Save Hotel Jobs Act
Bill: S.1519 | Sponsor: Sen. Schatz, Brian (D-HI)
Policy area: Commerce

Summary:
Save Hotel Jobs Act
This bill requires the Department of the Treasury to award grants to hotel owners and operators to assist with payroll costs.
Applicants for a grant must provide Treasury with certain assurances, including that (1) the hotel, if in operation, experienced at least a 40% decline in revenue during a three-month period in calendar year 2020 as compared to the corresponding period in 2019; and (2) the hotel owner or operator has a policy to offer employees who have been laid off during the COVID-19 public health emergency any same or similar positions that become available as a result of receiving a grant. All grant funds must be expended during the 270-day period beginning on the date the funds are disbursed.
If the hotel owner or operator receives loans through the Paycheck Protection Program, the grant must be reduced by the amount of such loans that are forgiven under the program, including loans received on or before enactment of this bill. For federal tax purposes, the grants are not included as part of the gross income of the hotel owner or operator.
The bill also establishes a tax credit equal to 50% of the expenses a hotel owner or operator incurs for qualified personal protective equipment (up to a maximum of $25,000).

To provide assistance to the hotel industry, 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 ``Save Hotel Jobs Act''.

SEC. 2. SUPPORTING HOTEL OPERATORS AND WORKERS THROUGH GRANTS FOR 
              PAYROLL COSTS.

    (a) Definitions.--In this section:
            (1) Covered period.--The term ``covered period'', with 
        respect to a grant, means the 270-day period beginning on the 
        date on which the grant funds have been disbursed.
            (2) COVID-19 public health emergency.--The term ``COVID-19 
        public health emergency'' means the public health emergency 
        declared by the Secretary of Health and Human Services under 
        section 319 of the Public Health Service Act (42 U.S.C. 247d) 
        on January 31, 2020, with respect to COVID-19.
            (3) Hotel owner or operator.--The term ``hotel owner or 
        operator'' means a group which is primarily engaged in owning 
        or operating an establishment known to the public as a hotel 
        that provides lodging for the general public.
            (4) Laid-off employee.--The term ``laid-off employee'' 
        means an individual whose employment with a hotel owner or 
        operator has been terminated during the COVID-19 public health 
        emergency.
            (5) Payroll costs.--The term ``payroll costs'', with 
        respect to a hotel owner or operator--
                    (A) means, except as provided in subparagraph (B)--
                            (i) the sum of payments of any compensation 
                        with respect to employees of the owner or 
                        operator that is--
                                    (I) a salary, wage, commission, or 
                                similar compensation;
                                    (II) a payment of cash tip or 
                                equivalent;
                                    (III) a payment for vacation, 
                                parental, family, medical, or sick 
                                leave;
                                    (IV) an allowance for dismissal or 
                                separation;
                                    (V) a payment required for the 
                                provisions of group health care or 
                                group life, disability, vision, or 
                                dental insurance benefits, including 
                                insurance premiums;
                                    (VI) a payment of any retirement 
                                benefit; or
                                    (VII) a payment of State or local 
                                tax assessed on the compensation of 
                                employees; and
                            (ii) the sum of payments of any 
                        compensation with respect to employees paid by 
                        a hotel owner or operator to a third-party 
                        hotel management company operating the hotel 
                        that is compensation for any of the items 
                        described in subclauses (I) through (VII) of 
                        clause (i); and
                            (iii) the sum of payments of any 
                        compensation provided by the hotel owner or 
                        operator to or as income of a sole proprietor 
                        or independent contractor that is a wage, 
                        commission, income, net earnings from self-
                        employment, or similar compensation; and
                    (B) shall not include--
                            (i) with respect to an individual employee, 
                        any total payments described in subclauses (I) 
                        or (II) of subparagraph (A)(i) that are in 
                        excess of $100,000 on an annualized basis, as 
                        prorated for the period during which the 
                        payments are made or the obligation to make the 
                        payments are incurred;
                            (ii) with respect to a sole proprietor or 
                        independent contractor, any total payments 
                        described in subparagraph (A)(iii) that are in 
                        excess of $100,000 on an annualized basis, as 
                        prorated as described in clause (i);
                            (iii) taxes imposed or withheld under 
                        chapters 21, 22, or 24 of the Internal Revenue 
                        Code of 1986;
                            (iv) any compensation of an employee whose 
                        principal place of residence is outside of the 
                        United States;
                            (v) qualified sick leave wages for which a 
                        credit is allowed under section 7001 of the 
                        Families First Coronavirus Response Act (Public 
                        Law 116-127); or
                            (vi) qualified family leave wages for which 
                        a credit is allowed under section 7003 of the 
                        Families First Coronavirus Response Act (Public 
                        Law 116-127).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (b) Grants.--
            (1) In general.--The Secretary shall award grants under 
        this section to hotel owners or operators for the purpose of 
        assisting with payroll costs during the covered period in 
        accordance with subsection (d).
