679 
(2) RIGHT TO REFUSE.—An eligible entity may 
refuse to provide any information requested under 
paragraph (1)(A). 
(e) REPORTING.— 
(1) IN GENERAL.—Not later than 30 days after 
the date on which a State, unit of general local gov-
ernment, or Indian Tribe initially receives an alloca-
tion made under subsection (b), and not later than 14 
days after the date on which that State, unit of local 
government, or Indian Tribe completes the full ex-
penditure of that allocation, that State, unit of gen-
eral local government, or Indian Tribe shall submit 
to the Secretary a report that includes— 
(A) the number of recipients of assistance 
made available from the allocation; 
(B) the total amount, and type, of assist-
ance made available from the allocation; 
(C) to the extent applicable, with respect to 
each recipient described in subparagraph (A), 
information regarding the industry of the recipi-
ent, the amount of assistance received by the re-
cipient, the annual sales of the recipient, and the 
number of employees of the recipient; 
(D) to the extent available from information 
collected under subsection (d), information re-
680 
garding the number of recipients described in 
subparagraph (A) that are minority-owned enti-
ties, minorities, women, and women-owned enti-
ties; 
(E) the ZIP Code of each recipient de-
scribed in subparagraph (A); and 
(F) any other information that the Sec-
retary, in the sole discretion of the Secretary, de-
termines to be necessary to carry out the Pro-
gram. 
(2) PUBLIC AVAILABILITY.—As soon as is prac-
ticable after receiving each report submitted under 
paragraph (1), the Secretary shall make all informa-
tion contained in the report publicly available. 
(f) RULES AND GUIDANCE.—The Secretary, in con-
sultation with the Administrator, shall issue any rules and 
guidance that are necessary to carry out the Program, in-
cluding by establishing appropriate compliance and report-
ing requirements in addition to the reporting requirements 
under subsection (e). 
(g) TERMINATION.—The Program, and any rules and 
guidance issued under subsection (f) with respect to the Pro-
gram, shall terminate on the date that is 1 year after the 
date of enactment of this Act. 
(h) DEFINITIONS.—In this section:
681 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’— 
(A) means a business concern or a nonprofit 
organization 
(as 
defined 
in 
section 
7(a)(36)(A)(vii) that— 
(i) employs— 
(I) not more than 20 full-time 
equivalent employees; or 
(II) if the entity or organization 
is located in a low-income community, 
not more than 50 full-time equivalent 
employees; 
(ii) has experienced a loss of revenue as 
a result of the COVID–19 pandemic, ac-
cording to criteria established by the Sec-
retary; and 
(iii) with respect to such an entity or 
organization that receives assistance from a 
small business emergency fund, satisfies ad-
ditional requirements, as determined by the 
State, unit of general local government, In-
dian Tribe, or other entity that has estab-
682 
lished the small business emergency fund; 
and 
(B) includes an individual who operates 
under a sole proprietorship, an individual who 
operates as an independent contractor, and an 
eligible self-employed individual if such an indi-
vidual has experienced a loss of revenue as a re-
sult of the COVID–19 pandemic, according to 
criteria established by the Secretary. 
(3) ELIGIBLE
SELF-EMPLOYED
INDIVIDUAL.— 
The term ‘‘eligible self-employed individual’’ has the 
meaning given the term in section 7(a)(36)(A) of the 
Small Business Act (15 U.S.C. 636(a)(36)(A)). 
(4) ENTITLEMENT COMMUNITY.—The term ‘‘enti-
tlement community’’ means a metropolitan city or 
urban county, as those terms are defined in section 
102 of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5302). 
(5) FULL-TIME EQUIVALENT EMPLOYEES.— 
(A) IN
GENERAL.—The term ‘‘full-time 
equivalent employees’’ means a number of em-
ployees equal to the number determined by divid-
ing—
683 
(i) the total number of hours of service 
for which wages were paid by the employer 
to employees during the taxable year, by 
(ii) 2,080. 
(B) ROUNDING.—The number determined 
under subparagraph (A) shall be rounded to the 
next lowest whole number if not otherwise a 
whole number. 
(C) EXCESS HOURS NOT COUNTED.—If an 
employee works in excess of 2,080 hours of serv-
ice during any taxable year, such excess shall not 
be taken into account under subparagraph (A). 
(D) HOURS OF SERVICE.—The Secretary, 
in consultation with the Secretary of Labor, 
shall prescribe such regulations, rules, and guid-
ance as may be necessary to determine the hours 
of service of an employee, including rules for the 
application of this paragraph to employees who 
are not compensated on an hourly basis. 
(6) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
has the meaning given the term ‘‘Indian tribe’’ in sec-
tion 102 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5302). 
(7) LOW-INCOME COMMUNITY.—The term ‘‘low- 
income community’’ has the meaning given the term
684 
in section 45D(e) of the Internal Revenue Code of 
1986. 
(8) MINORITY.—The term ‘‘minority’’ has the 
meaning given the term in section 1204(c)(3) of the 
Financial Institutions Reform, Recovery, and En-
forcement Act of 1989 (12 U.S.C. 1811 note). 
(9) MINORITY-OWNED ENTITY.—The term ‘‘mi-
nority-owned entity’’ means an entity— 
(A) more than 50 percent of the ownership 
or control of which is held by not less than 1 mi-
nority; and 
(B) more than 50 percent of the net profit 
or loss of which accrues to not less than 1 minor-
ity. 
(10) NONENTITLEMENT AREA; STATE; UNIT OF 
GENERAL LOCAL GOVERNMENT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms ‘‘nonentitlement 
area’’, ‘‘State’’, and ‘‘unit of general local gov-
ernment’’ have the meanings given those terms in 
section 102 of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5302). 
(B) STATE.—For purposes of subpara-
graphs (A)(ii) and (B)(ii) of subsection (b)(1),
685 
the term ‘‘State’’ means any State of the United 
States. 
(11) PROGRAM.—The term ‘‘Program’’ means the 
Small Business Local Relief Program established 
under this section. 
(12) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(13) SMALL BUSINESS EMERGENCY FUND.—The 
term ‘‘small business emergency fund’’ means a fund 
or program— 
(A) established by a State, a unit of general 
local government, an Indian Tribe, or an entity 
designated by a State, unit of general local gov-
ernment, or Indian Tribe; and 
(B) that provides or administers financing 
to eligible entities in the form of grants, loans, 
or other means in accordance with the needs of 
eligible entities and the capacity of the fund or 
program. 
(14) 
WOMEN-OWNED
ENTITY.—The 
term 
‘‘women-owned entity’’ means an entity— 
(A) more than 50 percent of the ownership 
or control of which is held by not less than 1 
woman; and
686 
(B) more than 50 percent of the net profit 
or loss of which accrues to not less than 1 
woman. 
SEC. 619. GRANTS FOR INDEPENDENT LIVE VENUE OPERA-
TORS. 
(a) DEFINITIONS.—In this section: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) ELIGIBLE OPERATOR, PROMOTER, PRODUCER, 
OR TALENT REPRESENTATIVE.— 
(A) IN GENERAL.—The term ‘‘eligible oper-
ator, promoter, producer, or talent representa-
tive’’ means a live venue operator or producer or 
promoter or a talent representative that meets 
the following requirements: 
(i) The live venue operator or producer 
or promoter or the talent representative was 
fully operational as a live venue operator or 
producer or promoter or talent representa-
tive on February 29, 2020. 
(ii) As of the date of the grant under 
this section— 
(I) the live venue operator or pro-
ducer or promoter is organizing, pro-
687 
moting, 
producing, 
managing, 
or 
hosting future events described in 
paragraph (4)(A)(i); or 
(II) the talent representative is 
representing or managing artists and 
entertainers. 
(iii) The venues at which the live venue 
operator or producer or promoter promotes, 
produces, manages, or hosts events described 
in paragraph (4)(A)(i) or the artists and 
entertainers represented or managed by the 
talent representative perform have the fol-
lowing characteristics: 
(I) A defined performance and 
audience space. 
(II) Mixing equipment, a public 
address system, and a lighting rig. 
(III) Engages 1 or more individ-
uals to carry out not less than 2 of the 
following roles: 
(aa) A sound engineer. 
(bb) A booker. 
(cc) A promoter. 
(dd) A stage manager. 
(ee) Security personnel.
688 
(ff) A box office manager. 
(IV) There is a paid ticket or 
cover charge to attend most perform-
ances and artists are paid fairly and 
do not play for free or solely for tips, 
except for legitimate fundraisers or 
similar charitable events. 
(V) For a venue owned or oper-
ated by a nonprofit entity that pro-
duces free events, the events are pro-
duced and managed by paid employees, 
not by volunteers. 
(VI) Performances are marketed 
through listings in printed or elec-
tronic publications, on websites, by 
mass email, or on social media. 
(iv) The live venue operator or pro-
ducer or promoter or the talent representa-
tive does not have, or is not majority owned 
or controlled by an entity with, more than 
1 of the following characteristics: 
(I) Being an issuer, the securities 
of which are listed on a national secu-
rities exchange.
689 
(II) Owning or operating venues 
or talent agencies or talent manage-
ment companies with offices in more 
than 1 country. 
(III) Owning or operating venues 
in more than 10 States. 
(IV) Employing more than 500 
employees, determined on a full-time 
equivalent basis in accordance with 
subparagraph (B). 
(V) Receiving more than 10 per-
cent of gross revenue from Federal 
funding. 
(B) CALCULATION OF FULL-TIME EMPLOY-
EES.—For purposes of determining the number 
of full-time equivalent employees under subpara-
graph (A)(iv)(IV)— 
(i) any employee working not fewer 
than 30 hours per week shall be considered 
a full-time employee; and 
(ii) any employee working not fewer 
than 10 hours and fewer than 30 hours per 
week shall be counted as one-half of a full- 
time employee.
690 
(3) EXCHANGE; ISSUER; SECURITY.—The terms 
‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the mean-
ings given such terms in section 3(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)). 
(4) LIVE VENUE OPERATOR OR PRODUCER OR 
PROMOTER.—The term ‘‘live venue operator or pro-
ducer or promoter’’— 
(A) means— 
(i) an individual or entity— 
(I) that organizes, promotes, sells 
tickets, produces, manages, or hosts live 
concerts, comedy shows, theatrical pro-
ductions, or other events by performing 
artists 
and 
applies 
cover 
charge 
through ticketing or front door en-
trance fee; and 
(II) not less than 70 percent of the 
revenue of which is generated through 
cover charges or ticket sales and the 
sale of beverages, food, or merchandise 
during such live events; or 
(ii) as a principle business activity, 
makes tickets to events described in clause 
(i)(I) available for purchase by the public 
an average of not less than 60 days before
691 
the date of the event and pays performers in 
an event described in clause (i)(I) in an 
amount that is based on a percentage of 
sales, guarantee (in writing or standard 
contract), or another mutually beneficial 
formal agreement; and 
(B) includes an individual or entity de-
scribed in subparagraph (A) that— 
(i) operates for profit or as a non-
profit; 
(ii) is government-owned; or 
(iii) is a corporation, limited liability 
company, or partnership or operated as a 
sole proprietorship. 
(5) NATIONAL
SECURITIES
EXCHANGE.—The 
term ‘‘national securities exchange’’ means an ex-
change registered as a national securities exchange 
under section 6 of the Securities Exchange Act of 
1934 (15 U.S.C. 78f). 
(6) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; and 
(D) any other territory or possession of the 
United States.
692 
(7) TALENT REPRESENTATIVE.—The term ‘‘tal-
ent representative’’— 
(A) means an agent or manager that— 
(i) as not less than 70 percent of the 
operations of the agent or manager, is en-
gaged in representing or managing artists 
and entertainers; 
(ii) books musicians, comedians, ac-
tors, or similar performing artists pri-
marily in independent venues or at fes-
tivals; and 
(iii) represents performers described in 
clause (ii) that are paid in an amount that 
is based on the number of tickets sold, or a 
similar basis; and 
(B) includes an agent or manager described 
in subparagraph (A) that— 
(i) operates for profit or as a non-
profit; 
(ii) is government-owned; or 
(iii) is a corporation, limited liability 
company, or partnership or operated as a 
sole proprietorship. 
(b) AUTHORITY.—
693 
(1) INITIAL GRANTS.—The Administrator may 
make initial grants to eligible operators, promoters, 
and talent representatives in accordance with this sec-
tion. 
(2) SUPPLEMENTAL
GRANTS.—The Adminis-
trator may make a supplemental grant in accordance 
with this section to an eligible operator, promoter, 
producer, or talent representative that receives a 
grant under paragraph (1) if, as of December 1, 2020, 
the revenues of the eligible operator, promoter, pro-
ducer, or talent representative for the most recent cal-
endar quarter are not more than 20 percent of the 
revenues of the eligible operator, promoter, producer, 
or talent representative for the corresponding calendar 
quarter during 2019 due to the COVID–19 pandemic. 
(3) CERTIFICATION.—An eligible operator, pro-
moter, producer, or talent representative applying for 
a grant under this section that is an eligible business 
described in the matter preceding subclause (I) of sec-
tion 4003(c)(3)(D)(i) of the CARES Act (15 U.S.C. 
9042(c)(3)(D)(i)), shall make a good-faith certifi-
cation described in subclauses (IX) and (X) of such 
section. 
(c) AMOUNT.—
694 
(1) INITIAL GRANTS.—A grant under subsection 
(b)(1) shall be in the amount equal to the lesser of— 
(A) the amount equal to 45 percent of the 
gross revenue of the eligible operator, promoter, 
producer, or talent representative during 2019; 
(B) for an eligible operator, promoter, pro-
ducer, or talent representative that began oper-
ations after January 1, 2019, the amount equal 
to the product obtained by multiplying— 
(i) the average monthly gross revenue 
for each full month during which the entity 
was in operation during 2019, by 
(ii) 6; or 
(C) $12,000,000. 
(2) SUPPLEMENTAL
GRANTS.—A grant under 
subsection (b)(2) shall be in the amount equal to 50 
percent of the grant received by the eligible operator, 
promoter, producer, or talent representative under 
subsection (b)(1). 
(d) USE OF FUNDS.— 
(1) TIMING.— 
(A) EXPENSES INCURRED.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), amounts received under a 
grant under this section may be used for
695 
costs incurred during the period beginning 
on March 1, 2020, and ending on December 
31, 2021. 
(ii) EXTENSION
FOR
SUPPLEMENTAL 
GRANTS.—If an eligible operator, promoter, 
producer, or talent representative receives a 
grant under subsection (b)(2), amounts re-
ceived under either grant under this section 
may be used for costs incurred during the 
period beginning on March 1, 2020, and 
ending on June 30, 2022. 
(B) EXPENDITURE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), an eligible operator, pro-
moter, producer, or talent representative 
shall return to the Administrator any 
amounts received under a grant under this 
section that are not expended on or before 
the date that is 1 year after the date of dis-
bursement of the grant. 
(ii) EXTENSION
FOR
SUPPLEMENTAL 
GRANTS.—If an eligible operator, promoter, 
producer, or talent representative receives a 
grant under subsection (b)(2), the eligible 
operator, promoter, producer, or talent rep-
696 
resentative shall return to the Adminis-
trator any amounts received under either 
grant under this section that are not ex-
pended on or before the date that is 18 
months after the date of disbursement to the 
eligible operator, promoter, producer, or tal-
ent representative of the grant under sub-
section (b)(1). 
(2) ALLOWABLE
EXPENSES.—An eligible oper-
ator, promoter, producer, or talent representative may 
use amounts received under a grant under this section 
for— 
(A) payroll costs for employees and fur-
loughed employees, including— 
(i) costs for continuation coverage pro-
vided pursuant to part 6 of subtitle B of 
title I of the Employee Retirement Income 
Security Act of 1974 (other than under sec-
tion 609 of such Act), title XXII of the Pub-
lic Health Service Act, section 4980B of the 
Internal Revenue Code of 1986 (other than 
subsection (f)(1) of such section insofar as it 
relates to pediatric vaccines), or section 
8905a of title 5, United States Code, or 
under a State program that provides com-
697 
parable continuation coverage, other than 
coverage under a health flexible spending 
arrangement under a cafeteria plan within 
the meaning of section 125 of the Internal 
Revenue Code of 1986; or 
(ii) any other non-cash benefit; 
(B) rent; 
(C) utilities; 
(D) mortgage interest payments on existing 
mortgages as of February 15, 2020; 
(E) scheduled interest payments on other 
scheduled debt as of February 15, 2020; 
(F) costs related to personal protective 
equipment; 
(G) payments of principal on outstanding 
loans; 
(H) payments made to independent contrac-
tors, as reported on Form–1099 MISC; and 
(I) other ordinary and necessary business 
expenses, including— 
(i) settling existing debts owed to ven-
dors; 
(ii) maintenance expenses; 
(iii) administrative costs; 
(iv) taxes;
698 
(v) operating leases; 
(vi) insurance; 
(vii) advertising, production transpor-
tation, and capital expenditures related to 
producing a theatrical production, concert, 
or comedy show; and 
(viii) any other capital expenditure or 
expense required under any State, local, or 
Federal law or guideline related to social 
distancing. 
(3) PROHIBITED EXPENSES.—An eligible oper-
ator, promoter, producer, or talent representative may 
not use amounts received under a grant under this 
section— 
(A) to purchase real estate; 
(B) for payments of interest or principal on 
loans originated after February 15, 2020; 
(C) to invest or re-lend funds; 
(D) for contributions or expenditures to, or 
on behalf of, any political party, party com-
mittee, or candidate for elective office; or 
(E) for any other use as may be prohibited 
by the Administrator.
699 
DIVISION F—REVENUE 
PROVISIONS 
SEC. 100. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘COVID–19 Tax Relief Act of 2020’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 100. Short title, etc. 
TITLE I—ECONOMIC STIMULUS 
Subtitle A—Additional Recovery Rebates to Individuals 
Sec. 101. Additional recovery rebates to individuals. 
Subtitle B—Earned Income Tax Credit 
Sec. 111. Strengthening the earned income tax credit for individuals with no 
qualifying children. 
Sec. 112. Taxpayer eligible for childless earned income credit in case of quali-
fying children who fail to meet certain identification require-
ments. 
Sec. 113. Credit allowed in case of certain separated spouses. 
Sec. 114. Elimination of disqualified investment income test. 
Sec. 115. Application of earned income tax credit in possessions of the United 
States. 
Sec. 116. Temporary special rule for determining earned income for purposes of 
earned income tax credit. 
Subtitle C—Child Tax Credit 
Sec. 121. Child tax credit improvements for 2020. 
Sec. 122. Application of child tax credit in possessions. 
Subtitle D—Dependent Care Assistance 
Sec. 131. Refundability and enhancement of child and dependent care tax credit. 
Sec. 132. Increase in exclusion for employer-provided dependent care assistance. 
Subtitle E—Credits for Paid Sick and Family Leave 
Sec. 141. Extension of credits. 
Sec. 142. Repeal of reduced rate of credit for certain leave. 
Sec. 143. Increase in limitations on credits for paid family leave. 
Sec. 144. Election to use prior year net earnings from self-employment in deter-
mining average daily self-employment income. 
Sec. 145.
Federal, State, and local governments allowed tax credits for paid sick 
and paid family and medical leave. 
Sec. 146. Certain technical improvements.
700 
Sec. 147. Credits not allowed to certain large employers. 
Subtitle F—Deduction of State and Local Taxes 
Sec. 151. Elimination for 2020 limitation on deduction of State and local taxes. 
TITLE II—PROVISIONS TO PREVENT BUSINESS INTERRUPTION 
Sec. 201. Improvements to employee retention and rehiring credit. 
Sec. 202. Certain loan forgiveness and other business financial assistance under 
CARES Act not includible in gross income. 
Sec. 203. Clarification of treatment of expenses paid or incurred with proceeds 
from certain grants and loans. 
TITLE III—NET OPERATING LOSSES 
Sec. 301. Limitation on excess business losses of non-corporate taxpayers restored 
and made permanent. 
Sec. 302. Certain taxpayers allowed carryback of net operating losses arising in 
2019 and 2020. 
TITLE I—ECONOMIC STIMULUS 
Subtitle A—Additional Recovery 
Rebates to Individuals 
SEC. 101. ADDITIONAL RECOVERY REBATES TO INDIVID-
UALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by inserting 
after section 6428 the following new section: 
‘‘SEC. 6428A. ADDITIONAL RECOVERY REBATES TO INDIVID-
UALS. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by subtitle A for the first taxable year beginning 
in 2020 an amount equal to the additional rebate amount 
determined for such taxable year. 
‘‘(b) ADDITIONAL REBATE AMOUNT.—For purposes of 
this section, the term ‘additional rebate amount’ means,
701 
with respect to any taxpayer for any taxable year, the sum 
of— 
‘‘(1) $1,200 ($2,400 in the case of a joint re-
turn), plus 
‘‘(2) $500 multiplied by the number of depend-
ents of the taxpayer for such taxable year. 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this sec-
tion, the term ‘eligible individual’ means any individual 
other than— 
‘‘(1) any nonresident alien individual, 
‘‘(2) any individual with respect to whom a de-
duction under section 151 is allowable to another tax-
payer for a taxable year beginning in the calendar 
year in which the individual’s taxable year begins, 
and 
‘‘(3) an estate or trust. 
‘‘(d) LIMITATION BASED
ON MODIFIED ADJUSTED 
GROSS INCOME.—The amount of the credit allowed by sub-
section (a) (determined without regard to this subsection 
and subsection (f)) shall be reduced (but not below zero) 
by 5 percent of so much of the taxpayer’s modified adjusted 
gross income as exceeds— 
‘‘(1) $150,000 in the case of a joint return or a 
surviving spouse (as defined in section 2(a)),
702 
‘‘(2) $112,500 in the case of a head of household 
(as defined in section 2(b)), and 
‘‘(3) $75,000 in any other case. 
‘‘(e) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this subsection (other than this para-
graph), the term ‘modified adjusted gross income’ 
means adjusted gross income determined without re-
gard to sections 911, 931, and 933. 
‘‘(2) DEPENDENT
DEFINED.—For purposes of 
this section, the term ‘dependent’ has the meaning 
given such term by section 152. 
