOME.—If the taxpayer 
filed a joint return for only one of the taxable 
years described in subsection (d)(2), such limi-
tation shall apply in such manner as the Sec-
270 
retary of the Treasury (or the Secretary’s dele-
gate) may provide. 
(5) ELECTION NOT TO HAVE SECTION APPLY.— 
This section shall not apply with respect to any tax-
payer for any taxable year if such taxpayer elects (at 
such time and in such manner as the Secretary of 
the Treasury, or the Secretary’s delegate, may pre-
scribe) not to have this section apply. 
(g) APPLICATION OF CREDIT IN CERTAIN POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury (or the Secretary’s delegate) shall pay to each 
possession of the United States which has a mirror 
code tax system amounts equal to the loss (if any) 
to that possession by reason of the application of the 
provisions of this section. Such amounts shall be de-
termined by the Secretary of the Treasury (or the 
Secretary’s delegate) based on information provided 
by the government of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury (or the Secretary’s dele-
gate) shall pay to each possession of the United 
States which does not have a mirror code tax system 
amounts estimated by the Secretary of the Treasury
271 
(or the Secretary’s delegate) as being equal to the 
aggregate benefits (if any) that would have been 
provided to residents of such possession by reason of 
the provisions of this section if a mirror code tax 
system had been in effect in such possession. The 
preceding sentence shall not apply unless the respec-
tive possession has a plan, which has been approved 
by the Secretary of the Treasury (or the Secretary’s 
delegate), under which such possession will promptly 
distribute such payments to its residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this section shall be treated in the 
same manner as a refund due from a credit provi-
sion referred to in subsection (b)(2) of such section. 
(h) CERTAIN TERMS.—Any term used in this section 
which is also used in chapter 2 of the Internal Revenue
272 
Code of 1986 shall have the same meaning as when used 
in such chapter. 
(i) REGULATIONS AND GUIDANCE.—The Secretary of 
the Treasury (or the Secretary’s delegate) shall issue such 
forms, instructions, regulations, and guidance as are nec-
essary or appropriate— 
(1) to allow the advance payment of the credit 
under subsection (a) (including allowing use of the 
anticipated credit to offset estimated taxes) based on 
the taxpayer’s good faith estimates of gross self-em-
ployment income and qualified self-employment in-
come for the first taxable year beginning in 2020 
and such other information as the Secretary of the 
Treasury (or the Secretary’s delegate) shall require, 
subject to the limitations provided in this section, 
(2) to provide for the reconciliation of such ad-
vance payment with the amount of the credit at the 
time of filing the return of tax for the taxpayer’s 
first taxable year beginning in 2020, 
(3) to provide for the application of this section 
to partners in partnerships, and 
(4) to implement the purposes of this section.
273 
Subtitle C—Credits for Paid Sick 
and Family Leave 
SEC. 20221. EXTENSION OF CREDITS. 
(a) IN
GENERAL.—Sections 7001(g), 7002(e), 
7003(g), and 7004(e) of the Families First Coronavirus 
Response Act are each amended by striking ‘‘2020’’ and 
inserting ‘‘2021’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Families First Coronavirus Response Act to which 
they relate. 
SEC. 20222. REPEAL OF REDUCED RATE OF CREDIT FOR 
CERTAIN LEAVE. 
(a) PAYROLL CREDIT.—Section 7001(b) of the Fami-
lies First Coronavirus Response Act is amended by insert-
ing ‘‘or any day on or after the date of the enactment 
of the Worker Health Coverage Protection Act’’ after ‘‘in 
the case of any day any portion of which is paid sick time 
described in paragraph (1), (2), or (3) of section 5102(a) 
of the Emergency Paid Sick Leave Act’’. 
(b) SELF-EMPLOYED CREDIT.— 
(1) IN GENERAL.—Clauses (i) and (ii) of sec-
tion 
7002(c)(1)(B) 
of 
the 
Families 
First 
Coronavirus Response Act are each amended by in-
serting inserting ‘‘or any day on or after the date of
274 
the enactment of the Worker Health Coverage Pro-
tection Act’’ after ‘‘in the case of any day any por-
tion of which is paid sick time described in para-
graph (1), (2), or (3) of section 5102(a) of the 
Emergency Paid Sick Leave Act’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7002(d)(3) of the Families First Coronavirus Re-
sponse Act is amended by inserting inserting ‘‘or 
any day on or after the date of the enactment of the 
Worker Health Coverage Protection Act’’ after ‘‘in 
the case of any day any portion of which is paid sick 
time described in paragraph (1), (2), or (3) of sec-
tion 5102(a) of the Emergency Paid Sick Leave 
Act’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to days on or after the date of 
the enactment of this Act. 
SEC. 20223. INCREASE IN LIMITATIONS ON CREDITS FOR 
PAID FAMILY LEAVE. 
(a) INCREASE IN OVERALL LIMITATION ON QUALI-
FIED FAMILY LEAVE WAGES.— 
(1) IN
GENERAL.—Section 7003(b)(1)(B) of 
the Families First Coronavirus Response Act is 
amended by striking ‘‘$10,000’’ and inserting 
‘‘$12,000’’.
275 
(2) 
CONFORMING
AMENDMENT.—Section 
7004(d)(3) of the Families First Coronavirus Re-
sponse Act is amended by striking ‘‘$10,000’’ and 
inserting ‘‘$12,000’’. 
(b) INCREASE IN QUALIFIED FAMILY LEAVE EQUIV-
ALENT AMOUNT FOR SELF-EMPLOYED INDIVIDUALS.— 
Section 7004(c)(1)(A) of the Families First Coronavirus 
Response Act is amended by striking ‘‘50’’ and inserting 
‘‘60’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Families First Coronavirus Response Act to which 
they relate. 
SEC. 20224. ELECTION TO USE PRIOR YEAR NET EARNINGS 
FROM SELF-EMPLOYMENT IN DETERMINING 
AVERAGE 
DAILY 
SELF-EMPLOYMENT 
IN-
COME. 
(a) CREDIT FOR SICK LEAVE.—Section 7002(c) of 
the Families First Coronavirus Response Act is amended 
by adding at the end the following new paragraph: 
‘‘(4) ELECTION TO USE PRIOR YEAR NET EARN-
INGS
FROM
SELF-EMPLOYMENT
INCOME.—In the 
case of an individual who elects (at such time and 
in such manner as the Secretary, or the Secretary’s 
delegate, may provide) the application of this para-
276 
graph, paragraph (2)(A) shall be applied by sub-
stituting ‘the prior taxable year’ for ‘the taxable 
year’.’’. 
(b) CREDIT FOR FAMILY LEAVE.—Section 7004(c) 
of the Families First Coronavirus Response Act is amend-
ed by adding at the end the following new paragraph: 
‘‘(4) ELECTION TO USE PRIOR YEAR NET EARN-
INGS
FROM
SELF-EMPLOYMENT
INCOME.—In the 
case of an individual who elects (at such time and 
in such manner as the Secretary, or the Secretary’s 
delegate, may provide) the application of this para-
graph, paragraph (2)(A) shall be applied by sub-
stituting ‘the prior taxable year’ for ‘the taxable 
year’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Families First Coronavirus Response Act to which 
they relate. 
SEC. 20225. FEDERAL, STATE, AND LOCAL GOVERNMENTS 
ALLOWED TAX CREDITS FOR PAID SICK AND 
PAID FAMILY AND MEDICAL LEAVE. 
(a) IN GENERAL.—Sections 7001(e) and 7003(e) of 
the Families First Coronavirus Response Act are each 
amended by striking paragraph (4).
277 
(b) COORDINATION WITH APPLICATION OF CERTAIN 
DEFINITIONS.— 
(1) 
IN
GENERAL.—Sections 
7001(c) 
and 
7003(c) of the Families First Coronavirus Response 
Act are each amended— 
(A) by inserting ‘‘, determined without re-
gard to paragraphs (1) through (22) of section 
3121(b) of such Code’’ after ‘‘as defined in sec-
tion 3121(a) of the Internal Revenue Code of 
1986’’, and 
(B) by inserting ‘‘, determined without re-
gard to the sentence in paragraph (1) thereof 
which begins ‘Such term does include remu-
neration’ ’’ after ‘‘as defined in section 3231(e) 
of the Internal Revenue Code’’. 
(2) 
CONFORMING
AMENDMENTS.—Sections 
7001(e)(3) and 7003(e)(3) of the Families First 
Coronavirus Response Act are each amended by 
striking ‘‘Any term’’ and inserting ‘‘Except as other-
wise provided in this section, any term’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Families First Coronavirus Response Act to which 
they relate.
278 
SEC. 20226. CERTAIN TECHNICAL IMPROVEMENTS. 
