I 
118TH CONGRESS 
1ST SESSION H. R. 2575 
To amend the Internal Revenue Code of 1986 to provide a partially refundable 
credit against payroll taxes for certain restaurants affected by the 
COVID–19 pandemic. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 13, 2023 
Mr. BLUMENAUER (for himself and Mr. PHILLIPS) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a partially refundable credit against payroll taxes for 
certain restaurants affected by the COVID–19 pandemic. 
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 ‘‘Restaurant Revitaliza-
tion Tax Credit Act’’. 
SEC. 2. RESTAURANT REVITALIZATION CREDIT. 
(a) IN GENERAL.—Subchapter D of chapter 21 of 
subtitle C of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new section: 
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‘‘SEC. 3135. RESTAURANT REVITALIZATION CREDIT. 
‘‘(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 100 percent of the wages with respect to each 
employee of such employer for such calendar quarter. 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) IN GENERAL.—The aggregate amount of 
wages which may be taken into account under sub-
section (a) by the eligible employer for any calendar 
quarter shall not exceed $25,000. 
‘‘(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) on the wages paid with respect to the employ-
ment of all the employees of the eligible employer for 
such calendar quarter. For purposes of the pre-
ceding sentence, the credit allowed under subsection 
(a) shall be applied first against applicable employ-
ment taxes described in subsection (c)(1)(A). 
‘‘(3) PARTIAL
REFUNDABILITY
OF
EXCESS 
CREDIT.— 
‘‘(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
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tion of paragraph (2), so much of such excess 
as does not exceed the applicable employer re-
fund limitation shall be treated as an overpay-
ment that shall be refunded under sections 
6402(a) and 6413(b). 
‘‘(B) APPLICABLE
EMPLOYER
REFUND 
LIMITATION.—For purposes of subparagraph 
(A), the applicable employer refund limitation is 
the excess of— 
‘‘(i) $25,000, over 
‘‘(ii) the amount of credit treated as 
an overpayment of the eligible employer by 
reason of this paragraph for all preceding 
calendar quarters. 
‘‘(C) REDUCTION BASED ON NUMBER OF 
EMPLOYEES.—In the case of any eligible em-
ployer for which the average number of full- 
time employees (within the meaning of section 
4980H) employed by such eligible employer 
during the last calendar quarter of 2022 
(rounded to the nearest multiple of 1) exceeds 
10, the $25,000 dollar amount under subpara-
graph (A)(ii)(I) shall be reduced (but not below 
zero) by the product of such excess and $2,500. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
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‘‘(1) APPLICABLE EMPLOYMENT TAXES.—The 
term ‘applicable employment taxes’ means the fol-
lowing: 
‘‘(A) The taxes imposed under section 
3111(a). 
‘‘(B) The taxes imposed under section 
3111(b). 
‘‘(2) ELIGIBLE EMPLOYER.— 
‘‘(A) IN GENERAL.—The term ‘eligible em-
ployer’ means any employer— 
‘‘(i) which is an eligible entity (as de-
fined in section 5003(a) of the American 
Rescue Plan Act of 2021) which— 
‘‘(I) 
was 
established 
before 
March 14, 2020, 
‘‘(II) submitted an application 
for a grant under section 5003(c) of 
such Act in accordance with the pro-
cedures established by the Adminis-
trator of the Small Business Adminis-
tration under such section, 
‘‘(III) certifies to the Secretary 
(in such form and manner as the Sec-
retary requires) that such employer 
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was eligible for a grant under such 
section, and 
‘‘(IV) did not receive any grant 
funds under such section due to a lack 
of funding, 
‘‘(ii) which paid applicable employ-
ment taxes with respect to pay periods oc-
curring in at least 2 calendar quarters of 
calendar year 2021, and 
‘‘(iii) which meets the gross receipts 
test of subparagraph (B). 
‘‘(B) GROSS
RECEIPTS
TEST.—An em-
ployer meets the gross receipts test of this sub-
paragraph if— 
‘‘(i) the gross receipts of such em-
ployer for any applicable calendar year 
were less than 50 percent the gross re-
ceipts of such employer for calendar year 
2019, or 
‘‘(ii) the average gross receipts of 
such employer for all applicable calendar 
years were less than 70 percent the gross 
receipts of such employer for the calendar 
year 2019. 