‘‘(3) CREDIT
TREATED
AS
REFUNDABLE.—The 
credit allowed by subsection (a) shall be treated as al-
lowed by subpart C of part IV of subchapter A of 
chapter 1. 
‘‘(4) IDENTIFICATION NUMBER REQUIREMENT.— 
‘‘(A) IN GENERAL.—The $1,200 amount in 
subsection (b)(1) shall be treated as being zero 
unless the taxpayer includes the TIN of the tax-
payer on the return of tax for the taxable year. 
‘‘(B) JOINT
RETURNS.—In the case of a 
joint return, the $2,400 amount in subsection 
(b)(1) shall be treated as being—
703 
‘‘(i) zero if the TIN of neither spouse 
is included on the return of tax for the tax-
able year, and 
‘‘(ii) $1,200 if the TIN of only one 
spouse is so included. 
‘‘(C) DEPENDENTS.—A dependent shall not 
be taken into account under subsection (b)(2) un-
less the TIN of such dependent is included on the 
return of tax for the taxable year. 
‘‘(D) COORDINATION
WITH
CERTAIN
AD-
VANCE PAYMENTS.—In the case of any payment 
made pursuant to subsection (g)(5)(A)(ii), a TIN 
shall be treated for purposes of this paragraph as 
included on the taxpayer’s return of tax if such 
TIN is provided pursuant to such subsection. 
‘‘(f) COORDINATION WITH ADVANCE REFUNDS
OF 
CREDIT.— 
‘‘(1) REDUCTION OF REFUNDABLE CREDIT.—The 
amount of the credit which would (but for this para-
graph) be allowable under subsection (a) shall be re-
duced (but not below zero) by the aggregate refunds 
and credits made or allowed to the taxpayer (or any 
dependent of the taxpayer) under subsection (g). Any 
failure to so reduce the credit shall be treated as aris-
704 
ing out of a mathematical or clerical error and as-
sessed according to section 6213(b)(1). 
‘‘(2) JOINT RETURNS.—In the case of a refund or 
credit made or allowed under subsection (g) with re-
spect to a joint return, half of such refund or credit 
shall be treated as having been made or allowed to 
each individual filing such return. 
‘‘(g) ADVANCE REFUNDS AND CREDITS.— 
‘‘(1) IN
GENERAL.—Subject to paragraph (5), 
each individual who was an eligible individual for 
such individual’s first taxable year beginning in 2019 
shall be treated as having made a payment against 
the tax imposed by chapter 1 for such taxable year in 
an amount equal to the advance refund amount for 
such taxable year. 
‘‘(2) ADVANCE REFUND AMOUNT.—For purposes 
of paragraph (1), the advance refund amount is the 
amount that would have been allowed as a credit 
under this section for such taxable year if this section 
(other than subsection (f) and this subsection) had ap-
plied to such taxable year. 
‘‘(3) TIMING AND MANNER OF PAYMENTS.— 
‘‘(A) TIMING.—The Secretary shall, subject 
to the provisions of this title, refund or credit 
any overpayment attributable to this section as
705 
rapidly as possible. No refund or credit shall be 
made or allowed under this subsection after De-
cember 31, 2020. 
‘‘(B) DELIVERY
OF
PAYMENTS.—Notwith-
standing any other provision of law, the Sec-
retary may certify and disburse refunds payable 
under this subsection electronically to any ac-
count to which the payee authorized, on or after 
January 1, 2018, the delivery of a refund of 
taxes under this title or of a Federal payment 
(as defined in section 3332 of title 31, United 
States Code). 
‘‘(C) WAIVER
OF
CERTAIN
RULES.—Not-
withstanding section 3325 of title 31, United 
States Code, or any other provision of law, with 
respect to any payment of a refund under this 
subsection, a disbursing official in the executive 
branch of the United States Government may 
modify payment information received from an 
officer 
or 
employee 
described 
in 
section 
3325(a)(1)(B) of such title for the purpose of fa-
cilitating the accurate and efficient delivery of 
such payment. Except in cases of fraud or reck-
less neglect, no liability under sections 3325, 
3527, 3528, or 3529 of title 31, United States
706 
Code, shall be imposed with respect to payments 
made under this subparagraph. 
‘‘(4) NO INTEREST.—No interest shall be allowed 
on any overpayment attributable to this section. 
‘‘(5) APPLICATION TO INDIVIDUALS WHO DO NOT 
FILE A RETURN OF TAX FOR 2019.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who, at the time of any determination 
made pursuant to paragraph (3), has not filed 
a tax return for the year described in paragraph 
(1), the Secretary shall— 
‘‘(i) apply paragraph (1) by sub-
stituting ‘2018’ for ‘2019’, and 
‘‘(ii) in the case of a specified indi-
vidual who has not filed a tax return for 
such individual’s first taxable year begin-
ning in 2018, determine the advance refund 
amount with respect to such individual 
without regard to subsections (d) and on the 
basis of information with respect to such in-
dividual which is provided by— 
‘‘(I) in the case of a specified so-
cial security beneficiary or a specified 
supplemental security income recipi-
707 
ent, the Commissioner of Social Secu-
rity, 
‘‘(II) in the case of a specified 
railroad retirement beneficiary, the 
Railroad Retirement Board, and 
‘‘(III) in the case of a specified 
veterans beneficiary, the Secretary of 
Veterans Affairs (in coordination with, 
and with the assistance of, the Com-
missioner of Social Security if appro-
priate). 
‘‘(B) SPECIFIED INDIVIDUAL.—For purposes 
of this paragraph, the term ‘specified individual’ 
means any individual who is— 
‘‘(i) a specified social security bene-
ficiary, 
‘‘(ii) a specified supplemental security 
income recipient, 
‘‘(iii) a specified railroad retirement 
beneficiary, or 
‘‘(iv) a specified veterans beneficiary. 
‘‘(C) SPECIFIED
SOCIAL
SECURITY
BENE-
FICIARY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘specified 
social security beneficiary’ means any indi-
708 
vidual who, for the last month that ends 
prior to the date of enactment of this sec-
tion, is entitled to any monthly insurance 
benefit payable under title II of the Social 
Security Act (42 U.S.C. 401 et seq.), includ-
ing payments made pursuant to sections 
202(d), 223(g), and 223(i)(7) of such Act. 
‘‘(ii) EXCEPTION.—Such term shall not 
include any individual if such benefit is not 
payable for such month by reason of section 
202(x) of the Social Security Act (42 U.S.C. 
402(x)) or section 1129A of such Act (42 
U.S.C. 1320a–8a). 
‘‘(D) SPECIFIED SUPPLEMENTAL SECURITY 
INCOME RECIPIENT.—For purposes of this para-
graph— 
‘‘(i) IN GENERAL.—The term ‘specified 
supplemental security income recipient’ 
means any individual who, for the last 
month that ends prior to the date of enact-
ment of this section, is eligible for a month-
ly benefit payable under title XVI of the So-
cial Security Act (42 U.S.C. 1381 et seq.) 
(other than a benefit to an individual de-
709 
scribed in section 1611(e)(1)(B) of such Act 
(42 U.S.C. 1382(e)(1)(B)), including— 
‘‘(I) payments made pursuant to 
section 1614(a)(3)(C) of such Act (42 
U.S.C. 1382c(a)(3)(C)), 
‘‘(II) payments made pursuant to 
section 1619(a) (42 U.S.C. 1382h) or 
subsections (a)(4), (a)(7), or (p)(7) of 
section 1631 (42 U.S.C. 1383) of such 
Act, and 
‘‘(III) State supplementary pay-
ments of the type referred to in section 
1616(a) of such Act (42 U.S.C. 
1382e(a)) (or payments of the type de-
scribed in section 212(a) of Public Law 
93–66) which are paid by the Commis-
sioner under an agreement referred to 
in such section 1616(a) (or section 
212(a) of Public Law 93–66). 
‘‘(ii) EXCEPTION.—Such term shall not 
include any individual if such monthly ben-
efit is not payable for such month by reason 
of subsection (e)(1)(A) or (e)(4) of section 
1611 (42 U.S.C. 1382) or section 1129A of 
such Act (42 U.S.C. 1320a–8a).
710 
‘‘(E) SPECIFIED
RAILROAD
RETIREMENT 
BENEFICIARY.—For purposes of this paragraph, 
the term ‘specified railroad retirement bene-
ficiary’ means any individual who, for the last 
month that ends prior to the date of enactment 
of this section, is entitled to a monthly annuity 
or pension payment payable (without regard to 
section 5(a)(ii) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231d(a)(ii))) under— 
‘‘(i) section 2(a)(1) of such Act (45 
U.S.C. 231a(a)(1)), 
‘‘(ii) section 2(c) of such Act (45 
U.S.C. 231a(c)), 
‘‘(iii) section 2(d)(1) of such Act (45 
U.S.C. 231a(d)(1)), or 
‘‘(iv) section 7(b)(2) of such Act (45 
U.S.C. 231f(b)(2)) with respect to any of the 
benefit payments described in subparagraph 
(C)(i). 
‘‘(F) SPECIFIED VETERANS BENEFICIARY.— 
For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘specified 
veterans beneficiary’ means any individual 
who, for the last month that ends prior to 
the date of enactment of this section, is enti-
711 
tled to a compensation or pension payment 
payable under— 
‘‘(I) section 1110, 1117, 1121, 
1131, 1141, or 1151 of title 38, United 
States Code, 
‘‘(II) section 1310, 1312, 1313, 
1315, 1316, or 1318 of title 38, United 
States Code, 
‘‘(III) section 1513, 1521, 1533, 
1536, 1537, 1541, 1542, or 1562 of 
title 38, United States Code, or 
‘‘(IV) section 1805, 1815, or 1821 
of title 38, United States Code, 
to a veteran, surviving spouse, child, or 
parent as described in paragraph (2), (3), 
(4)(A)(ii), or (5) of section 101, title 38, 
United States Code. 
‘‘(ii) EXCEPTION.—Such term shall not 
include any individual if such compensa-
tion or pension payment is not payable, or 
was reduced, for such month by reason of 
section 1505, 5313, or 5313B of title 38, 
United States Code. 
‘‘(G) SUBSEQUENT
DETERMINATIONS
AND 
REDETERMINATIONS
NOT
TAKEN
INTO
AC-
713 
‘‘(ii) APPLICATION
OF
ENFORCEMENT 
PROVISIONS.— 
‘‘(I) In the case of a payment de-
scribed in clause (i) which is made 
with respect to a specified social secu-
rity beneficiary or a specified supple-
mental security income recipient, sec-
tion 1129(a)(3) of the Social Security 
Act (42 U.S.C. 1320a–8(a)(3)) shall 
apply to such payment in the same 
manner as such section applies to a 
payment under title II or XVI of such 
Act. 
‘‘(II) In the case of a payment de-
scribed in clause (i) which is made 
with respect to a specified railroad re-
tirement beneficiary, section 13 of the 
Railroad Retirement Act (45 U.S.C. 
231l) shall apply to such payment in 
the same manner as such section ap-
plies to a payment under such Act. 
‘‘(III) In the case of a payment 
described in clause (i) which is made 
with respect to a specified veterans 
beneficiary, sections 5502, 6106, and
714 
6108 of title 38, United States Code, 
shall apply to such payment in the 
same manner as such sections apply to 
a payment under such title. 
‘‘(6) NOTICE TO TAXPAYER.—Not later than 15 
days after the date on which the Secretary distributed 
any payment to an eligible taxpayer pursuant to this 
subsection, notice shall be sent by mail to such tax-
payer’s last known address. Such notice shall indicate 
the method by which such payment was made, the 
amount of such payment, and a phone number for the 
appropriate point of contact at the Internal Revenue 
Service to report any error with respect to such pay-
ment. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary or 
appropriate to carry out the purposes of this section, in-
cluding— 
‘‘(1) regulations or other guidance providing tax-
payers the opportunity to provide the Secretary infor-
mation sufficient to allow the Secretary to make pay-
ments to such taxpayers under subsection (g) (includ-
ing the determination of the amount of such pay-
ment) if such information is not otherwise available 
to the Secretary, and
715 
‘‘(2) regulations or other guidance providing for 
the proper treatment of joint returns and taxpayers 
with dependents to ensure that an individual is not 
taken into account more than once in determining the 
amount of any credit under subsection (a) and any 
credit or refund under subsection (g). 
‘‘(i) OUTREACH.—The Secretary shall carry out a ro-
bust and comprehensive outreach program to ensure that 
all taxpayers described in subsection (h)(1) learn of their 
eligibility for the advance refunds and credits under sub-
section (g); are advised of the opportunity to receive such 
advance refunds and credits as provided under subsection 
(h)(1); and are provided assistance in applying for such 
advance refunds and credits. In conducting such outreach 
program, the Secretary shall coordinate with other govern-
ment, State, and local agencies; federal partners; and com-
munity-based nonprofit organizations that regularly inter-
face with such taxpayers.’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treasury 
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 
amendments made by this section. Such amounts
716 
shall be determined by the Secretary of the Treasury 
based on information provided by the government of 
the respective possession. 
(2) PAYMENTS
TO
OTHER
POSSESSIONS.—The 
Secretary of the Treasury shall pay to each possession 
of the United States which does not have a mirror 
code tax system amounts estimated by the Secretary 
of the Treasury as being equal to the aggregate bene-
fits (if any) that would have been provided to resi-
dents of such possession by reason of the amendments 
made by this section if a mirror code tax system had 
been in effect in such possession. The preceding sen-
tence shall not apply unless the respective possession 
has a plan, which has been approved by the Secretary 
of the Treasury, under which such possession will 
promptly distribute such payments to its residents. 
(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No credit 
shall be allowed against United States income taxes 
under section 6428A of the Internal Revenue Code of 
1986 (as added by this section), nor shall any credit 
or refund be made or allowed under subsection (g) of 
such section, to any person—
717 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of the 
amendments made by 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 subsection, 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 reference to the 
income tax laws of the United States as if such pos-
session were the United States. 
(c) ADMINISTRATIVE PROVISIONS.— 
(1) 
DEFINITION
OF
DEFICIENCY.—Section 
6211(b)(4)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘and 6428’’ and inserting 
‘‘6428, and 6428A’’. 
(2) MATHEMATICAL
OR
CLERICAL
ERROR
AU-
THORITY.—Section 6213(g)(2) of such Code is amend-
ed— 
(A) by inserting ‘‘or section 6428A (relating 
to additional recovery rebates to individuals)’’ 
before the comma at the end of subparagraph 
(H), and
718 
(B) by striking ‘‘or 6428’’ in subparagraph 
(L) and inserting ‘‘6428, or 6428A’’. 
(3) EXCEPTION FROM REDUCTION OR OFFSET.— 
Any credit or refund allowed or made to any indi-
vidual by reason of section 6428A of the Internal Rev-
enue Code of 1986 (as added by this section) or by 
reason of subsection (b) of this section shall not be— 
(A) subject to reduction or offset pursuant 
to section 3716 or 3720A of title 31, United 
States Code, 
(B) subject to reduction or offset pursuant 
to subsection (c), (d), (e), or (f) of section 6402 
of the Internal Revenue Code of 1986, or 
(C) reduced or offset by other assessed Fed-
eral taxes that would otherwise be subject to levy 
or collection. 
(4) ASSIGNMENT OF BENEFITS.— 
(A) IN GENERAL.—The right of any person 
to any applicable payment shall not be transfer-
able or assignable, at law or in equity, and no 
applicable payment shall be subject to, execution, 
levy, attachment, garnishment, or other legal 
process, or the operation of any bankruptcy or 
insolvency law.
719 
(B) ENCODING OF PAYMENTS.—In the case 
of an applicable payment described in subpara-
graph (E)(iii)(I) that is paid electronically by 
direct deposit through the Automated Clearing 
House (ACH) network, the Secretary of the 
Treasury (or the Secretary’s delegate) shall— 
(i) issue the payment using a unique 
identifier that is reasonably sufficient to 
allow a financial institution to identify the 
payment as an applicable payment, and 
(ii) further encode the payment pursu-
ant to the same specifications as required 
for a benefit payment defined in section 
212.3 of title 31, Code of Federal Regula-
tions. 
(C) GARNISHMENT.— 
(i) ENCODED PAYMENTS.—In the case 
of a garnishment order that applies to an 
account that has received an applicable 
payment that is encoded as provided in sub-
paragraph (B), a financial institution shall 
follow the requirements and procedures set 
forth in part 212 of title 31, Code of Fed-
eral Regulations, except—
720 
(I) notwithstanding section 212.4 
of title 31, Code of Federal Regulations 
(and except as provided in subclause 
(II)), a financial institution shall not 
fail to follow the procedures of sections 
212.5 and 212.6 of such title with re-
spect to an garnishment order merely 
because such order has attached, or in-
cludes, a notice of right to garnish fed-
eral benefits issued by a State child 
support enforcement agency, and 
(II) a financial institution shall 
not, with regard to any applicable 
payment, be required to provide the 
notice referenced in sections 212.6 and 
212.7 of title 31, Code of Federal Regu-
lations. 
(ii) OTHER PAYMENTS.—If a financial 
institution receives a garnishment order 
(other than an order that has been served by 
the United States), that has been received 
by a financial institution and that applies 
to an account into which an applicable 
payment that has not been encoded as pro-
vided in subparagraph (B) has been depos-
721 
ited electronically or by an applicable pay-
ment that has been deposited by check on 
any date in the lookback period, the finan-
cial institution, upon the request of the ac-
count holder, shall treat the amount of the 
funds in the account at the time of the re-
quest, up to the amount of the applicable 
payment (in addition to any amounts oth-
erwise protected under part 212 of title 31, 
Code of Federal Regulations), as exempt 
from a garnishment order without requiring 
the consent of the party serving the garnish-
ment order or the judgment creditor. 
(iii) LIABILITY.—A financial institu-
tion that acts in good faith in reliance on 
clauses (i) or (ii) shall not be subject to li-
ability or regulatory action under any Fed-
eral or State law, regulation, court or other 
order, or regulatory interpretation for ac-
tions concerning any applicable payments. 
(D) 
PRESERVATION
OF
RECLAMATION 
RIGHTS.—This paragraph shall not alter the sta-
tus of applicable payments as tax refunds or 
other nonbenefit payments for purpose of any 
reclamation rights of the Department of the
722 
Treasury or the Internal Revenue Service as per 
part 210 of title 31, Code of Federal Regulations. 
(E) DEFINITIONS.—For purposes of this 
paragraph— 
(i) ACCOUNT HOLDER.—The term ‘‘ac-
count holder’’ means a natural person 
whose name appears in a financial institu-
tion’s records as the direct or beneficial 
owner of an account. 
(ii) ACCOUNT REVIEW.—The term ‘‘ac-
count review’’ means the process of exam-
ining deposits in an account to determine if 
an applicable payment has been deposited 
into the account during the lookback period. 
The financial institution shall perform the 
account review following the procedures out-
lined in section 212.5 of title 31, Code of 
Federal Regulations and in accordance with 
the requirements of section 212.6 of title 31, 
Code of Federal Regulations. 
(iii) APPLICABLE PAYMENT.—The term 
‘‘applicable payment’’ means— 
(I) any advance refund amount 
paid pursuant to subsection (g) of sec-
723 
tion 6428A of the Internal Revenue 
Code of 1986 (as so added), 
(II) any payment made by a pos-
session of the United States with a 
mirror code tax system (as defined in 
subsection (c) of section 2201 of the 
CARES Act (Public Law 116–136)) 
pursuant to such subsection which cor-
responds to a payment described in 
subclause (I), and 
(III) any payment made by a 
possession of the United States without 
a mirror code tax system (as so de-
fined) pursuant to section 2201(c) of 
such Act. 
(iv) GARNISHMENT.—The term ‘‘gar-
nishment’’ means execution, levy, attach-
ment, garnishment, or other legal process. 
(v) GARNISHMENT ORDER.—The term 
‘‘garnishment order’’ means a writ, order, 
notice, summons, judgment, levy, or similar 
written instruction issued by a court, a 
State or State agency, a municipality or 
municipal corporation, or a State child 
support enforcement agency, including a
724 
lien arising by operation of law for overdue 
child support or an order to freeze the assets 
in an account, to effect a garnishment 
against a debtor. 
(vi) LOOKBACK
PERIOD.—The term 
‘‘lookback period’’ means the two month pe-
riod that begins on the date preceding the 
date of account review and ends on the cor-
responding date of the month two months 
earlier, or on the last date of the month two 
months earlier if the corresponding date 
does not exist. 
(5) TREATMENT OF CREDIT AND ADVANCE PAY-
MENTS.—For purposes of section 1324 of title 31, 
United States Code, any credit under section 
6428A(a) of the Internal Revenue Code of 1986, any 
credit or refund under section 6428A(g) of such Code, 
and any payment under subsection (b) of 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 1324. 
(6) AGENCY INFORMATION SHARING AND ASSIST-
ANCE.—The Commissioner of Social Security, the 
Railroad Retirement Board, and the Secretary of Vet-
erans Affairs shall each provide the Secretary of the
725 
Treasury (or the Secretary’s delegate) such informa-
tion and assistance as the Secretary of the Treasury 
(or the Secretary’s delegate) may require for purposes 
of making payments under section 6428A(g) of the 
Internal Revenue Code of 1986 to individuals de-
scribed in paragraph (5)(A)(ii) thereof. 
(7) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 of the Internal 
Revenue Code of 1986 is amended by inserting after 
the item relating to section 6428 the following new 
item: 
‘‘Sec. 6428A. Additional recovery rebates to individuals.’’. 
(d) CERTAIN REQUIREMENTS RELATED TO RECOVERY 
REBATES AND ADDITIONAL RECOVERY REBATES.— 
(1) SIGNATURES ON CHECKS AND NOTICES, ETC., 
BY THE DEPARTMENT OF THE TREASURY.—Any check 
issued to an individual by the Department of the 
Treasury pursuant to section 6428 or 6428A of the 
Internal Revenue Code of 1986, and any notice issued 
pursuant to section 6428(f)(6) or section 6428A(g)(6) 
of such Code, may not be signed by or otherwise bear 
the name, signature, image or likeness of the Presi-
dent, the Vice President or any elected official or cabi-
net level officer of the United States, or any indi-
vidual who, with respect to any of the aforementioned 
individuals, bears any relationship described in sub-
726 
paragraphs (A) through (G) of section 152(d)(2) of 
the Internal Revenue Code of 1986. 
