I 
117TH CONGRESS 
1ST SESSION 
H. R. 615 
To provide a payroll credit for certain fixed expenses of employers subject 
to closure by reason of COVID-19. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2021 
Mr. THOMPSON of California (for himself, Mr. HORSFORD, Mr. KELLY of 
Pennsylvania, and Mr. PANETTA) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committee on Small Business, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To provide a payroll credit for certain fixed expenses of 
employers subject to closure by reason of COVID-19. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keeping the Lights 
On Act of 2021’’. 
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SEC. 2. PAYROLL CREDIT FOR CERTAIN FIXED EXPENSES 
OF EMPLOYERS SUBJECT TO CLOSURE BY 
REASON OF COVID-19. 
(a) IN GENERAL.—In the case of an eligible em-
ployer, there shall be allowed as a credit against applicable 
employment taxes for each calendar quarter an amount 
equal to 50 percent of the qualified fixed expenses paid 
or incurred by such employer during such calendar quar-
ter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) LIMITATION.—The qualified fixed expenses 
which may be taken into account under subsection 
(a) by any eligible employer for any calendar quarter 
shall not exceed the least of— 
(A) the qualified fixed expenses paid by the 
eligible employer in the same calendar quarter 
of calendar year 2019, 
(B) $50,000; or 
(C) the greater of— 
(i) 25 percent of the wages paid with 
respect to the employment of all the em-
ployees of the eligible employer for such 
calendar quarter; or 
(ii) 6.25 percent of the gross receipts 
of the eligible employer for calendar year 
2019. 
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(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes for such calendar quar-
ter (reduced by any credits allowed under sub-
sections (e) and (f) of section 3111 of such Code, 
sections 7001 and 7003 of the Families First 
Coronavirus Response Act, section 2301 of the 
CARES Act, and sections 101, 102, and 304 of this 
division, for such quarter) on the wages paid with 
respect to the employment of all the employees of 
the eligible employer for such calendar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quarter, 
such excess shall be treated as an overpayment 
that shall be refunded under sections 6402(a) 
and 6413(b) of the Internal Revenue Code of 
1986. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any amounts due to an employer under 
this paragraph shall be treated in the same 
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manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(c) DEFINITIONS.—For purposes of this section— 
(1) APPLICABLE
EMPLOYMENT
TAXES.—The 
term ‘‘applicable employment taxes’’ means the fol-
lowing: 
(A) The taxes imposed under section 
3111(a) of the Internal Revenue Code of 1986. 
(B) So much of the taxes imposed under 
section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 
3111(a) of such Code. 
(2) ELIGIBLE EMPLOYER.— 
(A) IN GENERAL.—The term ‘‘eligible em-
ployer’’ means any employer— 
(i) which was carrying on a trade or 
business immediately prior to the suspen-
sion described in clause (iii)(i) or imme-
diately prior to the period described in sub-
paragraph (B); 
(ii) which had either— 
(I) not more than 1,500 full-time 
equivalent employees (as determined 
for purposes of determining whether 
an employer is an applicable large em-
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ployer 
for 
purposes 
of 
section 
4980H(c)(2) of the Internal Revenue 
Code of 1986) for calendar year 2019; 
or 
(II) not more than $41,500,000 
of gross receipts in the last taxable 
year ending in 2019; and 
(iii) with respect to any calendar 
quarter, for which— 
(I) the operation of the trade or 
business described in clause (i) is fully 
or partially suspended during the cal-
endar quarter due to orders from an 
appropriate governmental authority 
limiting commerce, travel, or group 
meetings (for commercial, social, reli-
gious, or other purposes) due to the 
coronavirus disease 2019 (COVID– 
19); or 
(II) such calendar quarter is 
within the period described in sub-
paragraph (B). 
(B) SIGNIFICANT DECLINE IN GROSS RE-
CEIPTS.—The period described in this subpara-
graph is the period— 
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(i) beginning with the first calendar 
quarter beginning after December 31, 
2019, for which gross receipts (within the 
meaning of section 448(c) of the Internal 
Revenue Code of 1986) for the calendar 
quarter are less than 80 percent of gross 
receipts for the same calendar quarter in 
the prior year; and 
(ii) ending with the calendar quarter 
following the first calendar quarter begin-
ning after a calendar quarter described in 
clause (i) for which gross receipts of such 
employer are greater than 80 percent of 
gross receipts for the same calendar quar-
ter in the prior year. 
(C) TAX-EXEMPT ORGANIZATIONS.—In the 
case of an organization which is described in 
section 501(c) of the Internal Revenue Code of 
1986 and exempt from tax under section 501(a) 
of such Code— 
(i) clauses (i) and (iii)(I) of subpara-
graph (A) shall apply to all operations of 
such organization; and 
(ii) any reference in this section to 
gross receipts shall be treated as a ref-
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erence to gross receipts within the meaning 
of section 6033 of the Internal Revenue 
Code of 1986. 
