I 
116TH CONGRESS 
2D SESSION 
H. R. 6221 
To allow a tax credit for employers under the Internal Revenue Code of 
1986 for certain mandated paid sick leave. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2020 
Mr. HARDER of California introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To allow a tax credit for employers under the Internal 
Revenue Code of 1986 for certain mandated paid sick leave. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Paid Sick Leave Credit 
Act of 2020’’. 
SEC. 2. PAYROLL CREDIT FOR REQUIRED PAID SICK 
LEAVE. 
(a) IN GENERAL.—In the case of a employer who 
elects (at such time and in such manner as the Secretary 
may provide) the application of this section there shall be 
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allowed as a credit against the tax imposed by section 
3111(a) of the Internal Revenue Code of 1986 for the first 
calendar quarter beginning after such election an amount 
equal to the excess (if any) of— 
(1) 90 percent of the qualified sick leave wages 
paid by an employer by reason of the requirements 
of section 2 of the Emergency Paid Sick Leave Act; 
over 
(2) the aggregate credits allowed under this sec-
tion with respect to all prior calendar quarters. 
(b) LIMITATIONS.— 
(1) 
WAGES
TAKEN
INTO
ACCOUNT.—The 
amount of qualified sick leave wages which may be 
taken into account under subsection (a) for the tax-
able year with respect to any individual shall not ex-
ceed— 
(A) for any day (or portion thereof) the in-
dividual is on sick leave during the taxable year, 
$511; and 
(B) in the aggregate for any four consecu-
tive calendar quarters, $7,156. 
(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 under section 3111(a) for such calendar 
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quarter on the wages paid with respect to the em-
ployment of all individuals in the employ of the em-
ployer. 
(3) CARRYOVER OF UNUSED CREDIT.—If the 
amount of the credit under subsection (a) exceeds 
the limitation of paragraph (2) for any calendar 
quarter, such excess shall be carried to the suc-
ceeding calendar quarter and allowed as a credit 
under subsection (a) for such quarter. 
(c) QUALIFIED SICK LEAVE WAGES.—For purposes 
of this section— 
(1) IN
GENERAL.—The term ‘‘qualified sick 
leave wages’’ means wages (as defined in section 
51(c)(1) of the Internal Revenue Code of 1986, but 
without regard to section 3306(b)(2)(B) of such 
Code) paid or incurred by an employer to an em-
ployee with respect to employment for a period dur-
ing which such employee is on sick leave with the 
employer. 
(2) ONLY ADDITIONAL PAID SICK TIME TAKEN 
INTO ACCOUNT.—In the case of any employer with 
a sick leave plan in effect on March 12, 2020, only 
wages in excess of the wages the employer would 
have otherwise paid such employee (but for section 
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2 of the Emergency Paid Sick Leave Act) under 
such plan shall be taken into account. 
(3) SICK LEAVE WAGES MUST MEET REQUIRE-
MENTS OF ACT.—Wages shall not be taken into ac-
count under this section unless such wages meet the 
requirements of, and are required by, section 2 of 
the Emergency Paid Sick Leave Act. 
(d) SPECIAL RULES.— 
(1) CERTAIN RULES TO APPLY.—For purposes 
of this section, rules similar to the rules of sections 
51(i)(1) and 52 of the Internal Revenue Code of 
1986 shall apply. 
(2) RELATED
EMPLOYERS.—For purposes of 
this section, all persons treated as a single employer 
under subsection (b), (c), (m), or (o) of section 414 
of such Code shall be treated as 1 employer. 
(3) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under such Code for the portion 
of wages paid or incurred for the taxable year which 
is equal to the sum of the credits determined under 
this section for calendar quarters ending in such 
taxable year. Rules similar to the rules under the 
second sentence of section 280C(a) of such Code 
shall apply for purposes of the preceding sentence. 
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(e) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors 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 reduction in reve-
nues to the Treasury by reason of subsection (a). Amounts 
appropriated by the preceding sentence shall be trans-
ferred from the general fund at such times and in such 
manner as to replicate to the extent possible the transfers 
which would have occurred to such Trust Fund had such 
paragraphs not been enacted. 
(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pur-
poses of this subsection, including— 
(1) regulations to prevent the avoidance of the 
purposes of the limitations and aggregation rules 
under this subsection through the use of successor 
companies or other means, 
(2) regulations to minimize compliance and 
record-keeping burdens under this subsection, and 
(3) regulations for recapturing the benefit of 
credits determined under this section in cases where 
there is a subsequent adjustment to the credit deter-
mined under subsection (a). 
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(g) TERMINATION.—This section shall not apply to 
any wages paid more than 2 years after the date of the 
effective date of the Emergency Paid Sick Leave Act. 
Æ 
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