(2) EFFECTIVE
DATE.—Paragraph (1) shall 
apply to checks and notices issued after the date of the 
enactment of this Act. 
(e) REPORTS TO CONGRESS.—Each week beginning 
after the date of the enactment of this Act and beginning 
before December 31, 2020, on Friday of such week, not later 
than 3 p.m. Eastern Time, the Secretary of the Treasury 
shall provide a written report to the Committee on Ways 
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate. Such report shall include 
the following information with respect to payments made 
pursuant to each of sections 6428 and 6428A of the Internal 
Revenue Code of 1986: 
(1) The number of scheduled payments sent to 
the Bureau of Fiscal Service for payment by direct 
deposit or paper check for the following week (stated 
separately for direct deposit and paper check). 
(2) The total dollar amount of the scheduled pay-
ments described in paragraph (1). 
(3) The number of direct deposit payments re-
turned to the Department of the Treasury and the 
total dollar value of such payments, for the week end-
727 
ing on the day prior to the day on which the report 
is provided. 
(4) The total number of letters related to pay-
ments under section 6428 or 6428A of such Code 
mailed to taxpayers during the week ending on the 
day prior to the day on which the report is provided. 
Subtitle B—Earned Income Tax 
Credit 
SEC. 111. STRENGTHENING THE EARNED INCOME TAX 
CREDIT FOR INDIVIDUALS WITH NO QUALI-
FYING CHILDREN. 
(a) SPECIAL RULES FOR 2020.—Section 32 of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(n) SPECIAL RULES
FOR INDIVIDUALS WITHOUT 
QUALIFYING CHILDREN.—In the case of any taxable year 
beginning after December 31, 2019, and before January 1, 
2021— 
‘‘(1) DECREASE IN MINIMUM AGE FOR CREDIT.— 
‘‘(A) 
IN
GENERAL.—Subsection 
(c)(1)(A)(ii)(II) shall be applied by substituting 
‘the applicable minimum age’ for ‘age 25’. 
‘‘(B) APPLICABLE MINIMUM AGE.—For pur-
poses of this paragraph, the term ‘applicable 
minimum age’ means—
728 
‘‘(i) except as otherwise provided in 
this subparagraph, age 19, 
‘‘(ii) in the case of a full-time student 
(other than a qualified former foster youth 
or a qualified homeless youth), age 25, and 
‘‘(iii) in the case of a qualified former 
foster youth or a qualified homeless youth, 
age 18. 
‘‘(C) FULL-TIME
STUDENT.—For purposes 
of this paragraph, the term ‘full-time student’ 
means, with respect to any taxable year, an in-
dividual who is an eligible student (as defined in 
section 25A(b)(3)) during at least 5 calendar 
months during the taxable year. 
‘‘(D) 
QUALIFIED
FORMER
FOSTER 
YOUTH.—For purposes of this paragraph, the 
term ‘qualified former foster youth’ means an in-
dividual who— 
‘‘(i) on or after the date that such indi-
vidual attained age 14, was in foster care 
provided under the supervision or adminis-
tration of a State or tribal agency admin-
istering (or eligible to administer) a plan 
under part B or part E of the Social Secu-
rity Act (without regard to whether Federal
729 
assistance was provided with respect to such 
child under such part E), and 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for State 
and tribal agencies which administer a 
plan under part B or part E of the Social 
Security Act to disclose to the Secretary in-
formation related to the status of such indi-
vidual as a qualified former foster youth. 
‘‘(E) QUALIFIED
HOMELESS
YOUTH.—For 
purposes of this paragraph, the term ‘qualified 
homeless youth’ means, with respect to any tax-
able year, an individual who— 
‘‘(i) is certified by a local educational 
agency or a financial aid administrator 
during such taxable year as being either an 
unaccompanied youth who is a homeless 
child or youth, or as unaccompanied, at 
risk of homelessness, and self-supporting. 
Terms used in the preceding sentence which 
are also used in section 480(d)(1) of the 
Higher Education Act of 1965 shall have 
the same meaning as when used in such sec-
tion, and
730 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for local 
educational agencies and financial aid ad-
ministrators to disclose to the Secretary in-
formation related to the status of such indi-
vidual as a qualified homeless youth. 
‘‘(2) INCREASE IN MAXIMUM AGE FOR CREDIT.— 
Subsection (c)(1)(A)(ii)(II) shall be applied by sub-
stituting ‘age 66’ for ‘age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER-
CENTAGES.—The table contained in subsection (b)(1) 
shall be applied by substituting ‘15.3’ for ‘7.65’ each 
place it appears therein. 
‘‘(4) INCREASE IN EARNED INCOME AND PHASE-
OUT AMOUNTS.— 
‘‘(A) IN GENERAL.—The table contained in 
subsection (b)(2)(A) shall be applied— 
‘‘(i) 
by 
substituting 
‘$9,720’ 
for 
‘$4,220’, and 
‘‘(ii) by substituting ‘$11,490’ for 
‘$5,280’. 
‘‘(B) COORDINATION WITH INFLATION AD-
JUSTMENT.—Subsection (j) shall not apply to 
any dollar amount specified in this paragraph.’’.
731 
(b) INFORMATION RETURN MATCHING.—As soon as 
practicable, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall develop and implement procedures 
to use information returns under section 6050S (relating 
to returns relating to higher education tuition and related 
expenses) to check the status of individuals as full-time stu-
dents for purposes of section 32(n)(1)(B)(ii) of the Internal 
Revenue Code of 1986 (as added by this section). 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 112. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED IN-
COME CREDIT IN CASE OF QUALIFYING CHIL-
DREN WHO FAIL TO MEET CERTAIN IDENTI-
FICATION REQUIREMENTS. 
(a) IN GENERAL.—Section 32(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking subparagraph 
(F). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 113. CREDIT ALLOWED IN CASE OF CERTAIN SEPA-
RATED SPOUSES. 
(a) IN GENERAL.—Section 32(d) of the Internal Rev-
enue Code of 1986 is amended—
732 
(1) by striking ‘‘MARRIED INDIVIDUALS.—In the 
case of’’ and inserting the following: ‘‘MARRIED INDI-
VIDUALS.— 
‘‘(1) IN GENERAL.—In the case of’’, and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) DETERMINATION OF MARITAL STATUS.—For 
purposes of this section— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), marital status shall be deter-
mined under section 7703(a). 
‘‘(B) 
SPECIAL
RULE
FOR
SEPARATED 
SPOUSE.—An individual shall not be treated as 
married if such individual— 
‘‘(i) is married (as determined under 
section 7703(a)) and does not file a joint re-
turn for the taxable year, 
‘‘(ii) lives with a qualifying child of 
the individual for more than one-half of 
such taxable year, and 
‘‘(iii)(I) during the last 6 months of 
such taxable year, does not have the same 
principal place of abode as the individual’s 
spouse, or
733 
‘‘(II) has a decree, instrument, or 
agreement (other than a decree of divorce) 
described in section 121(d)(3)(C) with re-
spect to the individual’s spouse and is not 
a member of the same household with the 
individual’s spouse by the end of the taxable 
year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 32(c)(1)(A) of such Code is amended 
by striking the last sentence. 
(2) Section 32(c)(1)(E)(ii) of such Code is 
amended by striking ‘‘(within the meaning of section 
7703)’’. 
(3) Section 32(d)(1) of such Code, as amended by 
subsection (a), is amended by striking ‘‘(within the 
meaning of section 7703)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 114. ELIMINATION OF DISQUALIFIED INVESTMENT IN-
COME TEST. 
(a) IN GENERAL.—Section 32 of the Internal Revenue 
Code of 1986 is amended by striking subsection (i). 
(b) CONFORMING AMENDMENTS.—
734 
(1) Section 32(j)(1) of such Code is amended by 
striking ‘‘subsections (b)(2) and (i)(1)’’ and inserting 
‘‘subsection (b)(2)’’. 
(2) Section 32(j)(1)(B)(i) of such Code is amend-
ed by striking ‘‘subsections (b)(2)(A) and (i)(1)’’ and 
inserting ‘‘subsection (b)(2)(A)’’. 
(3) Section 32(j)(2) of such Code is amended— 
(A) by striking subparagraph (B), and 
(B) by striking ‘‘ROUNDING.—’’ and all 
that follows through ‘‘If any dollar amount’’ and 
inserting the following: ‘‘ROUNDING.—If any dol-
lar amount’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after the date 
of the enactment of this Act. 
SEC. 115. APPLICATION OF EARNED INCOME TAX CREDIT IN 
POSSESSIONS OF THE UNITED STATES. 
(a) IN GENERAL.—Chapter 77 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new section: 
‘‘SEC. 7530. APPLICATION OF EARNED INCOME TAX CREDIT 
TO POSSESSIONS OF THE UNITED STATES. 
‘‘(a) PUERTO RICO.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the Sec-
735 
retary shall, except as otherwise provided in this sub-
section, make payments to Puerto Rico equal to— 
‘‘(A) the specified matching amount for 
such calendar year, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by Puerto 
Rico during such calendar year for edu-
cation efforts with respect to individual tax-
payers and tax return preparers relating to 
the earned income tax credit, or 
‘‘(ii) $1,000,000. 
‘‘(2) REQUIREMENT TO REFORM EARNED INCOME 
TAX CREDIT.—The Secretary shall not make any pay-
ments under paragraph (1) with respect to any cal-
endar year unless Puerto Rico has in effect an earned 
income tax credit for taxable years beginning in or 
with such calendar year which (relative to the earned 
income tax credit which was in effect for taxable 
years beginning in or with calendar year 2019) in-
creases the percentage of earned income which is al-
lowed as a credit for each group of individuals with 
respect to which such percentage is separately stated 
or determined in a manner designed to substantially 
increase workforce participation.
736 
‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
matching amount’ means, with respect to any 
calendar year, the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the cost to Puerto Rico of the 
earned income tax credit for taxable 
years beginning in or with such cal-
endar year, over 
‘‘(II) the base amount for such 
calendar year, or 
‘‘(ii) the product of 3, multiplied by 
the base amount for such calendar year. 
‘‘(B) BASE AMOUNT.— 
‘‘(i) BASE AMOUNT FOR 2020.—In the 
case of calendar year 2020, the term ‘base 
amount’ means the greater of— 
‘‘(I) the cost to Puerto Rico of the 
earned income tax credit for taxable 
years beginning in or with calendar 
year 2019 (rounded to the nearest mul-
tiple of $1,000,000), or 
‘‘(II) $200,000,000.
737 
‘‘(ii) INFLATION ADJUSTMENT.—In the 
case of any calendar year after 2021, the 
term ‘base amount’ means the dollar 
amount determined under clause (i) in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by— 
‘‘(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
such calendar year, determined by sub-
stituting ‘calendar year 2020’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount determined under this clause 
shall be rounded to the nearest multiple of 
$1,000,000. 
‘‘(4) RULES RELATED TO PAYMENTS AND RE-
PORTS.— 
‘‘(A) TIMING OF PAYMENTS.—The Secretary 
shall make payments under paragraph (1) for 
any calendar year— 
‘‘(i) after receipt of the report described 
in subparagraph (B) for such calendar 
year, and
738 
‘‘(ii) except as provided in clause (i), 
within a reasonable period of time before 
the due date for individual income tax re-
turns (as determined under the laws of 
Puerto Rico) for taxable years which began 
on the first day of such calendar year. 
‘‘(B) ANNUAL
REPORTS.—With respect to 
calendar year 2021 and each calendar year 
thereafter, Puerto Rico shall provide to the Sec-
retary a report which shall include— 
‘‘(i) an estimate of the costs described 
in paragraphs (1)(B)(i) and (3)(A)(i)(I) 
with respect to such calendar year, and 
‘‘(ii) a statement of such costs with re-
spect to the preceding calendar year. 
‘‘(C) ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—In the event that 
any estimate of an amount is more or less 
than the actual amount as later determined 
and any payment under paragraph (1) was 
determined on the basis of such estimate, 
proper payment shall be made by, or to, the 
Secretary (as the case may be) as soon as 
practicable after the determination that 
such estimate was inaccurate. Proper ad-
739 
justment shall be made in the amount of 
any subsequent payments made under para-
graph (1) to the extent that proper payment 
is not made under the preceding sentence 
before such subsequent payments. 
‘‘(ii) ADDITIONAL REPORTS.—The Sec-
retary may require such additional periodic 
reports of the information described in sub-
paragraph (B) as the Secretary determines 
appropriate to facilitate timely adjustments 
under clause (i). 
‘‘(D) DETERMINATION OF COST OF EARNED 
INCOME TAX CREDIT.—For purposes of this sub-
section, the cost to Puerto Rico of the earned in-
come tax credit shall be determined by the Sec-
retary on the basis of the laws of Puerto Rico 
and shall include reductions in revenues received 
by Puerto Rico by reason of such credit and re-
funds attributable to such credit, but shall not 
include any administrative costs with respect to 
such credit. 
‘‘(E) PREVENTION
OF
MANIPULATION
OF 
BASE
AMOUNT.—No payments shall be made 
under paragraph (1) if the earned income tax 
credit as in effect in Puerto Rico for taxable
740 
years beginning in or with calendar year 2019 
is modified after the date of the enactment of this 
subsection. 
‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the Sec-
retary shall, except as otherwise provided in this sub-
section, make payments to the Virgin Islands, Guam, 
and the Commonwealth of the Northern Mariana Is-
lands equal to— 
‘‘(A) 75 percent of the cost to such posses-
sion of the earned income tax credit for taxable 
years beginning in or with such calendar year, 
plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by such 
possession during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relating 
to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C),
741 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(c) AMERICAN SAMOA.— 
‘‘(1) IN
GENERAL.—With respect to calendar 
year 2020 and each calendar year thereafter, the Sec-
retary shall, except as otherwise provided in this sub-
section, make payments to American Samoa equal 
to— 
‘‘(A) the lesser of— 
‘‘(i) 75 percent of the cost to American 
Samoa of the earned income tax credit for 
taxable years beginning in or with such cal-
endar year, or 
‘‘(ii) $12,000,000, plus 
‘‘(B) in the case of calendar years 2020 
through 2024, the lesser of— 
‘‘(i) the expenditures made by Amer-
ican Samoa during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relating 
to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN AN 
EARNED INCOME TAX CREDIT.—The Secretary shall 
not make any payments under paragraph (1) with
742 
respect to any calendar year unless American Samoa 
has in effect an earned income tax credit for taxable 
years beginning in or with such calendar year which 
allows a refundable tax credit to individuals on the 
basis of the taxpayer’s earned income which is de-
signed to substantially increase workforce participa-
tion. 
‘‘(3) INFLATION
ADJUSTMENT.—In the case of 
any calendar year after 2020, the $12,000,000 
amount in paragraph (1)(A)(ii) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by— 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, determined by substituting ‘calendar year 
2019’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause shall be 
rounded to the nearest multiple of $100,000. 
‘‘(4) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), (C), 
and (D) of subsection (a)(4) shall apply for purposes 
of this subsection. 
‘‘(d) TREATMENT OF PAYMENTS.—For purposes of sec-
tion 1324 of title 31, United States Code, the payments
743 
under this section shall be treated in the same manner as 
a refund due from a credit provision referred to in sub-
section (b)(2) of such section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 77 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new item: 
‘‘Sec. 7529. Application of earned income tax credit to possessions of the United 
States.’’. 
SEC. 116. TEMPORARY SPECIAL RULE FOR DETERMINING 
EARNED INCOME FOR PURPOSES OF EARNED 
INCOME TAX CREDIT. 
(a) IN GENERAL.—If the earned income of the tax-
payer for the taxpayer’s first taxable year beginning in 
2020 is less than the earned income of the taxpayer for the 
preceding taxable year, the credit allowed under section 32 
of the Internal Revenue Code of 1986 may, at the election 
of the taxpayer, be determined by substituting-— 
(1) such earned income for the preceding taxable 
year, for 
(2) such earned income for the taxpayer’s first 
taxable year beginning in 2020. 
(b) EARNED INCOME.— 
(1) IN GENERAL.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given such 
term under section 32(c) of the Internal Revenue Code 
of 1986.
744 
(2) APPLICATION TO JOINT RETURNS.—For pur-
poses of subsection (a), in the case of a joint return, 
the earned income of the taxpayer for the preceding 
taxable year shall be the sum of the earned income of 
each spouse for such preceding taxable year. 
(c) SPECIAL RULES.— 
(1) 
ERRORS
TREATED
AS
MATHEMATICAL 
ERROR.—For purposes of section 6213 of the Internal 
Revenue Code of 1986, an incorrect use on a return 
of earned income pursuant to subsection (a) shall be 
treated as a mathematical or clerical error. 
(2) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
subsection, the Internal Revenue Code of 1986 shall be 
applied without regard to any substitution under sub-
section (a). 
(d) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treasury 
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 (other 
than this subsection) with respect to section 32 of the 
Internal Revenue Code of 1986. Such amounts shall
745 
be determined by the Secretary of the Treasury based 
on information provided by the government of the re-
spective possession. 
(2) PAYMENTS
TO
OTHER
POSSESSIONS.—The 
Secretary of the Treasury shall pay to each possession 
of the United States which does not have a mirror 
code tax system amounts estimated by the Secretary 
of the Treasury as being equal to the aggregate bene-
fits (if any) that would have been provided to resi-
dents of such possession by reason of the provisions of 
this section (other than this subsection) with respect 
to section 32 of the Internal Revenue Code of 1986 if 
a mirror code tax system had been in effect in such 
possession. The preceding sentence shall not apply un-
less the respective possession has a plan, which has 
been approved by the Secretary of the Treasury, 
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 of such possession 
under such system is determined by reference to the
746 
income tax laws of the United States as if such pos-
session were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the pay-
ments under this section shall be treated in the same 
manner as a refund due from a credit provision re-
ferred to in subsection (b)(2) of such section. 
Subtitle C—Child Tax Credit 
SEC. 121. CHILD TAX CREDIT IMPROVEMENTS FOR 2020. 
(a) IN GENERAL.—Section 24 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new subsection: 
‘‘(i) SPECIAL RULE FOR REFUNDABLE CREDIT.—In 
the case of any taxable year beginning in 2020, subsection 
(h)(5) shall not apply and the increase determined under 
the first sentence of subsection (d)(1) shall be the amount 
determined under subsection (d)(1)(A) (determined without 
regard to subsection (h)(4)).’’. 
(b) ADVANCE PAYMENT OF CREDIT.— 
(1) IN GENERAL.—Chapter 77 of such Code is 
amended by inserting after section 7527 the following 
new section: 
‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—As soon as practicable after the 
date of the enactment of this Act, the Secretary shall estab-
747 
lish a program for making advance payments of the credit 
allowed under subsection (a) of section 24 on a monthly 
basis (determined without regard to subsection (i)(2)) of 
such section), or as frequently as the Secretary determines 
to be administratively feasible, to taxpayers determined to 
be eligible for advance payment of such credit. 
‘‘(b) LIMITATION.— 
‘‘(1) IN
GENERAL.—The Secretary may make 
payments under subsection (a) only to the extent that 
the total amount of such payments made to any tax-
payer during the taxable year does not exceed an 
amount equal to the excess, if any, of— 
‘‘(A) subject to paragraph (2), the amount 
determined under subsection (a) of section 24 
with respect to such taxpayer (determined with-
out regard to subsection (i)(2)) of such section) 
for such taxable year, over 
‘‘(B) the estimated tax imposed by subtitle 
A, as reduced by the credits allowable under sub-
parts A and C (other than section 24) of such 
part IV, with respect to such taxpayer for such 
taxable year, as determined in such manner as 
the Secretary deems appropriate. 
‘‘(2) APPLICATION OF THRESHOLD AMOUNT LIMI-
TATION.—The program described in subsection (a)
748 
shall make reasonable efforts to apply the limitation 
of section 24(b) with respect to payments made under 
such program. 
‘‘(c) APPLICATION.—The advance payments described 
in this section shall only be made with respect to credits 
allowed under section 24 for taxable years beginning during 
2020.’’. 
(2) RECONCILIATION OF CREDIT AND ADVANCE 
CREDIT.—Section 24(i) of such Code, as amended by 
subsection (a), is amended— 
(A) by striking ‘‘in the case of any taxable 
year’’, and inserting the following: 
‘‘(1) IN GENERAL.—‘In the case of any taxable 
year’ ’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) RECONCILIATION OF CREDIT AND ADVANCE 
CREDIT.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowed under this section for any taxable 
year shall be reduced (but not below zero) by the 
aggregate amount of any advance payments of 
such credit under section 7527A for such taxable 
year.
749 
‘‘(B) EXCESS ADVANCE PAYMENTS.—If the 
aggregate amount of advance payments under 
section 7527A for the taxable year exceeds the 
amount of the credit allowed under this section 
for such taxable year (determined without regard 
to subparagraph (A)), the tax imposed by this 
chapter for such taxable year shall be increased 
by the amount of such excess.’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 77 of such Code is amended by in-
serting after the item relating to section 7527 the fol-
lowing new item: 
‘‘Sec. 7527A. Advance payment of child tax credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 122. APPLICATION OF CHILD TAX CREDIT IN POSSES-
SIONS. 
(a) IN GENERAL.—Section 24 of the Internal Revenue 
Code of 1986, as amended by the preceding provisions of 
this Act, is amended by adding at the end the following 
new subsection: 
‘‘(j) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) MIRROR CODE POSSESSIONS.— 
‘‘(A) IN GENERAL.—The Secretary shall pay 
to each possession of the United States with a
750 
mirror code tax system amounts equal to the loss 
to that possession by reason of the application of 
this section (determined without regard to this 
subsection) with respect to taxable years begin-
ning after 2019. Such amounts shall be deter-
mined by the Secretary based on information 
provided by the government of the respective pos-
session. 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.—No credit shall be allowed under this 
section for any taxable year to any individual to 
whom a credit is allowable against taxes im-
posed by a possession with a mirror code tax 
system by reason of the application of this sec-
tion in such possession for such taxable year. 
