(c) QUALIFIED PUBLIC HEALTH EMERGENCY SICK 
LEAVE EQUIVALENT AMOUNT.—For purposes of this sec-
tion— 
(1) IN GENERAL.—The term ‘‘qualified public 
health emergency sick leave equivalent amount’’ 
means, with respect to any eligible self-employed in-
dividual, an amount equal to— 
(A) the number of days during the taxable 
year (but not more than the applicable number 
of days) that the individual is unable to per-
form services in the trade or business referred 
to in section 1402 of such Code for a reason 
with respect to which such individual would be 
entitled to receive sick leave as described in 
subsection (b), multiplied by 
(B) the lesser of— 
(i) $511, or 
(ii) the average daily self-employment 
income of the individual for the taxable 
year. 
(2) AVERAGE
DAILY
SELF-EMPLOYMENT
IN-
COME.—For purposes of this subsection, the term 
‘‘average daily self-employment income’’ means an 
amount equal to— 
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(A) the net earnings from self-employment 
of the individual for the taxable year, divided by 
(B) 260. 
(3) APPLICABLE NUMBER OF DAYS.—For pur-
poses of this subsection, the term ‘‘applicable num-
ber of days’’ means, with respect to any taxable 
year, the number of days during such taxable year 
with respect to which the individual would be enti-
tled to receive sick leave as described in subsection 
(b). 
(d) SPECIAL RULES.— 
(1) CREDIT REFUNDABLE.— 
(A) IN GENERAL.—The credit determined 
under this section shall be treated as a credit 
allowed to the taxpayer under subpart C of part 
IV of subchapter A of chapter 1 of such Code. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any refund due from the credit deter-
mined under this section shall be treated in the 
same manner as a refund due from a credit 
provision referred to in subsection (b)(2) of 
such section. 
(2) DOCUMENTATION.—No credit shall be al-
lowed under this section unless the individual main-
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tains such documentation as the Secretary may pre-
scribe to establish such individual as an eligible self- 
employed individual. 
(3) DENIAL OF DOUBLE BENEFIT.—In the case 
of an individual who receives wages (as defined in 
section 3121(a) of the Internal Revenue Code of 
1986) paid by an employer which are required to be 
paid by reason of the Public Health Emergency Paid 
Sick Leave Act, the qualified sick leave equivalent 
amount otherwise determined under subsection (c) 
shall be reduced (but not below zero) in the same 
proportion that the number of days for which such 
wages are received bears to the number of days de-
scribed in subsection (c)(1)(A). 
(4) CERTAIN TERMS.—Any term used in this 
section which is also used in chapter 2 of the Inter-
nal Revenue Code of 1986 shall have the same 
meaning as when used in such chapter. 
(e) APPLICATION OF SECTION.—Only days after the 
date of the enactment of this Act may be taken into ac-
count under subsection (c)(1)(A). 
(f) APPLICATION OF CREDIT IN CERTAIN POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
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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. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the pro-
visions of this section if a mirror code tax system 
had been in effect in such possession. The preceding 
sentence shall not apply unless the respective posses-
sion has a plan, which has been approved by the 
Secretary of the Treasury, under which such posses-
sion 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 
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the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this section shall be treated in the 
same manner as a refund due from a credit provi-
sion referred to in subsection (b)(2) of such section. 
(g) REGULATIONS.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall prescribe such regula-
tions or other guidance as may be necessary to carry out 
the purposes of this section, including— 
(1) regulations or other guidance to prevent the 
avoidance of the purposes of this section, and 
(2) regulations or other guidance to minimize 
compliance and recordkeeping burdens under this 
section. 
SEC. 303. PAYROLL CREDIT FOR REQUIRED PAID PUBLIC 
HEALTH EMERGENCY FAMILY LEAVE. 
(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against the tax imposed by 
section 3111(a) of the Internal Revenue Code of 1986 for 
each calendar quarter an amount equal to 100 percent of 
the qualified public health emergency family leave wages 
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paid by such employer with respect to such calendar quar-
ter. The preceding sentence shall not apply to any em-
ployer for any calendar quarter unless such employer em-
ploys an average of fewer than 500 employees on days dur-
ing such quarter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) 
WAGES
TAKEN
INTO
ACCOUNT.—The 
amount of qualified public health emergency family 
leave wages taken into account under subsection (a) 
with respect to any individual shall not exceed $511 
for each day (or portion thereof) for which the indi-
vidual is paid qualified public health emergency fam-
ily leave wages. 
(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
tax imposed by section 3111(a) of such Code for 
such calendar quarter (reduced by any credits al-
lowed under subsections (e) and (f) of section 3111 
of such Code, and section 9001 of this Act, for such 
quarter) on the wages paid with respect to the em-
ployment of all employees of the employer. 
(3) REFUNDABILITY
OF
EXCESS
CREDIT.—If 
the amount of the credit under subsection (a) ex-
ceeds the limitation of paragraph (2) for any cal-
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endar quarter, such excess shall be treated as an 
overpayment that shall be refunded under sections 
6402(a) and 6413(b) of such Code. 
