H. R. 1319—157 
approved by the Secretary, under which such possession will 
promptly distribute such payments to its residents. 
‘‘(3) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED 
STATES INCOME TAXES.—In the case of any taxable year begin-
ning in or with 2021, no credit shall be allowed under this 
section to any individual— 
‘‘(A) to whom a credit is allowable against taxes 
imposed by a possession with a mirror code tax system 
by reason of this section, or 
‘‘(B) who is eligible for a payment under a plan 
described in paragraph (2). 
‘‘(4) MIRROR CODE TAX SYSTEM.—For purposes of this sub-
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 possession 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. 
‘‘(5) TREATMENT
OF
PAYMENTS.—For purposes of section 
1324 of title 31, United States Code, the payments under this 
subsection shall be treated in the same manner as a refund 
due from a credit provision referred to in subsection (b)(2) 
of such section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code, as amended by the 
preceding provisions of this Act, is amended by inserting ‘‘21 
by reason of subsection (g) thereof,’’ before ‘‘24’’. 
(2) Section 1324(b)(2) of title 31, United States Code (as 
amended by the preceding provisions of this title), is amended 
by inserting ‘‘21,’’ before ‘‘24’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2020. 
SEC. 9632. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED 
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 2021.—In the case of any taxable 
year beginning after December 31, 2020, and before 
January 1, 2022, subparagraph (A) shall be applied by 
substituting ‘$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, 2020. 
(c) RETROACTIVE PLAN AMENDMENTS.—A plan that otherwise 
satisfies all applicable requirements of sections 125 and 129 of 
the Internal Revenue Code of 1986 (including any rules or regula-
tions thereunder) shall not fail to be treated as a cafeteria plan 
or dependent care assistance program merely because such plan 
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 amendment is effective, 
and 
(2) the plan is operated consistent with the terms of such 
amendment during the period beginning on the effective date
H. R. 1319—158 
of the amendment and ending on the date the amendment 
is adopted. 
PART 5—CREDITS FOR PAID SICK AND FAMILY 
LEAVE 
SEC. 9641. PAYROLL CREDITS. 
(a) IN GENERAL.—Chapter 21 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new sub-
chapter: 
‘‘Subchapter D—Credits 
‘‘Sec. 3131. Credit for paid sick leave. 
‘‘Sec. 3132. Payroll credit for paid family leave. 
‘‘Sec. 3133. Special rule related to tax on employers. 
‘‘SEC. 3131. CREDIT FOR PAID SICK LEAVE. 
‘‘(a) IN GENERAL.—In the case of an employer, there shall 
be allowed as a credit against applicable employment taxes for 
each calendar quarter an amount equal to 100 percent of the 
qualified sick leave wages paid by such employer with respect 
to such calendar quarter. 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) WAGES TAKEN INTO ACCOUNT.—The amount of qualified 
sick leave wages taken into account under subsection (a), plus 
any increases under subsection (e), with respect to any indi-
vidual shall not exceed $200 ($511 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, applied with the modification described in subsection 
(c)(2)(A)(i)) for any day (or portion thereof) for which the indi-
vidual is paid qualified sick leave wages. 
‘‘(2) OVERALL LIMITATION ON NUMBER OF DAYS TAKEN INTO 
ACCOUNT.—The aggregate number of days taken into account 
under paragraph (1) for any calendar quarter shall not exceed 
the excess (if any) of— 
‘‘(A) 10, over 
‘‘(B) the aggregate number of days so taken into 
account during preceding calendar quarters in such cal-
endar year (other than the first quarter of calendar year 
2021). 
‘‘(3) CREDIT LIMITED TO CERTAIN EMPLOYMENT TAXES.—The 
credit allowed by subsection (a) with respect to any calendar 
quarter shall not exceed the applicable employment taxes for 
such calendar quarter on the wages paid with respect to the 
employment of all employees of the employer. 
‘‘(4) REFUNDABILITY OF EXCESS CREDIT.— 
‘‘(A) CREDIT
IS
REFUNDABLE.—If the amount of the 
credit under subsection (a) exceeds the limitation of para-
graph (3) for any calendar quarter, such excess shall be 
treated as an overpayment that shall be refunded under 
sections 6402(a) and 6413(b). 
‘‘(B) ADVANCING CREDIT.—In anticipation of the credit, 
including the refundable portion under subparagraph (A), 
the credit shall be advanced, according to forms and 
instructions provided by the Secretary, up to an amount
H. R. 1319—159 
calculated under subsection (a), subject to the limits under 
paragraph (1) and (2), all calculated through the end of 
the most recent payroll period in the quarter. 