‘‘(C) MIRROR CODE TAX SYSTEM.—For pur-
poses of this paragraph, the term ‘mirror code 
tax system’ means, with respect to any posses-
sion of the United States, the income tax system 
of such possession if the income tax liability of 
the residents of such possession under such sys-
tem is determined by reference to the income tax 
laws of the United States as if such possession 
were the United States.
751 
‘‘(2) PUERTO RICO.—In the case of any bona 
fide resident of Puerto Rico (within the meaning of 
section 937(a))— 
‘‘(A) the credit determined under this sec-
tion shall be allowable to such resident, 
‘‘(B) in the case of any taxable year begin-
ning during 2020, the increase determined under 
the first sentence of subsection (d)(1) shall be the 
amount determined under subsection (d)(1)(A) 
(determined without regard to subsection (h)(4)), 
‘‘(C) in the case of any taxable year begin-
ning after December 31, 2020, and before Janu-
ary 1, 2026, the increase determined under the 
first sentence of subsection (d)(1) shall be the 
lesser of— 
‘‘(i) the amount determined under sub-
section (d)(1)(A) (determined without re-
gard to subsection (h)(4)), or 
‘‘(ii) the dollar amount in effect under 
subsection (h)(5), and 
‘‘(D) in the case of any taxable year after 
December 31, 2025, the increase determined 
under the first sentence of subsection (d)(1) shall 
be the amount determined under subsection 
(d)(1)(A).
752 
‘‘(3) AMERICAN SAMOA.— 
‘‘(A) IN GENERAL.—The Secretary shall pay 
to American Samoa amounts estimated by the 
Secretary as being equal to the aggregate benefits 
that would have been provided to residents of 
American Samoa by reason of the application of 
this section for taxable years beginning after 
2019 if the provisions of this section had been in 
effect in American Samoa. 
‘‘(B) DISTRIBUTION
REQUIREMENT.—Sub-
paragraph (A) shall not apply unless American 
Samoa has a plan, which has been approved by 
the Secretary, under which American Samoa 
will promptly distribute such payments to the 
residents of American Samoa in a manner which 
replicates to the greatest degree practicable the 
benefits that would have been so provided to each 
such resident. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year with respect to which a plan is 
approved under subparagraph (B), this sec-
tion (other than this subsection) shall not
753 
apply to any individual eligible for a dis-
tribution under such plan. 
‘‘(ii) APPLICATION
OF
SECTION
IN 
EVENT OF ABSENCE OF APPROVED PLAN.— 
In the case of a taxable year with respect to 
which a plan is not approved under sub-
paragraph (B), rules similar to the rules of 
paragraph (2) shall apply with respect to 
bona fide residents of American Samoa 
(within the meaning of section 937(a)). 
‘‘(4) TREATMENT OF PAYMENTS.—The payments 
made under this subsection shall be treated in the 
same manner for purposes of section 1324(b)(2) of 
title 31, United States Code, as refunds due from the 
credit allowed under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
Subtitle D—Dependent Care 
Assistance 
SEC. 131. REFUNDABILITY AND ENHANCEMENT OF CHILD 
AND DEPENDENT CARE TAX CREDIT. 
(a) IN GENERAL.—Section 21 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new subsection:
754 
‘‘(g) SPECIAL RULES FOR 2020.—In the case of any 
taxable year beginning after December 31, 2019, and before 
January 1, 2021— 
‘‘(1) CREDIT MADE REFUNDABLE.—In the case of 
an individual other than a nonresident alien, the 
credit allowed under subsection (a) shall be treated as 
a credit allowed under subpart C (and not allowed 
under this subpart). 
‘‘(2) INCREASE IN APPLICABLE PERCENTAGE.— 
Subsection (a)(2) shall be applied— 
‘‘(A) by substituting ‘50 percent’ for ‘35 
percent ’, and 
‘‘(B) 
by 
substituting 
‘$120,000’ 
for 
‘$15,000’. 
‘‘(3) INCREASE IN DOLLAR LIMIT ON AMOUNT 
CREDITABLE.—Subsection (c) shall be applied— 
‘‘(A) by substituting ‘$6,000’ for ‘$3,000’ in 
paragraph (1) thereof, and 
‘‘(B) by substituting ‘twice the amount in 
effect under paragraph (1)’ for ‘$6,000’ in para-
graph (2) thereof.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) of 
title 31, United States Code, is amended by inserting ‘‘21 
(by reason of subsection (g) thereof),’’ before ‘‘25A’’.
755 
(c) COORDINATION
WITH
POSSESSION
TAX
SYS-
TEMS.—Section 21(g)(1) of the Internal Revenue Code of 
1986 (as added by this section) shall not apply to any per-
son— 
(1) to whom a credit is allowed against taxes 
imposed by a possession with a mirror code tax sys-
tem by reason of the application of section 21 of such 
Code in such possession for such taxable year, or 
(2) to whom a credit would be allowed against 
taxes imposed by a possession which does not have a 
mirror code tax system if the provisions of section 21 
of such Code had been in effect in such possession for 
such taxable year. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 132. INCREASE IN EXCLUSION FOR EMPLOYER-PRO-
VIDED 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 2020.—In the case 
of any taxable year beginning during 2020, sub-
paragraph (A) shall be applied be substituting
756 
‘$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 Decem-
ber 31, 2019. 
(c) RETROACTIVE PLAN AMENDMENTS.—A plan or 
other arrangement that otherwise satisfies all applicable re-
quirements of sections 106, 125, and 129 of the Internal 
Revenue Code of 1986 (including any rules or regulations 
thereunder) shall not fail to be treated as a cafeteria plan 
or dependent care flexible spending arrangement merely be-
cause such plan or arrangement is amended pursuant to 
a provision under this section and such amendment is ret-
roactive, 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 or arrangement is operated con-
sistent with the terms of such amendment during the 
period beginning on the effective date of the amend-
ment and ending on the date the amendment is 
adopted.
757 
Subtitle E—Credits for Paid Sick 
and Family Leave 
SEC. 141. EXTENSION OF CREDITS. 
(a) IN GENERAL.—Sections 7001(g), 7002(e), 7003(g), 
and 7004(e) of the Families First Coronavirus Response Act 
are each amended by striking ‘‘December 31, 2020’’ and in-
serting ‘‘February 28, 2021’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Families First Coronavirus Response Act to which they 
relate. 
SEC. 142. REPEAL OF REDUCED RATE OF CREDIT FOR CER-
TAIN LEAVE. 
(a) PAYROLL CREDIT.—Section 7001(b) of the Fami-
lies First Coronavirus Response Act is amended by insert-
ing ‘‘(as in effect immediately before the date of the enact-
ment of the COVID–19 Tax Relief Act of 2020) or any day 
on or after the date of the enactment of the COVID–19 Tax 
Relief Act of 2020’’ after ‘‘in the case of any day any por-
tion of which is paid sick time described in paragraph (1), 
(2), or (3) of section 5102(a) of the Emergency Paid Sick 
Leave Act’’. 
(b) SELF-EMPLOYED CREDIT.— 
(1) IN GENERAL.—Clauses (i) and (ii) of section 
7002(c)(1)(B) of the Families First Coronavirus Re-
758 
sponse Act are each amended by inserting ‘‘(as in ef-
fect immediately before the date of the enactment of 
the COVID–19 Tax Relief Act of 2020) or any day 
on or after the date of the enactment of the COVID– 
19 Tax Relief Act of 2020’’ after ‘‘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’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7002(d)(3) of the Families First Coronavirus Re-
sponse Act is amended by inserting ‘‘(as in effect im-
mediately before the date of the enactment of the 
COVID–19 Tax Relief Act of 2020) or any day on or 
after the date of the enactment of the COVID–19 Tax 
Relief Act of 2020’’ after ‘‘in the case of any day any 
portion of which is paid sick time described in para-
graph (1), (2), or (3) of section 5102(a) of the Emer-
gency Paid Sick Leave Act’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to days on or after the date of the enact-
ment of this Act. 
SEC. 143. INCREASE IN LIMITATIONS ON CREDITS FOR PAID 
FAMILY LEAVE. 
(a) INCREASE IN OVERALL LIMITATION ON QUALIFIED 
FAMILY LEAVE WAGES.—
759 
(1) IN GENERAL.—Section 7003(b)(1)(B) of the 
Families First Coronavirus Response Act is amended 
by striking ‘‘$10,000’’ and inserting ‘‘$12,000’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7004(d)(3) of the Families First Coronavirus Re-
sponse Act is amended by striking ‘‘$10,000’’ and in-
serting ‘‘$12,000’’. 
(b) INCREASE IN QUALIFIED FAMILY LEAVE EQUIVA-
LENT AMOUNT FOR SELF-EMPLOYED INDIVIDUALS.—Sec-
tion 7004(c)(1)(A) of the Families First Coronavirus Re-
sponse Act is amended by striking ‘‘50’’ and inserting ‘‘60’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Families First Coronavirus Response Act to which they 
relate. 
SEC. 144. ELECTION TO USE PRIOR YEAR NET EARNINGS 
FROM SELF-EMPLOYMENT IN DETERMINING 
AVERAGE DAILY SELF-EMPLOYMENT INCOME. 
(a) CREDIT FOR SICK LEAVE.—Section 7002(c) of the 
Families First Coronavirus Response Act is amended by 
adding at the end the following new paragraph: 
‘‘(4) ELECTION TO USE PRIOR YEAR NET EARN-
INGS FROM SELF-EMPLOYMENT INCOME.—In the case 
of an individual who elects (at such time and in such 
manner as the Secretary, or the Secretary’s delegate,
760 
may provide) the application of this paragraph, 
paragraph (2)(A) shall be applied by substituting ‘the 
prior taxable year’ for ‘the taxable year’.’’. 
(b) CREDIT FOR FAMILY LEAVE.—Section 7004(c) of 
the Families First Coronavirus Response Act is amended 
by adding at the end the following new paragraph: 
‘‘(4) ELECTION TO USE PRIOR YEAR NET EARN-
INGS FROM SELF-EMPLOYMENT INCOME.—In the case 
of an individual who elects (at such time and in such 
manner as the Secretary, or the Secretary’s delegate, 
may provide) the application of this paragraph, 
paragraph (2)(A) shall be applied by substituting ‘the 
prior taxable year’ for ‘the taxable year’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Families First Coronavirus Response Act to which they 
relate. 
SEC. 145. FEDERAL, STATE, AND LOCAL GOVERNMENTS AL-
LOWED TAX CREDITS FOR PAID SICK AND 
PAID FAMILY AND MEDICAL LEAVE. 
(a) IN GENERAL.—Sections 7001(e) and 7003(e) of the 
Families First Coronavirus Response Act are each amended 
by striking paragraph (4). 
(b) COORDINATION WITH APPLICATION OF CERTAIN 
DEFINITIONS.—
762 
lies First Coronavirus Response Act, as amended by the pre-
ceding provisions of this Act, are each amended— 
(1) by inserting ‘‘and section 7005(a) of this 
Act,’’ after ‘‘determined without regard to paragraphs 
(1) through (22) of section 3121(b) of such Code’’, and 
(2) by inserting ‘‘and without regard to section 
7005(a) of this Act’’ after ‘‘which begins ‘Such term 
does not include remuneration’ ’’. 
(b) CLARIFICATION OF APPLICABLE RAILROAD RE-
TIREMENT TAX
FOR PAID LEAVE CREDITS.—Sections 
7001(e) and 7003(e) of the Families First Coronavirus Re-
sponse Act, as amended by the preceding provisions of this 
Act, are each amended by adding at the end the following 
new paragraph: 
‘‘(4) REFERENCES
TO
RAILROAD
RETIREMENT 
TAX.—Any reference in this section to the tax imposed 
by section 3221(a) of the Internal Revenue Code of 
1986 shall be treated as a reference to so much of such 
tax as is attributable to the rate in effect under sec-
tion 3111(a) of such Code.’’. 
(c) CLARIFICATION OF TREATMENT OF PAID LEAVE 
FOR APPLICABLE RAILROAD RETIREMENT TAX.—Section 
7005(a) of the Families First Coronavirus Response Act is 
amended by adding the following sentence at the end of such 
subsection: ‘‘Any reference in this subsection to the tax im-
763 
posed by section 3221(a) of such Code shall be treated as 
a reference to so much of the tax as is attributable to the 
rate in effect under section 3111(a) of such Code.’’ 
(d) CLARIFICATION OF APPLICABLE RAILROAD RE-
TIREMENT TAX FOR HOSPITAL INSURANCE TAX CREDIT.— 
Section 7005(b)(1) of the Families First Coronavirus Re-
sponse Act is amended to read as follows: 
‘‘(1) IN GENERAL.—The credit allowed by section 
7001 and the credit allowed by section 7003 shall 
each be increased by the amount of the tax imposed 
by section 3111(b) of the Internal Revenue Code of 
1986 and so much of the taxes imposed under section 
3221(a) of such Code as are attributable to the rate 
in effect under section 3111(b) of such Code on quali-
fied sick leave wages, or qualified family leave wages, 
for which credit is allowed under such section 7001 
or 7003 (respectively).’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Families First Coronavirus Response Act to which they 
relate. 
SEC. 147. CREDITS NOT ALLOWED TO CERTAIN LARGE EM-
PLOYERS. 
(a) CREDIT FOR REQUIRED PAID SICK LEAVE.—
764 
(1) IN GENERAL.—Section 7001(a) of the Fami-
lies First Coronavirus Response Act is amended by 
striking ‘‘In the case of an employer’’ and inserting 
‘‘In the case of an eligible employer’’. 
(2) ELIGIBLE
EMPLOYER.—Section 7001(c) of 
the Families First Coronavirus Response Act, as 
amended by the preceding provisions of this Act, is 
amended by striking ‘‘For purposes of this section, the 
term’’ and all that precedes it and inserting the fol-
lowing: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE
EMPLOYER.—The term ‘eligible 
employer’ means any employer other than an appli-
cable 
large 
employer 
(as 
defined 
in 
section 
4980H(c)(2), determined by substituting ‘500’ for ‘50’ 
each place it appears in subparagraphs (A) and (B) 
thereof and without regard to subparagraphs (D) and 
(F) thereof). For purposes of the preceding sentence, 
the Government of the United States, the government 
of any State or political subdivision thereof, or any 
agency or instrumentality of any of the foregoing 
shall not be treated as an applicable large employer. 
‘‘(2) QUALIFIED
SICK
LEAVE
WAGES.—The 
term’’. 
(b) CREDIT FOR REQUIRED PAID FAMILY LEAVE.—
765 
(1) IN GENERAL.—Section 7003(a) of the Fami-
lies First Coronavirus Response Act is amended by 
striking ‘‘In the case of an employer’’ and inserting 
‘‘In the case of an eligible employer’’. 
(2) ELIGIBLE
EMPLOYER.—Section 7003(c) of 
the Families First Coronavirus Response Act, as 
amended by the preceding provisions of this Act, is 
amended by striking ‘‘For purposes of this section, the 
term’’ and all that precedes it and inserting the fol-
lowing: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE
EMPLOYER.—The term ‘eligible 
employer’ means any employer other than an appli-
cable 
large 
employer 
(as 
defined 
in 
section 
4980H(c)(2), determined by substituting ‘500’ for ‘50’ 
each place it appears in subparagraphs (A) and (B) 
thereof and without regard to subparagraphs (D) and 
(F) thereof). For purposes of the preceding sentence, 
the Government of the United States, the government 
of any State or political subdivision thereof, or any 
agency or instrumentality of any of the foregoing, 
shall not be treated as an applicable large employer. 
‘‘(2) QUALIFIED
FAMILY
LEAVE
WAGES.—The 
term’’.
766 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to wages paid after the date of the enact-
ment of this Act. 
Subtitle F—Deduction of State and 
Local Taxes 
SEC. 151. ELIMINATION FOR 2020 LIMITATION ON DEDUC-
TION OF STATE AND LOCAL TAXES. 
(a) IN GENERAL.—Section 164(b)(6)(B) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘in the 
case of a taxable year beginning before January 1, 2020, 
or after December 31, 2020,’’ before ‘‘the aggregate amount 
of taxes’’. 
(b) CONFORMING AMENDMENTS.—Section 164(b)(6) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subparagraph 
(B)’’ and inserting ‘‘For purposes of this section’’, 
(2) by striking ‘‘January 1, 2018’’ and inserting 
‘‘January 1, 2021’’, 
(3) by striking ‘‘December 31, 2017, shall’’ and 
inserting ‘‘December 31, 2020, shall’’, and 
(4) by adding at the end the following: ‘‘For pur-
poses of this section, in the case of State or local taxes 
with respect to any real or personal property paid 
during a taxable year beginning in 2020, the Sec-
retary shall prescribe rules which treat all or a por-
767 
tion of such taxes as paid in a taxable year or years 
other than the taxable year in which actually paid as 
necessary or appropriate to prevent the avoidance of 
the limitations of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxes paid or accrued in taxable years 
beginning after December 31, 2019. 
TITLE II—PROVISIONS TO PRE-
VENT BUSINESS INTERRUP-
TION 
SEC. 201. IMPROVEMENTS TO EMPLOYEE RETENTION AND 
REHIRING CREDIT. 
(a) EMPLOYEE RETENTION CREDIT RENAMED.—Sec-
tion 2301 of the CARES Act is amended in the heading 
by striking ‘‘EMPLOYEE RETENTION CREDIT’’ and in-
serting ‘‘EMPLOYEE
RETENTION
AND
REHIRING 
CREDIT’’. 
(b) INCREASE
IN
CREDIT
PERCENTAGE.—Section 
2301(a) of the CARES Act is amended by striking ‘‘50 per-
cent’’ and inserting ‘‘80 percent’’. 
(c) INCREASE IN PER EMPLOYEE LIMITATION.—Sec-
tion 2301(b)(1) of the CARES Act is amended by striking 
‘‘for all calendar quarters shall not exceed $10,000.’’ and 
inserting ‘‘shall not exceed— 
‘‘(A) $15,000 in any calendar quarter, and
768 
‘‘(B) $45,000 in the aggregate for all cal-
endar quarters.’’. 
(d) MODIFICATION OF THRESHOLD FOR TREATMENT 
AS A LARGE EMPLOYER.— 
(1) IN GENERAL.—Section 2301(c)(3)(A) of the 
CARES Act is amended— 
(A) by striking ‘‘for which the average num-
ber of full-time employees (within the meaning of 
section 4980H of the Internal Revenue Code of 
1986) employed by such eligible employer during 
2019 was greater than 100’’ in clause (i) and in-
serting ‘‘which is a large employer’’, and 
(B) by striking ‘‘for which the average num-
ber of full-time employees (within the meaning of 
section 4980H of the Internal Revenue Code of 
1986) employed by such eligible employer during 
2019 was not greater than 100’’ in clause (ii) 
and inserting ‘‘which is not a large employer’’. 
(2) 
LARGE
EMPLOYER
DEFINED.—Section 
2301(c) of the CARES Act is amended by redesig-
nating paragraph (6) as paragraph (7) and by in-
serting after paragraph (5) the following new para-
graph: 
‘‘(6) LARGE EMPLOYER.—The term ‘large em-
ployer’ means any eligible employer if—
770 
‘‘(D) PHASE-IN OF CREDIT WHERE BUSI-
NESS NOT SUSPENDED AND REDUCTION IN GROSS 
RECEIPTS LESS THAN 50 PERCENT.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar quarter with respect to which an 
eligible employer would not be an eligible 
employer if subparagraph (B)(i) were ap-
plied by substituting ‘50 percent’ for ‘90 
percent’, the amount of the credit allowed 
under subsection (a) shall be reduced by the 
amount which bears the same ratio to the 
amount of such credit (determined without 
regard to this subparagraph) as— 
‘‘(I) the excess gross receipts per-
centage point amount, bears to 
‘‘(II) 40 percentage points. 
‘‘(ii) EXCESS
GROSS
RECEIPTS
PER-
CENTAGE POINT AMOUNT.—For purposes of 
this subparagraph, the term ‘excess gross re-
ceipts percentage point amount’ means, 
with respect to any calendar quarter, the 
excess of— 
‘‘(I) the lowest of the gross receipts 
percentage point amounts determined 
with respect to any calendar quarter
771 
during the period ending with such 
calendar quarter and beginning with 
the first calendar quarter during the 
period described in subparagraph (B), 
over 
‘‘(II) 50 percentage points. 
‘‘(iii) GROSS
RECEIPTS
PERCENTAGE 
POINT AMOUNTS.—For purposes of this sub-
paragraph, the term ‘gross receipts percent-
age point amount’ means, with respect to 
any calendar quarter, the percentage (ex-
pressed as a number of percentage points) 
obtained by dividing— 
‘‘(I) the gross receipts (within the 
meaning of subparagraph (B)) for such 
calendar quarter, by 
‘‘(II) the gross receipts for the 
same calendar quarter in calendar 
year 2019.’’. 
(3) GROSS RECEIPTS OF TAX-EXEMPT ORGANIZA-
TIONS.—Section 2301(c)(2)(C) of the CARES Act is 
amended— 
(A) by striking ‘‘of such Code, clauses (i) 
and (ii)(I)’’ and inserting ‘‘of such Code— 
‘‘(i) clauses (i) and (ii)(I)’’,
772 
(B) by striking the period at the end and 
inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) any reference in this section to 
gross receipts shall be treated as a reference 
to gross receipts within the meaning of sec-
tion 6033 of such Code.’’. 
(f) MODIFICATION OF TREATMENT OF HEALTH PLAN 
EXPENSES.— 
(1) IN
GENERAL.—Section 2301(c)(5) of the 
CARES Act is amended to read as follows: 
‘‘(5) WAGES.— 
‘‘(A) IN GENERAL.—The term ‘wages’ means 
wages (as defined in section 3121(a) of the Inter-
nal Revenue Code of 1986) and compensation (as 
defined in section 3231(e) of such Code). 
‘‘(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
‘‘(i) IN GENERAL.—Such term shall in-
clude amounts paid or incurred by the eligi-
ble 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
773 
amounts are excluded from the gross income 
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. Ex-
cept as otherwise provided by the Secretary, 
such allocation shall be treated as properly 
made if made on the basis of being pro rata 
among periods of coverage.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2301(c)(3) of the CARES Act is amended by striking 
subparagraph (C). 
