764 
‘‘(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. 
‘‘(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.— 
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‘‘(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. 
‘‘(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 
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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), 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(d) 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 provision referred to in sub-
section (b)(2) of such section.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item: 
‘‘Sec. 7529. Application of earned income tax credit to possessions of the 
United States.’’. 
SEC. 116. TEMPORARY SPECIAL RULE FOR DETERMINING 
EARNED INCOME FOR PURPOSES OF EARNED 
INCOME TAX CREDIT. 
(a) IN GENERAL.—If the earned income of the tax-
payer for the taxpayer’s first taxable year beginning in 
2020 is less than the earned income of the taxpayer for 
the preceding taxable year, the credit allowed under sec-
tion 32 of the Internal Revenue Code of 1986 may, at 
the election of the taxpayer, be determined by sub-
stituting-— 
(1) such earned income for the preceding tax-
able year, for 
(2) such earned income for the taxpayer’s first 
taxable year beginning in 2020. 
(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-
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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-
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 
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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. 
(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. 
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(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 C—Child Tax Credit 
SEC. 121. 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 RULE FOR REFUNDABLE CREDIT.—In 
the case of any taxable year beginning in 2020, 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) (determined with-
out regard to subsection (h)(4)).’’. 
(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 
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771 
monthly basis (determined without regard to subsection 
(i)(2)) 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)(2)) 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-
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772 
tion of section 24(b) with respect to payments made 
under such program. 
‘‘(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— 
(A) by striking ‘‘in the case of any taxable 
year’’, and inserting the following: 
‘‘(1) IN GENERAL.—‘In the case of any taxable 
year’ ’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) 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 
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773 
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.’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 77 of such Code is amended by in-
serting after the item relating to section 7527 the 
following new item: 
‘‘Sec. 7527A. Advance payment of child tax credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 122. APPLICATION OF CHILD TAX CREDIT IN POSSES-
SIONS. 
(a) IN GENERAL.—Section 24 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 the 
following new subsection: 
‘‘(j) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) MIRROR CODE POSSESSIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to each possession of the United States 
with a mirror code tax system amounts equal to 
the loss to that possession by reason of the ap-
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774 
plication of this section (determined without re-
gard to this subsection) with respect to taxable 
years beginning after 2019. Such amounts shall 
be determined by the Secretary based on infor-
mation provided by the government of the re-
spective possession. 
‘‘(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. 
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‘‘(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) 
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) 
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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-
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 
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777 
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 
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. 
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Subtitle D—Dependent Care 
Assistance 
SEC. 131. 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 
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 
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‘‘(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 
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. 
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780 
SEC. 132. 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 
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 
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781 
(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 E—Credits for Paid Sick 
and Family Leave 
SEC. 141. 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 ‘‘December 
31, 2020’’ and inserting ‘‘February 28, 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. 142. REPEAL OF REDUCED RATE OF CREDIT FOR CER-
TAIN LEAVE. 
(a) PAYROLL CREDIT.—Section 7001(b) of the Fami-
lies First Coronavirus Response Act is amended by insert-
ing ‘‘(as in effect immediately before the date of the enact-
ment of the COVID–19 Tax Relief Act of 2020) or any 
day on or after the date of the enactment of the COVID– 
19 Tax Relief Act of 2020’’ after ‘‘in the case of any day 
any portion of which is paid sick time described in para-
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graph (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 ‘‘(as in effect immediately before the date of 
the enactment of the COVID–19 Tax Relief Act of 
2020) or any day on or after the date of the enact-
ment of the COVID–19 Tax Relief Act of 2020’’ 
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’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7002(d)(3) of the Families First Coronavirus Re-
sponse Act is amended by inserting ‘‘(as in effect 
immediately before the date of the enactment of the 
COVID–19 Tax Relief Act of 2020) or any day on 
or after the date of the enactment of the COVID– 
19 Tax Relief Act of 2020’’ 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’’. 
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(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. 143. 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’’. 
(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. 
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784 
SEC. 144. 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-
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’.’’. 
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(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. 145. FEDERAL, STATE, AND LOCAL GOVERNMENTS AL-
LOWED 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). 
(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’’. 
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(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. 
SEC. 146. 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 
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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 
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 
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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. 
SEC. 147. CREDITS NOT ALLOWED TO CERTAIN LARGE EM-
PLOYERS. 
(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— 
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‘‘(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. 
‘‘(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: 
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‘‘(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. 
‘‘(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 F—Deduction of State and 
Local Taxes 
SEC. 151. ELIMINATION FOR 2020 LIMITATION ON DEDUC-
TION 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, 
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2020, or after December 31, 2020,’’ 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, 2021’’, 
(3) by striking ‘‘December 31, 2017, shall’’ and 
inserting ‘‘December 31, 2020, shall’’, and 
(4) by adding at the end the following: ‘‘For 
purposes of this section, in the case of State or local 
taxes with respect to any real or personal property 
paid during a taxable year beginning in 2020, 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. 
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792 
TITLE II—PROVISIONS TO PRE-
VENT BUSINESS INTERRUP-
TION 
SEC. 201. IMPROVEMENTS TO EMPLOYEE RETENTION AND 
REHIRING CREDIT. 