            (2) Initial awards.--
                    (A) In general.--Each hotel owner or operator that 
                applies for an initial grant under this section and 
                meets the requirements under subsection (c) shall, 
                subject to funding available under subsection (h), 
                receive such grant.
                    (B) Amounts.--
                            (i) In general.--The Secretary shall 
                        determine the amount of an initial grant 
                        awarded under this section on an individualized 
                        basis with respect to each hotel owner or 
                        operator and in accordance with this 
                        subparagraph.
                            (ii) Standard maximum amount.--The maximum 
                        amount of an initial grant awarded under this 
                        section to a hotel owner or operator shall, 
                        except as provided in clause (iii), be the 
                        lesser of--
                                    (I) subject to clause (iv), 
                                $20,000,000; or
                                    (II)(aa) in the case of a grant 
                                with respect to a hotel that was 
                                operating for a 3-month period during 
                                calendar year 2019, the product 
                                obtained by multiplying by 3 the 
                                average total monthly payments for 
                                payroll costs of the hotel incurred in 
                                a 3-month period, selected by the owner 
                                or operator, during calendar year 2019; 
                                or
                                    (bb) in the case of a grant with 
                                respect to a hotel that was not 
                                operating for a 3-month period during 
                                calendar year 2019 and was operating 
                                for a 3-month period during calendar 
                                year 2020, the product obtained by 
                                multiplying by 3 the average total 
                                monthly payments for payroll costs of 
                                the hotel, incurred in a 3-month 
                                period, selected by the owner or 
                                operator, during calendar year 2020.
                            (iii) Special circumstances.--
                                    (I) In general.--In the case of a 
                                grant for a hotel that was not in 
                                operation for a 3-month period in 
                                calendar year 2019 or 2020, the maximum 
                                amount of an initial grant awarded 
                                under this section shall be the lesser 
                                of--
                                            (aa) subject to clause 
                                        (iv), $20,000,000; or
                                            (bb) the amount applicable 
                                        under subclause (II), (III), or 
                                        (IV).
                                    (II) Operating in 2019 and 2020.--
                                In the case of a grant with respect to 
                                a hotel that was in operation in 
                                calendar years 2019 and 2020, but not 
                                in operation for a 3-month period in 
                                either of those calendar years, the 
                                applicable amount for purposes of 
                                subclause (I)(bb) is--
                                            (aa) the difference 
                                        between--

                                                    (AA) the product 
                                                obtained by multiplying 
                                                the average monthly 
                                                gross receipts of the 
                                                hotel in calendar year 
                                                2019 by 12; and

                                                    (BB) the product 
                                                obtained by multiplying 
                                                the average monthly 
                                                gross receipts of the 
                                                hotel in 2020 by 12; or

                                            (bb) an amount based on a 
                                        formula determined by the 
                                        Secretary.
                                    (III) Operations beginning in 2020 
                                and prior to submission of the 
                                application.--In the case of a grant 
                                with respect to a hotel that began 
                                operating during the period beginning 
                                on January 1, 2020, and ending on the 
                                day before the date on which the 
                                application for the grant was submitted 
                                under subsection (c) and that was not 
                                in operation for a 3-month period in 
                                calendar year 2020, the applicable 
                                amount for purposes of subclause 
                                (I)(bb) is--
                                            (aa) the total amount of 
                                        fixed and operating expenses 
                                        that were incurred for the 
                                        hotel prior to the submission 
                                        of the application minus any 
                                        gross receipts received; or
                                            (bb) an amount based on a 
                                        formula determined by the 
                                        Secretary.