‘‘(c) QUALIFIED SICK LEAVE WAGES.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified sick leave wages’ 
means wages paid by an employer which would be required 
to be paid by reason of the Emergency Paid Sick Leave Act 
as if such Act applied after March 31, 2021. 
‘‘(2) RULES OF APPLICATION.—For purposes of determining 
whether wages are qualified sick leave wages under paragraph 
(1)— 
‘‘(A) IN GENERAL.—The Emergency Paid Sick Leave 
Act shall be applied— 
‘‘(i) by inserting ‘, the employee is seeking or 
awaiting the results of a diagnostic test for, or a med-
ical diagnosis of, COVID–19 and such employee has 
been exposed to COVID–19 or the employee’s employer 
has requested such test or diagnosis, or the employee 
is obtaining immunization related to COVID–19 or 
recovering from any injury, disability, illness, or condi-
tion related to such immunization’ after ‘medical diag-
nosis’ in section 5102(a)(3) thereof, and 
‘‘(ii) by applying section 5102(b)(1) of such Act 
separately with respect to each calendar year after 
2020 (and, in the case of calendar year 2021, without 
regard to the first quarter thereof). 
‘‘(B) LEAVE MUST MEET REQUIREMENTS.—If an employer 
fails to comply with any requirement of such Act (deter-
mined without regard to section 5109 thereof) with respect 
to paid sick time (as defined in section 5110 of such Act), 
amounts paid by such employer with respect to such paid 
sick time shall not be taken into account as qualified sick 
leave wages. For purposes of the preceding sentence, an 
employer which takes an action described in section 5104 
of such Act shall be treated as failing to meet a requirement 
of such Act. 
‘‘(d) ALLOWANCE
OF
CREDIT
FOR
CERTAIN
HEALTH
PLAN 
EXPENSES.— 
‘‘(1) IN GENERAL.—The amount of the credit allowed under 
subsection (a) shall be increased by so much of the employer’s 
qualified health plan expenses as are properly allocable to 
the qualified sick leave wages for which such credit is so 
allowed. 
‘‘(2) QUALIFIED HEALTH PLAN EXPENSES.—For purposes of 
this subsection, the term ‘qualified health plan expenses’ means 
amounts paid or incurred by the employer to provide and main-
tain a group health plan (as defined in section 5000(b)(1)), 
but only to the extent that such amounts are excluded from 
the gross income of employees by reason of section 106(a). 
‘‘(3) ALLOCATION
RULES.—For purposes of this section, 
qualified health plan expenses shall be allocated to qualified 
sick leave wages in such manner as the Secretary may pre-
scribe. Except as otherwise provided by the Secretary, such 
allocation shall be treated as properly made if made on the 
basis of being pro rata among covered employees and pro rata
H. R. 1319—160 
on the basis of periods of coverage (relative to the time periods 
of leave to which such wages relate). 
‘‘(e) ALLOWANCE OF CREDIT FOR AMOUNTS PAID UNDER CERTAIN 
COLLECTIVELY BARGAINED AGREEMENTS.— 
‘‘(1) IN GENERAL.—The amount of the credit allowed under 
subsection (a) shall be increased by the sum of— 
‘‘(A) so much of the employer’s collectively bargained 
defined benefit pension plan contributions as are properly 
allocable to the qualified sick leave wages for which such 
credit is so allowed, plus 
‘‘(B) so much of the employer’s collectively bargained 
apprenticeship program contributions as are properly allo-
cable to the qualified sick leave wages for which such 
credit is so allowed. 
‘‘(2) COLLECTIVELY BARGAINED DEFINED BENEFIT PENSION 
PLAN CONTRIBUTIONS.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘collectively bargained 
defined benefit pension plan contributions’ means, with 
respect to any calendar quarter, contributions which— 
‘‘(i) are paid or incurred by an employer during 
the calendar quarter on behalf of its employees to 
a defined benefit plan (as defined in section 414(j)), 
which meets the requirements of section 401(a), 
‘‘(ii) are made based on a pension contribution 
rate, and 
‘‘(iii) are required to be made pursuant to the 
terms of a collective bargaining agreement in effect 
with respect to such calendar quarter. 
‘‘(B) PENSION CONTRIBUTION RATE.—The term ‘pension 
contribution rate’ means the contribution rate that the 
employer is obligated to pay on behalf of its employees 
under the terms of a collective bargaining agreement for 
benefits under a defined benefit plan under such agree-
ment, as such rate is applied to contribution base units 
(as defined by section 4001(a)(11) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1301(a)(11)). 