(a) EMPLOYEE RETENTION CREDIT RENAMED.— 
Section 2301 of the CARES Act is amended in the head-
ing by striking ‘‘EMPLOYEE RETENTION CREDIT’’ and 
inserting ‘‘EMPLOYEE
RETENTION
AND
REHIRING 
CREDIT’’. 
(b) INCREASE
IN CREDIT PERCENTAGE.—Section 
2301(a) of the CARES Act is amended by striking ‘‘50 
percent’’ and inserting ‘‘80 percent’’. 
(c) INCREASE IN PER EMPLOYEE LIMITATION.—Sec-
tion 2301(b)(1) of the CARES Act is amended by striking 
‘‘for all calendar quarters shall not exceed $10,000.’’ and 
inserting ‘‘shall not exceed— 
‘‘(A) $15,000 in any calendar quarter, and 
‘‘(B) $45,000 in the aggregate for all cal-
endar quarters.’’. 
(d) MODIFICATION OF THRESHOLD FOR TREATMENT 
AS A LARGE EMPLOYER.— 
(1) IN GENERAL.—Section 2301(c)(3)(A) of the 
CARES Act is amended— 
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793 
(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: 
‘‘(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 
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794 
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.’’. 
(e) 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’’. 
(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.— 
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‘‘(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’ 
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 
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796 
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.’’. 
(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 
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797 
(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.’’. 
(f) 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). 
‘‘(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-
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798 
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.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2301(c)(3) of the CARES Act is amended by strik-
ing subparagraph (C). 
(g) QUALIFIED WAGES PERMITTED
TO INCLUDE 
AMOUNTS
FOR
TIP
REPLACEMENT.—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 employer under section 3121(q))’’ after ‘‘would 
have been paid’’. 
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799 
(h) CERTAIN GOVERNMENTAL EMPLOYERS ELIGI-
BLE 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. 
‘‘(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-
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800 
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 
by striking ‘‘Any term’’ and inserting ‘‘Except 
as otherwise provided in this section, any 
term’’. 
(i) COORDINATION WITH INCOME TAX CREDITS.— 
Section 2301(h) of the CARES Act, as amended by pre-
ceding provisions of this Act, is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) COORDINATION WITH INCOME TAX CRED-
ITS.—Any wages taken into account in determining 
the credit allowed under this section shall not be 
taken into account as wages for purposes of sections 
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801 
41, 45A, 45B, 45P, 45S, 51, and 1396 of the Inter-
nal Revenue 23 Code of 1986.’’, and 
(2) by redesignating paragraph (3) as para-
graph (2). 
(j) 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 
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802 
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)(1) of the CARES Act, as amended by the 
preceding provisions of this Act, is further amend-
ed— 
(A) by striking ‘‘shall not be taken into ac-
count as wages’’ and inserting ‘‘shall not be 
taken into account as— 
‘‘(A) wages’’, 
(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 
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803 
such Code, such wages shall not be treated as quali-
fied wages for purposes of this section.’’. 
(k) COORDINATION WITH GOVERNMENT GRANTS.— 
Section 2301(h) of the CARES Act, as amended by the 
preceding provisions of this Act, is further amended by 
adding at the end the following new paragraph: 
‘‘(3) 
COORDINATION
WITH
GOVERNMENT 
GRANTS.—Qualified wages shall not be taken into 
account under this section to the extent that grants 
(or similar amounts) are provided by the Federal 
government for purposes of paying or reimbursing 
expenses for such wages.’’. 
(l) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 2301 
of the CARES Act. 
SEC. 202. CERTAIN LOAN FORGIVENESS AND OTHER BUSI-
NESS FINANCIAL ASSISTANCE UNDER CARES 
ACT NOT INCLUDIBLE IN GROSS INCOME. 
(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 
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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. 
(d) RESTAURANTS GRANTS.—For purposes of the 
Internal Revenue Code of 1986, any grants (or similar 
amounts) made to an eligible entity under the RES-
TAURANTS Act of 2020 shall not be included in the 
gross income of such entity. 
(e) EFFECTIVE DATE.—(1) Subsections (a), (b), and 
(c) shall apply to taxable years ending after the date of 
the enactment of the CARES Act. 
(2) RESTAURANTS
GRANTS.—Subsection (d) 
shall apply to taxable years ending after the date of 
the enactment of the RESTAURANTS Act of 2020. 
SEC. 203. 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 
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shall be determined without regard to whether any amount 
is excluded from gross income under section 202 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: 
‘‘(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. 
TITLE III—NET OPERATING 
LOSSES 
SEC. 301. 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.’’. 
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(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. 302. 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: 
‘‘(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.— 
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(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 
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 
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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-
tion the fair market value of the ag-
gregate distributions (including re-
demptions), measured as of the date 
of each such distribution, of which 
during all taxable years ending after 
December 31, 2017, exceed the sum 
of applicable stock issued of such cor-
poration and 5 percent of the fair 
market value of the stock of such cor-
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poration as of the last day of the tax-
able 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. 
‘‘(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).’’. 
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(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 G—RETIREMENT 
PROVISIONS 
SEC. 100. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Emergency Pension Plan Relief Act of 2020’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 100. Short title, etc. 
TITLE I—RELIEF FOR MULTIEMPLOYER PENSION PLANS 
Sec. 101. Special partition relief. 