                                    (IV) Hotels not in operation as of 
                                submission of the application.--In the 
                                case of a grant with respect to a hotel 
                                that is not in operation on the date on 
                                which the application for the grant was 
                                submitted under subsection (c), but has 
                                incurred payroll costs as of the date 
                                of enactment of this Act, the amount 
                                applicable for purposes of subclause 
                                (I)(bb) is--
                                            (aa) the amount of such 
                                        payroll costs; or
                                            (bb) an amount based on a 
                                        formula determined by the 
                                        Secretary.
                            (iv) Reduction in award for ppp loans.--In 
                        the case that a hotel owner or operator 
                        receives a loan guaranteed under paragraph (36) 
                        or (37) of section 7(a) of the Small Business 
                        Act (15 U.S.C. 636(a)) before, on, or after the 
                        date of enactment of this Act and is approved 
                        for a grant under this section, the amount of 
                        $20,000,000 applicable under clauses (ii)(I) 
                        and (iii)(I)(aa) shall be reduced by the total 
                        amount of loans to such owner or operator 
                        guaranteed under such paragraph (36) or (37) 
                        that is forgiven under--
                                    (I) section 1106 of the CARES Act 
                                (as in effect on the day before the 
                                date of enactment of the Consolidated 
                                Appropriations Act, 2021 (Public Law 
                                116-260));
                                    (II) section 7A of the Small 
                                Business Act (15 U.S.C. 636m); or
                                    (III) paragraph (37)(J) of section 
                                7(a) of the Small Business Act (15 
                                U.S.C. 636(a)).
            (3) Supplemental awards.--
                    (A) In general.--The Secretary may make a 
                supplemental grant in accordance with this section to a 
                hotel owner or operator that has received an initial 
                grant under paragraph (2) if, in the 3-month period 
                following the disbursement of amounts from the initial 
                grant, the revenue of the hotel owner or operator is 
                not more than 50 percent of the revenue of the hotel 
                owner or operator for the corresponding 3-month period 
                during 2019, due to the COVID-19 pandemic.
                    (B) Amount.--A supplemental grant under this 
                paragraph shall be in the amount equal to 50 percent of 
                the amount of the grant received by the hotel owner or 
                operator under paragraph (2).
                    (C) Qualified owners or operators.--An owner or 
                operator may not receive a supplemental grant under 
                this paragraph if the owner or operator was not in 
                operation for the 3-month period in 2019 corresponding 
                to the 3-month period following the disbursement of 
                amounts from the initial grant under paragraph (2).
    (c) Eligibility.--To be eligible to receive a grant under this 
section, a hotel owner or operator shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary shall specify, including--
            (1) in the case of an application for an initial grant, an 
        assurance that, if applicable, the hotel owner or operator had 
        a decline of not less than 40 percent in gross receipts during 
        any 3-month period in calendar year 2020, as compared to the 
        same 3-month period in calendar year 2019;
            (2) an assurance the hotel owner or operator has a policy 
        for providing recall rights as described in subsection (e);
            (3) an assurance that the hotel owner or operator will use 
        the funds of the grant during the covered period in accordance 
        with the requirement under subsection (d); and
            (4) an assurance that--
                    (A) the hotel of the owner or operator was in 
                operation on the date of enactment of this Act; or
                    (B) if not in operation on such date, had incurred 
                payroll costs as of such date.
    (d) Use of Funds.--A hotel owner or operator receiving a grant 
under this section shall use the full amount of such grant during the 
covered period for payroll costs.
    (e) Recall Rights.--
            (1) Policy.--
                    (A) In general.--The policy described in this 
                subsection shall, except as provided in paragraph (4), 
                include a requirement that the hotel owner or operator 
                offers to the laid-off employees of the hotel supported 
                by the grant all positions which become available after 
                the owner or operator receives funding under this 
                section for which the laid-off employees are qualified, 
                as described in subparagraph (C).
