Title: PLUS Act of 2020
Policy area: Taxation

Summary:
Providing Liquidity for Uncollectible Sales Act of 2020 or as the PLUS Act of 2020
This bill allows a new tax credit for the uncollectible accounts receivable of an eligible wholesale distributor. The bill defines an eligible wholesale distributor as any person engaged in the trade or business of selling inventory to a food and beverage establishment that ceases to provide on-premises consumption of food and beverage on or after March 25, 2020, pursuant to an order or recommendation of an applicable governmental authority.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7707 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7707

To amend the Internal Revenue Code of 1986 to provide a credit for the 
       uncollectible accounts of eligible wholesale distributors.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2020

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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a credit for the 
       uncollectible accounts of eligible wholesale distributors.

    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 ``Providing Liquidity for 
Uncollectible Sales Act of 2020'' or as the ``PLUS Act of 2020''.

SEC. 2. CREDIT FOR UNCOLLECTIBLE ACCOUNTS OF ELIGIBLE WHOLESALE 
              DISTRIBUTORS.

    (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 after section 
45T the following new section:

``SEC. 45U. WHOLESALE DISTRIBUTOR UNCOLLECTIBLE ACCOUNTS CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible wholesale distributor, the wholesale distributor uncollectible 
accounts credit determined under this section for the taxable year is 
an amount equal to the qualified accounts receivables of such 
distributor which become uncollectible during such taxable year.
    ``(b) Eligible Wholesale Distributor.--For purposes of this 
section, the term `eligible wholesale distributor' means any person 
engaged in the trade or business of selling inventory to food and 
beverage establishments.
    ``(c) Qualified Accounts Receivable.--For purposes of this 
section--
            ``(1) In general.--The term `qualified accounts receivable' 
        means any accounts receivable which was accrued pursuant to 
        normal payment terms by an eligible wholesale distributor for 
        the sale of inventory delivered on or before March 25, 2020, to 
        a qualified food and beverage establishment.
            ``(2) Normal payment terms.--An amount shall be treated as 
        accrued pursuant to normal payment terms if it is accrued under 
        the applicable payment terms in effect on March 25, 2020, under 
        an agreement established prior to that date between the 
        eligible wholesale distributor and the qualified food and 
        beverage establishment.
            ``(3) Presumption of uncollectability.--For purposes of 
        this section, a qualified accounts receivable shall be treated 
        as becoming uncollectible during the taxable year of the 
        eligible wholesale distributor which includes July 15, 2020, 
        if--
                    ``(A) the qualified food and beverage establishment 
                to which such qualified accounts receivable relates 
                does not provide on-premises consumption pursuant to an 
                order or recommendation of an applicable Federal, 
                State, or municipal authority for at least 30 days 
                during the period beginning on March 25, 2020, and 
                ending on July 15, 2020, and
                    ``(B) such qualified accounts receivable is not 
                paid before the close of such taxable year.
    ``(d) Qualified Food and Beverage Establishment.--For purposes of 
this section--
            ``(1) Qualified food and beverage establishment.--The term 
        `qualified food and beverage establishment' means a food and 
        beverage establishment within the United States that ceases to 
        provide on-premises consumption of food and beverage on or 
        after March 25, 2020, pursuant to an order or recommendation of 
        an applicable Federal, State, or municipal authority.
            ``(2) Food and beverage establishment.--The term `food and 
        beverage establishment' means a commercial establishment 
        engaged in the trade or business of preparing food and beverage 
        for consumption on-premises or off-premises.
    ``(e) Inventory.--For purposes of this section, the term 
`inventory' means property described in section 1221(a)(1) in the hands 
of the food and beverage establishments to which sold by the eligible 
wholesale distributor.
    ``(f) Coordination With Deduction for Bad Debts.--Any amount 
allowed as a credit under this section will not be allowable as a 
deduction under section 166.''.
    (b) Conforming Amendments.--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 after paragraph (33) the following new 
paragraph:
            ``(34) in the case of an eligible wholesale distributor (as 
        defined in section 45U(b)), the wholesale distributor 
        uncollectible accounts credit determined under section 
        45U(a).''.
    (c) Effective Date.--The amendments made by this sections shall 
apply to taxable years ending after March 25, 2020.
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