Title: Build Health Care Equipment in America Act
Policy area: Taxation

Summary:
Build Health Care Equipment in America Act
This bill provides for certain tax incentives to combat COVID-19 (i.e., coronavirus disease 2019).
Specifically, it (1) allows a bonus depreciation allowance for property used solely for the production or manufacturing of medical equipment to combat COVID-19, (2) a new payroll tax credit related to the employment of certain skilled health care workers who previously worked in a declining field, (3) requires the Department of the Treasury to publish a list of any occupation or field of work that qualifies as a medical short supply field, (4) increases education-related tax benefits for medical professionals in short supply, and (5) establishes the 21st Century Technology Fund for State and Local Governments Looking to Draw Businesses to Their Rural Regions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3757 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3757

 To amend the Internal Revenue Code of 1986 to provide incentives for 
businesses and employers to help in the fight against COVID-19, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 19, 2020

   Mr. Jones introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide incentives for 
businesses and employers to help in the fight against COVID-19, 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 ``Build Health Care Equipment in 
America Act''.

SEC. 2. BONUS DEPRECIATION FOR FACILITIES MANUFACTURING ITEMS TO FIGHT 
              COVID-19.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(n) Special Allowance for Medical Equipment Manufacturers.--
            ``(1) In general.--In the case of any qualified medical 
        equipment manufacturing property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to the applicable percentage of the 
                adjusted basis of such property, and
                    ``(B) the adjusted basis of such property shall be 
                reduced by the amount of such deduction before 
                computing the amount otherwise allowable as a 
                depreciation deduction under this chapter for such 
                taxable year and any subsequent taxable year.
            ``(2) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means--
                    ``(A) in the case of property described in 
                paragraph (3)(A)--
                            ``(i) if such property is placed in service 
                        within a rural area, 67 percent, or
                            ``(ii) if such property is placed in 
                        service within an area not described in clause 
                        (i), 50 percent, and
                    ``(B) in the case of property described in 
                paragraph (3)(B)--
                            ``(i) which is placed in service before 
                        January 1, 2027, 100 percent,
                            ``(ii) which is placed in service after 
                        December 31, 2026, and before January 1, 2028, 
                        80 percent,
                            ``(iii) which is placed in service after 
                        December 31, 2027, and before January 1, 2029, 
                        60 percent,
                            ``(iv) which is placed in service after 
                        December 31, 2028, and before January 1, 2030, 
                        40 percent, and
                            ``(v) which is placed in service after 
                        December 31, 2029, and before January 1, 2031, 
                        20 percent.
            ``(3) Qualified medical equipment manufacturing property.--
        For purposes of this subsection, the term `qualified medical 
        equipment manufacturing property' means--
                    ``(A) any nonresidential real property which is--
                            ``(i) originally placed in service after 
                        the date of enactment of this subsection and 
                        before January 1, 2031, and
                            ``(ii) used solely for the production or 
                        manufacturing of COVID-19 medical equipment, 
                        and
                    ``(B) any qualified property (as defined in 
                subsection (k)(2), without respect to subparagraph 
                (A)(iii) of such subsection) which is--
                            ``(i) originally placed in service after 
                        the date of enactment of this subsection and 
                        before January 1, 2031, and
                            ``(ii) used to rehabilitate, refurbish, or 
                        reequip any facility which was originally 
                        placed in service before the date of enactment 
                        of this subsection to allow such facility to 
                        produce or manufacture COVID-19 medical 
                        equipment.
            ``(4) COVID-19 medical equipment.--For purposes of this 
        subsection, the term `COVID-19 medical equipment' means any 
        product or equipment used for the prevention or treatment of 
        the virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of enactment of this Act.

SEC. 3. HEALTH CARE WORKFORCE 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. HEALTH CARE WORKFORCE CREDIT.