(a) COORDINATION WITH EXCLUSION FROM EM-
PLOYMENT TAXES.—Sections 7001(c) and 7003(c) of the 
Families First Coronavirus Response Act, as amended by 
the preceding provisions of this Act, are each amended— 
(1) by inserting ‘‘and section 7005(a) of this 
Act,’’ after ‘‘determined without regard to para-
graphs (1) through (22) of section 3121(b) of such 
Code’’, and 
(2) by inserting ‘‘and without regard to section 
7005(a) of this Act’’ after ‘‘which begins ‘Such term 
does not include remuneration’ ’’. 
(b) CLARIFICATION OF APPLICABLE RAILROAD RE-
TIREMENT TAX
FOR PAID LEAVE CREDITS.—Sections 
7001(e) and 7003(e) of the Families First Coronavirus 
Response Act, as amended by the preceding provisions of 
this Act, are each amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) REFERENCES TO RAILROAD RETIREMENT 
TAX.—Any reference in this section to the tax im-
posed by section 3221(a) of the Internal Revenue 
Code of 1986 shall be treated as a reference to so 
much of such tax as is attributable to the rate in ef-
fect under section 3111(a) of such Code.’’. 
(c) CLARIFICATION OF TREATMENT OF PAID LEAVE 
FOR APPLICABLE RAILROAD RETIREMENT TAX.—Section
279 
7005(a) of the Families First Coronavirus Response Act 
is amended by adding the following sentence at the end 
of such subsection: ‘‘Any reference in this subsection to 
the tax imposed by section 3221(a) of such Code shall be 
treated as a reference to so much of the tax as is attrib-
utable to the rate in effect under section 3111(a) of such 
Code.’’ 
(d) CLARIFICATION OF APPLICABLE RAILROAD RE-
TIREMENT TAX FOR HOSPITAL INSURANCE TAX CRED-
IT.—Section 7005(b)(1) of the Families First Coronavirus 
Response Act is amended to read as follows: 
‘‘(1) IN GENERAL.—The credit allowed by sec-
tion 7001 and the credit allowed by section 7003 
shall each be increased by the amount of the tax im-
posed by section 3111(b) of the Internal Revenue 
Code of 1986 and so much of the taxes imposed 
under section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 3111(b) of 
such Code on qualified sick leave wages, or qualified 
family leave wages, for which credit is allowed under 
such section 7001 or 7003 (respectively).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Families First Coronavirus Response Act to which 
they relate.
280 
SEC. 20227. CREDITS NOT ALLOWED TO CERTAIN LARGE 
EMPLOYERS. 
(a) CREDIT FOR REQUIRED PAID SICK LEAVE.— 
(1) IN GENERAL.—Section 7001(a) of the Fam-
ilies First Coronavirus Response Act is amended by 
striking ‘‘In the case of an employer’’ and inserting 
‘‘In the case of an eligible employer’’. 
(2) ELIGIBLE EMPLOYER.—Section 7001(c) of 
the Families First Coronavirus Response Act, as 
amended by the preceding provisions of this Act, is 
amended by striking ‘‘For purposes of this section, 
the term’’ and all that precedes it and inserting the 
following: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means any employer other than an appli-
cable 
large 
employer 
(as 
defined 
in 
section 
4980H(c)(2), determined by substituting ‘500’ for 
‘50’ each place it appears in subparagraphs (A) and 
(B) thereof and without regard to subparagraphs 
(D) and (F) thereof). For purposes of the preceding 
sentence, the Government of the United States, the 
government of any State or political subdivision 
thereof, or any agency or instrumentality of any of 
the foregoing shall not be treated as an applicable 
large employer.
281 
‘‘(2) QUALIFIED
SICK
LEAVE
WAGES.—The 
term’’. 
(b) CREDIT FOR REQUIRED PAID FAMILY LEAVE.— 
(1) IN GENERAL.—Section 7003(a) of the Fam-
ilies First Coronavirus Response Act is amended by 
striking ‘‘In the case of an employer’’ and inserting 
‘‘In the case of an eligible employer’’. 
(2) ELIGIBLE EMPLOYER.—Section 7003(c) of 
the Families First Coronavirus Response Act, as 
amended by the preceding provisions of this Act, is 
amended by striking ‘‘For purposes of this section, 
the term’’ and all that precedes it and inserting the 
following: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means any employer other than an appli-
cable 
large 
employer 
(as 
defined 
in 
section 
4980H(c)(2), determined by substituting ‘500’ for 
‘50’ each place it appears in subparagraphs (A) and 
(B) thereof and without regard to subparagraphs 
(D) and (F) thereof). For purposes of the preceding 
sentence, the Government of the United States, the 
government of any State or political subdivision 
thereof, or any agency or instrumentality of any of
282 
the foregoing, shall not be treated as an applicable 
large employer. 
‘‘(2) QUALIFIED FAMILY LEAVE WAGES.—The 
term’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wages paid after the date of 
the enactment of this Act. 
Subtitle D—Other Relief 
SEC. 20231. PAYROLL TAX DEFERRAL ALLOWED FOR RE-
CIPIENTS OF CERTAIN LOAN FORGIVENESS. 
(a) IN GENERAL.—Section 2302(a) of the CARES 
Act is amended by striking paragraph (3). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 2302 
of the CARES Act. 
SEC. 20232. EMERGENCY FINANCIAL AID GRANTS. 
(a) IN GENERAL.—In the case of a student receiving 
a qualified emergency financial aid grant— 
(1) such grant shall not be included in the 
gross income of such individual for purposes of the 
Internal Revenue Code of 1986, and 
(2) such grant shall not be treated as described 
in subparagraph (A), (B), or (C) of section 
25A(g)(2) of such Code.
283 
(b) DEFINITIONS.—For purposes of this subsection, 
the term ‘‘qualified emergency financial aid grant’’ 
means— 
(1) any emergency financial aid grant awarded 
by an institution of higher education under section 
3504 of the CARES Act, 
(2) any emergency financial aid grant from an 
institution of higher education made with funds 
made available under section 18004 of the CARES 
Act, and 
(3) any other emergency financial aid grant 
made to a student from a Federal agency, a State, 
an Indian tribe, an institution of higher education, 
or a scholarship-granting organization (including a 
tribal organization, as defined in section 4 of the In-
dian Self-Determination and Education Assistance 
Act (25 U.S.C.5304)) for the purpose of providing 
financial relief to students enrolled at institutions of 
higher education in response to a qualifying emer-
gency (as defined in section 3502(a)(4) of the 
CARES Act). 
(c) LIMITATION.—This section shall not apply to that 
portion of any amount received which represents payment 
for teaching, research, or other services required as a con-
284 
dition for receiving the qualified emergency financial aid 
grant. 
(d) EFFECTIVE DATE.—This section shall apply to 
qualified emergency financial aid grants made after March 
26, 2020. 
SEC. 20233. CERTAIN LOAN FORGIVENESS AND OTHER 
BUSINESS FINANCIAL ASSISTANCE UNDER 
CARES ACT NOT INCLUDIBLE IN GROSS IN-
COME. 
(a) UNITED STATES TREASURY PROGRAM MANAGE-
MENT AUTHORITY.—For purposes of the Internal Rev-
enue Code of 1986, no amount shall be included in gross 
income by reason of loan forgiveness described in section 
1109(d)(2)(D) of the CARES Act. 
(b) EMERGENCY EIDL GRANTS.—For purposes of 
the Internal Revenue Code of 1986, any advance described 
in section 1110(e) of the CARES Act shall not be included 
in the gross income of the person that receives such ad-
vance. 
(c) SUBSIDY FOR CERTAIN LOAN PAYMENTS.—For 
purposes of the Internal Revenue Code of 1986, any pay-
ment described in section 1112(c) of the CARES Act shall 
not be included in the gross income of the person on whose 
behalf such payment is made.
285 
(d) EFFECTIVE DATE.—Subsections (a), (b), and (c) 
shall apply to taxable years ending after the date of the 
enactment of the CARES Act. 
SEC. 20234. AUTHORITY TO WAIVE CERTAIN INFORMATION 
REPORTING REQUIREMENTS. 
The Secretary of the Treasury (or the Secretary’s 
delegate) may provide an exception from any requirement 
to file an information return otherwise required by chapter 
61 of the Internal Revenue Code of 1986 with respect to 
any amount excluded from gross income by reason of sec-
tion 1106(i) of the CARES Act or section 20232 or 20233 
of this Act. 
SEC. 20235. CLARIFICATION OF TREATMENT OF EXPENSES 
PAID OR INCURRED WITH PROCEEDS FROM 
CERTAIN GRANTS AND LOANS. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986 and notwithstanding any other provi-
sion of law, any deduction and the basis of any property 
shall be determined without regard to whether any amount 
is excluded from gross income under section 20233 of this 
Act or section 1106(i) of the CARES Act. 
(b) CLARIFICATION OF EXCLUSION OF LOAN FOR-
GIVENESS.—Section 1106(i) of the CARES Act is amend-
ed to read as follows:
286 
‘‘(i) TAXABILITY.—For purposes of the Internal Rev-
enue Code of 1986, no amount shall be included in the 
gross income of the eligible recipient by reason of forgive-
ness of indebtedness described in subsection (b).’’. 