(g) QUALIFIED
WAGES
PERMITTED
TO
INCLUDE 
AMOUNTS FOR TIP REPLACEMENT.—Section 2301(c)(3)(B) 
of the CARES Act is amended by inserting ‘‘(including tips 
which would have been deemed to be paid by the employer 
under section 3121(q))’’ after ‘‘would have been paid’’. 
(h) CERTAIN GOVERNMENTAL EMPLOYERS ELIGIBLE 
FOR CREDIT.—
774 
(1) IN GENERAL.—Section 2301(f) of the CARES 
Act is amended to read as follows: 
‘‘(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
‘‘(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government or 
any agency or instrumentality thereof. 
‘‘(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. 
‘‘(3) SPECIAL RULES.—In the case of any State 
government, Indian tribal government, or any agen-
cy, instrumentality, or political subdivision of the 
foregoing— 
‘‘(A) clauses (i) and (ii)(I) of subsection 
(c)(2)(A) shall apply to all operations of such en-
tity, and 
‘‘(B) 
subclause 
(II) 
of 
subsection 
(c)(2)(A)(ii) shall not apply.’’. 
(2) COORDINATION WITH APPLICATION OF CER-
TAIN DEFINITIONS.— 
(A) IN GENERAL.—Section 2301(c)(5)(A) of 
the CARES Act, as amended by the preceding 
provisions of this Act, is amended by adding at 
the end the following: ‘‘For purposes of the pre-
775 
ceding sentence (other than for purposes of sub-
section (b)(2)), wages as defined in section 
3121(a) of the Internal Revenue Code of 1986 
shall be determined without regard to para-
graphs (1), (5), (6), (7), (8), (10), (13), (18), 
(19), and (22) of section 3212(b) of such Code 
(except with respect to services performed in a 
penal institution by an inmate thereof).’’. 
(B) CONFORMING
AMENDMENTS.—Sections 
2301(c)(6) of the CARES Act is amended by 
striking ‘‘Any term’’ and inserting ‘‘Except as 
otherwise provided in this section, any term’’. 
(i) COORDINATION WITH INCOME TAX CREDITS.—Sec-
tion 2301(h) of the CARES Act, as amended by preceding 
provisions of this Act, is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) COORDINATION
WITH
INCOME
TAX
CRED-
ITS.—Any wages taken into account in determining 
the credit allowed under this section shall not be 
taken into account as wages for purposes of sections 
41, 45A, 45B, 45P, 45S, 51, and 1396 of the Internal 
Revenue 23 Code of 1986.’’, and 
(2) by redesignating paragraph (3) as para-
graph (2).
776 
(j) APPLICATION OF CREDIT TO EMPLOYERS OF DO-
MESTIC WORKERS.— 
(1) IN
GENERAL.—Section 2301(c)(2) of the 
CARES Act, as amended by the preceding provisions 
of this Act, is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) EMPLOYERS
OF
DOMESTIC
WORK-
ERS.—In the case of an employer with one or 
more employees who perform domestic service 
(within the meaning of section 3121(a)(7) of 
such Code) in the private home of such employer, 
with respect to such employees— 
‘‘(i) subparagraph (A) shall be ap-
plied— 
‘‘(I) by substituting ‘employing 
an employee who performs domestic 
service in the private home of such em-
ployer’ for ‘carrying on a trade or 
business’ in clause (i) thereof, and 
‘‘(II) by substituting ‘such em-
ployment’ for ‘the operation of the 
trade or business’ in clause (ii)(I) 
thereof. 
‘‘(ii) subclause (II) of subparagraph 
(A)(ii) shall not apply, and
777 
‘‘(iii) such employer shall be treated as 
a large employer.’’. 
(2) DENIAL
OF
DOUBLE
BENEFIT.—Section 
2301(h)(1) of the CARES Act, as amended by the pre-
ceding provisions of this Act, is further amended— 
(A) by striking ‘‘shall not be taken into ac-
count as wages’’ and inserting ‘‘shall not be 
taken into account as— 
‘‘(A) wages’’, 
(B) by striking the period at the end and 
inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(B) if such wages are paid for domestic 
service described in subsection (c)(2)(E), as em-
ployment-related expenses for purposes of section 
21 of such Code. 
In the case of any individual who pays wages for do-
mestic service described in subsection (c)(2)(E) and 
receives a reimbursement for such wages which is ex-
cludible from gross income under section 129 of such 
Code, such wages shall not be treated as qualified 
wages for purposes of this section.’’. 
(k) COORDINATION WITH GOVERNMENT GRANTS.— 
Section 2301(h) of the CARES Act, as amended by the pre-
778 
ceding provisions of this Act, is further amended by adding 
at the end the following new paragraph: 
‘‘(3) 
COORDINATION
WITH
GOVERNMENT 
GRANTS.—Qualified wages shall not be taken into ac-
count under this section to the extent that grants (or 
similar amounts) are provided by the Federal govern-
ment for purposes of paying or reimbursing expenses 
for such wages.’’. 
(l) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 2301 of 
the CARES Act. 
SEC. 202. CERTAIN LOAN FORGIVENESS AND OTHER BUSI-
NESS FINANCIAL ASSISTANCE UNDER CARES 
ACT NOT INCLUDIBLE IN GROSS INCOME. 
(a) UNITED STATES TREASURY PROGRAM MANAGE-
MENT AUTHORITY.—For purposes of the Internal Revenue 
Code of 1986, no amount shall be included in gross income 
by reason of loan forgiveness described in section 
1109(d)(2)(D) of the CARES Act. 
(b) EMERGENCY EIDL GRANTS.—For purposes of the 
Internal Revenue Code of 1986, any advance described in 
section 1110(e) of the CARES Act shall not be included in 
the gross income of the person that receives such advance. 
(c) SUBSIDY FOR CERTAIN LOAN PAYMENTS.—For 
purposes of the Internal Revenue Code of 1986, any pay-
779 
ment described in section 1112(c) of the CARES Act shall 
not be included in the gross income of the person on whose 
behalf such payment is made. 
(d) RESTAURANTS GRANTS.—For purposes of the 
Internal Revenue Code of 1986, any grants (or similar 
amounts) made to an eligible entity under the RES-
TAURANTS Act of 2020 shall not be included in the gross 
income of such entity. 
(e) EFFECTIVE DATE.—(1) Subsections (a), (b), and 
(c) shall apply to taxable years ending after the date of the 
enactment of the CARES Act. 
(2) RESTAURANTS GRANTS.—Subsection (d) shall 
apply to taxable years ending after the date of the en-
actment of the RESTAURANTS Act of 2020. 
SEC. 203. CLARIFICATION OF TREATMENT OF EXPENSES 
PAID OR INCURRED WITH PROCEEDS FROM 
CERTAIN GRANTS AND LOANS. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986 and notwithstanding any other provision 
of law, any deduction and the basis of any property shall 
be determined without regard to whether any amount is ex-
cluded from gross income under section 202 of this Act or 
section 1106(i) of the CARES Act.
780 
(b) CLARIFICATION OF EXCLUSION OF LOAN FORGIVE-
NESS.—Section 1106(i) of the CARES Act is amended to 
read as follows: 
‘‘(i) TAXABILITY.—For purposes of the Internal Rev-
enue Code of 1986, no amount shall be included in the gross 
income of the eligible recipient by reason of forgiveness of 
indebtedness described in subsection (b).’’. 
(c) EFFECTIVE DATE.—Subsection (a) and the amend-
ment made by subsection (b) shall apply to taxable years 
ending after the date of the enactment of the CARES Act. 
TITLE III—NET OPERATING 
LOSSES 
SEC. 301. LIMITATION ON EXCESS BUSINESS LOSSES OF 
NON-CORPORATE 
TAXPAYERS 
RESTORED 
AND MADE PERMANENT. 
(a) IN GENERAL.—Section 461(l)(1) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(1) LIMITATION.—In the case of a taxpayer 
other than a corporation, any excess business loss of 
the taxpayer shall not be allowed.’’. 
(b) FARMING LOSSES.—Section 461 of such Code is 
amended by striking subsection (j). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017.
781 
SEC. 302. CERTAIN TAXPAYERS ALLOWED CARRYBACK OF 
NET OPERATING LOSSES ARISING IN 2019 
AND 2020. 
(a) CARRYBACK OF LOSSES ARISING IN 2019 AND 
2020.— 
(1) IN GENERAL.—Section 172(b)(1)(D)(i) of the 
Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(i) IN GENERAL.—In the case of any 
net operating loss arising in a taxable year 
beginning after December 31, 2018, and be-
fore January 1, 2021, and to which sub-
paragraphs (B) and (C)(i) do not apply, 
such loss shall be a net operating loss 
carryback to each taxable year preceding the 
taxable year of such loss, but not to any 
taxable year beginning before January 1, 
2018.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for section 172(b)(1)(D) of 
such Code is amended by striking ‘‘2018, 2019, 
AND’’ and inserting ‘‘2019 AND’’. 
(B) Section 172(b)(1)(D) of such Code is 
amended by striking clause (iii) and by redesig-
nating clauses (iv) and (v) as clauses (iii) and 
(iv), respectively.
782 
(C) Section 172(b)(1)(D)(iii) of such Code, 
as so redesignated, is amended by striking 
‘‘(i)(I)’’ and inserting ‘‘(i)’’. 
(D) Section 172(b)(1)(D)(iv) of such Code, 
as so redesignated, is amended— 
(i) by striking ‘‘If the 5-year carryback 
period under clause (i)(I)’’ in subclause (I) 
and inserting ‘‘If the carryback period 
under clause (i)’’, and 
(ii) by striking ‘‘2018 or’’ in subclause 
(II). 
(b) DISALLOWED FOR CERTAIN TAXPAYERS.—Section 
172(b)(1)(D) of such Code, as amended by the preceding 
provisions of this Act, is amended by adding at the end 
the following new clauses: 
‘‘(v) CARRYBACK
DISALLOWED
FOR 
CERTAIN TAXPAYERS.—Clause (i) shall not 
apply with respect to any loss arising in a 
taxable year in which— 
‘‘(I) the taxpayer (or any related 
person) is not allowed a deduction 
under this chapter for the taxable year 
by reason of section 162(m) or section 
280G, or
783 
‘‘(II) the taxpayer (or any related 
person) is a specified corporation for 
the taxable year. 
‘‘(vi) SPECIFIED
CORPORATION.—For 
purposes of clause (v)— 
‘‘(I) 
IN
GENERAL.—The 
term 
‘specified corporation’ means, with re-
spect to any taxable year, a corpora-
tion the fair market value of the aggre-
gate distributions (including redemp-
tions), measured as of the date of each 
such distribution, of which during all 
taxable years ending after December 
31, 2017, exceed the sum of applicable 
stock issued of such corporation and 5 
percent of the fair market value of the 
stock of such corporation as of the last 
day of the taxable year. 
‘‘(II) 
APPLICABLE
STOCK 
ISSUED.—The term ‘applicable stock 
issued’ means, with respect to any cor-
poration, the aggregate fair market 
value of stock (as of the issue date of 
such stock) issued by the corporation 
during all taxable years ending after
784 
December 31, 2017, in exchange for 
money or property other than stock in 
such corporation. 
‘‘(III) 
CERTAIN
PREFERRED 
STOCK
DISREGARDED.—For purposes 
of subclause (I), stock described in sec-
tion 1504(a)(4), and distributions (in-
cluding redemptions) with respect to 
such stock, shall be disregarded. 
‘‘(vii) RELATED
PERSON.—For pur-
poses of clause (v), a person is a related 
person to a taxpayer if the related person 
bears a relationship to the taxpayer speci-
fied in section 267(b) or section 707(b)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the enactment of 
section 2303(b) of the Coronavirus Aid, Relief, and Eco-
nomic Security Act. 
DIVISION G—RETIREMENT 
PROVISIONS 
SEC. 100. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Emergency Pension Plan Relief Act of 2020’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 100. Short title, etc.
785 
TITLE I—RELIEF FOR MULTIEMPLOYER PENSION PLANS 
Sec. 101. Special partition relief. 
Sec. 102. Repeal of benefit suspensions for multiemployer plans in critical and 
declining status. 
Sec. 103. Temporary delay of designation of multiemployer plans as in endan-
gered, critical, or critical and declining status. 
Sec. 104. Temporary extension of the funding improvement and rehabilitation pe-
riods for multiemployer pension plans in critical and endan-
gered status for 2020 or 2021. 
Sec. 105. Adjustments to funding standard account rules. 
Sec. 106. PBGC guarantee for participants in multiemployer plans. 
TITLE II—RELIEF FOR SINGLE EMPLOYER PENSION PLANS 
Sec. 201. Extended amortization for single employer plans. 
Sec. 202. Extension of pension funding stabilization percentages for single em-
ployer plans. 
TITLE III—OTHER RETIREMENT RELATED PROVISIONS 
Sec. 301. Waiver of required minimum distributions for 2019. 
Sec. 302. Waiver of 60-day rule in case of rollover of otherwise required min-
imum distributions in 2019 or 2020. 
Sec. 303. Exclusion of benefits provided to volunteer firefighters and emergency 
medical responders made permanent. 
Sec. 304. Application of special rules to money purchase pension plans. 
Sec. 305. Grants to assist low-income women and survivors of domestic violence 
in obtaining qualified domestic relations orders. 
Sec. 306. Modification of special rules for minimum funding standards for com-
munity newspaper plans. 
Sec. 307. Minimum rate of interest for certain determinations related to life in-
surance contracts. 
TITLE I—RELIEF FOR MULTIEM-
PLOYER PENSION PLANS 
SEC. 101. SPECIAL PARTITION RELIEF. 
(a) APPROPRIATION.—Section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1305) 
is amended by adding at the end the following: 
‘‘(i)(1) An eighth fund shall be established for partition 
assistance to multiemployer pension plans, as provided 
under section 4233A, and to pay for necessary administra-
tive and operating expenses relating to such assistance.
786 
‘‘(2) There is appropriated from the general fund such 
amounts as necessary for the costs of providing partition 
assistance under section 4233A and necessary administra-
tive and operating expenses. The eighth fund established 
under this subsection shall be credited with such amounts 
from time to time as the Secretary of the Treasury deter-
mines appropriate, from the general fund of the Treasury, 
and such amounts shall remain available until expended.’’. 
(b) SPECIAL PARTITION AUTHORITY.—The Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1001 
et seq.) is amended by inserting after section 4233 the fol-
lowing: 
‘‘SEC. 4233A. SPECIAL PARTITION RELIEF. 
‘‘(a) SPECIAL PARTITION AUTHORITY.— 
‘‘(1) IN GENERAL.—Upon the application of a 
plan sponsor of an eligible multiemployer plan for 
partition of the plan under this section, the corpora-
tion shall order a partition of the plan in accordance 
with this section. 
‘‘(2) INAPPLICABILITY OF CERTAIN REPAYMENT 
OBLIGATION.—A plan receiving partition assistance 
pursuant to this section shall not be subject to repay-
ment obligations under section 4261(b)(2). 
‘‘(b) ELIGIBLE PLANS.—
787 
‘‘(1) IN GENERAL.—For purposes of this section, 
a multiemployer plan is an eligible multiemployer 
plan if— 
‘‘(A) the plan is in critical and declining 
status (within the meaning of section 305(b)(6)) 
in any plan year beginning in 2020 through 
2024; 
‘‘(B) a suspension of benefits has been ap-
proved with respect to the plan under section 
305(e)(9) as of the date of the enactment of this 
section; 
‘‘(C) in any plan year beginning in 2020 
through 2024, the plan is certified by the plan 
actuary to be in critical status (within the 
meaning of section 305(b)(2)), has a modified 
funded percentage of less than 40 percent, and 
has a ratio of active to inactive participants 
which is less than 2 to 3; or 
‘‘(D) the plan is insolvent for purposes of 
section 418E of the Internal Revenue Code of 
1986 as of the date of enactment of this section, 
if the plan became insolvent after December 16, 
2014, and has not been terminated by such date 
of enactment.
788 
‘‘(2) MODIFIED
FUNDED
PERCENTAGE.—For 
purposes of paragraph (1)(C), the term ‘modified 
funded percentage’ means the percentage equal to a 
fraction the numerator of which is current value of 
plan assets (as defined in section 3(26) of such Act) 
and the denominator of which is current liabilities 
(as defined in section 431(c)(6)(D) of such Code and 
section 304(c)(6)(D) of such Act). 
‘‘(c) APPLICATIONS FOR SPECIAL PARTITION.— 
‘‘(1) GUIDANCE.—The corporation shall issue 
guidance setting forth requirements for special parti-
tion applications under this section not later than 
120 days after the date of the enactment of this sec-
tion. In such guidance, the corporation shall— 
‘‘(A) limit the materials required for a spe-
cial partition application to the minimum nec-
essary to make a determination on the applica-
tion; and 
‘‘(B) provide for an alternate application 
for special partition under this section, which 
may be used by a plan that has been approved 
for a partition under section 4233 before the date 
of enactment of this section. 
‘‘(2) TEMPORARY PRIORITY CONSIDERATION OF 
APPLICATIONS.—
789 
‘‘(A) IN GENERAL.—The corporation may 
specify in guidance under paragraph (1) that, 
during the first 2 years following the date of en-
actment of this section, special partition applica-
tions will be provided priority consideration, 
if— 
‘‘(i) the plan is likely to become insol-
vent within 5 years of the date of enactment 
of this section; 
‘‘(ii) the corporation projects a plan to 
have a present value of financial assistance 
payments under section 4261 that exceeds 
$1,000,000,000 if the special partition is 
not ordered; 
‘‘(iii) the plan has implemented benefit 
suspensions under section 305(e)(9) as of 
the date of the enactment of this section; or 
‘‘(iv) the corporation determines it ap-
propriate based on other circumstances. 
‘‘(B) NO EFFECT ON AMOUNT OF ASSIST-
ANCE.—A plan that is approved for special par-
tition assistance under this section shall not re-
ceive reduced special partition assistance on ac-
count of not receiving priority consideration 
under subparagraph (A).
790 
‘‘(3) ACTUARIAL ASSUMPTIONS AND OTHER IN-
FORMATION.—The corporation shall accept assump-
tions incorporated in a multiemployer plan’s deter-
mination that it is in critical status or critical and 
declining status (within the meaning of section 
305(b)), or that the plan’s modified funded percentage 
is less than 40 percent, unless such assumptions are 
clearly erroneous. The corporation may require such 
other information as the corporation determines ap-
propriate for making a determination of eligibility 
and the amount of special partition assistance nec-
essary under this section. 
‘‘(4) APPLICATION DEADLINE.—Any application 
by a plan for special partition assistance under this 
section shall be submitted no later than December 31, 
2026, and any revised application for special parti-
tion assistance shall be submitted no later than De-
cember 31, 2027. 
‘‘(5) NOTICE OF APPLICATION.—Not later than 
120 days after the date of enactment of this section, 
the corporation shall issue guidance requiring multi-
employer plans to notify participants and bene-
ficiaries that the plan has applied for partition under 
this section, after the corporation has determined that 
the application is complete. Such notice shall ref-
791 
erence the special partition relief internet website de-
scribed in subsection (p). 
‘‘(d) DETERMINATIONS ON APPLICATIONS.—A plan’s 
application for special partition under this section that is 
timely filed in accordance with guidance issued under sub-
section (c)(1) shall be deemed approved and the corporation 
shall issue a special partition order unless the corporation 
notifies the plan within 120 days of the filing of the appli-
cation that the application is incomplete or the plan is not 
eligible under this section. Such notice shall specify the rea-
sons the plan is ineligible for a special partition or infor-
mation needed to complete the application. If a plan is de-
nied partition under this subsection, the plan may submit 
a revised application under this section. Any revised appli-
cation for special partition submitted by a plan shall be 
deemed approved unless the corporation notifies the plan 
within 120 days of the filing of the revised application that 
the application is incomplete or the plan is not eligible 
under this section. A special partition order issued by the 
corporation shall be effective no later than 120 days after 
a plan’s special partition application is approved by the 
corporation or deemed approved. 
‘‘(e) AMOUNT AND MANNER OF SPECIAL PARTITION 
ASSISTANCE.—
792 
‘‘(1) IN GENERAL.—The liabilities of an eligible 
multiemployer plan that the corporation assumes 
pursuant to a special partition order under this sec-
tion shall be the amount necessary for the plan to 
meet its funding goals described in subsection (g). 
‘‘(2) NO CAP.—Liabilities assumed by the cor-
poration pursuant to a special partition order under 
this section shall not be capped by the guarantee 
under section 4022A. The corporation shall have dis-
cretion on how liabilities of the plan are partitioned. 
‘‘(f) SUCCESSOR PLAN.— 
‘‘(1) IN GENERAL.—The plan created by a spe-
cial partition order under this section is a successor 
plan to which section 4022A applies. 
‘‘(2) PLAN SPONSOR AND ADMINISTRATOR.—The 
plan sponsor of an eligible multiemployer plan prior 
to the special partition and the administrator of such 
plan shall be the plan sponsor and the administrator, 
respectively, of the plan created by the partition. 
‘‘(g) FUNDING GOALS.— 
‘‘(1) IN GENERAL.—The funding goals of a mul-
tiemployer plan eligible for partition under this sec-
tion are both of the following: 
‘‘(A) The plan will remain solvent over 30 
years with no reduction in a participant’s or
793 
beneficiary’s accrued benefit (except to the extent 
of a reduction in accordance with section 
305(e)(8) adopted prior to the plan’s application 
for partition under this section). 
‘‘(B) The funded percentage of the plan 
(disregarding partitioned benefits) at the end of 
the 30-year period is projected to be 80 percent. 
‘‘(2) BASIS.—The funding projections under 
paragraph (1) shall be performed on a deterministic 
basis. 
‘‘(h) RESTORATION OF BENEFIT SUSPENSIONS.—An 
eligible multiemployer plan that is partitioned under this 
section shall— 
‘‘(1) reinstate any benefits that were suspended 
under section 305(e)(9) or section 4245(a), effective as 
of the first month the special partition order is effec-
tive, for participants or beneficiaries as of the effec-
tive date of the partition; and 
‘‘(2) provide payments equal to the amount of 
benefits previously suspended to any participants or 
beneficiaries in pay status as of the effective date of 
the special partition, payable in the form of a lump 
sum within 3 months of such effective date or in equal 
monthly installments over a period of 5 years, with 
no adjustment for interest.