    ``(a) In General.--For purposes of section 38, the amount of the 
health care workforce credit determined under this section for the 
taxable year shall be equal to the sum of any applicable payroll taxes 
paid by an employer during the taxable year with respect to employment 
of any qualified employee.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Applicable payroll taxes.--
                    ``(A) In general.--The term `applicable payroll 
                taxes' means, with respect to any employer for any 
                taxable year, the amount of the taxes imposed by--
                            ``(i) section 3111 on wages paid by an 
                        employer with respect to employment of 
                        qualified employee during the applicable 
                        period, and
                            ``(ii) section 3221(a) on compensation paid 
                        by an employer with respect to services 
                        rendered by a qualified employee during the 
                        applicable period.
                    ``(B) Applicable period.--For purposes of 
                subparagraph (A), the term `applicable period' means 
                the 3-year period beginning with the day the qualified 
                employee begins work for the employer.
            ``(2) Declining field; skilled healthcare field.--
                    ``(A) In general.--
                            ``(i) Declining field.--The term `declining 
                        field' means any occupation or field of work 
                        which has been determined by the Secretary, in 
                        consultation with the Bureau of Labor 
                        Statistics of the Department of Labor, to have 
                        experienced a decline in the level of average 
                        employment in such occupation or field in the 
                        United States of not less than 8 percent over 
                        the most recent 3-year period for which such 
                        information is available.
                            ``(ii) Skilled healthcare field.--The term 
                        `skilled healthcare field' means any occupation 
                        or field of work related to the practice of 
                        medicine which has been determined by the 
                        Secretary, in consultation with the Bureau of 
                        Labor Statistics of the Department of Labor, 
                        to--
                                    ``(I) require--
                                            ``(aa) theoretical and 
                                        practical application of a body 
                                        of highly specialized 
                                        knowledge; and
                                            ``(bb)(AA) attainment of a 
                                        bachelor's or higher degree in 
                                        the specific specialty (or its 
                                        equivalent); or
                                            ``(BB) experience in the 
                                        specialty equivalent to the 
                                        completion of such degree; and
                                    ``(II) have an insufficient number 
                                of individuals who are citizens or 
                                residents of the United States and are 
                                qualified, willing, and able to satisfy 
                                the demand for labor in such occupation 
                                or field of work.
                    ``(B) Determination and publication.--The 
                Secretary, in consultation with the Bureau of Labor 
                Statistics of the Department of Labor, shall annually--
                            ``(i) determine which occupations or fields 
                        of work satisfy the requirements described in 
                        subparagraph (A), and
                            ``(ii) publish and make available on the 
                        website of the Department of the Treasury a 
                        complete list of such occupations and fields of 
                        work.
            ``(3) Qualified employee.--
                    ``(A) In general.--The term `qualified employee' 
                means an individual who--
                            ``(i) is provided wages for employment by 
                        the employer (as such terms are defined in 
                        section 3121), provided that such employment--
                                    ``(I) is not in a declining field, 
                                and
                                    ``(II) is in a skilled healthcare 
                                field,
                            ``(ii) is not a covered employee (as 
                        defined in section 162(m)(3)), and
                            ``(iii) was employed in a declining field 
                        for any period during the 12-month period 
                        preceding the applicable period under paragraph 
                        (1)(B).
                    ``(B) Nonqualifying rehires.--The term `qualifying 
                employee' shall not include any individual who, prior 
                to the beginning of the applicable period under 
                paragraph (1)(B), had been employed by the employer at 
                any time.''.
    (b) Credit Part of General Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 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 health care workforce credit determined under 
        section 45U(a).''.
    (c) Clerical Amendment.--The table of sections for 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 item:

``Sec. 45U. Health Care Workforce Credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. ENHANCEMENTS TO CERTAIN EDUCATION TAX BENEFITS FOR MEDICAL 
              PROFESSIONALS IN SHORT SUPPLY.