(c) EFFECTIVE
DATE.—Subsection (a) and the 
amendment made by subsection (b) shall apply to taxable 
years ending after the date of the enactment of the 
CARES Act. 
SEC. 20236. REINSTATEMENT OF CERTAIN PROTECTIONS 
FOR TAXPAYER RETURN INFORMATION. 
(a) IN GENERAL.—Section 6103(a)(3) of the Internal 
Revenue Code of 1986, as amended by section 3516 of 
the CARES Act, is amended by striking ‘‘(13)(A), 
(13)(B), (13)(C), (13)(D)(i), (16)’’ and inserting ‘‘(13), 
(16)’’. 
(b) 
RECORDS
REQUIREMENTS.—Section 
6103(p)(3)(A) of such Code, as so amended, is amended 
by striking ‘‘(12), (13)(A), (13)(B), (13)(C), (13)(D)(i)’’ 
and inserting ‘‘(12),’’. 
(c) 
APPLICATION
OF
SAFEGUARDS.—Section 
6103(p)(4) of such Code, as so amended, is amended by 
striking ‘‘(13)(A), (13)(B), (13)(C), (13)(D)(i)’’ each 
place it appears and inserting ‘‘(13)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made after the date
287 
of the enactment of the FUTURE Act (Public Law 116– 
91). 
TITLE III—NET OPERATING 
LOSSES 
SEC. 20301. LIMITATION ON EXCESS BUSINESS LOSSES OF 
NON-CORPORATE 
TAXPAYERS 
RESTORED 
AND MADE PERMANENT. 
(a) IN GENERAL.—Section 461(l)(1) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(1) LIMITATION.—In the case of a taxpayer 
other than a corporation, any excess business loss of 
the taxpayer shall not be allowed.’’. 
(b) FARMING LOSSES.—Section 461 of such Code is 
amended by striking subsection (j). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 20302. CERTAIN TAXPAYERS ALLOWED CARRYBACK OF 
NET OPERATING LOSSES ARISING IN 2019 
AND 2020. 
(a) CARRYBACK OF LOSSES ARISING IN 2019 AND 
2020.— 
(1) IN GENERAL.—Section 172(b)(1)(D)(i) of 
the Internal Revenue Code of 1986 is amended to 
read as follows:
288 
‘‘(i) IN GENERAL.—In the case of any 
net operating loss arising in a taxable year 
beginning after December 31, 2018, and 
before January 1, 2021, and to which sub-
paragraphs (B) and (C)(i) do not apply, 
such loss shall be a net operating loss 
carryback to each taxable year preceding 
the taxable year of such loss, but not to 
any taxable year beginning before January 
1, 2018.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for section 172(b)(1)(D) 
of such Code is amended by striking ‘‘2018, 
2019, AND’’ and inserting ‘‘2019 AND’’. 
(B) Section 172(b)(1)(D) of such Code is 
amended by striking clause (iii) and by redesig-
nating clauses (iv) and (v) as clauses (iii) and 
(iv), respectively. 
(C) Section 172(b)(1)(D)(iii) of such Code, 
as so redesignated, is amended by striking 
‘‘(i)(I)’’ and inserting ‘‘(i)’’. 
(D) Section 172(b)(1)(D)(iv) of such Code, 
as so redesignated, is amended— 
(i) 
by 
striking 
‘‘If 
the 
5-year 
carryback period under clause (i)(I)’’ in
289 
subclause 
(I) 
and 
inserting 
‘‘If 
the 
carryback period under clause (i)’’, and 
(ii) by striking ‘‘2018 or’’ in subclause 
(II). 
(b) DISALLOWED FOR CERTAIN TAXPAYERS.—Sec-
tion 172(b)(1)(D) of such Code, as amended by the pre-
ceding provisions of this Act, is amended by adding at the 
end the following new clauses: 
‘‘(v) CARRYBACK
DISALLOWED
FOR 
CERTAIN TAXPAYERS.—Clause (i) shall not 
apply with respect to any loss arising in a 
taxable year in which— 
‘‘(I) the taxpayer (or any related 
person) is not allowed a deduction 
under this chapter for the taxable 
year by reason of section 162(m) or 
section 280G, or 
‘‘(II) the taxpayer (or any related 
person) is a specified corporation for 
the taxable year. 
‘‘(vi) SPECIFIED CORPORATION.—For 
purposes of clause (v)— 
‘‘(I) IN
GENERAL.—The term 
‘specified corporation’ means, with re-
spect to any taxable year, a corpora-
290 
tion the aggregate distributions (in-
cluding redemptions) of which during 
all taxable years ending after Decem-
ber 31, 2017, exceed the sum of appli-
cable stock issued of such corporation 
and 5 percent of the fair market value 
of the stock of such corporation as of 
the last day of the taxable year. 
‘‘(II) 
APPLICABLE
STOCK 
ISSUED.—The term ‘applicable stock 
issued’ means, with respect to any 
corporation, the aggregate fair market 
value of stock (as of the issue date of 
such stock) issued by the corporation 
during all taxable years ending after 
December 31, 2017, in exchange for 
money or property other than stock in 
such corporation. 
‘‘(III) 
CERTAIN
PREFERRED 
STOCK DISREGARDED.—For purposes 
of subclause (I), stock described in 
section 1504(a)(4), and distributions 
(including redemptions) with respect 
to such stock, shall be disregarded.
291 
‘‘(vii) RELATED
PERSON.—For pur-
poses of clause (v), a person is a related 
person to a taxpayer if the related person 
bears a relationship to the taxpayer speci-
fied 
in 
section 
267(b) 
or 
section 
707(b)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of section 2303(b) of the Coronavirus Aid, Relief, 
and Economic Security Act. 
DIVISION C—HEALTH 
PROVISIONS 
TITLE I—MEDICAID PROVISIONS 
SEC. 30101. COVID–19-RELATED TEMPORARY INCREASE OF 
MEDICAID FMAP. 
(a) IN GENERAL.—Section 6008 of the Families 
First Coronavirus Response Act (42 U.S.C. 1396d note) 
is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘(or, if later, June 30, 
2021)’’ after ‘‘last day of such emergency pe-
riod occurs’’; and 
(B) by striking ‘‘6.2 percentage points.’’ 
and inserting ‘‘the percentage points specified 
in subsection (e). In no case may the applica-
292 
tion of this section result in the Federal medical 
assistance percentage determined for a State 
being more than 95 percent.’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(e) SPECIFIED PERCENTAGE POINTS.—For pur-
poses of subsection (a), the percentage points specified in 
this subsection are— 
‘‘(1) for each calendar quarter occurring during 
the period beginning on the first day of the emer-
gency period described in paragraph (1)(B) of sec-
tion 1135(g) of the Social Security Act (42 U.S.C. 
1320b-5(g)) and ending on June 30, 2020, 6.2 per-
centage points; 
‘‘(2) for each calendar quarter occurring during 
the period beginning on July 1, 2020, and ending on 
June 30, 2021, 14 percentage points; and 
‘‘(3) for each calendar quarter, if any, occurring 
during the period beginning on July 1, 2021, and 
ending on the last day of the calendar quarter in 
which the last day of such emergency period occurs, 
6.2 percentage points. 
‘‘(f) CLARIFICATIONS.— 
‘‘(1) In the case of a State that treats an indi-
vidual described in subsection (b)(3) as eligible for
293 
the benefits described in such subsection, for the pe-
riod described in subsection (a), expenditures for 
medical assistance and administrative costs attrib-
utable to such individual that would not otherwise be 
included as expenditures under section 1903 of the 
Social Security Act shall be regarded as expendi-
tures under the State plan approved under title XIX 
of the Social Security Act or for administration of 
such State plan. 
‘‘(2) The limitations on payment under sub-
sections (f) and (g) of section 1108 of the Social Se-
curity Act (42 U.S.C. 1308) shall not apply to Fed-
eral payments made under section 1903(a)(1) of the 
Social Security Act (42 U.S.C. 1396b(a)(1)) attrib-
utable to the increase in the Federal medical assist-
ance percentage under this section. 
‘‘(3) Expenditures attributable to the increased 
Federal medical assistance percentage under this 
section shall not be counted for purposes of the limi-
tations under section 2104(b)(4) of such Act (42 
U.S.C. 1397dd(b)(4)). 
‘‘(4) Notwithstanding the first sentence of sec-
tion 2105(b) of the Social Security Act (42 U.S.C. 
1397ee(b)), the application of the increase under 
this section may result in the enhanced FMAP of a
294 
State for a fiscal year under such section exceeding 
85 percent, but in no case may the application of 
such increase before application of the second sen-
tence of such section result in the enhanced FMAP 
of the State exceeding 95 percent. 
‘‘(g) SCOPE OF APPLICATION.—An increase in the 
Federal medical assistance percentage for a State under 
this section shall not be taken into account for purposes 
of payments under part D of title IV of the Social Security 
Act (42 U.S.C. 651 et seq.).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect and apply as if included 
in the enactment of section 6008 of the Families First 
Coronavirus Response Act (Public Law 116–127). 
