Clean Start: Back to Work Tax Credit Act
Bill: H.R.883 | Sponsor: Rep. LaHood, Darin (R-IL)
Policy area: Taxation

Summary:
Clean Start: Back to Work Tax Credit Act
This bill allows employers a business related tax credit for 50% of the cost of qualified cleaning expenses incurred in a trade or business or with respect to owning or operating commercial real estate. The credit may not exceed $250,000 for any taxpayer in a taxable year and it terminates after March 31, 2022.
The bill defines qualified cleaning expenses as amounts paid for cleaning services, cleaning products, tools, machinery, technology systems, personal protective equipment, and for obtaining a certification in cleaning.

To amend the Internal Revenue Code of 1986 to provide a tax credit to 
   ensure that businesses are properly cleaned and disinfected when 
 ``stay-at-home'' restrictions are lifted and to help prevent further 
                              infections.

    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 ``Clean Start: Back to Work Tax Credit 
Act''.

SEC. 2. CLEAN START BACK TO WORK 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. CLEAN START BACK TO WORK CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the clean 
start back to work credit determined under this section for the taxable 
year is an amount equal to 50 percent of the amount paid by the 
taxpayer--
            ``(1) in carrying on any trade or business for qualified 
        cleaning expenses during such year, or
            ``(2) with respect to owning or operating commercial real 
        estate.
    ``(b) Maximum Credit.--The credit determined under this section for 
a taxpayer for a taxable year shall not exceed $250,000.
    ``(c) Definition and Special Rules.--For purposes of this section--
            ``(1) Qualified cleaning expenses.--The term `qualified 
        cleaning expenses' includes amounts paid or incurred--
                    ``(A) for cleaning services (including those 
                providing hypercholorination of potable water systems 
                and cooling towers), whether provided by a cleaning 
                service provider that employs workers who have received 
                training and certification in cleaning or by an 
                employee of the taxpayer,
                    ``(B) for cleaning products, tools, machinery, 
                technology systems, personal protective equipment, and 
                other sanitary related equipment needed to help ensure 
                a safe and sanitary environment, and
                    ``(C) to obtain a certification in cleaning.
            ``(2) Exception.--The term `qualified cleaning expenses' 
        does not include the cost of manufacturing, producing, or 
        importing of, or for the acquisition for purposes of resale of, 
        any product, tool, machine or other sanitary-related equipment.
            ``(3) Training and certification in cleaning.--The term 
        `training and certification in cleaning' means a training and 
        certification program in custodial cleaning or cleaning 
        management provided by an entity that has demonstrated 
        expertise in the field of cleaning, such as a distributor of 
        cleaning products, cleaning product manufacturer, cleaning 
        service provider, accredited training institution, industry-
        recognized trade association, or other non-profit entity.
            ``(4) Certification in cleaning.--The term `certification 
        in cleaning' means an industry-recognized certificate in 
        custodial cleaning or cleaning management provided by an entity 
        that has demonstrated expertise in the field of cleaning such 
        as a distributor of cleaning products, cleaning product 
        manufacturer, cleaning service provider, accredited training 
        institution, industry-recognized trade association or other 
        non-profit entity.
            ``(5) Related persons.--
                    ``(A) In general.--The taxpayer and all persons 
                related to the taxpayer shall be treated as one person.
                    ``(B) Relationship test.--A person is related to 
                the taxpayer if the person bears a relationship to the 
                taxpayer specified in section 267(b) or 707(b)(1), or 
                the person and the taxpayer are engaged in trades or 
                businesses under common control (within the meaning of 
                subsections (a) and (b) of section 52).
    ``(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) Termination.--This section shall not apply to expenses paid 
or incurred after March 31, 2022.''.
    (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 clean start back to work 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. Clean Start Back To Work 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.
                                 <all>