I 
116TH CONGRESS 
2D SESSION 
H. R. 6781 
To provide for improved coordination between the paycheck protection 
program and the employee retention tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2020 
Mr. PAPPAS (for himself, Mr. HAGEDORN, and Mrs. MURPHY of Florida) in-
troduced 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 com-
mittee concerned 
A BILL 
To provide for improved coordination between the paycheck 
protection program and the employee retention tax credit. 
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 ‘‘Paycheck Protection 
Program Improved Coordination Act of 2020’’. 
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SEC. 2. IMPROVED COORDINATION BETWEEN PAYCHECK 
PROTECTION PROGRAM AND EMPLOYEE RE-
TENTION TAX CREDIT. 
(a) AMENDMENT TO PAYCHECK PROTECTION PRO-
GRAM.—Section 1106(a)(8) of the CARES Act is amended 
by inserting ‘‘, except that such costs shall not include 
qualified wages taken into account in determining the 
credit allowed under section 2301 of this Act’’ before the 
period at the end. 
(b) AMENDMENTS TO EMPLOYEE RETENTION TAX 
CREDIT.— 
(1) IN
GENERAL.—Section 2301(g) of the 
CARES Act is amended to read as follows: 
‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES 
INTO ACCOUNT.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to qualified wages paid by an eligible employer with 
respect to which such employer makes an election 
(at such time and in such manner as the Secretary 
may prescribe) to have this section not apply to such 
wages. 
‘‘(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 
payroll costs paid or incurred during the covered pe-
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riod shall not fail to be treated as qualified wages 
under this section by reason of an election under 
paragraph (1) to the extent that a covered loan of 
the eligible employer is not forgiven 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.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 2301 of the CARES Act is 
amended by striking subsection (j). 
(B) Section 2301(l) of the CARES Act is 
amended by striking paragraph (3) and by re-
designating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the CARES Act to which they relate. 
Æ 
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