SEC. 30102. LIMITATION ON ADDITIONAL SECRETARIAL AC-
TION WITH RESPECT TO MEDICAID SUPPLE-
MENTAL PAYMENTS REPORTING REQUIRE-
MENTS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, during the period that begins on the date of 
enactment of this section and ends on the last day of the 
emergency period described in paragraph (1)(B) of section 
1135(g) of the Social Security Act (42 U.S.C. 1320b– 
5(g)), the Secretary of Health and Human Services shall
295 
not take any action (through promulgation of regulation, 
issue of regulatory guidance, or otherwise) to— 
(1) finalize or otherwise implement provisions 
contained in the proposed rule published on Novem-
ber 18, 2019, on pages 63722 through 63785 of vol-
ume 84, Federal Register (relating to parts 430, 
433, 447, 455, and 457 of title 42, Code of Federal 
Regulations); or 
(2) promulgate or implement any rule or provi-
sion similar to the provisions described in paragraph 
(1) pertaining to the Medicaid program established 
under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) or the State Children’s Health 
Insurance Program established under title XXI of 
such Act (42 U.S.C. 1397aa et seq.). 
(b) CONTINUATION OF OTHER SECRETARIAL AU-
THORITY.—Nothing in this section shall be construed as 
prohibiting the Secretary during the period described in 
subsection (a) from taking any action (through promulga-
tion of regulation, issuance of regulatory guidance, or 
other administrative action) to enforce a provision of law 
in effect as of the date of enactment of this section with 
respect to the Medicaid program established under title 
XIX of the Social Security Act (42 U.S.C. 1396 et seq.) 
or the State Children’s Health Insurance Program estab-
296 
lished under title XXI of such Act (42 U.S.C. 1397aa et 
seq.), or to promulgate or implement a new rule or provi-
sion during such period with respect to such programs, 
other than a rule or provision described in subsection (a) 
and subject to the prohibition set forth in that subsection. 
SEC. 30103. ADDITIONAL SUPPORT FOR MEDICAID HOME 
AND COMMUNITY-BASED SERVICES DURING 
THE COVID–19 EMERGENCY PERIOD. 
(a) INCREASED FMAP.— 
(1) IN
GENERAL.—Notwithstanding section 
1905(b) of the Social Security Act (42 U.S.C. 
1396d(b)), in the case of an HCBS program State, 
the Federal medical assistance percentage deter-
mined for the State under section 1905(b) of such 
Act and, if applicable, increased under subsection 
(y), (z), or (aa) of section 1905 of such Act (42 
U.S.C. 1396d), section 1915(k) of such Act (42 
U.S.C. 1396n(k)), or section 6008(a) of the Fami-
lies First Coronavirus Response Act (Public Law 
116–127), shall be increased by 10 percentage 
points with respect to expenditures of the State 
under the State Medicaid program for home and 
community-based services that are provided during 
the HCBS program improvement period. In no case 
may the application of the previous sentence result
297 
in the Federal medical assistance percentage deter-
mined for a State being more than 95 percent. 
(2) DEFINITIONS.—In this section: 
(A) HCBS PROGRAM
IMPROVEMENT
PE-
RIOD.—The term ‘‘HCBS program improve-
ment period’’ means, with respect to a State, 
the period— 
(i) beginning on July 1, 2020; and 
(ii) ending on June 30, 2021. 
(B) HCBS PROGRAM
STATE.—The term 
‘‘HCBS program State’’ means a State that 
meets the condition described in subsection (b) 
by submitting an application described in such 
subsection, which is approved by the Secretary 
pursuant to subsection (c). 
(C) HOME AND COMMUNITY-BASED SERV-
ICES.—The term ‘‘home and community-based 
services’’ means home health care services au-
thorized under paragraph (7) of section 1905(a) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1396d(a)), personal care services authorized 
under paragraph (24) of such section, PACE 
services authorized under paragraph (26) of 
such section, services authorized under sub-
sections (b), (c), (i), (j), and (k) of section 1915
298 
of such Act (42 U.S.C. 1396n), such services 
authorized under a waiver under section 1115 
of such Act (42 U.S.C. 1315), and such other 
services specified by the Secretary. 
(b) CONDITION.—The condition described in this sub-
section, with respect to a State, is that the State submits 
an application to the Secretary, at such time and in such 
manner as specified by the Secretary, that includes, in ad-
dition to such other information as the Secretary shall re-
quire— 
(1) a description of which activities described in 
subsection (d) that a state plans to implement and 
a description of how it plans to implement such ac-
tivities; 
(2) assurances that the Federal funds attrib-
utable to the increase under subsection (a) will be 
used— 
(A) to implement the activities described in 
subsection (d); and 
(B) to supplement, and not supplant, the 
level of State funds expended for home and 
community-based services for eligible individ-
uals through programs in effect as of the date 
of the enactment of this section; and
299 
(3) assurances that the State will conduct ade-
quate oversight and ensure the validity of such data 
as may be required by the Secretary. 
(c) APPROVAL OF APPLICATION.—Not later than 90 
days after the date of submission of an application of a 
State under subsection (b), the Secretary shall certify if 
the application is complete. Upon certification that an ap-
plication of a State is complete, the application shall be 
deemed to be approved for purposes of this section. 
(d) ACTIVITIES
TO IMPROVE
THE DELIVERY
OF 
HCBS.— 
(1) IN
GENERAL.—A State shall work with 
community partners, such as Area Agencies on 
Aging, Centers for Independent Living, non-profit 
home and community-based services providers, and 
other entities providing home and community-based 
services, to implement— 
(A) the purposes described in paragraph 
(2) during the COVID–19 public health emer-
gency period; and 
(B) the purposes described in paragraph 
(3) after the end of such emergency period. 
(2) FOCUSED
AREAS
OF
HCBS
IMPROVE-
MENT.—The purposes described in this paragraph, 
with respect to a State, are the following:
302 
formats (including formats accessible to people 
with low literacy or intellectual disabilities) 
about prevention, treatment, recovery and other 
aspects of COVID–19 for eligible individuals, 
their families, and the general community 
served by agencies described in subparagraph 
(A). 
(L) To pay for American sign language in-
terpreters to assist in providing home and com-
munity-based services to eligible individuals and 
to inform the general public about COVID–19. 
(M) To allow day services providers to pro-
vide home and community-based services. 
(N) To pay for other expenses deemed ap-
propriate by the Secretary to enhance, expand, 
or strengthen Home and Community-Based 
Services, including retainer payments, and ex-
penses which meet the criteria of the home and 
community-based settings rule published on 
January 16, 2014. 
(3) PERMISSIBLE
USES
AFTER
THE
EMER-
GENCY
PERIOD.—The purpose described in this 
paragraph, with respect to a State, is to assist eligi-
ble individuals who had to relocate to a nursing fa-
cility or institutional setting from their homes dur-
303 
ing the COVID–19 public health emergency period 
in— 
(A) moving back to their homes (including 
by paying for moving costs, first month’s rent, 
and other one-time expenses and start-up 
costs); 
(B) resuming home and community-based 
services; 
(C) receiving mental health services and 
necessary rehabilitative service to regain skills 
lost while relocated during the public health 
emergency period; and 
(D) while funds attributable to the in-
creased FMAP under this section remain avail-
able, continuing home and community-based 
services for eligible individuals who were served 
from a waiting list for such services during the 
public health emergency period. 
(e) REPORTING REQUIREMENTS.— 
(1) STATE
REPORTING
REQUIREMENTS.—Not 
later than December 31, 2022, any State with re-
spect to which an application is approved by the Sec-
retary pursuant to subsection (c) shall submit a re-
port to the Secretary that contains the following in-
formation:
304 
(A) Activities and programs that were 
funded using Federal funds attributable to such 
increase. 
(B) The number of eligible individuals who 
were served by such activities and programs. 
(C) The number of eligible individuals who 
were able to resume home and community- 
based services as a result of such activities and 
programs. 
(2) HHS EVALUATION.— 
(A) IN
GENERAL.—The Secretary shall 
evaluate the implementation and outcomes of 
this section in the aggregate using an external 
evaluator with experience evaluating home and 
community-based services, disability programs, 
and older adult programs. 
(B) EVALUATION
CRITERIA.—For pur-
poses of subparagraph (A), the external eval-
uator shall— 
(i) document and evaluate changes in 
access, availability, and quality of home 
and community-based services in each 
HCBS program State; 
(ii) document and evaluate aggregate 
changes in access, availability, and quality
305 
of home and community-based services 
across all such States; and 
(iii) evaluate the implementation and 
outcomes of this section based on— 
(I) the impact of this section on 
increasing funding for home and com-
munity-based services; 
(II) the impact of this section on 
achieving targeted access, availability, 
and quality of home and community- 
based services; and 
(III) promising practices identi-
fied by activities conducted pursuant 
to subsection (d) that increase access 
to, availability of, and quality of home 
and community-based services. 