Sec. 102. Repeal of benefit suspensions for multiemployer plans in critical and 
declining status. 
Sec. 103. Temporary delay of designation of multiemployer plans as in endan-
gered, critical, or critical and declining status. 
Sec. 104. Temporary extension of the funding improvement and rehabilitation 
periods for multiemployer pension plans in critical and endan-
gered status for 2020 or 2021. 
Sec. 105. Adjustments to funding standard account rules. 
Sec. 106. PBGC guarantee for participants in multiemployer plans. 
TITLE II—RELIEF FOR SINGLE EMPLOYER PENSION PLANS 
Sec. 201. Extended amortization for single employer plans. 
Sec. 202. Extension of pension funding stabilization percentages for single em-
ployer plans. 
TITLE III—OTHER RETIREMENT RELATED PROVISIONS 
Sec. 301. Waiver of required minimum distributions for 2019. 
Sec. 302. Waiver of 60-day rule in case of rollover of otherwise required min-
imum distributions in 2019 or 2020. 
Sec. 303. Exclusion of benefits provided to volunteer firefighters and emergency 
medical responders made permanent. 
Sec. 304. Application of special rules to money purchase pension plans. 
Sec. 305. Grants to assist low-income women and survivors of domestic violence 
in obtaining qualified domestic relations orders. 
Sec. 306. Modification of special rules for minimum funding standards for com-
munity newspaper plans. 
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Sec. 307. Minimum rate of interest for certain determinations related to life in-
surance contracts. 
TITLE I—RELIEF FOR MULTIEM-
PLOYER PENSION PLANS 
SEC. 101. SPECIAL PARTITION RELIEF. 
(a) APPROPRIATION.—Section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1305) 
is amended by adding at the end the following: 
‘‘(i)(1) An eighth fund shall be established for parti-
tion assistance to multiemployer pension plans, as pro-
vided under section 4233A, and to pay for necessary ad-
ministrative and operating expenses relating to such as-
sistance. 
‘‘(2) There is appropriated from the general fund 
such amounts as necessary for the costs of providing parti-
tion assistance under section 4233A and necessary admin-
istrative and operating expenses. The eighth fund estab-
lished under this subsection shall be credited with such 
amounts from time to time as the Secretary of the Treas-
ury determines appropriate, from the general fund of the 
Treasury, and such amounts shall remain available until 
expended.’’. 
(b) SPECIAL
PARTITION
AUTHORITY.—The Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1001 et seq.) is amended by inserting after section 
4233 the following: 
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‘‘SEC. 4233A. SPECIAL PARTITION RELIEF. 
‘‘(a) SPECIAL PARTITION AUTHORITY.— 
‘‘(1) IN GENERAL.—Upon the application of a 
plan sponsor of an eligible multiemployer plan for 
partition of the plan under this section, the corpora-
tion shall order a partition of the plan in accordance 
with this section. 
‘‘(2) INAPPLICABILITY OF CERTAIN REPAYMENT 
OBLIGATION.—A plan receiving partition assistance 
pursuant to this section shall not be subject to re-
payment obligations under section 4261(b)(2). 
‘‘(b) ELIGIBLE PLANS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, a multiemployer plan is an eligible multiem-
ployer plan if— 
‘‘(A) the plan is in critical and declining 
status 
(within 
the 
meaning 
of 
section 
305(b)(6)) in any plan year beginning in 2020 
through 2024; 
‘‘(B) a suspension of benefits has been ap-
proved with respect to the plan under section 
305(e)(9) as of the date of the enactment of 
this section; 
‘‘(C) in any plan year beginning in 2020 
through 2024, the plan is certified by the plan 
actuary to be in critical status (within the 
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meaning of section 305(b)(2)), has a modified 
funded percentage of less than 40 percent, and 
has a ratio of active to inactive participants 
which is less than 2 to 3; or 
‘‘(D) the plan is insolvent for purposes of 
section 418E of the Internal Revenue Code of 
1986 as of the date of enactment of this sec-
tion, if the plan became insolvent after Decem-
ber 16, 2014, and has not been terminated by 
such date of enactment. 
‘‘(2) MODIFIED
FUNDED
PERCENTAGE.—For 
purposes of paragraph (1)(C), the term ‘modified 
funded percentage’ means the percentage equal to a 
fraction the numerator of which is current value of 
plan assets (as defined in section 3(26) of such Act) 
and the denominator of which is current liabilities 
(as defined in section 431(c)(6)(D) of such Code and 
section 304(c)(6)(D) of such Act). 
‘‘(c) APPLICATIONS FOR SPECIAL PARTITION.— 
‘‘(1) GUIDANCE.—The corporation shall issue 
guidance setting forth requirements for special parti-
tion applications under this section not later than 
120 days after the date of the enactment of this sec-
tion. In such guidance, the corporation shall— 
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‘‘(A) limit the materials required for a spe-
cial partition application to the minimum nec-
essary to make a determination on the applica-
tion; and 
‘‘(B) provide for an alternate application 
for special partition under this section, which 
may be used by a plan that has been approved 
for a partition under section 4233 before the 
date of enactment of this section. 
