I 
117TH CONGRESS 
1ST SESSION H. R. 1398 
To provide a credit against payroll taxes to businesses and nonprofit organiza-
tions that purchase or upgrade ventilation and air filtration systems 
to help prevent the spread of COVID–19 and other airborne commu-
nicable diseases. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 26, 2021 
Ms. BOURDEAUX (for herself and Mrs. STEEL) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To provide a credit against payroll taxes to businesses and 
nonprofit organizations that purchase or upgrade ventila-
tion and air filtration systems to help prevent the spread 
of COVID–19 and other airborne communicable diseases. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Filtering and Retro-
fitting the Environment for Safe and Healthy Activities 
Indoors and Revenue (FRESH AIR) for Businesses Act’’. 
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SEC. 2. BUSINESS VENTILATION TAX CREDIT. 
(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against applicable employment 
taxes for each calendar quarter an amount equal to 50 
percent of the qualified ventilation, zoning, and air filtra-
tion and purification expenses paid or incurred by the em-
ployer during such calendar quarter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) OVERALL DOLLAR LIMITATION ON CRED-
IT.—The amount of the credit allowed under sub-
section (a) with respect to any employer for all cal-
endar quarters with respect to any qualified location 
shall not exceed $15,000. 
(2) 
CREDIT
LIMITED
TO
EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes (reduced by any credits 
allowed under subsections (e) and (f) of section 
3111 of the Internal Revenue Code of 1986, sections 
7001 and 7003 of the Families First Coronavirus 
Response Act, and section 2301 of the CARES Act) 
on the wages paid with respect to the employment 
of all the employees of the employer for such cal-
endar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
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(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) 
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 the employer under 
this paragraph shall be treated in the same 
manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(c) QUALIFIED VENTILATION, ZONING, AND AIR FIL-
TRATION AND PURIFICATION EXPENSES; QUALIFIED LO-
CATION.—For purposes of this section— 
(1) IN GENERAL.—The term ‘‘qualified ventila-
tion, zoning, and air filtration and purification ex-
penses’’ means amounts paid or incurred by the em-
ployer for— 
(A) the purchase and installation of a 
heating, ventilation, and air conditioning sys-
tem— 
(i) which is placed in service at a 
qualified location, 
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(ii) which includes indoor air quality 
sensors and controls, and 
(iii) which— 
(I) is designed to filter air at a 
rate equivalent to or in excess of a 
MERV 13 or equivalent level of filtra-
tion, 
(II) uses UV-based purification, 
or 
(III) provides a fresh air supply 
at least 17 cubic feet per minute per 
occupant, the ability to conduct zon-
ing and sub-zoning, and the ability to 
direct air via directional and con-
trolled air outlets in order to minimize 
draft air exchange between neigh-
boring occupants or zones, 
(B) upgrading a heating, ventilation, and 
air conditioning system at a qualified location 
which does not meet the requirements of any 
item of subparagraph (A)(iii) so that the sys-
tem meets such requirements, 
(C) the purchase of any— 
(i) air filter— 
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(I) which is used in a heating, 
ventilation, and air conditioning sys-
tem at a qualified location, and 
(II) which filters air at a rate 
equivalent to or in excess of a MERV 
13 or equivalent level of filtration, or 
(ii) UV light bulb which is used in a 
heating, ventilation, and air conditioning 
system at a qualified location, 
(D) the purchase of any stand alone air 
cleaner or air purifier— 
(i) which is placed in service at such 
qualified location by the employer, 
(ii) which is capable of providing at 
least 5 air changes per hour at such quali-
fied location, and 
(iii) which— 
(I) is capable of using HEPA fil-
ters, 
(II) uses UV-based purification, 
or 
(III) uses electronic air cleaners 
or ionizers to clean air at a rate 
equivalent to a HEPA filter, and 
(E) the purchase of any— 
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(i) HEPA filter used in an air cleaner 
described in subparagraph (D)(iii)(I), 
(ii) UV light bulb used in an air puri-
fier described in subparagraph (D)(iii)(II), 
or 
(iii) purification component used in an 
air purifier described in subparagraph 
(D)(iii)(III). 
(2) TERMINATION.—Such term shall not in-
clude any expenses for property placed in service 
after December 31, 2021. 
(d) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
(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) QUALIFIED LOCATION.—The term ‘‘quali-
fied location’’ means any location in the United 
States— 
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(A) which is leased or owned by the em-
ployer, and 
(B) at which an employer conducts busi-
ness. 
(3) COVID–19.—Except where the context 
clearly indicates otherwise, any reference in this sec-
tion to COVID–19 shall be treated as including a 
reference to the virus which causes COVID–19. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or such Secretary’s 
delegate. 
(5) OTHER TERMS.—Any term used in this sec-
tion which is also used in chapter 21 or 22 of the 
Internal Revenue Code of 1986 shall have the same 
meaning as when used in such chapter. 
(e) CERTAIN GOVERNMENTAL EMPLOYERS.—This 
section shall not apply to the Government of the United 
States, the government of any State or political subdivi-
sion thereof, or any agency or instrumentality of any of 
the foregoing. 
(f) RULES RELATING TO EMPLOYER, ETC.— 
(1) 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, 
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