(C) DISSEMINATION OF EVALUATION FIND-
INGS.—The Secretary shall— 
(i) disseminate the findings from the 
evaluations conducted under this para-
graph to— 
(I) all State Medicaid directors; 
and 
(II) the Committee on Energy 
and Commerce of the House of Rep-
306 
resentatives, the Committee on Fi-
nance of the Senate, and the Special 
Committee on Aging of the Senate; 
and 
(ii) make all evaluation findings pub-
licly available in an accessible electronic 
format and any other accessible format de-
termined appropriate by the Secretary. 
(D) OVERSIGHT.—Each State with respect 
to which an application is approved by the Sec-
retary pursuant to subsection (c) shall ensure 
adequate oversight of the expenditure of Fed-
eral funds pursuant to such increase in accord-
ance with the Medicaid regulations, including 
section 1115 and 1915 waiver regulations and 
special terms and conditions for any relevant 
waiver or grant program. 
(3) NON-APPLICATION OF THE PAPERWORK RE-
DUCTION
ACT.—Chapter 35 of title 44, United 
States Code (commonly referred to as the ‘‘Paper-
work Reduction Act of 1995’’), shall not apply to the 
provisions of this subsection. 
(f) ADDITIONAL DEFINITIONS.—In this section: 
(1) COVID–19 PUBLIC
HEALTH
EMERGENCY 
PERIOD.—The term ‘‘COVID–19 public health emer-
307 
gency period’’ means the portion of the emergency 
period described in paragraph (1)(B) of section 
1135(g) of the Social Security Act (42 U.S.C. 
1320b–5(g)) beginning on or after the date of the 
enactment of this Act. 
(2) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 
individual’’ means an individual who is eligible for or 
enrolled for medical assistance under a State Med-
icaid program. 
(3) MEDICAID PROGRAM.—The term ‘‘Medicaid 
program’’ means, with respect to a State, the State 
program under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.) (including any waiver or 
demonstration under such title or under section 
1115 of such Act (42 U.S.C. 1315) relating to such 
title). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(5) STATE.—The term ‘‘State’’ has the mean-
ing given such term for purposes of title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.). 
SEC. 30104. COVERAGE AT NO COST SHARING OF COVID–19 
VACCINE AND TREATMENT. 
(a) MEDICAID.—
308 
(1) IN GENERAL.—Section 1905(a)(4) of the 
Social Security Act (42 U.S.C. 1396d(a)(4)) is 
amended— 
(A) by striking ‘‘and (D)’’ and inserting 
‘‘(D)’’; and 
(B) by striking the semicolon at the end 
and inserting ‘‘; (E) during the portion of the 
emergency period described in paragraph (1)(B) 
of section 1135(g) beginning on the date of the 
enactment of The Heroes Act, a COVID–19 
vaccine licensed under section 351 of the Public 
Health Service Act, or approved or authorized 
under sections 505 or 564 of the Federal Food, 
Drug, and Cosmetic Act, and administration of 
the vaccine; (F) during such portion of the 
emergency period described in paragraph (1)(B) 
of section 1135(g), items or services for the 
prevention or treatment of COVID–19, includ-
ing drugs approved or authorized under such 
section 505 or such section 564 or, without re-
gard 
to 
the 
requirements 
of 
section 
1902(a)(10)(B) (relating to comparability), in 
the case of an individual who is diagnosed with 
or presumed to have COVID–19, during such 
portion of such emergency period during which
309 
such individual is infected (or presumed in-
fected) with COVID–19, the treatment of a 
condition that may complicate the treatment of 
COVID–19;’’. 
(2) PROHIBITION OF COST SHARING.— 
(A) IN GENERAL.—Subsections (a)(2) and 
(b)(2) of section 1916 of the Social Security 
Act (42 U.S.C. 1396o) are each amended— 
(i) in subparagraph (F), by striking 
‘‘or’’ at the end; 
(ii) in subparagraph (G), by striking 
‘‘; and’’ and inserting ‘‘, or’’; and 
(iii) by adding at the end the fol-
lowing subparagraphs: 
‘‘(H) during the portion of the emergency 
period described in paragraph (1)(B) of section 
1135(g) beginning on the date of the enactment 
of this subparagraph, a COVID–19 vaccine li-
censed under section 351 of the Public Health 
Service Act, or approved or authorized under 
section 505 or 564 of the Federal Food, Drug, 
and Cosmetic Act, and the administration of 
such vaccine, or 
‘‘(I) during such portion of the emergency 
period described in paragraph (1)(B) of section
310 
1135(g), any item or service furnished for the 
treatment of COVID–19, including drugs ap-
proved or authorized under such section 505 or 
such section 564 or, in the case of an individual 
who is diagnosed with or presumed to have 
COVID–19, during the portion of such emer-
gency period during which such individual is in-
fected (or presumed infected) with COVID–19, 
the treatment of a condition that may com-
plicate the treatment of COVID–19; and’’. 
(B) APPLICATION TO ALTERNATIVE COST 
SHARING.—Section 1916A(b)(3)(B) of the So-
cial Security Act (42 U.S.C. 1396o–1(b)(3)(B)) 
is amended— 
(i) in clause (xi), by striking ‘‘any 
visit’’ and inserting ‘‘any service’’; and 
(ii) by adding at the end the following 
clauses: 
‘‘(xii) During the portion of the emer-
gency period described in paragraph (1)(B) 
of section 1135(g) beginning on the date of 
the enactment of this clause, a COVID–19 
vaccine licensed under section 351 of the 
Public Health Service Act, or approved or 
authorized under section 505 or 564 of the
311 
Federal Food, Drug, and Cosmetic Act, 
and the administration of such vaccine. 
‘‘(xiii) During such portion of the 
emergency period described in paragraph 
(1)(B) of section 1135(g), an item or serv-
ice furnished for the treatment of COVID– 
19, including drugs approved or authorized 
under such section 505 or such section 564 
or, in the case of an individual who is diag-
nosed with or presumed to have COVID– 
19, during such portion of such emergency 
period during which such individual is in-
fected 
(or 
presumed 
infected) 
with 
COVID–19, the treatment of a condition 
that may complicate the treatment of 
COVID–19.’’. 
(C) 
CLARIFICATION.—The 
amendments 
made by this subsection shall apply with respect 
to a State plan of a territory in the same man-
ner as a State plan of one of the 50 States. 
(b) STATE PEDIATRIC VACCINE DISTRIBUTION PRO-
GRAM.—Section 1928 of the Social Security Act (42 
U.S.C. 1396s) is amended— 
(1) in subsection (a)(1)—
312 
(A) in subparagraph (A), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following sub-
paragraph: 
‘‘(C) during the portion of the emergency 
period described in paragraph (1)(B) of section 
1135(g) beginning on the date of the enactment 
of this subparagraph, each vaccine-eligible child 
(as defined in subsection (b)) is entitled to re-
ceive a COVID–19 vaccine from a program-reg-
istered provider (as defined in subsection 
(h)(7)) without charge for— 
‘‘(i) the cost of such vaccine; or 
‘‘(ii) the administration of such vac-
cine.’’; 
(2) in subsection (c)(2)— 
(A) in subparagraph (C)(ii), by inserting ‘‘, 
but, during the portion of the emergency period 
described in paragraph (1)(B) of section 
1135(g) beginning on the date of the enactment 
of The Heroes Act, may not impose a fee for 
the administration of a COVID–19 vaccine’’ be-
fore the period; and
313 
(B) by adding at the end the following sub-
paragraph: 
‘‘(D) The provider will provide and admin-
ister an approved COVID–19 vaccine to a vac-
cine-eligible child in accordance with the same 
requirements as apply under the preceding sub-
paragraphs to the provision and administration 
of a qualified pediatric vaccine to such a 
child.’’; and 
(3) in subsection (d)(1), in the first sentence, 
by inserting ‘‘, including, during the portion of the 
emergency period described in paragraph (1)(B) of 
section 1135(g) beginning on the date of the enact-
ment of The Heroes Act, with respect to a COVID– 
19 vaccine licensed under section 351 of the Public 
Health Service Act, or approved or authorized under 
section 505 or 564 of the Federal Food, Drug, and 
Cosmetic Act’’ before the period. 
(c) CHIP.— 
(1) IN GENERAL.—Section 2103(c) of the So-
cial Security Act (42 U.S.C. 1397cc(c)) is amended 
by adding at the end the following paragraph: 
‘‘(11) COVERAGE OF COVID–19 VACCINES AND 
TREATMENT.—Regardless of the type of coverage 
elected by a State under subsection (a), child health
314 
assistance provided under such coverage for targeted 
low-income children and, in the case that the State 
elects to provide pregnancy-related assistance under 
such coverage pursuant to section 2112, such preg-
nancy-related assistance for targeted low-income 
pregnant women (as defined in section 2112(d)) 
shall include coverage, during the portion of the 
emergency period described in paragraph (1)(B) of 
section 1135(g) beginning on the date of the enact-
ment of this paragraph, of— 
‘‘(A) a COVID–19 vaccine licensed under 
section 351 of the Public Health Service Act, or 
approved or authorized under section 505 or 
564 of the Federal Food, Drug, and Cosmetic 
Act, and the administration of such vaccine; 
and 
‘‘(B) any item or service furnished for the 
treatment of COVID–19, including drugs ap-
proved or authorized under such section 505 or 
such section 564, or, in the case of an indi-
vidual who is diagnosed with or presumed to 
have COVID–19, during the portion of such 
emergency period during which such individual 
is infected (or presumed infected) with COVID–
315 
19, the treatment of a condition that may com-
plicate the treatment of COVID–19.’’. 