‘‘(C) ALLOCATION RULES.—The amount of collectively 
bargained defined benefit pension plan contributions allo-
cated to qualified sick leave wages for any calendar quarter 
shall be the product of— 
‘‘(i) the pension contribution rate (expressed as 
an hourly rate), and 
‘‘(ii) the number of hours for which qualified sick 
leave wages were provided to employees covered under 
the collective bargaining agreement described in 
subparagraph (A)(iii) during the calendar quarter. 
‘‘(3) COLLECTIVELY
BARGAINED
APPRENTICESHIP
PROGRAM 
CONTRIBUTIONS.—For purposes of this section— 
‘‘(A) IN
GENERAL.—The term ‘collectively bargained 
apprenticeship program contributions’ means, with respect 
to any calendar quarter, contributions which— 
‘‘(i) are paid or incurred by an employer on behalf 
of its employees with respect to the calendar quarter 
to a registered apprenticeship program, 
‘‘(ii) are made based on an apprenticeship program 
contribution rate, and
H. R. 1319—161 
‘‘(iii) are required to be made pursuant to the 
terms of a collective bargaining agreement that is in 
effect with respect to such calendar quarter. 
‘‘(B) REGISTERED APPRENTICESHIP PROGRAM.—The term 
‘registered apprenticeship program’ means an apprentice-
ship registered under the Act of August 16, 1937 (commonly 
known as the ‘National Apprenticeship Act’; 50 Stat. 664, 
chapter 663; 29 U.S.C. 50 et seq.) that meets the standards 
of subpart A of part 29 and part 30 of title 29, Code 
of Federal Regulations. 
‘‘(C) APPRENTICESHIP PROGRAM CONTRIBUTION RATE.— 
The term ‘apprenticeship program contribution rate’ means 
the contribution rate that the employer is obligated to 
pay on behalf of its employees under the terms of a collec-
tive bargaining agreement for benefits under a registered 
apprenticeship program under such agreement, as such 
rate is applied to contribution base units (as defined by 
section 4001(a)(11) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1301(a)(11)). 
‘‘(D) ALLOCATION RULES.—The amount of collectively 
bargained apprenticeship program contributions allocated 
to qualified sick leave wages for any calendar quarter shall 
be the product of— 
‘‘(i) the apprenticeship program contribution rate 
(expressed as an hourly rate), and 
‘‘(ii) the number of hours for which qualified sick 
leave wages were provided to employees covered under 
the collective bargaining agreement described in 
subparagraph (A)(iii) during the calendar quarter. 
‘‘(f) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) APPLICABLE EMPLOYMENT TAXES.—For purposes of this 
section, the term ‘applicable employment taxes’ means the fol-
lowing: 
‘‘(A) The taxes imposed under section 3111(b). 
‘‘(B) So much of the taxes imposed under section 
3221(a) as are attributable to the rate in effect under 
section 3111(b). 
‘‘(2) WAGES.—For purposes of this section, the term ‘wages’ 
means wages (as defined in section 3121(a), determined without 
regard to paragraphs (1) through (22) of section 3121(b)) and 
compensation (as defined in section 3231(e), determined without 
regard to the sentence in paragraph (1) thereof which begins 
‘Such term does not include remuneration’). 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—For purposes of chapter 
1, 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. Any wages taken into 
account in determining the credit allowed under this section 
shall not be taken into account for purposes of determining 
the credit allowed under sections 45A, 45P, 45S, 51, 3132, 
and 3134. In the case of any credit allowed under section 
2301 of the CARES Act or section 41 with respect to wages 
taken into account under this section, the credit allowed under 
this section shall be reduced by the portion of the credit allowed 
under such section 2301 or section 41 which is attributable 
to such wages.
H. R. 1319—162 
‘‘(4) ELECTION
TO
NOT
TAKE
CERTAIN
WAGES
INTO 
ACCOUNT.—This section shall not apply to so much of the quali-
fied sick leave wages paid by an eligible employer as such 
employer elects (at such time and in such manner as the 
Secretary may prescribe) to not take into account for purposes 
of this section. 
‘‘(5) CERTAIN GOVERNMENTAL EMPLOYERS.—No credit shall 
be allowed under this section to the Government of the United 
States or to any agency or instrumentality thereof. The pre-
ceding sentence shall not apply to any organization described 
in section 501(c)(1) and exempt from tax under section 501(a). 
‘‘(6) EXTENSION OF LIMITATION ON ASSESSMENT.—Notwith-
standing section 6501, the limitation on the time period for 
the assessment of any amount attributable to a credit claimed 
under this section shall not expire before the date that is 
5 years after the later of— 
‘‘(A) the date on which the original return which 
includes the calendar quarter with respect to which such 
credit is determined is filed, or 
‘‘(B) the date on which such return is treated as filed 
under section 6501(b)(2). 
