Title: Paycheck Protection Program Improved Coordination Act of 2020
Policy area: Taxation

Summary:
Paycheck Protection Program Improved Coordination Act of 2020
This bill coordinates the Paycheck Protection Program (PPP), established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), with the employee retention tax credit for employers subject to closure due to COVID-19, by allowing loan amounts not forgiven under the PPP to be taken into account for purposes of the retention tax credit.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6781 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6781

 To provide for improved coordination between the paycheck protection 
             program and the employee retention tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2020

  Mr. Pappas (for himself, Mr. Hagedorn, and Mrs. Murphy of Florida) 
 introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committee on Small Business, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide for improved coordination between the paycheck protection 
             program and the 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 ``Paycheck Protection Program Improved 
Coordination Act of 2020''.

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 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 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 is amended by 
                striking subsection (j).
                    (B) Section 2301(l) of the CARES Act 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 to which they 
relate.
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