Title: A bill to provide a payroll tax credit for certain expenses associated with protecting employees from COVID-19.
Policy area: Taxation

Summary:
This bill allows employers a 50% payroll tax credit for the cost of qualified employee protection expenses and qualified workplace reconfiguration expenses paid in a calendar quarter. The bill defines

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4214 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4214

 To provide a payroll tax credit for certain expenses associated with 
                  protecting employees from COVID-19.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2020

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

_______________________________________________________________________

                                 A BILL


 
 To provide a payroll tax credit for certain expenses associated with 
                  protecting employees from COVID-19.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. HEALTHY WORKPLACE TAX CREDIT.

    (a) In General.--In the case of an employer, there shall be allowed 
as a credit against applicable employment taxes for each calendar 
quarter an amount equal to 50 percent of the sum of--
            (1) the qualified employee protection expenses paid or 
        incurred by the employer during such calendar quarter, and
            (2) the qualified workplace reconfiguration expenses paid 
        or incurred by the employer during such calendar quarter.
    (b) Limitations and Refundability.--
            (1) Overall dollar limitation on credit.--
                    (A) In general.--The amount of the credit allowed 
                under subsection (a) with respect to any employer for 
                any calendar quarter shall not exceed the excess (if 
                any) of--
                            (i) the applicable dollar limit with 
                        respect to such employer for such calendar 
                        quarter, over
                            (ii) the aggregate credits allowed under 
                        subsection (a) with respect to such employer 
                        for all preceding calendar quarters.
                    (B) Applicable dollar limit.--The term ``applicable 
                dollar limit'' means, with respect to any employer for 
                any calendar quarter, the sum of--
                            (i) $1,000, multiplied by so much of the 
                        average number of full-time employees (as 
                        determined for purposes of determining whether 
                        an employer is an applicable large employer for 
                        purposes of section 4980H(c)(2) of the Internal 
                        Revenue Code of 1986, except that an individual 
                        shall not be taken into account as an employee 
                        for any period during which substantially all 
                        of the services provided by such individual as 
                        an employee are provided outside the United 
                        States) employed by such employer during such 
                        calendar quarter as does not exceed 500, plus
                            (ii) $750, multiplied by so much of such 
                        average number of full-time employees as 
                        exceeds 500 but does not exceed 1,000, plus
                            (iii) $500, multiplied by so much of such 
                        average number of full-time employees as 
                        exceeds 1,000.
            (2) Credit limited to employment taxes.--The credit allowed 
        by subsection (a) with respect to any calendar quarter shall 
        not exceed the applicable employment taxes (reduced by any 
        credits allowed under subsections (e) and (f) of section 3111 
        of the Internal Revenue Code of 1986, sections 7001 and 7003 of 
        the Families First Coronavirus Response Act, and section 2301 
        of the CARES Act) on the wages paid with respect to the 
        employment of all the employees of the employer for such 
        calendar quarter.
            (3) Refundability of excess credit.--
                    (A) In general.--If the amount of the credit under 
                subsection (a) exceeds the limitation of paragraph (2) 
                for any calendar quarter, such excess shall be treated 
                as an overpayment that shall be refunded under sections 
                6402(a) and 6413(b) of the Internal Revenue Code of 
                1986.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, any amounts due 
                to the employer under this paragraph shall be treated 
                in the same manner as a refund due from a credit 
                provision referred to in subsection (b)(2) of such 
                section.
    (c) Qualified Employee Protection Expenses.--For purposes of this 
section, the term ``qualified employee protection expenses'' means 
amounts (other than any qualified workplace reconfiguration expense) 
paid or incurred by the employer for--
            (1) testing employees of the employer for COVID-19 
        (including on a periodic basis),
            (2) equipment to protect employees of the employer from 
        contracting COVID-19, including masks, gloves, and 
        disinfectants, and
            (3) cleaning products or services (whether provided by an 
        employee of the taxpayer or a cleaning service provider) 
        related to preventing the spread of COVID-19.
    (d) Qualified Workplace Reconfiguration Expenses.--For purposes of 