                    (B) Form.--The policy described in this subsection 
                shall be provided to laid-off employees in writing--
                            (i) by registered mail to the last known 
                        physical addresses of such employees; and
                            (ii) by email and text message to the 
                        extent the owner or operator possesses such 
                        information.
                    (C) Qualifications for a position.--For purposes of 
                this subsection, a laid-off employee is qualified for a 
                position if the laid-off employee--
                            (i) held the same or a similar position 
                        with the hotel at which the laid-off employee 
                        was previously employed at the time of the 
                        laid-off employee's most recent termination 
                        from employment; or
                            (ii) has the requisite skill level required 
                        for the position.
                    (D) Priority system.--In offering a position under 
                the policy described in this subsection, the hotel 
                owner or operator shall give priority to a laid-off 
                employee described in clause (i) of subparagraph (C) 
                over a laid-off employee described in clause (ii) of 
                such subparagraph. In the case that more than 1 laid-
                off employee described in such clause (i), or more than 
                1 laid-off employee described in such clause (ii), is 
                eligible for the same available position, the hotel 
                owner or operator shall offer the position to the laid-
                off employee with the greatest continued length of 
                service at the hotel at which the laid-off employee was 
                previously employed.
                    (E) Acceptance.--The hotel owner or operator shall 
                allow a laid-off employee who is offered a position 
                pursuant to the policy described in this subsection not 
                less than 7 days from the date the offer is sent to the 
                laid-off employee to accept or decline the offer.
                    (F) Multiple conditional offers.--Under the policy 
                described in this subsection, a hotel owner or operator 
                may make simultaneous, conditional offers of employment 
                to laid-off employees, with a final offer of employment 
                conditioned on application of the priority system under 
                subparagraph (D).
                    (G) Additional circumstances covered by the 
                policy.--A hotel owner or operator receiving a grant 
                under this section shall ensure that the policy under 
                this subsection will continue to apply in each of the 
                following:
                            (i) The ownership of the hotel is sold or 
                        otherwise transferred to another entity 
                        conducting the same or similar operations as 
                        the hotel owner or operator receiving the grant 
                        conducted prior to the sale or transfer, 
                        including applicability with respect to any 
                        laid-off employee who was terminated from 
                        employment with the grant recipient prior to 
                        the sale or transfer.
                            (ii) The form of organization of the hotel 
                        owner or operator changes after the hotel owner 
                        or operator receives the funding.
                            (iii) Substantially all of the assets of 
                        the hotel owner or operator were acquired by 
                        another entity which conducts the same or 
                        similar operations using substantially the same 
                        assets as the hotel owner or operator prior to 
                        the acquisition.
            (2) Rate of compensation.--A laid-off employee who returns 
        to employment for a hotel owner or operator pursuant to a 
        policy described in this subsection shall, in accordance with 
        paragraph (3), be compensated at a rate not less than the rate 
        of compensation the laid-off employee had prior to the 
        separation from employment.
            (3) Duration of rights.--The rights described in paragraphs 
        (1) and (2) shall apply for a period that does not end prior to 
        the date that is 2 years after the date of enactment of this 
        Act.
            (4) Exceptions.--The rights under this subsection shall not 
        apply--
                    (A) in the case of a laid-off employee whose 
                employment was terminated for cause;
                    (B) in the case of a laid-off employee who has 
                accepted another offer of employment after being 
                recalled pursuant to a policy under this subsection;
                    (C) in the case the position no longer exists due 
                to a change in circumstances of the hotel;
                    (D) in the case the hotel owner or operator has 
                made an offer of recall in accordance with the 
                requirements under this subsection and the laid-off 
                employee refuses or does not accept the position within 
                5 days of when the offer is sent; or
                    (E) in the case an applicable collective bargaining 
                agreement waives the rights to recall under this 
                subsection.
