States, the government of any State or political subdivi-
sion thereof, or any agency or instrumentality of any of 
the foregoing. 
(h) SPECIAL RULES.— 
(1) 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. 
(2) DENIAL OF DOUBLE BENEFIT.—Rules simi-
lar to the rules of section 280C(a) of the Internal 
Revenue Code of 1986 shall apply for purposes of 
this section. 
(3) THIRD-PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit de-
scribed in section 3511(d)(2) of such Code. 
(4) 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-
retary may prescribe) not to have this section apply. 
(5) COORDINATION WITH PAYCHECK PROTEC-
TION
PROGRAM
AND
OTHER
GOVERNMENT 
GRANTS.— 
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(A) PAYCHECK PROTECTION PROGRAM.— 
(i) IN GENERAL.—No credit shall be 
allowed under section with respect to any 
amounts taken into account in connection 
with a covered loan under section 7(a)(37) 
or 7A of the Small Business Act. 
(ii) APPLICATION WHERE LOANS NOT 
FORGIVEN.—The Secretary, in consultation 
with the Administrator of the Small Busi-
ness Administration, shall issue guidance 
providing that amounts taken into account 
during the covered period shall not fail to 
be treated as qualified wages under this 
section by reason of subparagraph (A) 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 tax-
payer under section 7A of the Small 
Business Act is not forgiven by reason 
of a decision under section 7A(g) of 
such Act. 
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(B) GOVERNMENT
GRANTS.—No credit 
shall be allowed under this section with respect 
to any amount paid or incurred for property or 
services if such property or services are fi-
nanced with funding provided under a Federal, 
State, or local program a principal purpose of 
which is to provide subsidized financing for 
such property or services. 
(6) EXPENSES
MUST
BE
FOR
PROPERTY
OR 
SERVICES
WITHIN
THE
UNITED
STATES.—An 
amount paid or incurred by the employer shall not 
be taken into account as a qualified employee protec-
tion expense, a qualified workplace reconfiguration 
expense, or a qualified education and training ex-
pense if such amount is paid or incurred for— 
(A) equipment which is not for use in the 
United States, or 
(B) services which are not conducted in the 
United States. 
(i) 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 
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pbinns on DSKJLVW7X2PROD with BILLS
section 15A(a) of the Railroad Retirement Act of 1974 
(45 U.S.C. 14 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 rep-
licate to the extent possible the transfers which would have 
occurred to such Trust Fund or Account had this section 
not been enacted. 
(j) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of the Internal Rev-
enue Code of 1986 for any failure to make a deposit of 
any applicable employment taxes if the Secretary deter-
mines that such failure was due to the reasonable anticipa-
tion of the credit allowed under this section. 
(k) REGULATIONS AND GUIDANCE.—The Secretary 
shall prescribe such regulations and other guidance as 
may be necessary or appropriate to carry out the purposes 
of this section, including— 
(1) 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), 
regulations or other guidance allowing such payors 
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pbinns on DSKJLVW7X2PROD with BILLS
to submit documentation necessary to substantiate 
the amount of the credit allowed under subsection 
(a), 
(2) regulations or other guidance with respect 
to amounts paid or incurred by an employer on be-
half of the owner or lessee, or paid or incurred by 
such owner or lessee, of a property that is the sub-
ject of a management agreement or other similar 
legal arrangement, and 
(3) regulations or other guidance to prevent 
abusive transactions. 
(l) APPLICATION.—This section shall only apply to 
amounts paid or incurred after December 31, 2020, and 
before January 1, 2022. 
SEC. 3. INCOME TAX CREDIT FOR 2020 QUALIFIED WORK-
PLACE RECONFIGURATION EXPENSES. 
(a) IN GENERAL.—For purposes of section 38 of the 
Internal Revenue Code of 1986, in the case of an em-
ployer, the 2020 qualified workplace reconfiguration credit 
shall be treated as a credit listed at the end of subsection 
(b) of such section. For purposes of this subsection, the 
2020 qualified workplace reconfiguration credit for any 
taxable year is an amount equal to 50 percent of the quali-
fied workplace reconfiguration expenses paid or incurred 
by the employer during such taxable year. 