794 
‘‘(i) ADJUSTMENT OF SPECIAL PARTITION ASSIST-
ANCE.— 
‘‘(1) IN GENERAL.—Every 5 years, the corpora-
tion shall adjust the special partition assistance de-
scribed in subsection (e) as necessary for the eligible 
multiemployer plan to satisfy the funding goals de-
scribed in subsection (g). If the 30 year period de-
scribed in subsection (g) has lapsed, in applying this 
paragraph, 5 years shall be substituted for 30 years. 
‘‘(2) SUBMISSION OF INFORMATION.—An eligible 
multiemployer plan that is the subject of a special 
partition order under subsection (a) shall submit such 
information as the corporation may require to deter-
mine the amount of the adjustment under paragraph 
(1). 
‘‘(3) CESSATION
OF
ADJUSTMENTS.—Adjust-
ments under this subsection with respect to special 
partition assistance for an eligible multiemployer 
plan shall cease and the corporation shall perma-
nently assume liability for payment of any benefits 
transferred to the successor plan (subject to subsection 
(l)) beginning with the first plan year that the funded 
percentage of the eligible multiemployer plan (dis-
regarding partitioned benefits) is at least 80 percent 
and the plan’s projected funded percentage for each of
795 
the next 10 years is at least 80 percent. Any accumu-
lated funding deficiency of the plan (within the 
meaning of section 304(a)) shall be reduced to zero as 
of the first day of the plan year for which partition 
assistance is permanent under this paragraph. 
‘‘(j) CONDITIONS ON PLANS DURING PARTITION.— 
‘‘(1) IN
GENERAL.—The corporation may im-
pose, by regulation, reasonable conditions on an eligi-
ble multiemployer plan that is partitioned under sec-
tion (a) relating to increases in future accrual rates 
and any retroactive benefit improvements, allocation 
of plan assets, reductions in employer contribution 
rates, diversion of contributions to, and allocation of, 
expenses to other retirement plans, and withdrawal li-
ability. 
‘‘(2) LIMITATIONS.—The corporation shall not 
impose conditions on an eligible multiemployer plan 
as a condition of or following receipt of such parti-
tion assistance under this section relating to— 
‘‘(A) any reduction in plan benefits (includ-
ing benefits that may be adjusted pursuant to 
section 305(e)(8)); 
‘‘(B) plan governance, including selection 
of, removal of, and terms of contracts with, trust-
796 
ees, actuaries, investment managers, and other 
service providers; or 
‘‘(C) any funding rules relating to the plan 
that is partitioned under this section. 
‘‘(3) CONDITION.—An eligible multiemployer 
plan that is partitioned under subsection (a) shall 
continue to pay all premiums due under section 4007 
for participants and beneficiaries in the plan created 
by a special partition order until the plan year be-
ginning after a cessation of adjustments applies 
under subsection (i). 
‘‘(k) WITHDRAWAL LIABILITY.—An employer’s with-
drawal liability for purposes of this title shall be calculated 
taking into account any plan liabilities that are partitioned 
under subsection (a) until the plan year beginning after 
the expiration of 15 calendar years from the effective date 
of the partition. 
‘‘(l) CESSATION
OF PARTITION ASSISTANCE.—If a 
plan that receives partition assistance under this section 
becomes insolvent for purposes of section 418E of the Inter-
nal Revenue Code of 1986, the plan shall no longer be eligi-
ble for assistance under this section and shall be eligible 
for assistance under section 4261. 
‘‘(m) REPORTING.—An eligible multiemployer plan 
that receives partition assistance under this section shall
797 
file with the corporation a report, including the following 
information, in such manner (which may include electronic 
filing requirements) and at such time as the corporation 
requires: 
‘‘(1) The funded percentage (as defined in section 
305(j)(2)) as of the first day of such plan year, and 
the underlying actuarial value of assets and liabilities 
taken into account in determining such percentage. 
‘‘(2) The market value of the assets of the plan 
(determined as provided in paragraph (1)) as of the 
last day of the plan year preceding such plan year. 
‘‘(3) The total value of all contributions made by 
employers and employees during the plan year pre-
ceding such plan year. 
‘‘(4) The total value of all benefits paid during 
the plan year preceding such plan year. 
‘‘(5) Cash flow projections for such plan year 
and the 9 succeeding plan years, and the assumptions 
used in making such projections. 
‘‘(6) Funding standard account projections for 
such plan year and the 9 succeeding plan years, and 
the assumptions relied upon in making such projec-
tions. 
‘‘(7) The total value of all investment gains or 
losses during the plan year preceding such plan year.
798 
‘‘(8) Any significant reduction in the number of 
active participants during the plan year preceding 
such plan year, and the reason for such reduction. 
‘‘(9) A list of employers that withdrew from the 
plan in the plan year preceding such plan year, the 
payment schedule with respect to such withdrawal li-
ability, and the resulting reduction in contributions. 
‘‘(10) A list of employers that paid withdrawal 
liability to the plan during the plan year preceding 
such plan year and, for each employer, a total assess-
ment of the withdrawal liability paid, the annual 
payment amount, and the number of years remaining 
in the payment schedule with respect to such with-
drawal liability. 
‘‘(11) Any material changes to benefits, accrual 
rates, or contribution rates during the plan year pre-
ceding such plan year, and whether such changes re-
late to the conditions of the partition assistance. 
‘‘(12) Details regarding any funding improve-
ment plan or rehabilitation plan and updates to such 
plan. 
‘‘(13) The number of participants and bene-
ficiaries during the plan year preceding such plan 
year who are active participants, the number of par-
ticipants and beneficiaries in pay status, and the
799 
number of terminated vested participants and bene-
ficiaries. 
‘‘(14) The information contained on the most re-
cent annual funding notice submitted by the plan 
under section 101(f). 
‘‘(15) The information contained on the most re-
cent annual return under section 6058 of the Internal 
Revenue Code of 1986 and actuarial report under sec-
tion 6059 of such Code of the plan. 
‘‘(16) Copies of the plan document and amend-
ments, other retirement benefit or ancillary benefit 
plans relating to the plan and contribution obliga-
tions under such plans, a breakdown of administra-
tive expenses of the plan, participant census data and 
distribution of benefits, the most recent actuarial 
valuation report as of the plan year, financial re-
ports, and copies of the portions of collective bar-
gaining agreements relating to plan contributions, 
funding coverage, or benefits, and such other informa-
tion as the corporation may reasonably require. 
Any information disclosed by a plan to the corporation that 
could identify individual employers shall be confidential 
and not subject to publication or disclosure. 
‘‘(n) REPORT TO CONGRESS.—
800 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section and annually 
thereafter, the board of directors of the corporation 
shall submit to the Committee on Health, Education, 
Labor, and Pensions and the Committee on Finance 
of the Senate and the Committee on Education and 
Labor and the Committee on Ways and Means of the 
House of Representatives a detailed report on the im-
plementation and administration of this section. Such 
report shall include— 
‘‘(A) information on the name and number 
of multiemployer plans that have applied for 
partition assistance under this section; 
‘‘(B) the name and number of such plans 
that have been approved for partition assistance 
under this section and the name and number of 
the plans that have not been approved for special 
partition assistance; 
‘‘(C) a detailed rationale for any decision 
by the corporation to not approve an application 
for special partition assistance; 
‘‘(D) the amount of special partition assist-
ance provided to eligible multiemployer plans 
(including amounts provided on an individual 
plan basis and in the aggregate);
801 
‘‘(E) the name and number of the multiem-
ployer plans that restored benefit suspensions 
and provided lump sum or monthly installment 
payments to participants or beneficiaries; 
‘‘(F) the amount of benefits that were re-
stored and lump sum or monthly installment 
payments that were paid (including amounts 
provided on an individual plan basis and in the 
aggregate); 
‘‘(G) the name and number of the plans 
that received adjustments to partition assistance 
under subsection (i); 
‘‘(H) a list of, and rationale for, each rea-
sonable condition imposed by the corporation on 
plans approved for special partition assistance 
under this section; 
‘‘(I) the contracts that have been awarded 
by the corporation to implement or administer 
this section; 
‘‘(J) the number, purpose, and dollar 
amounts of the contracts that have been awarded 
to implement or administer the section; 
‘‘(K) a detailed summary of the reports re-
quired under subsection (m); and
802 
‘‘(L) a detailed summary of the feedback re-
ceived on the pension relief internet website es-
tablished under subsection (p). 
‘‘(2) PBGC CERTIFICATION.—The board of direc-
tors of the corporation shall include with the report 
under paragraph (1) a certification and affirmation 
that the amount of special partition assistance pro-
vided to each plan under this section is the amount 
necessary to meet its funding goals under subsection 
(g), including, if applicable, any adjustment of spe-
cial partition assistance as determined under sub-
section (i). 
‘‘(3) CONFIDENTIALITY.—Congress may publicize 
the reports received under paragraph (1) only after 
redacting all sensitive or proprietary information. 
‘‘(o) GAO REPORT.—Not later than 1 year after the 
first partition application is approved by the corporation 
under this section, and biennially thereafter, the Comp-
troller General of the United States shall submit to the Com-
mittee on Health, Education, Labor, and Pensions and the 
Committee on Finance of the Senate and the Committee on 
Education and Labor and the Committee on Ways and 
Means of the House of Representatives a detailed report on 
the actions of the corporation to implement and administer 
this section, including an examination of the contracts
803 
awarded by such corporation to carry out this section and 
an analysis of such corporation’s compliance with sub-
sections (e) and (g). 
‘‘(p) SPECIAL PARTITION RELIEF WEBSITE.— 
‘‘(1) ESTABLISHMENT.—Not later than 120 days 
after the date of enactment of this section, the cor-
poration shall establish and maintain a user-friendly, 
public-facing internet website to foster greater ac-
countability and transparency in the implementation 
and administration of this section. 
‘‘(2) PURPOSE.—The internet website established 
and maintained under paragraph (1) shall be a por-
tal to key information relating to this section for mul-
tiemployer plan administrators and trustees, plan 
participants, beneficiaries, participating employers, 
other stakeholders, and the public. 
‘‘(3) CONTENT
AND
FUNCTION.—The internet 
website established under paragraph (1) shall— 
‘‘(A) describe the nature and scope of the 
special partition authority and assistance under 
this section in a manner calculated to be under-
stood by the average plan participant; 
‘‘(B) include published guidance, regula-
tions, and all other relevant information on the
804 
implementation and administration of this sec-
tion; 
‘‘(C) include, with respect to plan applica-
tions for special partition assistance— 
‘‘(i) a general description of the process 
by which eligible plans can apply for spe-
cial partition assistance, information on 
how and when the corporation will process 
and consider plan applications; 
‘‘(ii) information on how the corpora-
tion will address any incomplete applica-
tions as specified in under this section; 
‘‘(iii) a list of the plans that have ap-
plied for special partition assistance and, 
for each application, the date of submission 
of a completed application; 
‘‘(iv) the text of each plan’s completed 
application for special partition assistance 
with appropriate redactions of personal, 
proprietary, or sensitive information; 
‘‘(v) the estimated date that a decision 
will be made by the corporation on each ap-
plication; 
‘‘(vi) the actual date when such deci-
sion is made;
805 
‘‘(vii) the corporation’s decision on 
each application; and 
‘‘(viii) as applicable, a detailed ration-
ale for any decision not to approve a plan’s 
application for special partition assistance; 
‘‘(D) provide detailed information on each 
contract solicited and awarded to implement or 
administer this section; 
‘‘(E) include reports, audits, and other rel-
evant oversight and accountability information 
on this section, including the annual reports sub-
mitted by the board of directors of the corpora-
tion to Congress required under subsection (n), 
the Office of the Inspector General audits, cor-
respondence, and publications, and the Govern-
ment Accountability Office reports under sub-
section (o); 
‘‘(F) provide a clear means for multiem-
ployer plan administrators, plan participants, 
beneficiaries, other stakeholders, and the public 
to contact the corporation and provide feedback 
on the implementation and administration of 
this section; and 
‘‘(G) be regularly updated to carry out the 
purposes of this subsection.
806 
‘‘(q) OFFICE OF INSPECTOR GENERAL.—There is au-
thorized to be appropriated to the corporation’s Office of 
Inspector General $24,000,000 for fiscal year 2020, which 
shall remain available through September 30, 2028, for sal-
aries and expenses necessary for conducting investigations 
and audits of the implementation and administration of 
this section. 
‘‘(r) APPLICATION OF EXCISE TAX.—During the pe-
riod that a plan is subject to a partition order under this 
section and prior to a cessation of adjustments pursuant 
to subsection (i)(3), the plan shall not be subject to section 
4971 of the Internal Revenue Code of 1986.’’. 
SEC. 102. REPEAL OF BENEFIT SUSPENSIONS FOR MULTI-
EMPLOYER PLANS IN CRITICAL AND DECLIN-
ING STATUS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Paragraph (9) of section 432(e) of the Internal Rev-
enue Code of 1986 is repealed. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Paragraph (9) of section 305(e) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1085(e)) is repealed. 
(c) EFFECTIVE DATE.—The repeals made by this sec-
tion shall not apply to plans that have been approved for 
a suspension of benefit under section 432(e)(9)(G) of the
807 
Internal Revenue Code of 1986 and section 305(e)(9)(G) of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1085(e)(9)(G)) before the date of the enactment of 
this Act. 
SEC. 103. TEMPORARY DELAY OF DESIGNATION OF MULTI-
EMPLOYER PLANS AS IN ENDANGERED, CRIT-
ICAL, OR CRITICAL AND DECLINING STATUS. 
(a) IN GENERAL.—Notwithstanding the actuarial cer-
tification under section 305(b)(3) of the Employee Retire-
ment Income Security Act of 1974 and section 432(b)(3) 
of the Internal Revenue Code of 1986, if a plan sponsor 
of a multiemployer plan elects the application of this sec-
tion, then, for purposes of section 305 of such Act and sec-
tion 432 of such Code— 
(1) the status of the plan for its first plan year 
beginning during the period beginning on March 1, 
2020, and ending on February 28, 2021, or the next 
succeeding plan year (as designated by the plan spon-
sor in such election), shall be the same as the status 
of such plan under such sections for the plan year 
preceding such designated plan year, and 
(2) in the case of a plan which was in endan-
gered or critical status for the plan year preceding the 
designated plan year described in paragraph (1), the 
plan shall not be required to update its plan or sched-
808 
ules under section 305(c)(6) of such Act and section 
432(c)(6) of such Code, or section 305(e)(3)(B) of such 
Act and section 432(e)(3)(B) of such Code, whichever 
is applicable, until the plan year following the des-
ignated plan year described in paragraph (1). 
If section 305 of the Employee Retirement Income Security 
Act of 1974 and section 432 of the Internal Revenue Code 
of 1986 did not apply to the plan year preceding the des-
ignated plan year described in paragraph (1), the plan ac-
tuary shall make a certification of the status of the plan 
under section 305(b)(3) of such Act and section 432(b)(3) 
of such Code for the preceding plan year in the same man-
ner as if such sections had applied to such preceding plan 
year. 
(b) EXCEPTION FOR PLANS BECOMING CRITICAL DUR-
ING ELECTION.—If— 
(1) an election was made under subsection (a) 
with respect to a multiemployer plan, and 
(2) such plan has, without regard to such elec-
tion, been certified by the plan actuary under section 
305(b)(3) of the Employee Retirement Income Secu-
rity Act of 1974 and section 432(b)(3) of the Internal 
Revenue Code of 1986 to be in critical status for the 
designated plan year described in subsection (a)(1), 
then such plan shall be treated as a plan in critical
809 
status for such plan year for purposes of applying 
section 4971(g)(1)(A) of such Code, section 302(b)(3) 
of such Act (without regard to the second sentence 
thereof), and section 412(b)(3) of such Code (without 
regard to the second sentence thereof). 
(c) ELECTION AND NOTICE.— 
(1) ELECTION.—An election under subsection 
(a)— 
(A) shall be made at such time and in such 
manner as the Secretary of the Treasury or the 
Secretary’s delegate may prescribe and, once 
made, may be revoked only with the consent of 
the Secretary, and 
(B) if made— 
(i) before the date the annual certifi-
cation is submitted to the Secretary or the 
Secretary’s delegate under section 305(b)(3) 
of such Act and section 432(b)(3) of such 
Code, shall be included with such annual 
certification, and 
(ii) after such date, shall be submitted 
to the Secretary or the Secretary’s delegate 
not later than 30 days after the date of the 
election. 
(2) NOTICE TO PARTICIPANTS.—
810 
(A) IN GENERAL.—Notwithstanding section 
305(b)(3)(D) of the Employee Retirement Income 
Security Act of 1974 and section 432(b)(3)(D) of 
the Internal Revenue Code of 1986, if the plan 
is neither in endangered nor critical status by 
reason of an election made under subsection 
(a)— 
(i) the plan sponsor of a multiem-
ployer plan shall not be required to provide 
notice under such sections, and 
(ii) the plan sponsor shall provide to 
the participants and beneficiaries, the bar-
gaining parties, the Pension Benefit Guar-
anty Corporation, and the Secretary of 
Labor a notice of the election under sub-
section (a) and such other information as 
the Secretary of the Treasury (in consulta-
tion with the Secretary of Labor) may re-
quire— 
(I) if the election is made before 
the date the annual certification is 
submitted to the Secretary or the Sec-
retary’s 
delegate 
under 
section 
305(b)(3) of such Act and section 
432(b)(3) of such Code, not later than
811 
30 days after the date of the certifi-
cation, and 
(II) if the election is made after 
such date, not later than 30 days after 
the date of the election. 
(B) NOTICE
OF
ENDANGERED
STATUS.— 
Notwithstanding section 305(b)(3)(D) of such Act 
and section 432(b)(3)(D) of such Code, if the 
plan is certified to be in critical status for any 
plan year but is in endangered status by reason 
of an election made under subsection (a), the no-
tice provided under such sections shall be the no-
tice which would have been provided if the plan 
had been certified to be in endangered status. 
SEC. 104. TEMPORARY EXTENSION OF THE FUNDING IM-
PROVEMENT AND REHABILITATION PERIODS 
FOR MULTIEMPLOYER PENSION PLANS IN 
CRITICAL AND ENDANGERED STATUS FOR 
2020 OR 2021. 
(a) IN GENERAL.—If the plan sponsor of a multiem-
ployer plan which is in endangered or critical status for 
a plan year beginning in 2020 or 2021 (determined after 
application of section 4) elects the application of this sec-
tion, then, for purposes of section 305 of the Employee Re-
812 
tirement Income Security Act of 1974 and section 432 of 
the Internal Revenue Code of 1986— 
(1) except as provided in paragraph (2), the 
plan’s funding improvement period or rehabilitation 
period, whichever is applicable, shall be 15 years 
rather than 10 years, and 
(2) in the case of a plan in seriously endangered 
status, the plan’s funding improvement period shall 
be 20 years rather than 15 years. 
(b) DEFINITIONS AND SPECIAL RULES.—For purposes 
of this section— 
(1) ELECTION.—An election under this section 
shall be made at such time, and in such manner and 
form, as (in consultation with the Secretary of Labor) 
the Secretary of the Treasury or the Secretary’s dele-
gate may prescribe. 
(2) DEFINITIONS.—Any term which is used in 
this section which is also used in section 305 of the 
Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 1986 
shall have the same meaning as when used in such 
sections. 
(c) EFFECTIVE DATE.—This section shall apply to 
plan years beginning after December 31, 2019.
813 
SEC. 105. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT 
RULES. 
(a) ADJUSTMENTS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 304(b)(8) of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1084(b)) is amended by adding at 
the end the following new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A multi-
employer plan with respect to which the solvency 
test under subparagraph (C) is met as of Feb-
ruary 29, 2020, may elect to apply this para-
graph by substituting ‘February 29, 2020’ for 
‘August 31, 2008’ each place it appears in sub-
paragraphs (A)(i), (B)(i)(I), and (B)(i)(II) 
(without regard to whether such plan previously 
elected the application of this paragraph). The 
preceding sentence shall not apply to a plan 
with respect to which a partition order is in ef-
fect under section 4233A.’’. 
(2) AMENDMENT TO INTERNAL REVENUE CODE 
OF 1986.—Section 431(b)(8) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A multi-
employer plan with respect to which the solvency
814 
test under subparagraph (C) is met as of Feb-
ruary 29, 2020, may elect to apply this para-
graph by substituting ‘February 29, 2020’ for 
‘August 31, 2008’ each place it appears in sub-
paragraphs (A)(i), (B)(i)(I), and (B)(i)(II) 
(without regard to whether such plan previously 
elected the application of this paragraph). The 
preceding sentence shall not apply to a plan 
with respect to which a partition order is in ef-
fect under section 4233A of the Employee Retire-
ment Income Security Act of 1974.’’. 
(b) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect as of the first day of the 
first plan year ending on or after February 29, 2020, 
except that any election a plan makes pursuant to 
this section that affects the plan’s funding standard 
account for the first plan year beginning after Feb-
ruary 29, 2020, shall be disregarded for purposes of 
applying the provisions of section 305 of the Em-
ployee Retirement Income Security Act of 1974 and 
section 432 of the Internal Revenue Code of 1986 to 
such plan year. 
(2) RESTRICTIONS
ON
BENEFIT
INCREASES.— 
Notwithstanding paragraph (1), the restrictions on
815 
plan amendments increasing benefits in sections 
304(b)(8)(D) of such Act and 431(b)(8)(D) of such 
Code, as applied by the amendments made by this 
section, shall take effect on the date of enactment of 
this Act. 
SEC. 106. PBGC GUARANTEE FOR PARTICIPANTS IN MULTI-
EMPLOYER PLANS. 
Section 4022A(c)(1) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1322a(c)(1)) is 
amended by striking subparagraphs (A) and (B) and in-
serting the following: 
‘‘(A) 100 percent of the accrual rate up to 
$15, plus 75 percent of the lesser of— 
‘‘(i) $70; or 
‘‘(ii) the accrual rate, if any, in excess 
of $15; and 
‘‘(B) the number of the participant’s years 
of credited service. 