(c) QUALIFIED FAMILY LEAVE WAGES.—For pur-
poses of this section, the term ‘‘qualified family leave 
wages’’ means wages (as defined in section 3121(a) of 
such Code) paid by an employer which are required to be 
paid by reason of the Public Health Emergency Family 
and Medical Leave Expansion Act (including the amend-
ments made by such Act). 
(d) SPECIAL RULES.— 
(1) DENIAL OF DOUBLE BENEFIT.—For pur-
poses of chapter 1 of such Code, the gross income 
of the employer, for the taxable year which includes 
the last day of any calendar quarter with respect to 
which a credit is allowed under this section, shall be 
increased by the amount of such credit. No credit 
shall be allowed under this section with respect to 
wages for which a credit is allowed under section 
45S of such Code. 
(2) ELECTION NOT TO HAVE SECTION APPLY.— 
This section shall not apply with respect to any em-
ployer for any calendar quarter if such employer 
elects (at such time and in such manner as the Sec-
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retary of the Treasury (or the Secretary’s delegate) 
may prescribe) not to have this section apply. 
(3) CERTAIN TERMS.—Any term used in this 
section which is also used in chapter 21 of such 
Code shall have the same meaning as when used in 
such chapter. 
(4) STATE AND LOCAL GOVERNMENTS.—This 
credit shall not apply to the Government of the 
United States, the government of any State or polit-
ical subdivision thereof, or any agency or instrumen-
tality of any of the foregoing. 
(e) REGULATIONS.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall prescribe such regula-
tions or other guidance as may be necessary to carry out 
the purposes of this section, including— 
(1) regulations or other guidance to prevent the 
avoidance of the purposes of the limitations and ag-
gregation rules under this section through the use of 
successor companies or other means, 
(2) regulations or other guidance to minimize 
compliance and recordkeeping burdens under this 
section, 
(3) regulations or other guidance providing for 
waiver of penalties for failure to deposit amounts in 
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anticipation of the allowance of the credit allowed 
under this section, and 
(4) regulations or other guidance for recap-
turing the benefit of credits determined under this 
section in cases where there is a subsequent adjust-
ment to the credit determined under subsection (a). 
(f) APPLICATION OF SECTION.—This section shall 
apply only to wages paid with respect to days after the 
date of the enactment of this Act. 
(g) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social 
Security Act (42 U.S.C. 401) amounts equal to the reduc-
tion in revenues to the Treasury by reason of this section 
(without regard to this subsection). Amounts appropriated 
by the preceding sentence shall be transferred from the 
general fund at such times and in such manner as to rep-
licate to the extent possible the transfers which would have 
occurred to such Trust Fund had this section not been 
enacted. 
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SEC. 304. CREDIT FOR PUBLIC HEALTH EMERGENCY FAM-
ILY LEAVE FOR CERTAIN SELF-EMPLOYED IN-
DIVIDUALS. 
(a) CREDIT AGAINST SELF-EMPLOYMENT TAX.—In 
the case of an eligible self-employed individual, there shall 
be allowed as a credit against the tax imposed by subtitle 
A of the Internal Revenue Code of 1986 for any taxable 
year an amount equal to 100 percent of the qualified pub-
lic health emergency family leave equivalent amount with 
respect to the individual. 
(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For 
purposes of this section, the term ‘‘eligible self-employed 
individual’’ means an individual who— 
(1) regularly carries on a trade or business 
within the meaning of section 1402 of such Code, 
and 
(2) would be entitled to receive paid leave dur-
ing the taxable year pursuant to the Public Health 
Emergency Family and Medical Leave Expansion 
Act if the individual were an employee of an em-
ployer (other than himself or herself). 
(c) QUALIFIED PUBLIC HEALTH EMERGENCY FAM-
ILY LEAVE EQUIVALENT AMOUNT.—For purposes of this 
section— 
(1) IN GENERAL.—The term ‘‘qualified public 
health emergency family leave equivalent amount’’ 
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means, with respect to any eligible self-employed in-
dividual, an amount equal to the product of— 
(A) the number of days (not to exceed the 
applicable number of days) during the taxable 
year that the individual is unable to perform 
services in the trade or business referred to in 
section 1402 of such Code for a reason with re-
spect to which such individual would be entitled 
to receive paid leave as described in subsection 
(b), multiplied by 
(B) the lesser of— 
(i) the average daily self-employment 
income of the individual for the taxable 
year, or 
(ii) $511. 
(2) AVERAGE
DAILY
SELF-EMPLOYMENT
IN-
COME.—For purposes of this subsection, the term 
‘‘average daily self-employment income’’ means an 
amount equal to— 
(A) the net earnings from self-employment 
income of the individual for the taxable year, 
divided by 
(B) 260. 
(3) APPLICABLE NUMBER OF DAYS.—For pur-
poses of this subsection, the term ‘‘applicable num-
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