Restore America’s Main Street Act of 2021
Bill: H.R.524 | Sponsor: Rep. Dean, Madeleine (D-PA)
Policy area: Taxation

Summary:
Restore America's Main Street Act of 2021
This bill provides a small business with $1.5 million or less in gross receipts and not more than 50 full-time employees a refundable tax credit (rebate) equal to the lesser of 30% of its gross receipts for the first taxable year beginning in 2021, or $120,000. The credit is also available to certain charitable organizations.

To amend the Internal Revenue Code of 1986 to provide advance tax 
          refunds to small businesses, and for other purposes.

    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 ``Restore America's Main Street Act of 
2021''.

SEC. 2. SMALL BUSINESS REBATE.

    (a) In General.--Subchapter B of chapter 65 of subtitle F of the 
Internal Revenue Code of 1986 is amended by inserting after section 
6428A the following new section:

``SEC. 6428B. SMALL BUSINESS REBATE.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of a qualifying business, 
        there shall be allowed as a credit against the tax imposed by 
        subtitle A for the first taxable year beginning in 2021 an 
        amount equal to the lesser of--
                    ``(A) 30 percent of qualified gross receipts of 
                such qualifying business for the first taxable year 
                beginning in 2019, or
                    ``(B) $120,000.
            ``(2) Special rule.--In the case of a qualifying business 
        or sole proprietorship which was not formed or active in the 
        taxable year described in paragraph (1)(A), such paragraph 
        shall be applied by substituting `2020' for `2019'.
            ``(3) Qualified gross receipts.--For purposes of paragraph 
        (1)(A), the term `qualified gross receipts' means gross 
        receipts of the qualifying business which are effectively 
        connected with the conduct of a trade or business within the 
        United States (within the meaning of section 864(c), determined 
        by substituting `qualifying business' for `nonresident alien 
        individual or a foreign corporation' or for `foreign 
        corporation' each place it appears) for the applicable taxable 
        year under paragraph (1)(A), as reported by the taxpayer on--
                    ``(A) in the case of a qualifying business which is 
                a partnership, the return required to be filed under 
                section 6031,
                    ``(B) in the case of a qualifying business which is 
                an S corporation, the return required to be filed under 
                section 6037, and
                    ``(C) in the case of any other qualifying business, 
                the return of tax for the taxable year.
    ``(b) Qualifying Business.--
            ``(1) In general.--For purposes of this section, the term 
        `qualifying business' means any person which--
                    ``(A) meets the gross receipts test of subsection 
                (c) of section 448 for the applicable taxable year 
                under subsection (a)(1)(A), except that subsection (c) 
                of section 448 shall be applied--
                            ``(i) without regard to paragraph (4) of 
                        such subsection, and
                            ``(ii) by substituting `$1,500,000' for 
                        `$25,000,000', and
                    ``(B) with respect to the preceding calendar year, 
                employed an average of not greater than 50 full-time 
                employees (as such term is defined in paragraph (4) of 
                section 4980H(c)) on business days during such calendar 
                year.
            ``(2) Special rule.--For purposes of paragraph (1)(A), in 
        the case of any taxpayer which is not a corporation or a 
        partnership, the gross receipts test of section 448(c) shall be 
        applied in the same manner as if such taxpayer were a 
        corporation or partnership.
            ``(3) Full-time equivalents.--For purposes of paragraph 
        (1)(B), the number of full-time employees shall be determined 
        pursuant to rules similar to the rules described in paragraph 
        (2)(E) of section 4980H(c).
            ``(4) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as a 
        single person for purposes of paragraph (1)(B).
            ``(5) Qualified organizations.--
                    ``(A) Inclusion as qualifying business.--
                            ``(i) In general.--For purposes of this 
                        section, the term `qualifying business' shall 
                        include any qualified organization.
                            ``(ii) Definition.--For purposes of this 
                        paragraph, the term `qualified organization' 
                        means an organization which--
                                    ``(I) is described in section 
                                501(c)(3) and exempt from tax under 
                                section 501(a),
                                    ``(II) is described in section 
                                170(b)(1)(A),
                                    ``(III) is not described in section 
                                509(a)(3), and
                                    ``(IV) satisfies the requirements 
                                under subparagraphs (A) and (B) of 
                                paragraph (1).
                    ``(B) Qualified gross receipts.--
                            ``(i) In general.--For purposes of 
                        subsection (a)(1)(A), in the case of a 
                        qualified organization, the term `qualified 
                        gross receipts' means gross receipts of the 
                        organization for the taxable year described in 
                        such subsection.
                            ``(ii) Special rule.--In the case of a 
                        qualified organization which did not file a tax 
                        return for the taxable year described in 
                        subsection (a)(1)(A), such subsection shall be 
                        applied by substituting `2020' for `2019'.
                            ``(iii) Organization exempt from filing.--
                                    ``(I) In general.--In the case of 
                                an organization which is exempt from 
                                filing a return pursuant to section 
                                6033(a) or which is not required to 
                                include in such return the information 
                                necessary to determine the amount of 
                                the credit allowed under this section, 
                                such organization may submit to the 
                                Secretary (in such form and manner as 
                                is deemed appropriate by the Secretary) 
                                any information required for purposes 
                                of determining--
                                            ``(aa) whether such 
                                        organization satisfies the 
                                        requirements under 
                                        subparagraphs (A) and (B) of 
                                        paragraph (1), and
                                            ``(bb) the amount of the 
                                        credit allowed under subsection 
                                        (a)(1).
                                    ``(II) Publicity of information.--
                                For purposes of section 6104, any 
                                information submitted by an 
                                organization under subclause (I) shall 
                                be deemed to be information required to 
                                be furnished by such organization 
                                pursuant to section 6033.
    ``(c) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Coordination With Advance Refunds of Credit.--The amount of 
credit which would (but for this subsection) be allowable under this 
section shall be reduced (but not below zero) by the aggregate refunds 
and credits made or allowed to the taxpayer under subsection (e). Any 
failure to so reduce the credit shall be treated as arising out of a 
mathematical or clerical error and assessed according to section 
6213(b)(1).
    ``(e) Advance Refunds and Credits.--
            ``(1) In general.--Any person which was a qualifying 
        business for such person's last taxable year ending before 
        January 1, 2021, 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, regardless of whether such tax would have been imposed on 
        such person.
            ``(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 (d) and this 
        subsection) had applied to such taxable year.
            ``(3) Timing of payments.--The Secretary shall, subject to 
        the provisions of this title, refund or credit any overpayment 
        attributable to this section as rapidly as possible. No refund 
        or credit shall be made or allowed under this subsection after 
        December 31, 2021.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.''.
    (b) Conforming Amendments.--
            (1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``6428, 
        and 6428A'' and inserting ``6428, 6428A, and 6428B''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``6428B,'' after 
        ``6428A,''.
            (3) The table of sections for subchapter B of chapter 65 of 
        subtitle F of the Internal Revenue Code of 1986 is amended by 
        inserting after the item relating to section 6428A the 
        following:

``Sec. 6428B. Small business rebate.''.
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