‘‘(7) COORDINATION WITH CERTAIN PROGRAMS.— 
‘‘(A) IN GENERAL.—This section shall not apply to so 
much of the qualified sick leave wages paid by an eligible 
employer as are taken into account as payroll costs in 
connection with— 
‘‘(i) a covered loan under section 7(a)(37) or 7A 
of the Small Business Act, 
‘‘(ii) a grant under section 324 of the Economic 
Aid to Hard-Hit Small Businesses, Non-Profits, and 
Venues Act, or 
‘‘(iii) a restaurant revitalization grant under sec-
tion 5003 of the American Rescue Plan Act of 2021. 
‘‘(B) APPLICATION WHERE PPP LOANS NOT FORGIVEN.— 
The Secretary shall issue guidance providing that payroll 
costs paid during the covered period shall not fail to be 
treated as qualified sick leave wages under this section 
by reason of subparagraph (A)(i) to the extent that— 
‘‘(i) a covered loan of the taxpayer under section 
7(a)(37) of the Small Business Act is not forgiven by 
reason of a decision under section 7(a)(37)(J) of such 
Act, or 
‘‘(ii) a covered loan of the taxpayer under section 
7A of the Small Business Act is not forgiven by reason 
of a decision under section 7A(g) of such Act. 
Terms used in the preceding sentence which are also used 
in section 7A(g) or 7(a)(37)(J) of the Small Business Act 
shall, when applied in connection with either such section, 
have the same meaning as when used in such section, 
respectively. 
‘‘(g) REGULATIONS.—The Secretary 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 under this section, 
‘‘(2) regulations or other guidance to minimize compliance 
and record-keeping burdens under this section,
H. R. 1319—163 
‘‘(3) regulations or other guidance providing for waiver 
of penalties for failure to deposit amounts in anticipation of 
the allowance of the credit allowed under this section, 
‘‘(4) regulations or other guidance for recapturing the ben-
efit of credits determined under this section in cases where 
there is a subsequent adjustment to the credit determined 
under subsection (a), 
‘‘(5) regulations or other guidance to ensure that the wages 
taken into account under this section conform with the paid 
sick time required to be provided under the Emergency Paid 
Sick Leave Act, 
‘‘(6) regulations or other guidance to permit the advance-
ment of the credit determined under subsection (a), and 
‘‘(7) regulations or other guidance with respect to the alloca-
tion, reporting, and substantiation of collectively bargained 
defined benefit pension plan contributions and collectively bar-
gained apprenticeship program contributions. 
‘‘(h) APPLICATION OF SECTION.—This section shall apply only 
to wages paid with respect to the period beginning on April 1, 
2021, and ending on September 30, 2021. 
‘‘(i) TREATMENT OF DEPOSITS.—The Secretary shall waive any 
penalty under section 6656 for any failure to make a deposit of 
applicable employment taxes if the Secretary determines that such 
failure was due to the anticipation of the credit allowed under 
this section. 
‘‘(j) NON-DISCRIMINATION REQUIREMENT.—No credit shall be 
allowed under this section to any employer for any calendar quarter 
if such employer, with respect to the availability of the provision 
of qualified sick leave wages to which this section otherwise applies 
for such calendar quarter, discriminates in favor of highly com-
pensated employees (within the meaning of section 414(q)), full- 
time employees, or employees on the basis of employment tenure 
with such employer. 
‘‘SEC. 3132. PAYROLL CREDIT FOR PAID FAMILY LEAVE. 
‘‘(a) IN GENERAL.—In the case of an employer, there shall 
be allowed as a credit against applicable employment taxes for 
each calendar quarter an amount equal to 100 percent of the 
qualified family leave wages paid by such employer with respect 
to such calendar quarter. 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) WAGES TAKEN INTO ACCOUNT.—The amount of qualified 
family leave wages taken into account under subsection (a), 
plus any increases under subsection (e), with respect to any 
individual shall not exceed— 
‘‘(A) for any day (or portion thereof) for which the 
individual is paid qualified family leave wages, $200, and 
‘‘(B) in the aggregate with respect to all calendar quar-
ters, $12,000. 
‘‘(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT TAXES.—The 
credit allowed by subsection (a) with respect to any calendar 
quarter shall not exceed the applicable employment taxes for 
such calendar quarter (reduced by any credits allowed under 
section 3131) on the wages paid with respect to the employment 
of all employees of the employer. 
‘‘(3) REFUNDABILITY OF EXCESS CREDIT.—
H. R. 1319—164 
‘‘(A) CREDIT
IS
REFUNDABLE.—If the amount of the 
credit under subsection (a) exceeds the limitation of para-
graph (2) for any calendar quarter, such excess shall be 
treated as an overpayment that shall be refunded under 
sections 6402(a) and 6413(b). 
