Title: Helping Small Businesses Reopen Safely Act of 2020
Policy area: Taxation

Summary:
Helping Small Businesses Reopen Safely Act of 2020

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7431 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7431

 To provide a payroll tax credit for personal protective equipment for 
                    use by employees and customers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2020

  Mr. Rouda (for himself and Mr. Mast) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide a payroll tax credit for personal protective equipment for 
                    use by employees and customers.

    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 ``Helping Small Businesses Reopen 
Safely Act of 2020''.

SEC. 2. PAYROLL TAX CREDIT FOR PERSONAL PROTECTIVE EQUIPMENT.

    (a) In General.--In the case of an eligible employer, there shall 
be allowed as a credit against applicable employment taxes for each 
calendar quarter an amount equal to 90 percent of the amount paid or 
incurred by such employer during such calendar quarter for eligible 
personal protective equipment provided free of charge by such employer 
for the use or for the benefit of employees and customers of such 
employer.
    (b) Limitations and Refundability.--
            (1) Dollar limitation.--The amount of the credit allowed 
        under subsection (a) with respect to any eligible employer for 
        any calendar quarter shall not exceed the lesser of--
                    (A) $6,250, or
                    (B) the greater of--
                            (i) 2 percent of the employer's gross 
                        receipts for such calendar quarter, or
                            (ii) 0.5 percent of the employer's gross 
                        receipts for the employer's last taxable year 
                        ending in 2019.
            (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 eligible 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) 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) Eligible employer.--
                    (A) In general.--The term ``eligible employer'' 
                means, with respect to any calendar quarter, any 
                employer--
                            (i) which was carrying on a trade or 
                        business during such calendar quarter, and
                            (ii) the average number of full-time 
                        employees (within the meaning of section 4980H 
                        of the Internal Revenue Code of 1986) employed 
                        by such employer during such calendar quarter 
                        was less than 500.
                    (B) Certain tax-exempt organizations and 
                governmental employers.--In the case of an organization 
                which is described in section 501(c) of the Internal 
                Revenue Code of 1986 and exempt from tax under section 
                501(a) of such Code, or any governmental entity (other 
                than a governmental entity described in subparagraph 
                (D)), subparagraph (A)(i) shall apply to all operations 
                of such organization or government.
                    (C) Exclusion of certain tax-exempt 
                organizations.--The term ``eligible employer'' shall 
                not include any organization described in section 
                501(c)(4) of such Code unless such organization does 
                not participate in, or intervene in (including the 
                publishing or distributing of statements), any 
                political campaign on behalf of (or in opposition to) 
                any candidate for public office.
                    (D) Exclusion of federal and foreign governments.--
                The term ``eligible employer'' shall not include the 
                Government of the United States, the government of any 
                foreign country, or any agency or instrumentality of 
                the foregoing.
            (3) Eligible personal protective equipment.--The term 
        ``eligible personal protective equipment'' means masks or face 
        coverings, goggles, face shields, respiratory protection, 
        gloves, gowns, shields or barriers, hand sanitizers, surface 
        cleaners or disinfectants, items that are intended to reduce 
        the spread of infectious disease, and any other supplies or 
        equipment that the Secretary determines appropriate for 
        purposes of this section after consultation with Secretary of 
        Health and Human Services and the Secretary of Labor.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
            (5) Other terms.--Any term used in this section 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.
    (d) 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.
    (e) Denial of Double Benefit.--For purposes of chapter 1 of such 
Code, the gross income of any eligible employer, for the taxable year 
which includes the last day of any calendar quarter with respect to 
which a credit is allowed under this section, shall be increased by the 
amount of such credit.
    (f) Election Not To Have Section Apply.--This section shall not 
apply with respect to any eligible 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.
    (g) Third-Party Payors.--Any credit allowed under this section 
shall be treated as a credit described in section 3511(d)(2) of such 
Code.
    (h) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--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 issue such 
forms, instructions, regulations, and guidance as are necessary--
            (1) to allow the advance payment of the credit under 
        subsection (a), subject to the limitations provided in this 
        section, based on such information as the Secretary shall 
        require,
            (2) to provide for the reconciliation of such advance 
        payment with the amount advanced at the time of filing the 
        return of tax for the applicable calendar quarter or taxable 
        year, and
            (3) 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), including regulations or guidance 
        allowing such payors to submit documentation necessary to 
        substantiate the eligible employer status of employers that use 
        such payors.
    (k) Application.--This section shall only apply to calendar 
quarters beginning after December 31, 2019, and before January 1, 2022.
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