    (a) In General.--
            (1) Publication.--For each calendar year beginning after 
        the date of the enactment of this Act, the Secretary of the 
        Treasury, in consultation with the Secretary of Labor, shall 
        publish and make available on the website of the Department of 
        the Treasury a list of any occupation or field of work which 
        qualifies as a medical short supply field for such calendar 
        year.
            (2) Medical short supply field.--The term ``medical short 
        supply field'' means an occupation or field of work which the 
        Secretary of the Treasury, in consultation with the Secretary 
        of Labor, has determined--
                    (A) is related to the practice of medicine or to 
                the manufacturing of medical equipment;
                    (B) requires--
                            (i) theoretical and practical application 
                        of a body of highly specialized knowledge; and
                            (ii)(I) attainment of a bachelor's or 
                        higher degree in the specific specialty (or its 
                        equivalent); or
                            (II) experience in the specialty equivalent 
                        to the completion of such degree; and
                    (C) has an insufficient number of individuals who 
                are citizens or residents of the United States and are 
                qualified, willing, and able to satisfy the demand for 
                labor in such occupation or field of work.
    (b) Enhancements to Certain Education Tax Benefits.--
            (1) In general.--
                    (A) Educational assistance programs.--Paragraph (2) 
                of section 127(a) of the Internal Revenue Code of 1986 
                is amended by inserting ``(or, in the case of an 
                individual employed in an occupation or field of work 
                which has been designated as a medical short supply 
                field for such calendar year pursuant to section 4(a) 
                of the Build Health Care Equipment in America Act, the 
                first $15,000 of such assistance so furnished)'' before 
                the period at the end.
                    (B) Interest on education loans.--Paragraph (1) of 
                section 221(b) of the Internal Revenue Code of 1986 is 
                amended by inserting ``(or, in the case of a individual 
                employed in an occupation or field of work which has 
                been designated, pursuant to section 4(a) of the Build 
                Health Care Equipment in America Act, as a medical 
                short supply field for the calendar year in which such 
                taxable year began, shall not exceed $8,000)'' before 
                the period at the end.
                    (C) Qualified tuition and related expenses.--
                Paragraph (1) of section 222(b) of the Internal Revenue 
                Code of 1986 is amended by inserting ``(or, in the case 
                of an individual employed in an occupation or field of 
                work which has been designated, pursuant to section 
                4(a) of the Build Health Care Equipment in America Act, 
                as a medical short supply field for the calendar year 
                in which such taxable year began, an amount equal to 
                the applicable dollar limit multiplied by 2)'' before 
                the period at the end.
            (2) Exclusion for certain employer payments of student 
        loans.--
                    (A) In general.--Paragraph (1) of section 127(c) of 
                the Internal Revenue Code of 1986 is amended by 
                striking ``and'' at the end of subparagraph (A), by 
                redesignating subparagraph (B) as subparagraph (C), and 
                by inserting after subparagraph (A) the following new 
                subparagraph:
                    ``(B) in the case of an employee employed in an 
                occupation or field of work which has been designated 
                as a medical short supply field for a calendar year 
                pursuant to section 4(a) of the Build Health Care 
                Equipment in America Act, the payment by an employer 
                during such calendar year, whether paid to the employee 
                or to a lender, of principal or interest on any 
                qualified education loan (as defined in section 
                221(d)(1)) incurred by the employee, and''.
                    (B) Conforming amendment; denial of double 
                benefit.--Paragraph (1) of section 221(e) of the 
                Internal Revenue Code of 1986 is amended by inserting 
                before the period the following: ``, or for which an 
                exclusion is allowable under section 127 to the 
                taxpayer's employer by reason of the payment by such 
                employer of any indebtedness on a qualified education 
                loan of the taxpayer''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.

SEC. 5. 21ST CENTURY TECHNOLOGY FUND FOR STATE AND LOCAL GOVERNMENTS 
              LOOKING TO DRAW BUSINESSES TO THEIR RURAL REGIONS.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb 
et seq.) is amended by adding at the end the following:

``SEC. 607. 21ST CENTURY TECHNOLOGY FUND FOR STATE AND LOCAL 
              GOVERNMENTS LOOKING TO DRAW BUSINESSES TO THEIR RURAL 
              REGIONS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means an 
        entity eligible to receive assistance under the ReConnect 
        Program.
            ``(2) Eligible service area.--The term `eligible service 
        area' means a service area in which a project may be carried 
        out under the ReConnect Program.
            ``(3) Fund.--The term `Fund' means the 21st Century 
        Technology Fund for State and Local Governments Looking to Draw 
        Businesses to Their Rural Regions established by subsection 
        (b)(1).
            ``(4) Reconnect program.--The term `ReConnect Program' 
        means the Rural eConnectivity Pilot Program established under 
        section 779 of division A of the Consolidated Appropriations 
        Act, 2018 (Public Law 115-141; 132 Stat. 399).
    ``(b) Establishment of Fund.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a fund, to be known as the `21st Century 
        Technology Fund for State and Local Governments Looking to Draw 
        Businesses to Their Rural Regions', consisting of--
                    ``(A) such amounts as are appropriated to the Fund 
                under subsection (e); and
                    ``(B) any interest and proceeds under paragraph 
                (3).
            ``(2) Investment of amounts.--The Secretary of the Treasury 
        shall invest such amounts in the Fund as are not, as determined 
        by the Secretary of Agriculture, required to meet current 
        withdrawals.
            ``(3) Credits to fund.--The interest on, and the proceeds 
        from the sale or redemption of, any obligations held in the 
        Fund shall be credited to, and form a part of, the Fund.
    ``(c) Rural Technology Infrastructure Assistance.--Using amounts in 
the Fund, the Secretary shall provide assistance to eligible entities 
to carry out projects in eligible service areas for the same purposes 
as projects authorized under the ReConnect Program.
    ``(d) Applicability of ReConnect Program Requirements.--The 
requirements, limitations, and authorities that apply to assistance 
provided, and projects carried out, under the ReConnect Program shall 
apply to assistance provided, and projects carried out, under this 
section.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as are necessary to carry out this 
section for each fiscal year.''.
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