‘‘(B) ADVANCING CREDIT.—In anticipation of the credit, 
including the refundable portion under subparagraph (A), 
the credit shall be advanced, according to forms and 
instructions provided by the Secretary, up to an amount 
calculated under subsection (a), subject to the limits under 
paragraph (1) and (2), all calculated through the end of 
the most recent payroll period in the quarter. 
‘‘(c) QUALIFIED FAMILY LEAVE WAGES.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘qualified family leave wages’ means wages paid by an employer 
which would be required to be paid by reason of the Emergency 
Family and Medical Leave Expansion Act (including the amend-
ments made by such Act) as if such Act (and amendments 
made by such Act) applied after March 31, 2021. 
‘‘(2) RULES OF APPLICATION.— 
‘‘(A) IN
GENERAL.—For purposes of determining 
whether wages are qualified family leave wages under 
paragraph (1)— 
‘‘(i) section 110(a)(2)(A) of the Family and Medical 
Leave Act of 1993 shall be applied by inserting ‘or 
any reason for leave described in section 5102(a) of 
the Families First Coronavirus Response Act, or the 
employee is seeking or awaiting the results of a diag-
nostic test for, or a medical diagnosis of, COVID–19 
and such employee has been exposed to COVID–19 
or the employee’s employer has requested such test 
or diagnosis, or the employee is obtaining immuniza-
tion related to COVID–19 or recovering from any 
injury, disability, illness, or condition related to such 
immunization’ after ‘public health emergency’, and 
‘‘(ii) section 110(b) of such Act shall be applied— 
‘‘(I) without regard to paragraph (1) thereof, 
‘‘(II) by striking ‘after taking leave after such 
section for 10 days’ in paragraph (2)(A) thereof, 
and 
‘‘(III) by substituting ‘$12,000’ for ‘$10,000’ in 
paragraph (2)(B)(ii) thereof. 
‘‘(B) LEAVE MUST MEET REQUIREMENTS.—For purposes 
of determining whether wages would be required to be 
paid under paragraph (1), if an employer fails to comply 
with any requirement of the Family and Medical Leave 
Act of 1993 or the Emergency Family and Medical Leave 
Expansion Act (determined without regard to any time 
limitation under section 102(a)(1)(F) of the Family and 
Medical Leave Act of 1994) with respect to any leave pro-
vided for a qualifying need related to a public health emer-
gency (as defined in section 110 of such Act, applied as 
described in subparagraph (A)(i)), amounts paid by such 
employer with respect to such leave shall not be taken 
into account as qualified family leave wages. For purposes 
of the preceding sentence, an employer which takes an 
action described in section 105 of the Family and Medical
H. R. 1319—165 
Leave Act of 1993 shall be treated as failing to meet 
a requirement of such Act. 
‘‘(d) ALLOWANCE
OF
CREDIT
FOR
CERTAIN
HEALTH
PLAN 
EXPENSES.— 
‘‘(1) IN GENERAL.—The amount of the credit allowed under 
subsection (a) shall be increased by so much of the employer’s 
qualified health plan expenses as are properly allocable to 
the qualified family leave wages for which such credit is so 
allowed. 
‘‘(2) QUALIFIED HEALTH PLAN EXPENSES.—For purposes of 
this subsection, the term ‘qualified health plan expenses’ means 
amounts paid or incurred by the employer to provide and main-
tain a group health plan (as defined in section 5000(b)(1)), 
but only to the extent that such amounts are excluded from 
the gross income of employees by reason of section 106(a). 
‘‘(3) ALLOCATION
RULES.—For purposes of this section, 
qualified health plan expenses shall be allocated to qualified 
family leave wages in such manner as the Secretary may pre-
scribe. Except as otherwise provided by the Secretary, such 
allocation shall be treated as properly made if made on the 
basis of being pro rata among covered employees and pro rata 
on the basis of periods of coverage (relative to the time periods 
of leave to which such wages relate). 
‘‘(e) ALLOWANCE OF CREDIT FOR AMOUNTS PAID UNDER CERTAIN 
COLLECTIVELY BARGAINED AGREEMENTS.— 
‘‘(1) IN GENERAL.—The amount of the credit allowed under 
subsection (a) shall be increased by so much of the sum of— 
‘‘(A) so much of the employer’s collectively bargained 
defined benefit pension plan contributions as are properly 
allocable to the qualified family leave wages for which 
such credit is so allowed, plus 
‘‘(B) so much of the employer’s collectively bargained 
apprenticeship program contributions as are properly allo-
cable to the qualified family leave wages for which such 
credit is so allowed. 