‘‘(2) TEMPORARY PRIORITY CONSIDERATION OF 
APPLICATIONS.— 
‘‘(A) IN GENERAL.—The corporation may 
specify in guidance under paragraph (1) that, 
during the first 2 years following the date of 
enactment of this section, special partition ap-
plications will be provided priority consider-
ation, if— 
‘‘(i) the plan is likely to become insol-
vent within 5 years of the date of enact-
ment of this section; 
‘‘(ii) the corporation projects a plan to 
have a present value of financial assistance 
payments under section 4261 that exceeds 
$1,000,000,000 if the special partition is 
not ordered; 
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‘‘(iii) the plan has implemented ben-
efit suspensions under section 305(e)(9) as 
of the date of the enactment of this sec-
tion; or 
‘‘(iv) the corporation determines it ap-
propriate based on other circumstances. 
‘‘(B) NO EFFECT ON AMOUNT OF ASSIST-
ANCE.—A plan that is approved for special par-
tition assistance under this section shall not re-
ceive reduced special partition assistance on ac-
count of not receiving priority consideration 
under subparagraph (A). 
‘‘(3) ACTUARIAL ASSUMPTIONS AND OTHER IN-
FORMATION.—The corporation shall accept assump-
tions incorporated in a multiemployer plan’s deter-
mination that it is in critical status or critical and 
declining status (within the meaning of section 
305(b)), or that the plan’s modified funded percent-
age is less than 40 percent, unless such assumptions 
are clearly erroneous. The corporation may require 
such other information as the corporation deter-
mines appropriate for making a determination of eli-
gibility and the amount of special partition assist-
ance necessary under this section. 
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‘‘(4) APPLICATION DEADLINE.—Any application 
by a plan for special partition assistance under this 
section shall be submitted no later than December 
31, 2026, and any revised application for special 
partition assistance shall be submitted no later than 
December 31, 2027. 
‘‘(5) NOTICE OF APPLICATION.—Not later than 
120 days after the date of enactment of this section, 
the corporation shall issue guidance requiring multi-
employer plans to notify participants and bene-
ficiaries that the plan has applied for partition 
under this section, after the corporation has deter-
mined that the application is complete. Such notice 
shall reference the special partition relief internet 
website described in subsection (p). 
‘‘(d) DETERMINATIONS ON APPLICATIONS.—A plan’s 
application for special partition under this section that is 
timely filed in accordance with guidance issued under sub-
section (c)(1) shall be deemed approved and the corpora-
tion shall issue a special partition order unless the cor-
poration notifies the plan within 120 days of the filing 
of the application that the application is incomplete or the 
plan is not eligible under this section. Such notice shall 
specify the reasons the plan is ineligible for a special parti-
tion or information needed to complete the application. If 
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a plan is denied partition under this subsection, the plan 
may submit a revised application under this section. Any 
revised application for special partition submitted by a 
plan shall be deemed approved unless the corporation noti-
fies the plan within 120 days of the filing of the revised 
application that the application is incomplete or the plan 
is not eligible under this section. A special partition order 
issued by the corporation shall be effective no later than 
120 days after a plan’s special partition application is ap-
proved by the corporation or deemed approved. 
‘‘(e) AMOUNT AND MANNER OF SPECIAL PARTITION 
ASSISTANCE.— 
‘‘(1) IN GENERAL.—The liabilities of an eligible 
multiemployer plan that the corporation assumes 
pursuant to a special partition order under this sec-
tion shall be the amount necessary for the plan to 
meet its funding goals described in subsection (g). 
‘‘(2) NO CAP.—Liabilities assumed by the cor-
poration pursuant to a special partition order under 
this section shall not be capped by the guarantee 
under section 4022A. The corporation shall have dis-
cretion on how liabilities of the plan are partitioned. 
‘‘(f) SUCCESSOR PLAN.— 
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‘‘(1) IN GENERAL.—The plan created by a spe-
cial partition order under this section is a successor 
plan to which section 4022A applies. 
‘‘(2) PLAN
SPONSOR
AND
ADMINISTRATOR.— 
The plan sponsor of an eligible multiemployer plan 
prior to the special partition and the administrator 
of such plan shall be the plan sponsor and the ad-
ministrator, respectively, of the plan created by the 
partition. 
‘‘(g) FUNDING GOALS.— 
‘‘(1) IN
GENERAL.—The funding goals of a 
multiemployer plan eligible for partition under this 
section are both of the following: 
‘‘(A) The plan will remain solvent over 30 
years with no reduction in a participant’s or 
beneficiary’s accrued benefit (except to the ex-
tent of a reduction in accordance with section 
305(e)(8) adopted prior to the plan’s applica-
tion for partition under this section). 
‘‘(B) The funded percentage of the plan 
(disregarding partitioned benefits) at the end of 
the 30-year period is projected to be 80 percent. 
‘‘(2) BASIS.—The funding projections under 
paragraph (1) shall be performed on a deterministic 
basis. 
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‘‘(h) RESTORATION OF BENEFIT SUSPENSIONS.—An 
eligible multiemployer plan that is partitioned under this 
section shall— 
‘‘(1) reinstate any benefits that were suspended 
under section 305(e)(9) or section 4245(a), effective 
as of the first month the special partition order is 
effective, for participants or beneficiaries as of the 
effective date of the partition; and 
‘‘(2) provide payments equal to the amount of 
benefits previously suspended to any participants or 
beneficiaries in pay status as of the effective date of 
the special partition, payable in the form of a lump 
sum within 3 months of such effective date or in 
equal monthly installments over a period of 5 years, 
with no adjustment for interest. 