For each calendar year after the first full calendar 
year following the date of the enactment of the Emer-
gency Pension Plan Relief Act, the accrual rates in 
subparagraph (A) shall increase by the national aver-
age wage index (as defined in section 209(k)(1) of the 
Social Security Act). For purposes of this subsection, 
the rates applicable for determining the guaranteed
816 
benefits of the participants of any plan shall be the 
rates in effect for the calendar year in which the plan 
becomes insolvent under section 4245 or the calendar 
year in which the plan is terminated, if earlier.’’. 
TITLE II—RELIEF FOR SINGLE 
EMPLOYER PENSION PLANS 
SEC. 201. EXTENDED AMORTIZATION FOR SINGLE EM-
PLOYER PLANS. 
(a) 15-YEAR AMORTIZATION UNDER THE INTERNAL 
REVENUE CODE OF 1986.—Section 430(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(8) 15-YEAR AMORTIZATION.—With respect to 
plan years beginning after December 31, 2019— 
‘‘(A) the shortfall amortization bases for all 
plan years preceding the first plan year begin-
ning after December 31, 2019 (and all shortfall 
amortization installments determined with re-
spect to such bases) shall be reduced to zero, and 
‘‘(B) subparagraphs (A) and (B) of para-
graph (2) shall each be applied by substituting 
‘15-plan-year period’ for ‘7-plan-year period’.’’. 
(b) 15-YEAR AMORTIZATION UNDER THE EMPLOYEE 
RETIREMENT INCOME SECURITY ACT OF 1974.—Section 
303(c) of the Employee Retirement Income Security Act of
817 
1974 (29 U.S.C. 1083(c)) is amended by adding at the end 
the following new paragraph: 
‘‘(8) 15-YEAR AMORTIZATION.—With respect to 
plan years beginning after December 31, 2019— 
‘‘(A) the shortfall amortization bases for all 
plan years preceding the first plan year begin-
ning after December 31, 2019 (and all shortfall 
amortization installments determined with re-
spect to such bases) shall be reduced to zero, and 
‘‘(B) subparagraphs (A) and (B) of para-
graph (2) shall each be applied by substituting 
‘15-plan-year period’ for ‘7-plan-year period’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2019. 
SEC. 202. EXTENSION OF PENSION FUNDING STABILIZA-
TION PERCENTAGES FOR SINGLE EMPLOYER 
PLANS. 
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 430(h)(2)(C)(iv) of the Internal 
Revenue Code of 1986 is amended to read as follows:
818 
‘‘If the calendar year is: 
The appli-
cable min-
imum per-
centage is: 
The appli-
cable max-
imum per-
centage is: 
Any year in the period starting in 2012 and ending 
in 2019 ........................................................................
90% 
110%
Any year in the period starting in 2020 and ending 
in 2025 ........................................................................
95% 
105%
2026 .................................................................................
90% 
110%
2027 .................................................................................
85% 
115%
2028 .................................................................................
80% 
120%
2029 .................................................................................
75% 
125%
After 2029 .......................................................................
70% 
130%.’’. 
(2) FLOOR
ON
25-YEAR
AVERAGES.—Subclause 
(I) of section 430(h)(2)(C)(iv) of such Code is amend-
ed by adding at the end the following: ‘‘Notwith-
standing anything in this subclause, if the average of 
the first, second, or third segment rate for any 25- 
year period is less than 5 percent, such average shall 
be deemed to be 5 percent.’’. 
(b) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 303(h)(2)(C)(iv) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1083(h)(2)(C)(iv)(II)) is amended to read as follows: 
‘‘If the calendar year is: 
The appli-
cable min-
imum per-
centage is: 
The appli-
cable max-
imum per-
centage is: 
Any year in the period starting in 2012 and ending 
in 2019 ........................................................................
90% 
110%
Any year in the period starting in 2020 and ending 
in 2025 ........................................................................
95% 
105%
2026 .................................................................................
90% 
110%
2027 .................................................................................
85% 
115%
819 
‘‘If the calendar year is: 
The appli-
cable min-
imum per-
centage is: 
The appli-
cable max-
imum per-
centage is: 
2028 .................................................................................
80% 
120%
2029 .................................................................................
75% 
125%
After 2029 .......................................................................
70% 
130%.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) IN GENERAL.—Section 101(f)(2)(D) of 
such Act (29 U.S.C. 1021(f)(2)(D)) is amend-
ed— 
(i) in clause (i) by striking ‘‘and the 
Bipartisan Budget Act of 2015’’ both places 
it appears and inserting ‘‘, the Bipartisan 
Budget Act of 2015, and the Emergency 
Pension Plan Relief Act’’, and 
(ii) in clause (ii) by striking ‘‘2023’’ 
and inserting ‘‘2029’’. 
(B) STATEMENTS.—The Secretary of Labor 
shall modify the statements required under sub-
clauses (I) and (II) of section 101(f)(2)(D)(i) of 
such Act to conform to the amendments made by 
this section. 
(3) FLOOR
ON
25-YEAR
AVERAGES.—Subclause 
(I) of section 303(h)(2)(C)(iv) of such Act (29 U.S.C. 
1083(h)(2)(C)(iv)(II)) is amended by adding at the 
end the following: ‘‘Notwithstanding anything in this 
subclause, if the average of the first, second, or third
820 
segment rate for any 25-year period is less than 5 
percent, such average shall be deemed to be 5 per-
cent.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to plan years beginning 
after December 31, 2019. 
TITLE III—OTHER RETIREMENT 
RELATED PROVISIONS 
SEC. 301. WAIVER OF REQUIRED MINIMUM DISTRIBUTIONS 
FOR 2019. 
(a) IN GENERAL.—Section 401(a)(9)(I)(i) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘calendar 
year 2020’’ and inserting ‘‘calendar years 2019 and 2020’’. 
(b) ELIGIBLE ROLLOVER DISTRIBUTIONS.—Section 
402(c)(4) of such Code is amended by striking ‘‘2020’’ each 
place it appears in the last sentence and inserting ‘‘2019 
or 2020’’. 
(c) CONFORMING AMENDMENTS.—Section 401(a)(9)(I) 
of such Code is amended— 
(1) by striking clause (ii) and redesignating 
clause (iii) as clause (ii), and 
(2) by striking ‘‘calendar year 2020’’ in clause 
(ii)(II), as so redesignated, and inserting ‘‘calendar 
years 2019 and 2020’’.
821 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the enactment of 
section 2203 of the Coronavirus Aid, Relief, and Economic 
Security Act, except that subparagraph (c)(1) thereof shall 
be applied by substituting ‘‘December 31, 2018’’ for ‘‘De-
cember 31, 2019’’. 
SEC. 302. WAIVER OF 60-DAY RULE IN CASE OF ROLLOVER 
OF OTHERWISE REQUIRED MINIMUM DIS-
TRIBUTIONS IN 2019 OR 2020. 
(a) QUALIFIED TRUSTS.—402(c)(3) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(D) EXCEPTION FOR ROLLOVER OF OTHER-
WISE
REQUIRED
MINIMUM
DISTRIBUTIONS
IN 
2019 OR 2020.—In the case of an eligible roll-
over distribution described in the second sentence 
of paragraph (4), subparagraph (A) shall not 
apply to any transfer of such distribution made 
before December 1, 2020.’’. 
(b) INDIVIDUAL RETIREMENT ACCOUNTS.—Section 
408(d)(3) of such Code is amended by adding at the end 
the following new subparagraph: 
‘‘(J) WAIVER OF 60-DAY RULE AND ONCE 
PER-YEAR LIMITATION FOR CERTAIN 2019 AND 
2020 ROLLOVERS.—In the case of a distribution
822 
during 2019 or 2020 to which, under subpara-
graph (E), this paragraph would not have ap-
plied had the minimum distribution require-
ments of section 401(a)(9) applied during such 
years, the 60-day requirement under subpara-
graph (A) and the limitation under subpara-
graph (B) shall not apply to such distribution to 
the extent the amount is paid into an individual 
retirement account, individual retirement annu-
ity (other than an endowment contract), or eligi-
ble retirement plan (as defined in subparagraph 
(A)) as otherwise required under such subpara-
graph before December 1, 2020.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2018. 
SEC. 303. EXCLUSION OF BENEFITS PROVIDED TO VOLUN-
TEER FIREFIGHTERS AND EMERGENCY MED-
ICAL RESPONDERS MADE PERMANENT. 
(a) IN GENERAL.—Section 139B of the Internal Rev-
enue Code of 1986 is amended by striking subsection (d). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020.
823 
SEC. 304. APPLICATION OF SPECIAL RULES TO MONEY PUR-
CHASE PENSION PLANS. 
Section 2202(a)(6)(B) of the Coronavirus Aid, Relief, 
and Economic Security Act is amended by inserting ‘‘, and, 
in the case of a money purchase pension plan, a 
coronavirus-related distribution which is an in-service 
withdrawal shall be treated as meeting the distribution 
rules of section 401(a) of such Code’’ before the period. 
SEC. 305. GRANTS TO ASSIST LOW-INCOME WOMEN AND 
SURVIVORS OF DOMESTIC VIOLENCE IN OB-
TAINING QUALIFIED DOMESTIC RELATIONS 
ORDERS. 
(a) AUTHORIZATION OF GRANT AWARDS.—The Sec-
retary of Labor, acting through the Director of the Women’s 
Bureau and in conjunction with the Assistant Secretary of 
the Employee Benefits Security Administration, shall 
award grants, on a competitive basis, to eligible entities to 
enable such entities to assist low-income women and sur-
vivors of domestic violence in obtaining qualified domestic 
relations orders and ensuring that those women actually ob-
tain the benefits to which they are entitled through those 
orders. 
(b) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘‘eligible entity’’ means a community-based 
organization with proven experience and expertise in serv-
824 
ing women and the financial and retirement needs of 
women. 
(c) APPLICATION.—An eligible entity that desires to re-
ceive a grant under this section shall submit an application 
to the Secretary of Labor at such time, in such manner, 
and accompanied by such information as the Secretary of 
Labor may require. 
(d) MINIMUM GRANT AMOUNT.—The Secretary of 
Labor shall award grants under this section in amounts 
of not less than $250,000. 
(e) USE OF FUNDS.—An eligible entity that receives 
a grant under this section shall use the grant funds to de-
velop programs to offer help to low-income women or sur-
vivors of domestic violence who need assistance in pre-
paring, obtaining, and effectuating a qualified domestic re-
lations order. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$100,000,000 for fiscal year 2020 and each succeeding fiscal 
year. 
SEC. 306. MODIFICATION OF SPECIAL RULES FOR MINIMUM 
FUNDING 
STANDARDS 
FOR 
COMMUNITY 
NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Subsection (m) of section 430 of the Internal Rev-
825 
enue Code of 1986, as added by the Setting Every Commu-
nity Up for Retirement Enhancement Act of 2019, is 
amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE
NEWSPAPER
PLAN
SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means the 
plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all
826 
subsequent plan years unless revoked with the consent 
of the Secretary. 
‘‘(4) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this
827 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
spect to any day, a yield curve which shall 
be prescribed by the Secretary for such day 
on interest-bearing obligations of the United 
States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)).
828 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means any plan to which this 
section applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any time
829 
during the 11-year period ending on the 
date of the enactment of this subsection, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly or indi-
rectly, during the entire 30-year period end-
ing on the date of the enactment of this sub-
section by individuals who are members of 
the same family, and does not publish or 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on the date of the enact-
830 
ment of this subsection by individuals 
who are members of the same family, 
‘‘(III) by 1 or more trusts, the sole 
trustees of which are persons described 
in subclause (I) or (II), or 
‘‘(IV) by a combination of persons 
described in subclause (I), (II), or 
(III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation. 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly pub-
lished on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
831 
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(6) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 as of the date of 
the enactment of this subsection.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Subsection (m) of section 303 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1083(m)), as added by the Setting Every Commu-
nity Up for Retirement Enhancement Act of 2019, is 
amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan.
832 
‘‘(2) ELIGIBLE
NEWSPAPER
PLAN
SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means the 
plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury. 
‘‘(4) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent.
833 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
spect to any day, a yield curve which shall 
be prescribed by the Secretary of the Treas-
ury for such day on interest-bearing obliga-
tions of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year
834 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies.
835 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any time 
during the 11-year period ending on the 
date of the enactment of this subsection, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly, or indi-
rectly, during the entire 30-year period end-
ing on the date of the enactment of this sub-
section by individuals who are members of 
the same family, and does not publish or
836 
distribute a daily newspaper that is car-
rier-distributed in printed form in more 
than 5 States, and 
‘‘(iii) is controlled, directly, or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on the date of the enact-
ment of this subsection by individuals 
who are members of the same family, 
‘‘(III) by 1 or more trusts, the sole 
trustees of which are persons described 
in subclause (I) or (II), or 
‘‘(IV) by a combination of persons 
described in subclause (I), (II), or 
(III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation.
837 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly pub-
lished on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(6) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 of the Internal Rev-
enue Code of 1986 as of the date of the enactment of 
this subsection. 
‘‘(7) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—Notwithstanding any other provision of law 
or any regulation issued by the Pension Benefit 
Guaranty Corporation, in the case of a plan for
838 
which an election is made to apply the alternative 
standards described in paragraph (3), the additional 
premium under section 4006(a)(3)(E) shall be deter-
mined as if such election had not been made.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years ending after December 31, 
2017. 
SEC. 307. MINIMUM RATE OF INTEREST FOR CERTAIN DE-
TERMINATIONS RELATED TO LIFE INSUR-
ANCE CONTRACTS. 
(a) MODIFICATION OF MINIMUM RATE FOR PURPOSES 
OF CASH VALUE ACCUMULATION TEST.— 
(1) IN GENERAL.—Section 7702(b)(2)(A) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘an annual effective rate of 4 percent’’ and in-
serting ‘‘the applicable accumulation test minimum 
rate’’. 
(2) APPLICABLE ACCUMULATION TEST MINIMUM 
RATE.—Section 7702(b) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(3) APPLICABLE ACCUMULATION TEST MINIMUM 
RATE.—For purposes of paragraph (2)(A), the term 
‘applicable accumulation test minimum rate’ means 
the lesser of—
839 
‘‘(A) an annual effective rate of 4 percent, 
or 
‘‘(B) the insurance interest rate (as defined 
in subsection (f)(11)) in effect at the time the 
contract is issued.’’. 
(b) MODIFICATION OF MINIMUM RATE FOR PURPOSES 
OF GUIDELINE PREMIUM REQUIREMENTS.— 
(1) IN GENERAL.—Section 7702(c)(3)(B)(iii) of 
such Code is amended by striking ‘‘an annual effec-
tive rate of 6 percent’’ and inserting ‘‘the applicable 
guideline premium minimum rate’’. 
(2) APPLICABLE GUIDELINE PREMIUM MINIMUM 
RATE.—Section 7702(c)(3) of such Code is amended 
by adding at the end the following new subparagraph: 
‘‘(E) APPLICABLE
GUIDELINE
PREMIUM 
MINIMUM RATE.—For purposes of subparagraph 
(B)(iii), the term ‘applicable guideline premium 
minimum rate’ means the applicable accumula-
tion test minimum rate (as defined in subsection 
(b)(3)) plus 2 percentage points.’’. 
(c) APPLICATION OF MODIFIED MINIMUM RATES TO 
DETERMINATION OF GUIDELINE LEVEL PREMIUM.—Sec-
tion 7702(c)(4) of such Code is amended— 
(1) by striking ‘‘4 percent’’ and inserting ‘‘the 
applicable accumulation test minimum rate’’, and
840 
(2) by striking ‘‘6 percent’’ and inserting ‘‘the 
applicable guideline premium minimum rate’’. 
(d) INSURANCE INTEREST RATE.—Section 7702(f) of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(11) INSURANCE
INTEREST
RATE.—For pur-
poses of this section— 
‘‘(A) IN GENERAL.—The term ‘insurance in-
terest rate’ means, with respect to any contract 
issued in any calendar year, the lesser of— 
‘‘(i) the section 7702 valuation interest 
rate for such calendar year (or, if such cal-
endar year is not an adjustment year, the 
most recent adjustment year), or 
‘‘(ii) the section 7702 applicable Fed-
eral interest rate for such calendar year (or, 
if such calendar year is not an adjustment 
year, the most recent adjustment year). 
‘‘(B) SECTION
7702
VALUATION
INTEREST 
RATE.—The term ‘section 7702 valuation interest 
rate’ means, with respect to any adjustment 
year, the prescribed U.S. valuation interest rate 
for life insurance with guaranteed durations of 
more than 20 years (as defined in the National 
Association of Insurance Commissioners’ Stand-
841 
ard Valuation Law) as effective in the calendar 
year immediately preceding such adjustment 
year. 
‘‘(C) SECTION
7702
APPLICABLE
FEDERAL 
INTEREST RATE.—The term ‘section 7702 appli-
cable Federal interest rate’ means, with respect 
to any adjustment year, the average (rounded to 
the nearest whole percentage point) of the appli-
cable Federal mid-term rates (as defined in sec-
tion 1274(d) but based on annual compounding) 
effective as of the beginning of each of the cal-
endar months in the most recent 60-month pe-
riod ending before the second calendar year prior 
to such adjustment year. 
‘‘(D) ADJUSTMENT
YEAR.—The term ‘ad-
justment year’ means the calendar year following 
any calendar year that includes the effective date 
of a change in the prescribed U.S. valuation in-
terest rate for life insurance with guaranteed du-
rations of more than 20 years (as defined in the 
National Association of Insurance Commis-
sioners’ Standard Valuation Law). 
‘‘(E) TRANSITION RULE.—Notwithstanding 
subparagraph (A), the insurance interest rate
842 
shall be 2 percent in the case of any contract 
which is issued during the period that— 
‘‘(i) begins on January 1, 2021, and 
‘‘(ii) ends immediately before the be-
ginning of the first adjustment year that 
beings after December 31, 2021.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contracts issued after December 31, 
2020. 
DIVISION 
H—GIVING 
RETIRE-
MENT OPTIONS TO WORKERS 
ACT 
SEC. 101. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Giving Retirement Options to Workers Act of 2020’’ or the 
‘‘GROW Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 101. Short title, etc. 
Sec. 102. Composite plans. 
Sec. 103. Application of certain requirements to composite plans. 
Sec. 104. Treatment of composite plans under title IV. 
Sec. 105. Conforming changes. 
Sec. 106. Effective date. 
SEC. 102. COMPOSITE PLANS. 
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—
843 
(1) IN GENERAL.—Title I of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1001 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘PART 8—COMPOSITE PLANS AND LEGACY PLANS 
‘‘SEC. 801. COMPOSITE PLAN DEFINED. 
‘‘(a) IN GENERAL.—For purposes of this Act, the term 
‘composite plan’ means a pension plan— 
‘‘(1) which is a multiemployer plan that is nei-
ther a defined benefit plan nor a defined contribution 
plan; 
‘‘(2) the terms of which provide that the plan is 
a composite plan for purposes of this title with re-
spect to which not more than one multiemployer de-
fined benefit plan is treated as a legacy plan within 
the meaning of section 805, unless there is more than 
one legacy plan following a merger of composite plans 
under section 806; 
‘‘(3) which provides systematically for the pay-
ment of benefits— 
‘‘(A) objectively calculated pursuant to a 
formula enumerated in the plan document with 
respect to plan participants after retirement, for 
life; and
844 
‘‘(B) in the form of life annuities, except for 
benefits which under section 203(e) may be im-
mediately distributed without the consent of the 
participant; 
‘‘(4) for which the plan contributions for the first 
plan year are at least 120 percent of the normal cost 
for the plan year; 
‘‘(5) which requires— 
‘‘(A) an annual valuation of the liability of 
the plan as of a date within the plan year to 
which the valuation refers or within one month 
prior to the beginning of such year; 
‘‘(B) an annual actuarial determination of 
the plan’s current funded ratio and projected 
funded ratio under section 802(a); 
‘‘(C) corrective action through a realign-
ment program pursuant to section 803 whenever 
the plan’s projected funded ratio is below 120 
percent for the plan year; and 
‘‘(D) an annual notification to each partici-
pant describing the participant’s benefits under 
the plan and explaining that such benefits may 
be subject to reduction under a realignment pro-
gram pursuant to section 803 based on the plan’s 
funded status in future plan years; and
845 
‘‘(6) the board of trustees of which includes at 
least one retiree or beneficiary in pay status during 
each plan year following the first plan year in which 
at least 5 percent of the participants in the plan are 
retirees or beneficiaries in pay status. 
‘‘(b) TRANSITION FROM A MULTIEMPLOYER DEFINED 
BENEFIT PLAN.— 
‘‘(1) IN GENERAL.—The plan sponsor of a de-
fined benefit plan that is a multiemployer plan may, 
subject to paragraph (2), amend the plan to incor-
porate the features of a composite plan as a compo-
nent of the multiemployer plan separate from the de-
fined benefit plan component, except in the case of a 
defined benefit plan for which the plan actuary has 
certified under section 305(b)(3) that the plan is or 
will be in critical status for the plan year in which 
such amendment would become effective or for any of 
the succeeding 5 plan years. 
‘‘(2) REQUIREMENTS.—Any amendment pursu-
ant to paragraph (1) to incorporate the features of a 
composite plan as a component of a multiemployer 
plan shall— 
‘‘(A) apply with respect to all collective bar-
gaining agreements providing for contributions
846 
to the multiemployer plan on or after the effec-
tive date of the amendment; 
‘‘(B) apply with respect to all participants 
in the multiemployer plan for whom contribu-
tions are made to the multiemployer plan on or 
after the effective date of the amendment; 
‘‘(C) specify that the effective date of the 
amendment is— 
‘‘(i) the first day of a specified plan 
year following the date of the adoption of 
the amendment, except that the plan spon-
sor may alternatively provide for a separate 
effective date with respect to each collective 
bargaining agreement under which con-
tributions to the multiemployer plan are re-
quired, which shall occur on the first day of 
the first plan year beginning after the ter-
mination, or if earlier, the re-opening, of 
each such agreement, or such earlier date as 
the parties to the agreement and the plan 
sponsor of the multiemployer plan shall 
agree to; and 
‘‘(ii) not later than the first day of the 
fifth plan year beginning on or after the 
date of the adoption of the amendment;
847 
‘‘(D) specify that, as of the amendment’s ef-
fective date, no further benefits shall accrue 
under the defined benefit component of the multi-
employer plan; and 
‘‘(E) specify that, as of the amendment’s ef-
fective date, the plan sponsor of the multiem-
ployer plan shall be the plan sponsor of both the 
composite plan component and the defined ben-
efit plan component of the plan. 
