(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
(i) IN GENERAL.—Such term shall in-
clude amounts paid or incurred by the eli-
gible 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-
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 coverage. 
(6) OTHER TERMS.—Except as otherwise pro-
vided in this section, any term used in this section 
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which is also used in chapter 21 or 22 of the Inter-
nal Revenue Code of 1986 shall have the same 
meaning as when used in such chapter. 
(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52 
of the Internal Revenue Code of 1986, or subsection (m) 
or (o) of section 414 of such Code, shall be treated as 
one employer for purposes of this section. 
(e) DENIAL OF DOUBLE BENEFIT.—For purposes of 
chapter 1 of such Code, the gross income of any eligible 
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. 
(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government, the 
government of any State, of the District of Colum-
bia, or of any possession of the United States, any 
tribal government, or any political subdivision, agen-
cy, or instrumentality of any of the foregoing. 
(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. 
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(g) ELECTION TO NOT TAKE CERTAIN EXPENSES 
INTO ACCOUNT.— 
(1) IN GENERAL.—If an eligible employer elects 
(at such time and in such manner as the Secretary 
may prescribe) to not take into account any amount 
of qualified fixed expensees for purposes of deter-
mining the credit under this section, such amount of 
qualified fixed expenses shall not be so taken into 
account. 
(2) COORDINATION WITH PAYCHECK PROTEC-
TION
PROGRAM.—The Secretary, in consultation 
with the Administrator of the Small Business Ad-
ministration, shall issue guidance providing that cov-
ered mortgage obligations, covered rent obligations, 
and covered utility payments paid or incurred during 
the covered period shall not fail to be taken into ac-
count as qualified fixed expenses for purposes of de-
termining the credit under this section by reason of 
an election under paragraph (1) to the extent that 
a covered loan of the eligible employer is not for-
given by reason of a decision under section 1106(g). 
Terms used in the preceding sentence which are also 
used in section 1106 shall have the same meaning 
as when used in such section. 
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(h) TRANSFERS TO CERTAIN TRUST FUNDS.—There 
are hereby appropriated to the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund established under section 201 of 
the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under 
section 15A(a) of the Railroad Retirement Act of 1974 
(45 U.S.C. 231n–1(a)) amounts equal to the reduction 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 replicate 
to the extent possible the transfers which would have oc-
curred to such Trust Fund or Account had this section 
not been enacted. 
(i) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of such Code 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) THIRD-PARTY
PAYORS.—Any credit allowed 
under this section shall be treated as a credit described 
in section 3511(d)(2) of such Code. 
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(k) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and guid-
ance as are necessary— 
(1) to allow the advance payment of the credit 
under subsection (a), subject to the limitations pro-
vided in this section, based on such information as 
the Secretary shall require; 
(2) regulations or other guidance to provide for 
the reconciliation of such advance payment with the 
amount of the credit at the time of filing the return 
of tax for the applicable quarter or taxable year; 
(3) with respect to the application of the credit 
under subsection (a) to third-party payors (including 
professional employer organizations, certified profes-
sional employer organizations, or agents under sec-
tion 3504 of the Internal Revenue Code of 1986), 
including regulations or guidance allowing such 
payors to submit documentation necessary to sub-
stantiate the eligible employer status of employers 
that use such payors; 
(4) for application of subsection (b)(1)(A) and 
subparagraphs (A)(ii)(II) and (B) of subsection 
(c)(2) in the case of any employer which was not 
carrying on a trade or business for all or part of the 
same calendar quarter in the prior year; and 
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