‘‘(i) ADJUSTMENT OF SPECIAL PARTITION ASSIST-
ANCE.— 
‘‘(1) IN GENERAL.—Every 5 years, the corpora-
tion shall adjust the special partition assistance de-
scribed in subsection (e) as necessary for the eligible 
multiemployer plan to satisfy the funding goals de-
scribed in subsection (g). If the 30 year period de-
scribed in subsection (g) has lapsed, in applying this 
paragraph, 5 years shall be substituted for 30 years. 
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‘‘(2) SUBMISSION OF INFORMATION.—An eligi-
ble multiemployer plan that is the subject of a spe-
cial partition order under subsection (a) shall submit 
such information as the corporation may require to 
determine the amount of the adjustment under para-
graph (1). 
‘‘(3) CESSATION
OF
ADJUSTMENTS.—Adjust-
ments under this subsection with respect to special 
partition assistance for an eligible multiemployer 
plan shall cease and the corporation shall perma-
nently assume liability for payment of any benefits 
transferred to the successor plan (subject to sub-
section (l)) beginning with the first plan year that 
the funded percentage of the eligible multiemployer 
plan (disregarding partitioned benefits) is at least 
80 percent and the plan’s projected funded percent-
age for each of the next 10 years is at least 80 per-
cent. Any accumulated funding deficiency of the 
plan (within the meaning of section 304(a)) shall be 
reduced to zero as of the first day of the plan year 
for which partition assistance is permanent under 
this paragraph. 
‘‘(j) CONDITIONS ON PLANS DURING PARTITION.— 
‘‘(1) IN GENERAL.—The corporation may im-
pose, by regulation, reasonable conditions on an eli-
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gible multiemployer plan that is partitioned under 
section (a) relating to increases in future accrual 
rates and any retroactive benefit improvements, allo-
cation of plan assets, reductions in employer con-
tribution rates, diversion of contributions to, and al-
location of, expenses to other retirement plans, and 
withdrawal liability. 
‘‘(2) LIMITATIONS.—The corporation shall not 
impose conditions on an eligible multiemployer plan 
as a condition of or following receipt of such parti-
tion assistance under this section relating to— 
‘‘(A) any reduction in plan benefits (in-
cluding benefits that may be adjusted pursuant 
to section 305(e)(8)); 
‘‘(B) plan governance, including selection 
of, removal of, and terms of contracts with, 
trustees, actuaries, investment managers, and 
other service providers; or 
‘‘(C) any funding rules relating to the plan 
that is partitioned under this section. 
‘‘(3) CONDITION.—An eligible multiemployer 
plan that is partitioned under subsection (a) shall 
continue to pay all premiums due under section 
4007 for participants and beneficiaries in the plan 
created by a special partition order until the plan 
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year beginning after a cessation of adjustments ap-
plies under subsection (i). 
‘‘(k) WITHDRAWAL LIABILITY.—An employer’s with-
drawal liability for purposes of this title shall be calculated 
taking into account any plan liabilities that are partitioned 
under subsection (a) until the plan year beginning after 
the expiration of 15 calendar years from the effective date 
of the partition. 
‘‘(l) CESSATION OF PARTITION ASSISTANCE.—If a 
plan that receives partition assistance under this section 
becomes insolvent for purposes of section 418E of the In-
ternal Revenue Code of 1986, the plan shall no longer be 
eligible for assistance under this section and shall be eligi-
ble for assistance under section 4261. 
‘‘(m) REPORTING.—An eligible multiemployer plan 
that receives partition assistance under this section shall 
file with the corporation a report, including the following 
information, in such manner (which may include electronic 
filing requirements) and at such time as the corporation 
requires: 
‘‘(1) The funded percentage (as defined in sec-
tion 305(j)(2)) as of the first day of such plan year, 
and the underlying actuarial value of assets and li-
abilities taken into account in determining such per-
centage. 
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‘‘(2) The market value of the assets of the plan 
(determined as provided in paragraph (1)) as of the 
last day of the plan year preceding such plan year. 
‘‘(3) The total value of all contributions made 
by employers and employees during the plan year 
preceding such plan year. 
‘‘(4) The total value of all benefits paid during 
the plan year preceding such plan year. 
‘‘(5) Cash flow projections for such plan year 
and the 9 succeeding plan years, and the assump-
tions used in making such projections. 
‘‘(6) Funding standard account projections for 
such plan year and the 9 succeeding plan years, and 
the assumptions relied upon in making such projec-
tions. 
‘‘(7) The total value of all investment gains or 
losses during the plan year preceding such plan year. 
‘‘(8) Any significant reduction in the number of 
active participants during the plan year preceding 
such plan year, and the reason for such reduction. 
‘‘(9) A list of employers that withdrew from the 
plan in the plan year preceding such plan year, the 
payment schedule with respect to such withdrawal li-
ability, and the resulting reduction in contributions. 
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‘‘(10) A list of employers that paid withdrawal 
liability to the plan during the plan year preceding 
such plan year and, for each employer, a total as-
sessment of the withdrawal liability paid, the annual 
payment amount, and the number of years remain-
ing in the payment schedule with respect to such 
withdrawal liability. 
