I 
117TH CONGRESS 
1ST SESSION 
H. R. 312 
To provide a Federal income tax credit for State income taxes paid by 
individuals temporarily providing certain health or emergency services 
in the State, and to provide a corresponding reduction in Federal high-
way funds to the State. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2021 
Mr. POSEY introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Transportation 
and Infrastructure, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide a Federal income tax credit for State income 
taxes paid by individuals temporarily providing certain 
health or emergency services in the State, and to provide 
a corresponding reduction in Federal highway funds to 
the State. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. CREDIT FOR STATE INCOME TAXES PAID BY IN-
DIVIDUALS TEMPORARILY PROVIDING CER-
TAIN HEALTH OR EMERGENCY SERVICES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by insert-
ing after section 36B the following new section: 
‘‘SEC. 36C. CREDIT FOR STATE INCOME TAXES PAID BY IN-
DIVIDUALS TEMPORARILY PROVIDING CER-
TAIN HEALTH OR EMERGENCY SERVICES. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this subtitle for any taxable year an amount 
equal to the income taxes imposed by a service-recipient 
State on the wages (as defined in section 3401) paid to 
such eligible individual for providing specified health or 
emergency services in such State on a temporary basis 
during such taxable year. 
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘eligible individual’ means any individual 
legally domiciled in a State who provides specified health 
or emergency services in another State on a temporary 
basis. 
‘‘(c) SPECIFIED HEALTH
OR EMERGENCY SERV-
ICES.—For purposes of this section, the term ‘specified 
health or emergency services’ means service as a first re-
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sponder, doctor, nurse, or such other health or emergency 
service as may be specified by the Secretary for purposes 
of this section. 
‘‘(d) SERVICE-RECIPIENT STATE.—For purposes of 
this section, the term ‘service-recipient State’ means the 
State referred to in subsection (b) in which the eligible 
individual provides specified health or emergency services 
on a temporary basis. 
‘‘(e) DETERMINATION OF TAX.—The amount of the 
income tax referred to in subsection (a) shall be equal to 
the excess (if any) of— 
‘‘(1) the amount of income taxes imposed by 
the service-recipient State on the income of such eli-
gible individual, over 
‘‘(2) the amount of such income taxes which 
would be imposed without regard to the wages re-
ferred to in subsection (a). 
‘‘(f) TERMINATION.—Subsection (a) shall not apply 
with respect to wages paid for services which are provided 
after the date on which the Secretary certifies that the 
COVID–19 emergency has concluded.’’. 
(b) CORRESPONDING
REDUCTION
IN
FEDERAL 
HIGHWAY
FUNDS
PAID
TO
SERVICE-RECIPIENT 
STATES.—The amount made available by the Federal 
Government as Federal highway funds to any service-re-
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cipient State (as defined in section 36C(d) of the Internal 
Revenue Code of 1986) shall be reduced by the aggregate 
amount of credits (as estimated by the Secretary of the 
Treasury) allowed under section 36C of the Internal Rev-
enue Code of 1986 with respect to income taxes imposed 
by such State. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Credit for State income taxes paid by individuals temporarily pro-
viding certain health or emergency services.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wages paid for services provided 
after March 16, 2020. 
Æ 
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