Title: Employer Assistance Coordination Act
Policy area: Taxation

Summary:
Employer Assistance Coordination Act
This bill permits certain small employers who participate in the Payroll Protection Program established to assist such employers adversely affected by the COVID-19 (i.e., coronavirus disease 2019) public health emergency to also claim the refundable employee retention tax credit if their businesses have experienced a significant reduction in revenue or have closed pursuant to a government order.  The bill prohibits employers from using funds from both programs based upon the same wages paid to their employees.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4268 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4268

  To improve coordination between the paycheck protection program and 
                     employee retention tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2020

 Ms. Hassan (for herself and Mr. Burr) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To improve coordination between the paycheck protection program and 
                     employee retention tax credit.

    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 ``Employer Assistance Coordination 
Act''.

SEC. 2. IMPROVED COORDINATION BETWEEN PAYCHECK PROTECTION PROGRAM AND 
              EMPLOYEE RETENTION TAX CREDIT.

    (a) Amendment to Paycheck Protection Program.--Section 1106(a)(8) 
of the CARES Act (Public Law 116-136) is amended by inserting ``, 
except that such costs shall not include qualified wages taken into 
account in determining the credit allowed under section 2301 of this 
Act'' before the period at the end.
    (b) Amendments to Employee Retention Tax Credit.--
            (1) In general.--Section 2301(g) of the CARES Act (Public 
        Law 116-136) is amended to read as follows:
    ``(g) Election To Not Take Certain Wages Into Account.--
            ``(1) In general.--This section shall not apply to 
        qualified wages paid by an eligible employer with respect to 
        which such employer makes an election (at such time and in such 
        manner as the Secretary may prescribe) to have this section not 
        apply to such wages.
            ``(2) Coordination with paycheck protection program.--The 
        Secretary, in consultation with the Administrator of the Small 
        Business Administration, shall issue guidance providing that 
        payroll costs paid or incurred during the covered period shall 
        not fail to be treated as qualified wages under this section by 
        reason of an election under paragraph (1) to the extent that a 
        covered loan of the eligible employer is not forgiven by reason 
        of a decision under section 1106(g). Terms used in the 
        preceding sentence which are also used in section 1106 shall 
        have the same meaning as when used in such section.''.
            (2) Conforming amendments.--
                    (A) Section 2301 of the CARES Act (Public Law 116-
                136) is amended by striking subsection (j).
                    (B) Section 2301(l) of the CARES Act (Public Law 
                116-136) is amended by striking paragraph (3) and by 
                redesignating paragraphs (4) and (5) as paragraphs (3) 
                and (4), respectively.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the CARES Act (Public Law 
116-136) to which they relate.
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