‘‘(11) Any material changes to benefits, accrual 
rates, or contribution rates during the plan year pre-
ceding such plan year, and whether such changes re-
late to the conditions of the partition assistance. 
‘‘(12) Details regarding any funding improve-
ment plan or rehabilitation plan and updates to such 
plan. 
‘‘(13) The number of participants and bene-
ficiaries during the plan year preceding such plan 
year who are active participants, the number of par-
ticipants and beneficiaries in pay status, and the 
number of terminated vested participants and bene-
ficiaries. 
‘‘(14) The information contained on the most 
recent annual funding notice submitted by the plan 
under section 101(f). 
‘‘(15) The information contained on the most 
recent annual return under section 6058 of the In-
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ternal Revenue Code of 1986 and actuarial report 
under section 6059 of such Code of the plan. 
‘‘(16) Copies of the plan document and amend-
ments, other retirement benefit or ancillary benefit 
plans relating to the plan and contribution obliga-
tions under such plans, a breakdown of administra-
tive expenses of the plan, participant census data 
and distribution of benefits, the most recent actu-
arial valuation report as of the plan year, financial 
reports, and copies of the portions of collective bar-
gaining agreements relating to plan contributions, 
funding coverage, or benefits, and such other infor-
mation as the corporation may reasonably require. 
Any information disclosed by a plan to the corporation 
that could identify individual employers shall be confiden-
tial and not subject to publication or disclosure. 
‘‘(n) REPORT TO CONGRESS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section and annually 
thereafter, the board of directors of the corporation 
shall submit to the Committee on Health, Edu-
cation, Labor, and Pensions and the Committee on 
Finance of the Senate and the Committee on Edu-
cation and Labor and the Committee on Ways and 
Means of the House of Representatives a detailed re-
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port on the implementation and administration of 
this section. Such report shall include— 
‘‘(A) information on the name and number 
of multiemployer plans that have applied for 
partition assistance under this section; 
‘‘(B) the name and number of such plans 
that have been approved for partition assistance 
under this section and the name and number of 
the plans that have not been approved for spe-
cial partition assistance; 
‘‘(C) a detailed rationale for any decision 
by the corporation to not approve an applica-
tion for special partition assistance; 
‘‘(D) the amount of special partition as-
sistance provided to eligible multiemployer 
plans (including amounts provided on an indi-
vidual plan basis and in the aggregate); 
‘‘(E) the name and number of the multi-
employer plans that restored benefit suspen-
sions and provided lump sum or monthly in-
stallment payments to participants or bene-
ficiaries; 
‘‘(F) the amount of benefits that were re-
stored and lump sum or monthly installment 
payments that were paid (including amounts 
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amount necessary to meet its funding goals under 
subsection (g), including, if applicable, any adjust-
ment of special partition assistance as determined 
under subsection (i). 
‘‘(3) CONFIDENTIALITY.—Congress may pub-
licize the reports received under paragraph (1) only 
after redacting all sensitive or proprietary informa-
tion. 
‘‘(o) GAO REPORT.—Not later than 1 year after the 
first partition application is approved by the corporation 
under this section, and biennially thereafter, the Comp-
troller General of the United States shall submit to the 
Committee on Health, Education, Labor, and Pensions 
and the Committee on Finance of the Senate and the 
Committee on Education and Labor and the Committee 
on Ways and Means of the House of Representatives a 
detailed report on the actions of the corporation to imple-
ment and administer this section, including an examina-
tion of the contracts awarded by such corporation to carry 
out this section and an analysis of such corporation’s com-
pliance with subsections (e) and (g). 
‘‘(p) SPECIAL PARTITION RELIEF WEBSITE.— 
‘‘(1) ESTABLISHMENT.—Not later than 120 
days after the date of enactment of this section, the 
corporation shall establish and maintain a user- 
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friendly, public-facing internet website to foster 
greater accountability and transparency in the im-
plementation and administration of this section. 
‘‘(2) PURPOSE.—The internet website estab-
lished and maintained under paragraph (1) shall be 
a portal to key information relating to this section 
for multiemployer plan administrators and trustees, 
plan participants, beneficiaries, participating em-
ployers, other stakeholders, and the public. 
‘‘(3) CONTENT AND FUNCTION.—The internet 
website established under paragraph (1) shall— 
‘‘(A) describe the nature and scope of the 
special partition authority and assistance under 
this section in a manner calculated to be under-
stood by the average plan participant; 
‘‘(B) include published guidance, regula-
tions, and all other relevant information on the 
implementation and administration of this sec-
tion; 
‘‘(C) include, with respect to plan applica-
tions for special partition assistance— 
‘‘(i) a general description of the proc-
ess by which eligible plans can apply for 
special partition assistance, information on 
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how and when the corporation will process 
and consider plan applications; 
‘‘(ii) information on how the corpora-
tion will address any incomplete applica-
tions as specified in under this section; 
‘‘(iii) a list of the plans that have ap-
plied for special partition assistance and, 
for each application, the date of submis-
sion of a completed application; 
‘‘(iv) the text of each plan’s completed 
application for special partition assistance 
with appropriate redactions of personal, 
proprietary, or sensitive information; 
‘‘(v) the estimated date that a deci-
sion will be made by the corporation on 
each application; 
‘‘(vi) the actual date when such deci-
sion is made; 
‘‘(vii) the corporation’s decision on 
each application; and 
‘‘(viii) as applicable, a detailed ration-
ale for any decision not to approve a plan’s 
application for special partition assistance; 
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831 
‘‘(D) provide detailed information on each 
contract solicited and awarded to implement or 
administer this section; 
‘‘(E) include reports, audits, and other rel-
evant oversight and accountability information 
on this section, including the annual reports 
submitted by the board of directors of the cor-
poration to Congress required under subsection 
(n), the Office of the Inspector General audits, 
correspondence, and publications, and the Gov-
ernment Accountability Office reports under 
subsection (o); 
‘‘(F) provide a clear means for multiem-
ployer plan administrators, plan participants, 
beneficiaries, other stakeholders, and the public 
to contact the corporation and provide feedback 
on the implementation and administration of 
this section; and 
‘‘(G) be regularly updated to carry out the 
purposes of this subsection. 