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pbinns on DSKJLVW7X2PROD with BILLS
(b) LIMITATION.— 
(1) IN GENERAL.—The amount of the credit al-
lowed under subsection (a) with respect to any em-
ployer for any taxable year shall not exceed— 
(A) $3,000, multiplied by so much of the 
average number of full-time employees em-
ployed by such employer during such taxable 
year as does not exceed 500, plus 
(B) $0, multiplied by so much of such av-
erage number of full-time employees as exceeds 
500. 
(2) AVERAGE NUMBER OF FULL-TIME EMPLOY-
EES.—For purposes of this subsection, the average 
number of full time employees shall be determined in 
the same manner as such number is determined for 
purposes of determining whether an employer is an 
applicable large employer for purposes of section 
4980H(c)(2) of the Internal Revenue Code of 1986, 
except that— 
(A) an individual shall not be taken into 
account as an employee for any period during 
which substantially all of the services provided 
by such individual as an employee are provided 
outside the United States, and 
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pbinns on DSKJLVW7X2PROD with BILLS
(B) under regulations provided by the Sec-
retary, an individual who performs services as 
an independent contractor shall be treated as 
an employee of the employer if no credit under 
this section is allowed to any other employer 
with respect to such individual. 
(c) QUALIFIED WORKPLACE RECONFIGURATION EX-
PENSES.—For purposes of this section— 
(1) IN GENERAL.—The term ‘‘qualified work-
place reconfiguration expenses’’ has the meaning 
given such term under section 2(d). 
(2) EXPENSES
MUST
BE
FOR
PROPERTY
OR 
SERVICES
WITHIN
THE
UNITED
STATES.—An 
amount paid or incurred by the employer shall not 
be taken into account as a qualified workplace re-
configuration expense if such amount is paid or in-
curred for— 
(A) equipment which is not for use in the 
United States, or 
(B) services which are not conducted in the 
United States. 
(d) OTHER RULES.— 
(1) 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 
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pbinns on DSKJLVW7X2PROD with BILLS
subsection (m) or (o) of section 414 of such Code, 
shall be treated as one employer for purposes of this 
section. 
(2) DENIAL OF DOUBLE BENEFIT.—Rules simi-
lar to the rules of section 280C(a) of the Internal 
Revenue Code of 1986 shall apply for purposes of 
this section. 
(3) 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-
retary may prescribe) not to have this section apply. 
(4) COORDINATION WITH PAYCHECK PROTEC-
TION
PROGRAM
AND
OTHER
GOVERNMENT 
GRANTS.— 
(A) PAYCHECK PROTECTION PROGRAM.— 
(i) IN GENERAL.—No credit shall be 
allowed under section with respect to any 
amounts taken into account in connection 
with a covered loan under section 7(a)(37) 
or 7A of the Small Business Act. 
(ii) APPLICATION WHERE LOANS NOT 
FORGIVEN.—The Secretary, in consultation 
with the Administrator of the Small Busi-
ness Administration, shall issue guidance 
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pbinns on DSKJLVW7X2PROD with BILLS
providing that amounts taken into account 
during the covered period shall not fail to 
be treated as qualified wages under this 
section by reason of subparagraph (A) 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 tax-
payer under section 7A of the Small 
Business Act is not forgiven by reason 
of a decision under section 7A(g) of 
such Act. 
(B) GOVERNMENT
GRANTS.—No credit 
shall be allowed under this section with respect 
to any amount paid or incurred for property or 
services if such property or services are fi-
nanced with funding provided under a Federal, 
State, or local program a principal purpose of 
which is to provide subsidized financing for 
such property or services. 
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(e) APPLICABILITY.—This section shall apply to 
qualified workplace reconfiguration expenses paid or in-
curred after March 12, 2020, and before January 1, 2021. 
Æ 
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