this section--
            (1) In general.--The term ``qualified workplace 
        reconfiguration expenses'' means amounts paid or incurred by 
        the employer to design and reconfigure retail space, work 
        areas, break areas, or other areas that employees or customers 
        regularly use in the ordinary course of the employer's trade or 
        business if such design and reconfiguration--
                    (A) has a primary purpose of preventing the spread 
                of COVID-19,
                    (B) is with respect to an area that is located in 
                the United States and that is leased or owned by the 
                employer,
                    (C) is consistent with the ordinary use of the 
                property immediately before the reconfiguration,
                    (D) is commensurate with the risks faced by the 
                employees or customers or is consistent with 
                recommendations made by the Centers for Disease Control 
                and Prevention or the Occupational Safety and Health 
                Administration,
                    (E) is completed pursuant to a reconfiguration plan 
                and no comparable reconfiguration plan was in place 
                before March 13, 2020, and
                    (F) is completed before January 1, 2021.
            (2) Regulations.--The Secretary shall prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out the purposes of this subsection, 
        including guidance defining primary purpose and reconfiguration 
        plan.
    (e) Other Definitions.--For purposes of this section--
            (1) Applicable employment taxes.--The term ``applicable 
        employment taxes'' means the following:
                    (A) The taxes imposed under section 3111(a) of the 
                Internal Revenue Code of 1986.
                    (B) So much of the taxes imposed under section 
                3221(a) of such Code as are attributable to the rate in 
                effect under section 3111(a) of such Code.
            (2) COVID-19.--Except where the context clearly indicates 
        otherwise, any reference in this section to COVID-19 shall be 
        treated as including a reference to the virus which causes 
        COVID-19.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
            (4) Other terms.--Any term used in this section (other than 
        subsection (b)(1)(B)) which is also used in chapter 21 or 22 of 
        the Internal Revenue Code of 1986 shall have the same meaning 
        as when used in such chapter.
    (f) Certain Governmental Employers.--This section shall not apply 
to the Government of the United States, the government of any State or 
political subdivision thereof, or any agency or instrumentality of any 
of the foregoing.
    (g) Special Rules.--
            (1) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 of the 
        Internal Revenue Code of 1986, or subsection (m) or (o) of 
        section 414 of such Code, shall be treated as one employer for 
        purposes of this section.
            (2) Denial of double benefit.--Rules similar to the rules 
        of section 280C(a) of the Internal Revenue Code of 1986 shall 
        apply for purposes of this section.
            (3) Third-party payors.--Any credit allowed under this 
        section shall be treated as a credit described in section 
        3511(d)(2) of such Code.
            (4) Election not to have section apply.--This section shall 
        not apply with respect to any employer for any calendar quarter 
        if such employer elects (at such time and in such manner as the 
        Secretary may prescribe) not to have this section apply.
    (h) Transfers to Certain Trust Funds.--There are hereby 
appropriated to the Federal Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund established under 
section 201 of the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under section 15A(a) of 
the Railroad Retirement Act of 1974 (45 U.S.C. 14 231n-1(a)) amounts 
equal to the reduction in revenues to the Treasury by reason of this 
section (without regard to this subsection). Amounts appropriated by 
the preceding sentence shall be transferred from the general fund at 
such times and in such manner as to replicate to the extent possible 
the transfers which would have occurred to such Trust Fund or Account 
had this section not been enacted.
    (i) Treatment of Deposits.--The Secretary shall waive any penalty 
under section 6656 of the Internal Revenue Code of 1986 for any failure 
to make a deposit of any applicable employment taxes if the Secretary 
determines that such failure was due to the reasonable anticipation of 
the credit allowed under this section.
    (j) Regulations and Guidance.--The Secretary shall prescribe such 
regulations and other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including--
            (1) with respect to the application of the credit under 
        subsection (a) to third-party payors (including professional 
        employer organizations, certified professional employer 
        organizations, or agents under section 3504 of the Internal 
        Revenue Code of 1986), regulations or other guidance allowing 
        such payors to submit documentation necessary to substantiate 
        the amount of the credit allowed under subsection (a), and
            (2) regulations or other guidance to prevent abusive 
        transactions.
    (k) Application.--This section shall only apply to amounts paid or 
incurred after March 12, 2020, and before January 1, 2021.
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