‘‘(q) OFFICE OF INSPECTOR GENERAL.—There is au-
thorized to be appropriated to the corporation’s Office of 
Inspector General $24,000,000 for fiscal year 2020, which 
shall remain available through September 30, 2028, for 
salaries and expenses necessary for conducting investiga-
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832 
tions and audits of the implementation and administration 
of this section. 
‘‘(r) APPLICATION OF EXCISE TAX.—During the pe-
riod that a plan is subject to a partition order under this 
section and prior to a cessation of adjustments pursuant 
to subsection (i)(3), the plan shall not be subject to section 
4971 of the Internal Revenue Code of 1986.’’. 
SEC. 102. REPEAL OF BENEFIT SUSPENSIONS FOR MULTI-
EMPLOYER PLANS IN CRITICAL AND DECLIN-
ING STATUS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Paragraph (9) of section 432(e) of the Internal 
Revenue Code of 1986 is repealed. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Paragraph (9) of section 
305(e) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1085(e)) is repealed. 
(c) EFFECTIVE DATE.—The repeals made by this 
section shall not apply to plans that have been approved 
for a suspension of benefit under section 432(e)(9)(G) of 
the Internal Revenue Code of 1986 and section 
305(e)(9)(G) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1085(e)(9)(G)) before the date 
of the enactment of this Act. 
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833 
SEC. 103. TEMPORARY DELAY OF DESIGNATION OF MULTI-
EMPLOYER PLANS AS IN ENDANGERED, CRIT-
ICAL, OR CRITICAL AND DECLINING STATUS. 
(a) IN GENERAL.—Notwithstanding the actuarial 
certification under section 305(b)(3) of the Employee Re-
tirement Income Security Act of 1974 and section 
432(b)(3) of the Internal Revenue Code of 1986, if a plan 
sponsor of a multiemployer plan elects the application of 
this section, then, for purposes of section 305 of such Act 
and section 432 of such Code— 
(1) the status of the plan for its first plan year 
beginning during the period beginning on March 1, 
2020, and ending on February 28, 2021, or the next 
succeeding plan year (as designated by the plan 
sponsor in such election), shall be the same as the 
status of such plan under such sections for the plan 
year preceding such designated plan year, and 
(2) in the case of a plan which was in endan-
gered or critical status for the plan year preceding 
the designated plan year described in paragraph (1), 
the plan shall not be required to update its plan or 
schedules under section 305(c)(6) of such Act and 
section 
432(c)(6) 
of 
such 
Code, 
or 
section 
305(e)(3)(B) of such Act and section 432(e)(3)(B) 
of such Code, whichever is applicable, until the plan 
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834 
year following the designated plan year described in 
paragraph (1). 
If section 305 of the Employee Retirement Income Secu-
rity Act of 1974 and section 432 of the Internal Revenue 
Code of 1986 did not apply to the plan year preceding 
the designated plan year described in paragraph (1), the 
plan actuary shall make a certification of the status of 
the plan under section 305(b)(3) of such Act and section 
432(b)(3) of such Code for the preceding plan year in the 
same manner as if such sections had applied to such pre-
ceding plan year. 
(b) EXCEPTION
FOR PLANS BECOMING CRITICAL 
DURING ELECTION.—If— 
(1) an election was made under subsection (a) 
with respect to a multiemployer plan, and 
(2) such plan has, without regard to such elec-
tion, been certified by the plan actuary under section 
305(b)(3) of the Employee Retirement Income Secu-
rity Act of 1974 and section 432(b)(3) of the Inter-
nal Revenue Code of 1986 to be in critical status for 
the designated plan year described in subsection 
(a)(1), then such plan shall be treated as a plan in 
critical status for such plan year for purposes of ap-
plying section 4971(g)(1)(A) of such Code, section 
302(b)(3) of such Act (without regard to the second 
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sentence thereof), and section 412(b)(3) of such 
Code (without regard to the second sentence there-
of). 