(2) PROHIBITION OF COST SHARING.—Section 
2103(e)(2) of the Social Security Act (42 U.S.C. 
1397cc(e)(2)), as amended by section 6004(b)(3) of 
the Families First Coronavirus Response Act, is 
amended— 
(A) in the paragraph header, by inserting 
‘‘A COVID–19 VACCINE, COVID–19 TREATMENT,’’ 
before ‘‘OR PREGNANCY-RELATED ASSISTANCE’’; 
and 
(B) by striking ‘‘visits described in section 
1916(a)(2)(G), or’’ and inserting ‘‘services de-
scribed in section 1916(a)(2)(G), vaccines de-
scribed in section 1916(a)(2)(H) administered 
during the portion of the emergency period de-
scribed in paragraph (1)(B) of section 1135(g) 
beginning on the date of the enactment of The 
Heroes Act, items or services described in sec-
tion 1916(a)(2)(I) furnished during such emer-
gency period, or’’. 
(d) CONFORMING AMENDMENTS.—Section 1937 of 
the Social Security Act (42 U.S.C. 1396u–7) is amend-
ed—
316 
(1) in subsection (a)(1)(B), by inserting ‘‘, 
under 
subclause 
(XXIII) 
of 
section 
1902(a)(10)(A)(ii),’’ 
after 
‘‘section 
1902(a)(10)(A)(i)’’; and 
(2) in subsection (b)(5), by adding before the 
period the following: ‘‘, and, effective on the date of 
the enactment of The Heroes Act, must comply with 
subparagraphs (F) through (I) of subsections (a)(2) 
and (b)(2) of section 1916 and subsection (b)(3)(B) 
of section 1916A’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of enactment of 
this Act and shall apply with respect to a COVID–19 vac-
cine beginning on the date that such vaccine is licensed 
under section 351 of the Public Health Service Act (42 
U.S.C. 262), or approved or authorized under section 505 
or 564 of the Federal Food, Drug, and Cosmetic Act. 
SEC. 30105. OPTIONAL COVERAGE AT NO COST SHARING OF 
COVID–19 TREATMENT AND VACCINES UNDER 
MEDICAID FOR UNINSURED INDIVIDUALS. 
(a) IN GENERAL.—Section 1902(a)(10) of the Social 
Security Act (42 U.S.C. 1396a(a)(10) is amended, in the 
matter following subparagraph (G), by striking ‘‘and any 
visit described in section 1916(a)(2)(G)’’ and inserting the 
following: ‘‘, any COVID–19 vaccine that is administered
317 
during any such portion (and the administration of such 
vaccine), any item or service that is furnished during any 
such portion for the treatment of COVID–19, including 
drugs approved or authorized under section 505 or 564 
of the Federal Food, Drug, and Cosmetic Act, or, in the 
case of an individual who is diagnosed with or presumed 
to have COVID–19, during the period such individual is 
infected (or presumed infected) with COVID–19, the 
treatment of a condition that may complicate the treat-
ment of COVID–19, and any services described in section 
1916(a)(2)(G)’’. 
(b) DEFINITION OF UNINSURED INDIVIDUAL.— 
(1) IN
GENERAL.—Subsection (ss) of section 
1902 of the Social Security Act (42 U.S.C. 1396a) 
is amended to read as follows: 
‘‘(ss) UNINSURED INDIVIDUAL DEFINED.—For pur-
poses of this section, the term ‘uninsured individual’ 
means, notwithstanding any other provision of this title, 
any individual who is not covered by minimum essential 
coverage (as defined in section 5000A(f)(1) of the Internal 
Revenue Code of 1986).’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall take effect and apply as if in-
cluded in the enactment of the Families First 
Coronavirus Response Act (Public Law 116–127).
318 
(c) CLARIFICATION REGARDING EMERGENCY SERV-
ICES FOR CERTAIN INDIVIDUALS.—Section 1903(v)(2) of 
the Social Security Act (42 U.S.C. 1396b(v)(2)) is amend-
ed by adding at the end the following flush sentence: 
‘‘For purposes of subparagraph (A), care and serv-
ices described in such subparagraph include any in 
vitro 
diagnostic 
product 
described 
in 
section 
1905(a)(3)(B) (and the administration of such prod-
uct), any COVID–19 vaccine (and the administra-
tion of such vaccine), any item or service that is fur-
nished for the treatment of COVID–19, including 
drugs approved or authorized under section 505 or 
564 of the Federal Food, Drug, and Cosmetic Act, 
or a condition that may complicate the treatment of 
COVID–19, and any services described in section 
1916(a)(2)(G).’’. 
(d) INCLUSION
OF COVID–19 CONCERN
AS
AN 
EMERGENCY CONDITION.—Section 1903(v)(3) of the So-
cial Security Act (42 U.S.C. 1396b(v)(3)) is amended by 
adding at the end the following flush sentence: 
‘‘Such term includes any indication that an alien de-
scribed in paragraph (1) may have contracted 
COVID–19.’’.
319 
SEC. 30106. EXTENSION OF FULL FEDERAL MEDICAL AS-
SISTANCE PERCENTAGE TO INDIAN HEALTH 
CARE PROVIDERS. 
Section 1905 of the Social Security Act (42 U.S.C. 
1396d) is amended— 
(1) in subsection (a), by amending paragraph 
(9) to read as follows: 
‘‘(9) clinic services furnished by or under the 
direction of a physician, without regard to whether 
the clinic itself is administered by a physician, in-
cluding— 
‘‘(A) such services furnished outside the 
clinic by clinic personnel to an eligible indi-
vidual who does not reside in a permanent 
dwelling or does not have a fixed home or mail-
ing address; and 
‘‘(B) for the period beginning on July 1, 
2020, and ending on June 30, 2021, such serv-
ices provided outside the clinic on the basis of 
a referral from a clinic administered by an In-
dian Health Program (as defined in paragraph 
(12) of section 4 of the Indian Health Care Im-
provement Act, or an Urban Indian Organiza-
tion as defined in paragraph (29) of section 4 
of such Act that has a grant or contract with
320 
the Indian Health Service under title V of such 
Act;’’. 
(2) in subsection (b), by inserting after ‘‘(as de-
fined in section 4 of the Indian Health Care Im-
provement Act)’’ the following: ‘‘; for the period be-
ginning on July 1, 2020, and ending on June 30, 
2021, the Federal medical assistance percentage 
shall also be 100 per centum with respect to 
amounts expended as medical assistance for services 
which are received through an Urban Indian organi-
zation (as defined in section 4 of the Indian Health 
Care Improvement Act) that has a grant or contract 
with the Indian Health Service under title V of such 
Act’’. 
SEC. 30107. MEDICAID COVERAGE FOR CITIZENS OF FREE-
LY ASSOCIATED STATES. 
(a) IN GENERAL.—Section 402(b)(2) of the Personal 
Responsibility and Work Opportunity Reconciliation Act 
of 1996 (8 U.S.C. 1612(b)(2)) is amended by adding at 
the end the following new subparagraph: 
‘‘(G) MEDICAID EXCEPTION FOR CITIZENS 
OF FREELY ASSOCIATED STATES.—With respect 
to eligibility for benefits for the designated Fed-
eral program defined in paragraph (3)(C) (re-
lating to the Medicaid program), section 401(a)
321 
and paragraph (1) shall not apply to any indi-
vidual who lawfully resides in 1 of the 50 States 
or the District of Columbia in accordance with 
the Compacts of Free Association between the 
Government of the United States and the Gov-
ernments of the Federated States of Micro-
nesia, the Republic of the Marshall Islands, and 
the Republic of Palau and shall not apply, at 
the option of the Governor of Puerto Rico, the 
Virgin Islands, Guam, the Northern Mariana 
Islands, or American Samoa as communicated 
to the Secretary of Health and Human Services 
in writing, to any individual who lawfully re-
sides in the respective territory in accordance 
with such Compacts.’’. 
(b) EXCEPTION TO 5–YEAR LIMITED ELIGIBILITY.— 
Section 403(d) of such Act (8 U.S.C. 1613(d)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph:
322 
‘‘(3) 
an 
individual 
described 
in 
section 
402(b)(2)(G), but only with respect to the des-
ignated 
Federal 
program 
defined 
in 
section 
402(b)(3)(C).’’. 