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‘‘(C) APPLICABLE CALENDAR YEAR.—For 
purposes of this paragraph, the term ‘applicable 
calendar year’ means any of the following: 
‘‘(i) Calendar year 2020. 
‘‘(ii) Calendar year 2021. 
‘‘(D) SPECIAL RULE FOR EMPLOYERS NOT 
IN EXISTENCE FOR ENTIRETY OF 2019.—In the 
case of any employer that was in existence be-
fore January 1, 2020, but not in existence on 
January 1, 2019, the amount of gross receipts 
taken into account for any applicable calendar 
year shall be the amount of such gross receipts 
(determined without regard to this clause) mul-
tiplied by the ratio of— 
‘‘(i) the number of days during 2019 
during which such employer was in exist-
ence, to 
‘‘(ii) 365. 
‘‘(E) SPECIAL RULE FOR EMPLOYERS NOT 
IN EXISTENCE BEFORE 2020.—In the case of 
any employer that was not in existence before 
January 1, 2020, in applying this paragraph— 
‘‘(i) the amount of gross receipts for 
calendar year 2019 shall be equal to the 
product of— 
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‘‘(4) OTHER TERMS.—Any term used in this 
section which is also used in this chapter shall have 
the same meaning as when used in this chapter. 
‘‘(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52, 
or subsection (m) or (o) of section 414, shall be treated 
as one employer for purposes of this section. 
‘‘(e) ELECTION TO NOT TAKE CERTAIN WAGES 
INTO ACCOUNT.—This section shall not apply to so much 
of the wages paid by an eligible employer as such employer 
elects (at such time and in such manner as the Secretary 
may prescribe) to not take into account for purposes of 
this section. 
‘‘(f) THIRD PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit described 
in section 3511(d)(2). 
‘‘(g) TREATMENT
OF DEPOSITS.—The Secretary 
shall waive any penalty under section 6656 for any failure 
to make a deposit of any applicable employment taxes if 
the Secretary determines that such failure was due to the 
reasonable anticipation of the credit allowed under this 
section. 
‘‘(h) EXTENSION OF LIMITATION ON ASSESSMENT.— 
Notwithstanding section 6501, the limitation on the time 
period for the assessment of any amount attributable to 
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a credit claimed under this section shall not expire before 
the date that is 5 years after the later of— 
‘‘(1) the date on which the original return 
which includes the calendar quarter with respect to 
which such credit is determined is filed, or 
‘‘(2) the date on which such return is treated 
as filed under section 6501(b)(2). 
‘‘(i) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and other 
guidance as are necessary— 
‘‘(1) with respect to the application of the cred-
it under subsection (a) to third party payors (includ-
ing professional employer organizations, certified 
professional employer organizations, or agents under 
section 3504), including regulations or guidance al-
lowing such payors to submit documentation nec-
essary to substantiate the eligible employer status of 
employers that use such payors, and 
‘‘(2) to prevent the avoidance of the purposes of 
the limitations under this section, including through 
the leaseback of employees. 
Any forms, instructions, regulations, or other guidance de-
scribed in paragraph (1) shall require the customer to be 
responsible for the accounting of the credit and for any 
liability for improperly claimed credits and shall require 
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the certified professional employer organization or other 
third party payor to accurately report such tax credits 
based on the information provided by the customer. 
‘‘(j) APPLICATION.—This section shall only apply to 
wages paid after December 31, 2022, and before January 
1, 2024.’’. 
(b) REFUNDS.—Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting 
‘‘3135,’’ after ‘‘3134’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter D of chapter 21 of subtitle C of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘Sec. 3135. Restaurant revitalization credit.’’. 
(d) COORDINATION WITH SMALL BUSINESS ADMIN-
ISTRATION.—The Administrator of the Small Business 
Administration shall coordinate with and provide informa-
tion to the Secretary of the Treasury (or the Secretary’s 
delegate) to assist in identifying employers that are eligi-
ble for the credit allowed by section 3135 of the Internal 
Revenue Code of 1986, as added by this section. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar quarters beginning 
after December 31, 2022. 
Æ 
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