‘‘(2) COLLECTIVELY BARGAINED DEFINED BENEFIT PENSION 
PLAN CONTRIBUTIONS.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘collectively bargained 
defined benefit pension plan contributions’ has the meaning 
given such term under section 3131(e)(2). 
‘‘(B) ALLOCATION RULES.—The amount of collectively 
bargained defined benefit pension plan contributions allo-
cated to qualified family leave wages for any calendar 
quarter shall be the product of— 
‘‘(i) the pension contribution rate (as defined in 
section 3131(e)(2)), expressed as an hourly rate, and 
‘‘(ii) the number of hours for which qualified family 
leave wages were provided to employees covered under 
the collective bargaining agreement described in sec-
tion 3131(e)(2)(A)(iii) during the calendar quarter. 
‘‘(3) COLLECTIVELY
BARGAINED
APPRENTICESHIP
PROGRAM 
CONTRIBUTIONS.—For purposes of this section— 
‘‘(A) IN
GENERAL.—The term ‘collectively bargained 
apprenticeship program contributions’ has the meaning 
given such term under section 3131(e)(3).
H. R. 1319—166 
‘‘(B) ALLOCATION RULES.—For purposes of this section, 
the amount of collectively bargained apprenticeship pro-
gram contributions allocated to qualified family leave wages 
for any calendar quarter shall be the product of— 
‘‘(i) the apprenticeship contribution rate (as defined 
in section 3131(e)(3)), expressed as an hourly rate, 
and 
‘‘(ii) the number of hours for which qualified family 
leave wages were provided to employees covered under 
the collective bargaining agreement described in sec-
tion 3131(e)(3)(A)(iii) during the calendar quarter. 
‘‘(f) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) APPLICABLE EMPLOYMENT TAXES.—For purposes of this 
section, the term ‘applicable employment taxes’ means the fol-
lowing: 
‘‘(A) The taxes imposed under section 3111(b). 
‘‘(B) So much of the taxes imposed under section 
3221(a) as are attributable to the rate in effect under 
section 3111(b). 
‘‘(2) WAGES.—For purposes of this section, the term ‘wages’ 
means wages (as defined in section 3121(a), determined without 
regard to paragraphs (1) through (22) of section 3121(b)) and 
compensation (as defined in section 3231(e), determined without 
regard to the sentence in paragraph (1) thereof which begins 
‘Such term does not include remuneration’). 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—For purposes of chapter 
1, 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. Any wages taken into 
account in determining the credit allowed under this section 
shall not be taken into account for purposes of determining 
the credit allowed under sections 45A, 45P, 45S, 51, 3131, 
and 3134. In the case of any credit allowed under section 
2301 of the CARES Act or section 41 with respect to wages 
taken into account under this section, the credit allowed under 
this section shall be reduced by the portion of the credit allowed 
under such section 2301 or section 41 which is attributable 
to such wages. 
‘‘(4) ELECTION
TO
NOT
TAKE
CERTAIN
WAGES
INTO 
ACCOUNT.—This section shall not apply to so much of the quali-
fied family leave wages paid by an eligible employer as such 
employer elects (at such time and in such manner as the 
Secretary may prescribe) to not take into account for purposes 
of this section. 
‘‘(5) CERTAIN GOVERNMENTAL EMPLOYERS.—No credit shall 
be allowed under this section to the Government of the United 
States or to any agency or instrumentality thereof. The pre-
ceding sentence shall not apply to any organization described 
in section 501(c)(1) and exempt from tax under section 501(a). 
‘‘(6) EXTENSION OF LIMITATION ON ASSESSMENT.—Notwith-
standing section 6501, the limitation on the time period for 
the assessment of any amount attributable to a credit claimed 
under this section shall not expire before the date that is 
5 years after the later of—
H. R. 1319—167 
‘‘(A) the date on which the original return which 
includes the calendar quarter with respect to which such 
credit is determined is filed, or 
‘‘(B) the date on which such return is treated as filed 
under section 6501(b)(2). 
‘‘(7) COORDINATION WITH CERTAIN PROGRAMS.— 
‘‘(A) IN GENERAL.—This section shall not apply to so 
much of the qualified family leave wages paid by an eligible 
employer as are taken into account as payroll costs in 
connection with— 
‘‘(i) a covered loan under section 7(a)(37) or 7A 
of the Small Business Act, 
‘‘(ii) a grant under section 324 of the Economic 
Aid to Hard-Hit Small Businesses, Non-Profits, and 
Venues Act, or 
‘‘(iii) a restaurant revitalization grant under sec-
tion 5003 of the American Rescue Plan Act of 2021. 