(c) DEFINITION
OF QUALIFIED ALIEN.—Section 
431(b) of such Act (8 U.S.C. 1641(b)) is amended— 
(1) in paragraph (6), by striking ‘‘; or’’ at the 
end and inserting a comma; 
(2) in paragraph (7), by striking the period at 
the end and inserting ‘‘, or’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(8) an individual who lawfully resides in the 
United States in accordance with a Compact of Free 
Association referred to in section 402(b)(2)(G), but 
only with respect to the designated Federal program 
defined in section 402(b)(3)(C) (relating to the Med-
icaid program).’’. 
(d) 
APPLICATION
TO
STATE
PLANS.—Section 
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
1396a(a)(10)(A)(i)) is amended by inserting after sub-
clause (IX) the following: 
‘‘(X) who are described in section 
402(b)(2)(G) of the Personal Respon-
sibility and Work Opportunity Rec-
323 
onciliation Act of 1996 and eligible 
for benefits under this title by reason 
of application of such section;’’. 
(e) CONFORMING AMENDMENTS.—Section 1108 of 
the Social Security Act (42 U.S.C. 1308) is amended— 
(1) in subsection (f), in the matter preceding 
paragraph (1), by striking ‘‘subsections (g) and (h) 
and section 1935(e)(1)(B)’’ and inserting ‘‘sub-
sections (g), (h), and (i) and section 1935(e)(1)(B)’’; 
and 
(2) by adding at the end the following: 
‘‘(i) EXCLUSION OF MEDICAL ASSISTANCE EXPENDI-
TURES FOR CITIZENS OF FREELY ASSOCIATED STATES.— 
Expenditures for medical assistance provided to an indi-
vidual described in section 431(b)(8) of the Personal Re-
sponsibility and Work Opportunity Reconciliation Act of 
1996 (8 U.S.C. 1641(b)(8)) shall not be taken into ac-
count for purposes of applying payment limits under sub-
sections (f) and (g).’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to benefits for items and services 
furnished on or after the date of the enactment of this 
Act.
324 
SEC. 30108. TEMPORARY INCREASE IN MEDICAID DSH AL-
LOTMENTS. 
(a) IN GENERAL.—Section 1923(f)(3) of the Social 
Security Act (42 U.S.C. 1396r–4(f)(3)) is amended— 
(1) in subparagraph (A), by striking ‘‘and sub-
paragraph (E)’’ and inserting ‘‘and subparagraphs 
(E) and (F)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(F) TEMPORARY
INCREASE
IN
ALLOT-
MENTS
DURING
CERTAIN
PUBLIC
HEALTH 
EMERGENCY.—The DSH allotment for any 
State for each of fiscal years 2020 and 2021 is 
equal to 102.5 percent of the DSH allotment 
that would be determined under this paragraph 
for the State for each respective fiscal year 
without application of this subparagraph, not-
withstanding subparagraphs (B) and (C). For 
each fiscal year after fiscal year 2021, the DSH 
allotment for a State for such fiscal year is 
equal to the DSH allotment that would have 
been determined under this paragraph for such 
fiscal year if this subparagraph had not been 
enacted.’’.
325 
(b) DSH ALLOTMENT
ADJUSTMENT
FOR
TEN-
NESSEE.—Section 1923(f)(6)(A)(vi) of the Social Security 
Act (42 U.S.C. 1396r–4(f)(6)(A)(vi)) is amended— 
(1) by striking ‘‘Notwithstanding any other pro-
vision of this subsection’’ and inserting the fol-
lowing: 
‘‘(I) 
IN
GENERAL.—Notwith-
standing any other provision of this 
subsection (except as provided in sub-
clause (II) of this clause)’’; and 
(2) by adding at the end the following: 
‘‘(II) TEMPORARY
INCREASE
IN 
ALLOTMENTS.—The DSH allotment 
for Tennessee for each of fiscal years 
2020 and 2021 shall be equal to 
$54,427,500.’’. 
(c) SENSE OF CONGRESS.—It is the sense of Con-
gress that a State should prioritize making payments 
under the State plan of the State under title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.) (or a waiver 
of such plan) to disproportionate share hospitals that have 
a higher share of COVID–19 patients relative to other 
such hospitals in the State.
326 
SEC. 30109. EXTENSION OF EXISTING SECTION 1115 DEM-
ONSTRATIONS. 
(a) APPLICABILITY.—This section shall apply with 
respect to demonstrations operated by States pursuant to 
section 1115(a) of the Social Security Act (42 U.S.C. 
1315(a)) to promote the objectives of title XIX or XXI 
of the Social Security Act with a project term set to end 
on or before February 28, 2021. 
(b) APPROVAL OF EXTENSION.—Upon request by a 
State, the Secretary of Health and Human Services shall 
approve an extension of the demonstration project de-
scribed in subsection (a) for a period up to and including 
December 31, 2021, to ensure continuity of programs and 
funding during the emergency period described in section 
1135(g)(1)(B) of the Social Security Act (42 U.S.C. 
1320b–5(g)(1)(B)). 
(c) EXTENSION TERMS AND CONDITIONS.—(1) The 
approval pursuant to this section shall extend the terms 
and conditions that applied to the demonstration project 
to the extension period. Financial terms and conditions 
shall continue at levels equivalent to the prior demonstra-
tion or program year. All demonstration program compo-
nents shall be extended to operate through the end of the 
extension term. In its request for an extension, the State 
shall identify operational and programmatic changes nec-
essary to continue and stabilize programs into the exten-
327 
sion period and shall work with the Secretary of Health 
and Human Services to implement such changes. 
(2) Notwithstanding the foregoing, the State may re-
quest, and the Secretary of Health and Human Services 
may approve, modifications to a demonstration project’s 
terms and conditions to address the impact of the federally 
designated public health emergency with respect to 
COVID–19. Such modifications may, at the option of the 
State, become effective retroactive to the start of the cal-
endar quarter in which the first day of the emergency pe-
riod described in paragraph (1)(B) of section 1135(g) of 
the Social Security Act (42 U.S.C. 1320b–5(g)) occurs. 
(d) BUDGET NEUTRALITY.—Budget neutrality for 
extensions under this section shall be deemed to have been 
met at the conclusion of the extension period, and States 
receiving extensions under this section shall not be re-
quired to submit a budget neutrality analysis for the ex-
tension period. 
(e) EXPEDITED APPLICATION PROCESS.—The Fed-
eral and State public notice and comment procedures or 
other time constraints otherwise applicable to demonstra-
tion project amendments shall be waived to expedite a 
State’s extension request pursuant to this section. The 
Secretary of Health and Human Services shall approve the 
extension application within 45 days of a State’s submis-
328 
sion of its request, or such other timeframe as is mutually 
agreed to with the State. 
(f) CONTINUATION
OF SECRETARIAL AUTHORITY 
UNDER DECLARED EMERGENCY.—This section does not 
restrict the Secretary of Health and Human Services from 
exercising existing flexibilities through demonstration 
projects operated pursuant to section 1115 of the Social 
Security Act (42 U.S.C. 1315) in conjunction with the 
COVID–19 public health emergency. 
(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall authorize the Secretary of Health and Human 
Service to approve or extend a waiver that fails to meet 
the requirements of section 1115 of the Social Security 
Act (42 U.S.C. 1315). 
SEC. 30110. ALLOWING FOR MEDICAL ASSISTANCE UNDER 
MEDICAID FOR INMATES DURING 30-DAY PE-
RIOD PRECEDING RELEASE. 
(a) IN GENERAL.—The subdivision (A) following 
paragraph (30) of section 1905(a) of the Social Security 
Act (42 U.S.C. 1396d(a)) is amended by inserting ‘‘and 
except during the 30-day period preceding the date of re-
lease of such individual from such public institution’’ after 
‘‘medical institution’’. 
(b) REPORT.—Not later than June 30, 2022, the 
Medicaid and CHIP Payment and Access Commission
329 
shall submit a report to Congress on the Medicaid inmate 
exclusion under the subdivision (A) following paragraph 
(30) of section 1905(a) of the Social Security Act (42 
U.S.C. 1396d(a)). Such report may, to the extent prac-
ticable, include the following information: 
(1) The number of incarcerated individuals who 
would otherwise be eligible to enroll for medical as-
sistance under a State plan approved under title 
XIX of the Social Security Act (42 U.S.C. 1396 et 
seq.) (or a waiver of such a plan). 
(2) Access to health care for incarcerated indi-
viduals, including a description of medical services 
generally available to incarcerated individuals. 
(3) A description of current practices related to 
the discharge of incarcerated individuals, including 
how prisons interact with State Medicaid agencies to 
ensure that such individuals who are eligible to en-
roll for medical assistance under a State plan or 
waiver described in paragraph (1) are so enrolled. 
(4) If determined appropriate by the Commis-
sion, recommendations for Congress, the Depart-
ment of Health and Human Services, or States re-
garding the Medicaid inmate exclusion. 
(5) Any other information that the Commission 
determines would be useful to Congress.
330 
SEC. 30111. MEDICAID COVERAGE OF CERTAIN MEDICAL 
TRANSPORTATION. 