    (f) Tax Treatment.--For purposes of the Internal Revenue Code of 
1986--
            (1) amounts awarded through a grant under this section 
        shall not be included in the gross income of the hotel owner or 
        operator that receives such amounts; and
            (2) no deduction shall be denied, no tax attribute shall be 
        reduced, and no basis increase shall be denied, by reason of 
        the exclusion from gross income provided by paragraph (1).
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe regulations 
        to carry out this section, which shall include--
                    (A) remedial measures, including--
                            (i) the authority for the Secretary to 
                        clawback funds provided through this section in 
                        the case of violations of the requirements 
                        under this section with respect to such funds; 
                        and
                            (ii) the authority for the Secretary to 
                        impose fines on recipients of funds under this 
                        section who are in violation of such 
                        requirements; and
                    (B) a requirement for recipients of funds under 
                this section to publicly disclose the amount of such 
                funds.
            (2) Consultation with department of labor.--With respect to 
        the recall rights under subsection (e), the Secretary shall, in 
        prescribing regulations and enforcing the requirements under 
        this section, consult with the Secretary of Labor.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $20,000,000,000, for fiscal year 2021, to 
remain available until expended, to make grants under this section.

SEC. 3. PERSONAL PROTECTIVE EQUIPMENT TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. PERSONAL PROTECTIVE EQUIPMENT CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
personal protective equipment credit determined under this section for 
the taxable year is an amount equal to 50 percent of the amount paid by 
an eligible taxpayer for qualified personal protective equipment 
expenses during such year.
    ``(b) Maximum Credit.--The credit determined under this section 
with respect to any eligible taxpayer for any taxable year shall not 
exceed $25,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible taxpayer.--
                    ``(A) In general.--The term `eligible taxpayer' 
                means any person engaged in the business of owning or 
                operating a qualified hotel.
                    ``(B) Qualified hotel.--
                            ``(i) In general.--The term `qualified 
                        hotel' means a lodging facility (as defined in 
                        section 856(d)(9)(D)(ii)) for which, with 
                        respect to each applicable month during the 
                        taxable year, the average number of hours 
                        worked by housekeeping staff at such facility 
                        during such month is greater than or equal to 
                        the average number of hours worked by the 
                        housekeeping staff at such facility during 
                        calendar year 2019 (as determined on an average 
                        monthly basis).
                            ``(ii) Applicable month.--The term 
                        `applicable month' means any month beginning 
                        after the date of enactment of the Save Hotel 
                        Jobs Act.
                    ``(C) Documentation requirements.--The Secretary 
                may establish such documentation requirements as are 
                necessary to determine eligibility for a credit under 
                this section.
            ``(2) Qualified personal protective equipment expenses.--
        The term `qualified personal protective equipment expenses' 
        includes amounts paid or incurred--
                    ``(A) for the purpose of reducing the risk of 
                Coronavirus Disease 2019 (COVID-19) transmission 
                between people on the premises of an eligible hotel, 
                including--
                            ``(i) gloves, medical masks, N-95 
                        respirators, eye protection, gowns and aprons, 
                        boots or closed-toe work shoes, cleaning 
                        detergents, hand sanitizers, cleaning products 
                        and tools,
                            ``(ii) retrofitting or installation of 
                        equipment, and
                            ``(iii) any other relevant expense the 
                        Secretary, in consultation with the Secretary 
                        of Health and Human Services, determines 
                        necessary, and
                    ``(B) at any time during a year in which, with 
                respect to COVID-19--
                            ``(i) the President declares a national 
                        emergency under the National Emergencies Act 
                        (50 U.S.C. 1601 et seq.), or
                            ``(ii) an emergency involving Federal 
                        primary responsibility is determined to exist 
                        by the President under the section 501(b) of 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5191(b)).
    ``(d) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any amount taken into account in determining the 
credit under this section.
    ``(e) Denial of Credit for Counterfeit Items.--No credit shall be 
allowed under this section with respect to any item if the Secretary 
determines such item to be counterfeit or sold or distributed in bad 
faith.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (32), by striking the period at the end of paragraph (33) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(34) the personal protective equipment credit determined 
        under section 45U.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45U. Personal Protective Equipment Credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses made or incurred after December 31, 2020, in taxable 
years ending after such date.
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