‘‘(B) APPLICATION WHERE PPP LOANS NOT FORGIVEN.— 
The Secretary shall issue guidance providing that payroll 
costs paid during the covered period shall not fail to be 
treated as qualified family leave wages under this section 
by reason of subparagraph (A)(i) to the extent that— 
‘‘(i) a covered loan of the taxpayer under section 
7(a)(37) of the Small Business Act is not forgiven by 
reason of a decision under section 7(a)(37)(J) of such 
Act, or 
‘‘(ii) a covered loan of the taxpayer under section 
7A of the Small Business Act is not forgiven by reason 
of a decision under section 7A(g) of such Act. 
Terms used in the preceding sentence which are also used 
in section 7A(g) or 7(a)(37)(J) of the Small Business Act 
shall, when applied in connection with either such section, 
have the same meaning as when used in such section, 
respectively. 
‘‘(g) REGULATIONS.—The Secretary 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 under this section, 
‘‘(2) regulations or other guidance to minimize compliance 
and record-keeping burdens under this section, 
‘‘(3) regulations or other guidance providing for waiver 
of penalties for failure to deposit amounts in anticipation of 
the allowance of the credit allowed under this section, 
‘‘(4) regulations or other guidance for recapturing the ben-
efit of credits determined under this section in cases where 
there is a subsequent adjustment to the credit determined 
under subsection (a), 
‘‘(5) regulations or other guidance to ensure that the wages 
taken into account under this section conform with the paid 
leave required to be provided under the Emergency Family 
and Medical Leave Expansion Act (including the amendments 
made by such Act), 
‘‘(6) regulations or other guidance to permit the advance-
ment of the credit determined under subsection (a), and 
‘‘(7) regulations or other guidance with respect to the alloca-
tion, reporting, and substantiation of collectively bargained
H. R. 1319—168 
defined benefit pension plan contributions and collectively bar-
gained apprenticeship program contributions. 
‘‘(h) APPLICATION OF SECTION.—This section shall apply only 
to wages paid with respect to the period beginning on April 1, 
2021, and ending on September 30, 2021. 
‘‘(i) TREATMENT OF DEPOSITS.—The Secretary shall waive any 
penalty under section 6656 for any failure to make a deposit of 
applicable employment taxes if the Secretary determines that such 
failure was due to the anticipation of the credit allowed under 
this section. 
‘‘(j) NON-DISCRIMINATION REQUIREMENT.—No credit shall be 
allowed under this section to any employer for any calendar quarter 
if such employer, with respect to the availability of the provision 
of qualified family leave wages to which this section otherwise 
applies for such calendar quarter, discriminates in favor of highly 
compensated employees (within the meaning of section 414(q)), 
full-time employees, or employees on the basis of employment tenure 
with such employer. 
‘‘SEC. 3133. SPECIAL RULE RELATED TO TAX ON EMPLOYERS. 
‘‘(a) IN GENERAL.—The credit allowed by section 3131 and the 
credit allowed by section 3132 shall each be increased by the amount 
of the taxes imposed by subsections (a) and (b) of section 3111 
and section 3221(a) on qualified sick leave wages, or qualified 
family leave wages, for which credit is allowed under such section 
3131 or 3132 (respectively). 
‘‘(b) DENIAL OF DOUBLE BENEFIT.—For denial of double benefit 
with respect to the credit increase under subsection (a), see sections 
3131(f)(3) and 3132(f)(3).’’. 
(b) REFUNDS.—Paragraph (2) of section 1324(b) of title 31, 
United States Code, is amended by inserting ‘‘3131, 3132,’’ before 
‘‘6428’’. 
(c) CLERICAL
AMENDMENT.—The table of subchapters for 
chapter 21 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘SUBCHAPTER D—CREDITS’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts paid with respect to calendar quarters 
beginning after March 31, 2021. 
SEC. 9642. CREDIT FOR SICK LEAVE FOR CERTAIN SELF-EMPLOYED 
INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible self-employed indi-
vidual, there shall be allowed as a credit against the tax imposed 
by chapter 1 of the Internal Revenue Code of 1986 for any taxable 
year an amount equal to the qualified sick leave equivalent amount 
with respect to the individual. 
(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For purposes of this 
section— 
(1) IN
GENERAL.—The term ‘‘eligible self-employed indi-
vidual’’ means an individual who— 
(A) regularly carries on any trade or business within 
the meaning of section 1402 of the Internal Revenue Code 
of 1986, and 
(B) would be entitled to receive paid leave during the 
taxable year pursuant to the Emergency Paid Sick Leave 
Act if—
H. R. 1319—169 
(i) the individual were an employee of an employer 
(other than himself or herself), and 
(ii) such Act applied after March 31, 2021. 