(c) ELECTION AND NOTICE.— 
(1) ELECTION.—An election under subsection 
(a)— 
(A) shall be made at such time and in such 
manner as the Secretary of the Treasury or the 
Secretary’s delegate may prescribe and, once 
made, may be revoked only with the consent of 
the Secretary, and 
(B) if made— 
(i) before the date the annual certifi-
cation is submitted to the Secretary or the 
Secretary’s 
delegate 
under 
section 
305(b)(3) 
of 
such 
Act 
and 
section 
432(b)(3) of such Code, shall be included 
with such annual certification, and 
(ii) after such date, shall be submitted 
to the Secretary or the Secretary’s delegate 
not later than 30 days after the date of the 
election. 
(2) NOTICE TO PARTICIPANTS.— 
(A) IN
GENERAL.—Notwithstanding sec-
tion 305(b)(3)(D) of the Employee Retirement 
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Income Security Act of 1974 and section 
432(b)(3)(D) of the Internal Revenue Code of 
1986, if the plan is neither in endangered nor 
critical status by reason of an election made 
under subsection (a)— 
(i) the plan sponsor of a multiem-
ployer plan shall not be required to provide 
notice under such sections, and 
(ii) the plan sponsor shall provide to 
the participants and beneficiaries, the bar-
gaining parties, the Pension Benefit Guar-
anty Corporation, and the Secretary of 
Labor a notice of the election under sub-
section (a) and such other information as 
the Secretary of the Treasury (in consulta-
tion with the Secretary of Labor) may re-
quire— 
(I) if the election is made before 
the date the annual certification is 
submitted to the Secretary or the Sec-
retary’s 
delegate 
under 
section 
305(b)(3) of such Act and section 
432(b)(3) of such Code, not later than 
30 days after the date of the certifi-
cation, and 
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837 
(II) if the election is made after 
such date, not later than 30 days 
after the date of the election. 
(B) NOTICE OF ENDANGERED STATUS.— 
Notwithstanding section 305(b)(3)(D) of such 
Act and section 432(b)(3)(D) of such Code, if 
the plan is certified to be in critical status for 
any plan year but is in endangered status by 
reason of an election made under subsection 
(a), the notice provided under such sections 
shall be the notice which would have been pro-
vided if the plan had been certified to be in en-
dangered status. 
SEC. 104. TEMPORARY EXTENSION OF THE FUNDING IM-
PROVEMENT AND REHABILITATION PERIODS 
FOR MULTIEMPLOYER PENSION PLANS IN 
CRITICAL AND ENDANGERED STATUS FOR 
2020 OR 2021. 
(a) IN GENERAL.—If the plan sponsor of a multiem-
ployer plan which is in endangered or critical status for 
a plan year beginning in 2020 or 2021 (determined after 
application of section 4) elects the application of this sec-
tion, then, for purposes of section 305 of the Employee 
Retirement Income Security Act of 1974 and section 432 
of the Internal Revenue Code of 1986— 
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838 
(1) except as provided in paragraph (2), the 
plan’s funding improvement period or rehabilitation 
period, whichever is applicable, shall be 15 years 
rather than 10 years, and 
(2) in the case of a plan in seriously endan-
gered status, the plan’s funding improvement period 
shall be 20 years rather than 15 years. 
(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
(1) ELECTION.—An election under this section 
shall be made at such time, and in such manner and 
form, as (in consultation with the Secretary of 
Labor) the Secretary of the Treasury or the Sec-
retary’s delegate may prescribe. 
(2) DEFINITIONS.—Any term which is used in 
this section which is also used in section 305 of the 
Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 
1986 shall have the same meaning as when used in 
such sections. 
(c) EFFECTIVE DATE.—This section shall apply to 
plan years beginning after December 31, 2019. 
SEC. 105. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT 
RULES. 
(a) ADJUSTMENTS.— 
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839 
(1) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 304(b)(8) 
of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1084(b)) is amended by adding at 
the end the following new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A mul-
tiemployer plan with respect to which the sol-
vency test under subparagraph (C) is met as of 
February 29, 2020, may elect to apply this 
paragraph by substituting ‘February 29, 2020’ 
for ‘August 31, 2008’ each place it appears in 
subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II) 
(without regard to whether such plan previously 
elected the application of this paragraph). The 
preceding sentence shall not apply to a plan 
with respect to which a partition order is in ef-
fect under section 4233A.’’. 
(2) AMENDMENT TO INTERNAL REVENUE CODE 
OF 1986.—Section 431(b)(8) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A mul-
tiemployer plan with respect to which the sol-
vency test under subparagraph (C) is met as of 
February 29, 2020, may elect to apply this 
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914 
the composite plan component and the defined 
benefit plan component of the plan. 
‘‘(3) SPECIAL RULES.—If a multiemployer plan 
is amended pursuant to paragraph (1)— 
‘‘(A) the requirements of this title shall be 
applied to the composite plan component and 
the defined benefit plan component of the mul-
tiemployer plan as if each such component were 
maintained as a separate plan, and 
‘‘(B) the assets of the composite plan com-
ponent and the defined benefit plan component 
of the plan shall be held in a single trust form-
ing part of the plan under which the trust in-
strument expressly provides— 
‘‘(i) for separate accounts (and appro-
priate records) to be maintained to reflect 
the interest which each of the plan compo-
nents has in the trust, including separate 
accounting for additions to the trust for 
the benefit of each plan component, dis-
bursements made from each plan compo-
nent’s account in the trust, investment ex-
perience of the trust allocable to that ac-
count, and administrative expenses (wheth-
er direct expenses or shared expenses allo-
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