(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 ‘‘80 
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) 30 percentage points. 
(ii) EXCESS
GROSS
RECEIPTS
PER-
CENTAGE POINT AMOUNT.—For purposes 
of this subparagraph, the term ‘‘excess 
gross receipts percentage point amount’’ 
means, with respect to any calendar quar-
ter, the excess of— 
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(I) the lowest of the gross re-
ceipts percentage point amounts de-
termined with respect to any calendar 
quarter 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 
subparagraph, the term ‘‘gross receipts 
percentage point amount’’ means, with re-
spect to any calendar quarter, the percent-
age (expressed 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) QUALIFIED FIXED EXPENSES.— 
(A) IN
GENERAL.—The term ‘‘qualified 
fixed expenses’’ means the payment or accrual 
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of any covered mortgage obligation, covered 
rent obligation, or covered utility payment. 
Such term shall not include the prepayment of 
any obligation for a period in excess of a month 
unless the payment for such period is custom-
arily due in advance. 
(B) APPLICATION OF DEFINITIONS.—The 
terms ‘‘covered mortgage obligation’’, ‘‘covered 
rent obligation’’, and ‘‘covered utility payment’’ 
shall each have the same meaning as when used 
in section 1106 of the CARES Act. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
(5) WAGES.— 
(A) IN
GENERAL.—The term ‘‘wages’’ 
means wages (as defined in section 3121(a) of 
the Internal Revenue Code of 1986) and com-
pensation (as defined in section 3231(e) of such 
Code). For purposes of the preceding sentence 
(other than for purposes of subsection (b)(2)), 
wages as defined in section 3121(a) of such 
Code shall be determined without regard to 
paragraphs (1), (8), (10), (13), (18), (19), and 
(22) of section 3121(b) of such Code. 
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(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
(i) IN GENERAL.—Such term shall in-
clude amounts paid or incurred by the eli-
gible employer to provide and maintain a 
group health plan (as defined in section 
5000(b)(1) of the Internal Revenue Code 
of 1986), but only to the extent that such 
amounts are excluded from the gross in-
come of employees by reason of section 
106(a) of such Code. 
(ii) ALLOCATION
RULES.—For pur-
poses of this section, amounts treated as 
wages under clause (i) shall be treated as 
paid with respect to any employee (and 
with respect to any period) to the extent 
that such amounts are properly allocable to 
such employee (and to such period) in such 
manner as the Secretary may prescribe. 
Except as otherwise provided by the Sec-
retary, such allocation shall be treated as 
properly made if made on the basis of 
being pro rata among periods of coverage. 
(6) OTHER TERMS.—Except as otherwise pro-
vided in this section, any term used in this section 
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which is also used in chapter 21 or 22 of the Inter-
nal Revenue Code of 1986 shall have the same 
meaning as when used in such chapter. 
(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52 
of the Internal Revenue Code of 1986, or subsection (m) 
or (o) of section 414 of such Code, shall be treated as 
one employer for purposes of this section. 
(e) DENIAL OF DOUBLE BENEFIT.—For purposes of 
chapter 1 of such Code, the gross income of any eligible 
employer, for the taxable year which includes the last day 
of any calendar quarter with respect to which a credit is 
allowed under this section, shall be increased by the 
amount of such credit. 
(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government, the 
government of any State, of the District of Colum-
bia, or of any possession of the United States, any 
tribal government, or any political subdivision, agen-
cy, or instrumentality of any of the foregoing. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to any organization described in section 
501(c)(1) of the Internal Revenue Code of 1986 and 
exempt from tax under section 501(a) of such Code. 
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(g) ELECTION TO NOT TAKE CERTAIN EXPENSES 
INTO ACCOUNT.— 
(1) IN GENERAL.—If an eligible employer elects 
(at such time and in such manner as the Secretary 
may prescribe) to not take into account any amount 
of qualified fixed expensees for purposes of deter-
mining the credit under this section, such amount of 
qualified fixed expenses shall not be so taken into 
account. 
(2) COORDINATION WITH PAYCHECK PROTEC-
TION
PROGRAM.—The Secretary, in consultation 
with the Administrator of the Small Business Ad-
ministration, shall issue guidance providing that cov-
ered mortgage obligations, covered rent obligations, 
and covered utility payments paid or incurred during 
the covered period shall not fail to be taken into ac-
count as qualified fixed expenses for purposes of de-
termining the credit under this section by reason of 
an election under paragraph (1) to the extent that 
a covered loan of the eligible employer is not for-
given by reason of a decision under section 1106(g). 
Terms used in the preceding sentence which are also 
used in section 1106 shall have the same meaning 
as when used in such section. 
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