(a) CONTINUING REQUIREMENT OF MEDICAID COV-
ERAGE OF NECESSARY TRANSPORTATION.— 
(1) REQUIREMENT.—Section 1902(a)(4) of the 
Social Security Act (42 U.S.C. 1396a(a)(4)) is 
amended— 
(A) by striking ‘‘and including provision 
for utilization’’ and inserting ‘‘including provi-
sion for utilization’’; and 
(B) by inserting after ‘‘supervision of ad-
ministration of the plan’’ the following: ‘‘, and, 
subject to section 1903(i), including a specifica-
tion that the single State agency described in 
paragraph (5) will ensure necessary transpor-
tation for beneficiaries under the State plan to 
and from providers and a description of the 
methods that such agency will use to ensure 
such transportation’’. 
(2) APPLICATION WITH RESPECT TO BENCH-
MARK BENEFIT PACKAGES AND BENCHMARK EQUIV-
ALENT COVERAGE.—Section 1937(a)(1) of the Social 
Security Act (42 U.S.C. 1396u–7(a)(1)) is amend-
ed—
331 
(A) in subparagraph (A), by striking ‘‘sub-
section (E)’’ and inserting ‘‘subparagraphs (E) 
and (F)’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(F) NECESSARY TRANSPORTATION.—The 
State may only exercise the option under sub-
paragraph 
(A)(i) 
if, 
subject 
to 
section 
1903(i)(9) and in accordance with section 
1902(a)(4), the benchmark benefit package or 
benchmark equivalent coverage described in 
such subparagraph (or the State)— 
‘‘(i) ensures necessary transportation 
for individuals enrolled under such package 
or coverage to and from providers; and 
‘‘(ii) provides a description of the 
methods that will be used to ensure such 
transportation.’’. 
(3) LIMITATION ON FEDERAL FINANCIAL PAR-
TICIPATION.—Section 1903(i) of the Social Security 
Act (42 U.S.C. 1396b(i)) is amended by inserting 
after paragraph (8) the following new paragraph: 
‘‘(9) with respect to any amount expended 
for non-emergency transportation described in 
section 1902(a)(4), unless the State plan pro-
332 
vides for the methods and procedures required 
under section 1902(a)(30)(A); or’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act and shall apply to transpor-
tation furnished on or after such date. 
(b) MEDICAID PROGRAM INTEGRITY MEASURES RE-
LATED
TO COVERAGE
OF NONEMERGENCY MEDICAL 
TRANSPORTATION.— 
(1) GAO STUDY.—Not later than two years 
after the date of the enactment of this Act, the 
Comptroller General of the United States shall con-
duct a study, and submit to Congress, a report on 
coverage under the Medicaid program under title 
XIX of the Social Security Act of nonemergency 
transportation to medically necessary services. Such 
study shall take into account the 2009 report of the 
Office of the Inspector General of the Department of 
Health and Human Services, titled ‘‘Fraud and 
Abuse Safeguards for Medicaid Nonemergency Med-
ical Transportation’’ (OEI–06–07–003200). Such 
report shall include the following: 
(A) An examination of the 50 States and 
the District of Columbia to identify safeguards 
to prevent and detect fraud and abuse with re-
333 
spect to coverage under the Medicaid program 
of nonemergency transportation to medically 
necessary services. 
(B) An examination of transportation bro-
kers to identify the range of safeguards against 
such fraud and abuse to prevent improper pay-
ments for such transportation. 
(C) Identification of the numbers, types, 
and outcomes of instances of fraud and abuse, 
with respect to coverage under the Medicaid 
program of such transportation, that State 
Medicaid Fraud Control Units have investigated 
in recent years. 
(D) Identification of commonalities or 
trends in program integrity, with respect to 
such coverage, to inform risk management 
strategies of States and the Centers for Medi-
care & Medicaid Services. 
(2) STAKEHOLDER WORKING GROUP.— 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, the 
Secretary of Health and Human Services, 
through the Centers of Medicare & Medicaid 
Services, shall convene a series of meetings to 
obtain input from appropriate stakeholders to
334 
facilitate discussion and shared learning about 
the leading practices for improving Medicaid 
program integrity, with respect to coverage of 
nonemergency transportation to medically nec-
essary services. 
(B) 
TOPICS.—The 
meetings 
convened 
under subparagraph (A) shall— 
(i) focus on ongoing challenges to 
Medicaid program integrity as well as lead-
ing practices to address such challenges; 
and 
(ii) address specific challenges raised 
by stakeholders involved in coverage under 
the Medicaid program of nonemergency 
transportation to medically necessary serv-
ices, including unique considerations for 
specific groups of Medicaid beneficiaries 
meriting particular attention, such as 
American Indians and tribal land issues or 
accommodations for individuals with dis-
abilities. 
(C) 
STAKEHOLDERS.—Stakeholders 
de-
scribed in subparagraph (A) shall include indi-
viduals from State Medicaid programs, brokers 
for nonemergency transportation to medically
335 
necessary services that meet the criteria de-
scribed in section 1902(a)(70)(B) of the Social 
Security Act (42 U.S.C. 1396a(a)(70)(B)), pro-
viders (including transportation network compa-
nies), Medicaid patient advocates, and such 
other individuals specified by the Secretary. 
(3) GUIDANCE
REVIEW.—Not later than 18 
months after the date of the enactment of this Act, 
the Secretary of Health and Human Services, 
through the Centers for Medicare & Medicaid Serv-
ices, shall assess guidance issued to States by the 
Centers for Medicare & Medicaid Services relating to 
Federal requirements for nonemergency transpor-
tation to medically necessary services under the 
Medicaid program under title XIX of the Social Se-
curity Act and update such guidance as necessary to 
ensure States have appropriate and current guidance 
in designing and administering coverage under the 
Medicaid program of nonemergency transportation 
to medically necessary services. 
(4) NEMT TRANSPORTATION
PROVIDER
AND 
DRIVER REQUIREMENTS.— 
(A) STATE PLAN REQUIREMENT.—Section 
1902(a) of the Social Security Act (42 U.S.C. 
1396a(a)) is amended—
336 
(i) by striking ‘‘and’’ at the end of 
paragraph (85); 
(ii) by striking the period at the end 
of paragraph (86) and inserting ‘‘; and’’; 
and 
(iii) by inserting after paragraph (86) 
the following new paragraph: 
‘‘(87) provide for a mechanism, which may in-
clude attestation, that ensures that, with respect to 
any provider (including a transportation network 
company) or individual driver of nonemergency 
transportation to medically necessary services receiv-
ing payments under such plan (but excluding any 
public transit authority), at a minimum— 
‘‘(A) each such provider and individual 
driver is not excluded from participation in any 
Federal health care program (as defined in sec-
tion 1128B(f)) and is not listed on the exclu-
sion list of the Inspector General of the Depart-
ment of Health and Human Services; 
‘‘(B) each such individual driver has a 
valid driver’s license; 
‘‘(C) each such provider has in place a 
process to address any violation of a State drug 
law; and
397 
contains information on how such a participant 
or beneficiary may obtain such a refill; and 
‘‘(2) in the case such plan elects to so waive 
such restrictions during such period with respect to 
such a participant or beneficiary after the notifica-
tion described in paragraph (1) has been provided 
with respect to such period, not later than 5 busi-
ness days after such election, a notification of such 
election that contains the information described in 
subparagraph (B) of such paragraph. 
‘‘(b) EMERGENCY AREA; EMERGENCY PERIOD.—For 
purposes of this section, an ‘emergency area’ is a geo-
graphical area in which, and an ‘emergency period’ is the 
period during which, there exists— 
‘‘(1) an emergency or disaster declared by the 
President pursuant to the National Emergencies Act 
or the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act; and 
‘‘(2) a public health emergency declared by the 
Secretary pursuant to section 319 of the Public 
Health Service Act.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 100 of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new item:
414 
dividual market’’, and ‘‘small group market’’ have 
the meanings given such terms in section 2791 of 
the Public Health Service Act (42 U.S.C. 300gg– 
91). 
(3) TARGET AMOUNT.—The target amount of 
health insurance coverage offered in the individual 
or small group market for any year is an amount 
equal to the total premiums (including any premium 
subsidies under any governmental program), reduced 
by the administrative costs of the coverage. 
(f) TREATMENT FOR MLR.—Payments made under 
this section with respect to an applicable plan year to a 
health insurance issuer offering health insurance coverage 
in the individual or small group market shall for purposes 
of section 2718(b) of the Public Health Service Act (42 
U.S.C. 300gg–18(b)) be included in the calculation of the 
premium revenue with respect to such issuer and year. 
(g) IMPLEMENTATION.—The Secretary of Health and 
Human Services may implement the provisions of this sec-
tion by subregulatory guidance, program instruction, or 
otherwise. 
(h) APPROPRIATION.—There are appropriated, out of 
any monies in the Treasury not otherwise appropriated, 
such sums as may be necessary to carry out this section.