(2) RULES
OF
APPLICATION.—For purposes of paragraph 
(1)(B), in determining whether an individual would be entitled 
to receive paid leave under the Emergency Paid Sick Leave 
Act, such Act shall be applied— 
(A) by inserting ‘‘, the employee is seeking or awaiting 
the results of a diagnostic test for, or a medical diagnosis 
of, COVID–19 and such employee has been exposed to 
COVID–19 or is unable to work pending the results of 
such test or diagnosis, or the employee is obtaining 
immunization related to COVID–19 or recovering from any 
injury, disability, illness, or condition related to such 
immunization’’ 
after 
‘‘medical 
diagnosis’’ 
in 
section 
5102(a)(3) of such Act, and 
(B) by applying section 5102(b)(1) of such Act sepa-
rately with respect to each taxable year. 
(c) QUALIFIED SICK LEAVE EQUIVALENT AMOUNT.—For purposes 
of this section— 
(1) IN GENERAL.—The term ‘‘qualified sick leave equivalent 
amount’’ means, with respect to any eligible self-employed indi-
vidual, an amount equal to— 
(A) the number of days during the taxable year (but 
not more than 10) that the individual is unable to perform 
services in any trade or business referred to in section 
1402 of the Internal Revenue Code of 1986 for a reason 
with respect to which such individual would be entitled 
to receive sick leave as described in subsection (b), multi-
plied by 
(B) the lesser of— 
(i) $200 ($511 in the case of any day of paid 
sick time described in paragraph (1), (2), or (3) of 
section 5102(a) of the Emergency Paid Sick Leave Act, 
applied with the modification described in subsection 
(b)(2)(A)) of this section, or 
(ii) 67 percent (100 percent in the case of any 
day of paid sick time described in paragraph (1), (2), 
or (3) of section 5102(a) of the Emergency Paid Sick 
Leave Act) of the average daily self-employment income 
of the individual for the taxable year. 
(2) AVERAGE DAILY SELF-EMPLOYMENT INCOME.—For pur-
poses of this subsection, the term ‘‘average daily self-employ-
ment income’’ means an amount equal to— 
(A) the net earnings from self-employment of the indi-
vidual for the taxable year, divided by 
(B) 260. 
(3) ELECTION TO USE PRIOR YEAR NET EARNINGS FROM SELF- 
EMPLOYMENT INCOME.—In the case of an individual who elects 
(at such time and in such manner as the Secretary may provide) 
the application of this paragraph, paragraph (2)(A) shall be 
applied by substituting ‘‘the prior taxable year’’ for ‘‘the taxable 
year’’. 
(4) ELECTION TO NOT TAKE DAYS INTO ACCOUNT.—Any day 
shall not be taken into account under paragraph (1)(A) if the 
eligible self-employed individual elects (at such time and in
H. R. 1319—170 
such manner as the Secretary may prescribe) to not take such 
day into account for purposes of such paragraph. 
(d) CREDIT REFUNDABLE.— 
(1) 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. 
(2) TREATMENT OF PAYMENTS.—For purposes of section 1324 
of title 31, United States Code, any refund due from the credit 
determined 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. 
(e) SPECIAL RULES.— 
(1) DOCUMENTATION.—No credit shall be allowed under 
this section unless the individual maintains such documenta-
tion as the Secretary may prescribe to establish such individual 
as an eligible self-employed individual. 
(2) DENIAL OF DOUBLE BENEFIT.—In the case of an indi-
vidual who receives wages (as defined in section 3121(a) of 
the Internal Revenue Code of 1986) or compensation (as defined 
in section 3231(e) of such Code) paid by an employer which 
are required to be paid by reason of the Emergency Paid 
Sick Leave Act, the qualified sick leave equivalent amount 
otherwise determined under subsection (c) of this section shall 
be reduced (but not below zero) to the extent that the sum 
of the amount described in such subsection and in section 
3131(b)(1) of such Code exceeds $2,000 ($5,110 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). 
(f) APPLICATION OF SECTION.—Only days occurring during the 
period beginning on April 1, 2021, and ending on September 30, 
2021, may be taken into account under subsection (c)(1)(A). 
(g) APPLICATION OF CREDIT IN CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.—The Secretary 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 deter-
mined by the Secretary based on information provided by the 
government of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The Secretary shall 
pay to each possession of the United States which does not 
have a mirror code tax system amounts estimated by the Sec-
retary as being equal to the aggregate benefits (if any) that 
would have been provided to residents of such possession by 
reason of the provisions of this section if a mirror code tax 
system had been in effect in such possession. The preceding 
sentence shall not apply unless the respective possession has 
a plan, which has been approved by the Secretary, 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