Businesses Preparing for a Better Tomorrow Act
Bill: H.R.1807 | Sponsor: Rep. Cawthorn, Madison (R-NC)
Policy area: Taxation

Summary:
Businesses Preparing for a Better Tomorrow Act
This bill allows employers a payroll tax credit in each calendar quarter of 50% of the their qualified workplace training expenses paid or incurred after March 12, 2020, and before January 1, 2022. The bill defines qualified workplace training expenses as employer expenses for education and training for the health and safety of employees in the workplace with respect to COVID-19 (i.e., coronavirus disease 2019), and the prevention of the spread of COVID-19 in the workplace.

To provide a payroll tax credit for best practices training expenses 
          associated with protecting employees from COVID-19.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Businesses Preparing for a Better 
Tomorrow Act''.

SEC. 2. WORKPLACE TRAINING TAX CREDIT.

    (a) In General.--In the case of an employer, there shall be allowed 
as a credit against applicable employment taxes for each calendar 
quarter an amount equal to 50 percent of the sum of the qualified 
workplace training expenses paid or incurred by the employer during 
such calendar quarter.
    (b) Limitations and Refundability.--
            (1) Limitation.--
                    (A) In general.--The amount of the credit allowed 
                under subsection (a) with respect to any employer for 
                any calendar quarter shall not exceed the excess (if 
                any) of--
                            (i) the applicable dollar limit with 
                        respect to such employer for such calendar 
                        quarter; over
                            (ii) the aggregate credits allowed under 
                        subsection (a) with respect to such employer 
                        for all preceding calendar quarters.
                    (B) Applicable dollar limit.--The term ``applicable 
                dollar limit'' means, with respect to any employer for 
                any calendar quarter, the sum of--
                            (i) $1,000, multiplied so much of the 
                        average number of employees employed by such 
                        employer during such calendar quarter as does 
                        not exceed 500; plus
                            (ii) $750, multiplied by so much of such 
                        average number of employees as exceeds 500 but 
                        does not exceed 1,000; plus
                            (iii) $500, multiplied by so much of such 
                        average number of employees as exceeds 1,000.
            (2) Credit limited to employment taxes.--The credit allowed 
        by subsection (a) with respect to any calendar quarter shall 
        not exceed the applicable employment taxes (reduced by any 
        credits allowed under subsections (e) and (f) of section 3111 
        of the Internal Revenue Code of 1986, sections 7001 and 7003 of 
        the Families First Coronavirus Response Act, and section 2301 
        of the CARES Act) 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 limitation 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 purposes of section 
                1324 of title 31, United States Code, any amounts due 
                to the employer under this paragraph shall be treated 
                in the same manner as a refund due from a credit 
                provision referred to in subsection (b)(2) of such 
                section.
    (c) Qualified Workplace Training Expenses.--For purposes of this 
section, the term ``qualified workplace training expenses'' means 
amounts paid or incurred by the employer for education and training 
with respect to industry best practices that ensure--
            (1) the health and safety of employees in the workplace 
        with respect to COVID-19; and
            (2) the prevention of the spread of COVID-19 in the 
        workplace.
    (d) Definitions.--For purposes of this section--
            (1) Applicable employment taxes.--The term ``applicable 
        employment taxes'' means the following:
                    (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 attributable to the rate in 
                effect under section 3111(a) of such Code.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (e) Special Rules.--
            (1) 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.
            (2) Denial of double benefit.--
                    (A) In general.--Rules similar to the rules of 
                paragraphs (1) and (2) of section 280C(b) shall apply 
                for purposes of this section.
                    (B) Expenses not taken into account more than 
                once.--Any qualified workplace reconfiguration expense 
                or qualified workplace technology expense shall not be 
                treated as a qualified employee protection expense and 
                any qualified workplace technology expense shall not be 
                treated as a qualified workplace reconfiguration 
                expense.
            (3) Third-party payors.--Any credit allowed under this 
        section shall be treated as a credit described in section 
        3511(d)(2) of such Code.
            (4) Election not to have section apply.--This section shall 
        not apply with respect to any eligible employer for any 
        calendar quarter if such employer elects (at such time and in 
        such manner as the Secretary may prescribe) not to have this 
        section apply.
    (f) Transfers to Certain Trust Funds.--There are hereby 
appropriated to the Federal Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund established under 
section 201 of the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under section 15A(a) of 
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts equal 
to the reduction in revenues to the Treasury by reason of this section 
(without regard to this subsection). Amounts appropriated by the 
preceding sentence shall be transferred from the general fund at such 
times and in such manner as to replicate to the extent possible the 
transfers which would have occurred to such Trust Fund or Account had 
this section not been enacted.
    (g) Treatment of Deposits.--The Secretary shall waive any penalty 
under section 6656 of the Internal Revenue Code of 1986 for any failure 
to make a deposit of any applicable employment taxes if the Secretary 
determines that such failure was due to the reasonable anticipation of 
the credit allowed under this section.
    (h) Application.--This section shall only apply to amounts paid or 
incurred after March 12, 2020, and before January 1, 2022.
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