‘‘(3) SPECIAL RULES.—If a multiemployer plan 
is amended pursuant to paragraph (1)— 
‘‘(A) the requirements of this title and title 
IV shall be applied to the composite plan compo-
nent and the defined benefit plan component of 
the multiemployer plan as if each such compo-
nent were maintained as a separate plan; and 
‘‘(B) the assets of the composite plan compo-
nent and the defined benefit plan component of 
the plan shall be held in a single trust forming 
part of the plan under which the trust instru-
ment expressly provides— 
‘‘(i) for separate accounts (and appro-
priate records) to be maintained to reflect 
the interest which each of the plan compo-
nents has in the trust, including separate
848 
accounting for additions to the trust for the 
benefit of each plan component, disburse-
ments made from each plan component’s ac-
count in the trust, investment experience of 
the trust allocable to that account, and ad-
ministrative expenses (whether direct ex-
penses or shared expenses allocated propor-
tionally), and permits, but does not require, 
the pooling of some or all of the assets of the 
two plan components for investment pur-
poses; and 
‘‘(ii) that the assets of each of the two 
plan components shall be held, invested, re-
invested, managed, administered and dis-
tributed for the exclusive benefit of the par-
ticipants and beneficiaries of each such 
plan component, and in no event shall the 
assets of one of the plan components be 
available to pay benefits due under the 
other plan component. 
‘‘(4) NOT
A
TERMINATION
EVENT.—Notwith-
standing section 4041A, an amendment pursuant to 
paragraph (1) to incorporate the features of a com-
posite plan as a component of a multiemployer plan
849 
does not constitute termination of the multiemployer 
plan. 
‘‘(5) NOTICE TO THE SECRETARY.— 
‘‘(A) NOTICE.—The plan sponsor of a com-
posite plan shall provide notice to the Secretary 
of the intent to establish the composite plan (or, 
in the case of a composite plan incorporated as 
a component of a multiemployer plan as de-
scribed in paragraph (1), the intent to amend 
the multiemployer plan to incorporate such com-
posite plan) at least 30 days prior to the effective 
date of such establishment or amendment. 
‘‘(B) CERTIFICATION.—In the case of a 
composite plan incorporated as a component of 
a multiemployer plan as described in paragraph 
(1), such notice shall include a certification by 
the plan actuary under section 305(b)(3) that the 
effective date of the amendment occurs in a plan 
year for which the multiemployer plan is not in 
critical status for that plan year and any of the 
succeeding 5 plan years. 
‘‘(6) REFERENCES TO COMPOSITE PLAN COMPO-
NENT.—As used in this part, the term ‘composite 
plan’ includes a composite plan component added to 
a defined benefit plan pursuant to paragraph (1).
850 
‘‘(7) 
RULE
OF
CONSTRUCTION.—Paragraph 
(2)(A) shall not be construed as preventing the plan 
sponsor of a multiemployer plan from adopting an 
amendment pursuant to paragraph (1) because some 
collective bargaining agreements are amended to cease 
any covered employer’s obligation to contribute to the 
multiemployer plan before or after the plan amend-
ment is effective. Paragraph (2)(B) shall not be con-
strued as preventing the plan sponsor of a multiem-
ployer plan from adopting an amendment pursuant 
to paragraph (1) because some participants cease to 
have contributions made to the multiemployer plan 
on their behalf before or after the plan amendment is 
effective. 
‘‘(c) COORDINATION WITH FUNDING RULES.—Except 
as otherwise provided in this title, sections 302, 304, and 
305 shall not apply to a composite plan. 
‘‘(d) TREATMENT OF A COMPOSITE PLAN.—For pur-
poses of this Act (other than sections 302 and 4245), a com-
posite plan shall be treated as if it were a defined benefit 
plan unless a different treatment is provided for under ap-
plicable law. 
‘‘SEC. 802. FUNDED RATIOS; ACTUARIAL ASSUMPTIONS. 
‘‘(a) CERTIFICATION OF FUNDED RATIOS.—
851 
‘‘(1) IN GENERAL.—Not later than the one-hun-
dred twentieth day of each plan year of a composite 
plan, the plan actuary of the composite plan shall 
certify to the Secretary, the Secretary of the Treasury, 
and the plan sponsor the plan’s current funded ratio 
and projected funded ratio for the plan year. 
‘‘(2) DETERMINATION
OF
CURRENT
FUNDED 
RATIO
AND
PROJECTED
FUNDED
RATIO.—For pur-
poses of this section: 
‘‘(A) CURRENT FUNDED RATIO.—The cur-
rent funded ratio is the ratio (expressed as a 
percentage) of— 
‘‘(i) the value of the plan’s assets as of 
the first day of the plan year; to 
‘‘(ii) the plan actuary’s best estimate of 
the present value of the plan liabilities as of 
the first day of the plan year. 
‘‘(B) PROJECTED FUNDED RATIO.—The pro-
jected funded ratio is the current funded ratio 
projected to the first day of the fifteenth plan 
year following the plan year for which the deter-
mination is being made. 
‘‘(3) CONSIDERATION
OF
CONTRIBUTION
RATE 
INCREASES.—For purposes of projections under this 
subsection, the plan sponsor may anticipate contribu-
852 
tion rate increases beyond the term of the current col-
lective bargaining agreement and any agreed-to sup-
plements, up to a maximum of 2.5 percent per year, 
compounded annually, unless it would be unreason-
able under the circumstances to assume that contribu-
tions would increase by that amount. 
‘‘(b) ACTUARIAL ASSUMPTIONS AND METHODS.—For 
purposes of this part: 
‘‘(1) IN GENERAL.—All costs, liabilities, rates of 
interest and other factors under the plan shall be de-
termined for a plan year on the basis of actuarial as-
sumptions and methods— 
‘‘(A) each of which is reasonable (taking 
into account the experience of the plan and rea-
sonable expectations); 
‘‘(B) which, in combination, offer the actu-
ary’s best estimate of anticipated experience 
under the plan; and 
‘‘(C) with respect to which any change from 
the actuarial assumptions and methods used in 
the previous plan year shall be certified by the 
plan actuary and the actuarial rationale for 
such change provided in the annual report re-
quired by section 103.
853 
‘‘(2) FAIR
MARKET
VALUE
OF
ASSETS.—The 
value of the plan’s assets shall be taken into account 
on the basis of their fair market value. 
‘‘(3) DETERMINATION
OF
NORMAL
COST
AND 
PLAN LIABILITIES.—A plan’s normal cost and liabil-
ities shall be based on the most recent actuarial valu-
ation required under section 801(a)(5)(A) and the 
unit credit funding method. 
‘‘(4) TIME
WHEN
CERTAIN
CONTRIBUTIONS 
DEEMED MADE.—Any contributions for a plan year 
made by an employer after the last day of such plan 
year, but not later than two and one-half months 
after such day, shall be deemed to have been made on 
such last day. For purposes of this paragraph, such 
two and one-half month period may be extended for 
not more than six months under regulations pre-
scribed by the Secretary of the Treasury. 
‘‘(5) ADDITIONAL
ACTUARIAL
ASSUMPTIONS.— 
Except where otherwise provided in this part, the pro-
visions of section 305(b)(3)(B) shall apply to any de-
termination or projection under this part. 
‘‘SEC. 803. REALIGNMENT PROGRAM. 
‘‘(a) REALIGNMENT PROGRAM.— 
‘‘(1) ADOPTION.—In any case in which the plan 
actuary certifies under section 802(a) that the plan’s
854 
projected funded ratio is below 120 percent for the 
plan year, the plan sponsor shall adopt a realignment 
program under paragraph (2) not later than 210 
days after the due date of the certification required 
under such section 802(a). The plan sponsor shall 
adopt an updated realignment program for each suc-
ceeding plan year for which a certification described 
in the preceding sentence is made. 
‘‘(2) CONTENT OF REALIGNMENT PROGRAM.— 
‘‘(A) IN GENERAL.—A realignment program 
adopted under this paragraph is a written pro-
gram which consists of all reasonable measures, 
including options or a range of options to be un-
dertaken by the plan sponsor or proposed to the 
bargaining parties, formulated, based on reason-
ably anticipated experience and reasonable actu-
arial assumptions, to enable the plan to achieve 
a projected funded ratio of at least 120 percent 
for the following plan year. 
‘‘(B) INITIAL
PROGRAM
ELEMENTS.—Rea-
sonable measures under a realignment program 
described in subparagraph (A) may include any 
of the following: 
‘‘(i) Proposed contribution increases.
855 
‘‘(ii) A reduction in the rate of future 
benefit accruals, so long as the resulting 
rate is not less than 1 percent of the con-
tributions on which benefits are based as of 
the start of the plan year (or the equivalent 
standard accrual rate as described in sec-
tion 305(e)(6)). 
‘‘(iii) A modification or elimination of 
adjustable benefits of participants that are 
not in pay status before the date of the no-
tice required under subsection (b)(1). 
‘‘(iv) Any other lawfully available 
measures not specifically described in this 
subparagraph or subparagraph (C) or (D) 
that the plan sponsor determines are rea-
sonable. 
‘‘(C) ADDITIONAL PROGRAM ELEMENTS.—If 
the plan sponsor has determined that all reason-
able measures available under subparagraph (B) 
will not enable the plan to achieve a projected 
funded ratio of at least 120 percent for the fol-
lowing plan year, such reasonable measures may 
also include—
856 
‘‘(i) a reduction of accrued benefits 
that are not in pay status by the date of the 
notice required under subsection (b)(1); or 
‘‘(ii) a reduction of any benefits of 
participants that are in pay status before 
the date of the notice required under sub-
section (b)(1) other than core benefits as de-
fined in paragraph (4). 
‘‘(D) ADDITIONAL
REDUCTIONS.—In the 
case of a composite plan for which the plan 
sponsor has determined that all reasonable meas-
ures available under subparagraphs (B) and (C) 
will not enable the plan to achieve a projected 
funded ratio of at least 120 percent for the fol-
lowing plan year, such reasonable measures may 
also include— 
‘‘(i) a further reduction in the rate of 
future benefit accruals without regard to the 
limitation applicable under subparagraph 
(B)(ii); or 
‘‘(ii) a reduction of core benefits; 
provided that such reductions shall be equitably 
distributed across the participant and bene-
ficiary population, taking into account factors, 
with respect to participants and beneficiaries
857 
and their benefits, that may include one or more 
of the factors listed in subclauses (I) through (X) 
of section 305(e)(9)(D)(vi), to the extent nec-
essary to enable the plan to achieve a projected 
funded ratio of at least 120 percent for the fol-
lowing plan year, or at the election of the plan 
sponsor, a projected funded ratio of at least 100 
percent for the following plan year and a current 
funded ratio of at least 90 percent. 
‘‘(3) ADJUSTABLE BENEFIT DEFINED.—For pur-
poses of this part, the term ‘adjustable benefit’ 
means— 
‘‘(A) benefits, rights, and features under the 
plan, including post-retirement death benefits, 
60-month guarantees, disability benefits not yet 
in pay status, and similar benefits; 
‘‘(B) any early retirement benefit or retire-
ment-type subsidy (within the meaning of sec-
tion 204(g)(2)(A)) and any benefit payment op-
tion (other than the qualified joint and survivor 
annuity); and 
‘‘(C) benefit increases that were adopted (or, 
if later, took effect) less than 60 months before 
the first day such realignment program took ef-
fect.
858 
‘‘(4) CORE BENEFIT DEFINED.—For purposes of 
this part, the term ‘core benefit’ means a partici-
pant’s accrued benefit payable in the normal form of 
an annuity commencing at normal retirement age, 
determined without regard to— 
‘‘(A) any early retirement benefits, retire-
ment-type subsidies, or other benefits, rights, or 
features that may be associated with that benefit; 
and 
‘‘(B) any cost-of-living adjustments or ben-
efit increases effective after the date of retire-
ment. 
‘‘(5) COORDINATION
WITH
CONTRIBUTION
IN-
CREASES.— 
‘‘(A) IN GENERAL.—A realignment program 
may provide that some or all of the benefit modi-
fications described in the program will only take 
effect if the bargaining parties fail to agree to 
specified levels of increases in contributions to 
the plan, effective as of specified dates. 
‘‘(B) INDEPENDENT
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that are inde-
pendent of potential contribution increases, such 
changes shall take effect not later than 180 days
859 
after the first day of the first plan year that be-
gins following the adoption of the realignment 
program. 
‘‘(C) 
CONDITIONAL
BENEFIT
MODIFICA-
TIONS.—If a realignment program adopts any 
changes to the benefit formula that take effect 
only if the bargaining parties fail to agree to 
contribution increases, such changes shall take ef-
fect not later than the first day of the first plan 
year beginning after the third anniversary of the 
date of adoption of the realignment program. 
‘‘(D) REVOCATION
OF
CERTAIN
BENEFIT 
MODIFICATIONS.—Benefit 
modifications 
de-
scribed in subparagraph (C) may be revoked, in 
whole or in part, and retroactively or prospec-
tively, when contributions to the plan are in-
creased, as specified in the realignment program, 
including any amendments thereto. The pre-
ceding sentence shall not apply unless the con-
tribution increases are to be effective not later 
than the fifth anniversary of the first day of the 
first plan year that begins after the adoption of 
the realignment program. 
‘‘(b) NOTICE.—
860 
‘‘(1) IN GENERAL.—In any case in which it is 
certified under section 802(a) that the projected fund-
ed ratio is less than 120 percent, the plan sponsor 
shall, not later than 30 days after the date of the cer-
tification, provide notification of the current and pro-
jected funded ratios to the participants and bene-
ficiaries, the bargaining parties, and the Secretary. 
Such notice shall include— 
‘‘(A) an explanation that contribution rate 
increases or benefit reductions may be necessary; 
‘‘(B) a description of the types of benefits 
that might be reduced; and 
‘‘(C) an estimate of the contribution in-
creases and benefit reductions that may be nec-
essary to achieve a projected funded ratio of 120 
percent. 
‘‘(2) NOTICE OF BENEFIT MODIFICATIONS.— 
‘‘(A) IN GENERAL.—No modifications may 
be made that reduce the rate of future benefit ac-
crual or that reduce core benefits or adjustable 
benefits unless notice of such reduction has been 
given at least 180 days before the general effec-
tive date of such reduction for all participants 
and beneficiaries to—
861 
‘‘(i) plan participants and bene-
ficiaries; 
‘‘(ii) each employer who has an obliga-
tion to contribute to the composite plan; 
and 
‘‘(iii) 
each 
employee 
organization 
which, for purposes of collective bargaining, 
represents plan participants employed by 
such employers. 
‘‘(B) CONTENT
OF
NOTICE.—The notice 
under subparagraph (A) shall contain— 
‘‘(i) sufficient information to enable 
participants and beneficiaries to under-
stand the effect of any reduction on their 
benefits, including an illustration of any af-
fected benefit or subsidy, on an annual or 
monthly basis that a participant or bene-
ficiary would otherwise have been eligible 
for as of the general effective date described 
in subparagraph (A); and 
‘‘(ii) information as to the rights and 
remedies of plan participants and bene-
ficiaries as well as how to contact the De-
partment of Labor for further information 
and assistance, where appropriate.
862 
‘‘(C) FORM
AND
MANNER.—Any notice 
under subparagraph (A)— 
‘‘(i) shall be provided in a form and 
manner prescribed in regulations of the Sec-
retary of Labor; 
‘‘(ii) shall be written in a manner so 
as to be understood by the average plan 
participant. 
‘‘(3) MODEL NOTICES.—The Secretary shall— 
‘‘(A) prescribe model notices that the plan 
sponsor of a composite plan may use to satisfy 
the notice requirements under this subsection; 
and 
‘‘(B) by regulation enumerate any details 
related to the elements listed in paragraph (1) 
that any notice under this subsection must in-
clude. 
‘‘(4) DELIVERY METHOD.—Any notice under this 
part shall be provided in writing and may also be 
provided in electronic form to the extent that the form 
is reasonably accessible to persons to whom the notice 
is provided. 
‘‘SEC. 804. LIMITATION ON INCREASING BENEFITS. 
‘‘(a) LEVEL OF CURRENT FUNDED RATIOS.—Except 
as provided in subsections (c), (d), and (e), no plan amend-
863 
ment increasing benefits or establishing new benefits under 
a composite plan may be adopted for a plan year unless— 
‘‘(1) the plan’s current funded ratio is at least 
110 percent (without regard to the benefit increase or 
new benefits); 
‘‘(2) taking the benefit increase or new benefits 
into account, the current funded ratio is at least 100 
percent and the projected funded ratio for the current 
plan year is at least 120 percent; 
‘‘(3) in any case in which, after taking the ben-
efit increase or new benefits into account, the current 
funded ratio is less than 140 percent and the pro-
jected funded ratio is less than 140 percent, the ben-
efit increase or new benefits are projected by the plan 
actuary to increase the present value of the plan’s li-
abilities for the plan year by not more than 3 percent; 
and 
‘‘(4) expected contributions for the current plan 
year are at least 120 percent of normal cost for the 
plan year, determined using the unit credit funding 
method and treating the benefit increase or new bene-
fits as in effect for the entire plan year. 
‘‘(b) ADDITIONAL REQUIREMENTS WHERE CORE BEN-
EFITS REDUCED.—If a plan has been amended to reduce 
core benefits pursuant to a realignment program under sec-
864 
tion 803(a)(2)(D), such plan may not be subsequently 
amended to increase core benefits unless the amendment— 
‘‘(1) increases the level of future benefit pay-
ments only; and 
‘‘(2) provides for an equitable distribution of 
benefit increases across the participant and bene-
ficiary population, taking into account the extent to 
which the benefits of participants were previously re-
duced pursuant to such realignment program. 
‘‘(c) EXCEPTION
TO
COMPLY
WITH
APPLICABLE 
LAW.—Subsection (a) shall not apply in connection with 
a plan amendment if the amendment is required as a condi-
tion of qualification under part I of subchapter D of chapter 
1 of the Internal Revenue Code of 1986 or to comply with 
other applicable law. 
‘‘(d) EXCEPTION
WHERE
MAXIMUM
DEDUCTIBLE 
LIMIT APPLIES.—Subsection (a) shall not apply in connec-
tion with a plan amendment if and to the extent that con-
tributions to the composite plan would not be deductible for 
the plan year under section 404(a)(1)(E) of the Internal 
Revenue Code of 1986 if the plan amendment is not adopt-
ed. 
‘‘(e) EXCEPTION FOR CERTAIN BENEFIT MODIFICA-
TIONS.—Subsection (a) shall not apply in connection with
865 
a plan amendment under section 803(a)(5)(C), regarding 
conditional benefit modifications. 
‘‘(f) TREATMENT OF PLAN AMENDMENTS.—For pur-
poses of this section— 
‘‘(1) if two or more plan amendments increasing 
benefits or establishing new benefits are adopted in a 
plan year, such amendments shall be treated as a sin-
gle amendment adopted on the last day of the plan 
year; 
‘‘(2) all benefit increases and new benefits adopt-
ed in a single amendment are treated as a single ben-
efit increase, irrespective of whether the increases and 
new benefits take effect in more than one plan year; 
and 
‘‘(3) increases in contributions or decreases in 
plan liabilities which are scheduled to take effect in 
future plan years may be taken into account in con-
nection with a plan amendment if they have been 
agreed to in writing or otherwise formalized by the 
date the plan amendment is adopted. 
‘‘SEC. 805. COMPOSITE PLAN RESTRICTIONS TO PRESERVE 
LEGACY PLAN FUNDING. 
‘‘(a) TREATMENT AS A LEGACY PLAN.— 
‘‘(1) IN GENERAL.—For purposes of this part 
and parts 2 and 3, a defined benefit plan shall be
866 
treated as a legacy plan with respect to the composite 
plan under which the employees who were eligible to 
accrue a benefit under the defined benefit plan become 
eligible to accrue a benefit under such composite plan. 
‘‘(2) COMPONENT PLANS.—In any case in which 
a defined benefit plan is amended to add a composite 
plan component pursuant to section 801(b), para-
graph (1) shall be applied by substituting ‘defined 
benefit component’ for ‘defined benefit plan’ and 
‘composite plan component’ for ‘composite plan’. 
‘‘(3) ELIGIBLE
TO
ACCRUE
A
BENEFIT.—For 
purposes of paragraph (1), an employee is considered 
eligible to accrue a benefit under a composite plan as 
of the first day in which the employee completes an 
hour of service under a collective bargaining agree-
ment that provides for contributions to and accruals 
under the composite plan in lieu of accruals under the 
legacy plan. 
‘‘(4) COLLECTIVE BARGAINING AGREEMENT.—As 
used in this part, the term ‘collective bargaining 
agreement’ includes any agreement under which an 
employer has an obligation to contribute to a plan. 
‘‘(5) OTHER
TERMS.—Any term used in this 
part which is not defined in this part and which is
867 
also used in section 305 shall have the same meaning 
provided such term in such section. 
‘‘(b) RESTRICTIONS ON ACCEPTANCE BY COMPOSITE 
PLAN OF AGREEMENTS AND CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—The plan sponsor of a com-
posite plan shall not accept or recognize a collective 
bargaining agreement (or any modification to such 
agreement), and no contributions may be accepted 
and no benefits may be accrued or otherwise earned 
under the agreement— 
‘‘(A) in any case in which the plan actuary 
of any defined benefit plan that would be treated 
as a legacy plan with respect to such composite 
plan has certified under section 305(b)(3) that 
such defined benefit plan is or will be in critical 
status for the plan year in which such agreement 
would take effect or for any of the succeeding 5 
plan years; and 
‘‘(B) unless the agreement requires each em-
ployer who is a party to such agreement, includ-
ing employers whose employees are not partici-
pants in the legacy plan, to provide contribu-
tions to the legacy plan with respect to such com-
posite plan in a manner that satisfies the transi-
tion contribution requirements of subsection (d).