Title: Preserving Employee Retirement Savings Act of 2020
Policy area: Taxation

Summary:
Preserving Employee Retirement Savings Act of 2020
This bill allows an employer that has a temporary substantial business hardship and, if not a tax-exempt or cooperative organization, does not have more that $41.5 million in gross receipts a tax credit for 20% of retirement contributions made to employee retirement accounts. The amount of such credit for any employer may not exceed $100,000 in any taxable year.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8083 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8083

To establish a temporary tax credit for maintaining retirement benefits 
                     during the COVID-19 pandemic.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 21, 2020

 Mr. Schneider (for himself and Mr. Kelly of Pennsylvania) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
To establish a temporary tax credit for maintaining retirement benefits 
                     during the COVID-19 pandemic.

    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 ``Preserving Employee Retirement 
Savings Act of 2020''.

SEC. 2. TEMPORARY CREDIT FOR MAINTAINING RETIREMENT BENEFITS DURING 
              PANDEMIC.

    (a) In General.--In the case of an eligible employer, there shall 
be allowed as a credit against the tax imposed by chapter 1 of the 
Internal Revenue Code of 1986 an amount equal to 20 percent of the 
qualified retirement contributions by the employer for the taxable 
year.
    (b) Limitation.--The amount of credit allowed to the taxpayer under 
subsection (a) for any taxable year shall not exceed $100,000.
    (c) Qualified Retirement Contributions.--For purposes of this 
section--
            (1) In general.--The term ``qualified retirement 
        contribution'' means, with respect to any taxable year, any 
        employer contribution (other than an elective deferral (as 
        defined in section 402(g)(3) of such Code) to an applicable 
        retirement plan on behalf of an employee other than a highly 
        compensated employee (as defined in section 414(q) of such 
        Code)).
            (2) Determining contribution to defined benefit plan.--In 
        the case of a defined benefit plan (as defined in section 
        414(j) of such Code), the amount treated as an employer 
        contribution under paragraph (1) shall be the amount described 
        with respect to the plan in section 430(b)(1)(A)(i), 
        431(b)(2)(A), or 433(b)(2)(A) of such Code, as the case may be, 
        or in the case of a CSEC plan that uses a spread gain funding 
        method (as defined in section 433(j)(5)(D)) of such Code), the 
        amount described in 433(j)(1)(B) of such Code.
            (3) Coordination with other assistance.--Such term shall 
        not include any amount taken into account in determining any 
        loan amount forgiven under section 1106 or 1109(d)(1)(D) of the 
        Coronavirus Aid, Relief, and Economic Security Act.
            (4) Applicable retirement plan.--
                    (A) In general.--For purposes of this section, the 
                term ``applicable retirement plan'' means any plan, 
                annuity contract, pension, or account described in 
                clause (i), (ii), (iv), (v), or (vi) of section 
                219(g)(5)(A) of such Code (other than a governmental 
                plan (within the meaning of section 414(d))).
                    (B) Plans with contribution level reduction not 
                eligible.--Such term shall not include any plan, 
                annuity contract, pension, or account which for any 
                plan year which includes the taxable year--
                            (i) is amended after December 31, 2019, to 
                        reduce allocations or benefit accruals; or
                            (ii) in any case in which the employer has 
                        discretion over allocations, has a rate of 
                        contribution for any class of employees that 
                        includes an employee who is not a highly 
                        compensated employee which is less than the 
                        greater of--
                                    (I) the rate of contribution for 
                                such class for the last plan year 
                                ending before January 1, 2019; or
                                    (II) the rate of contribution for 
                                such class for the last plan year 
                                ending before January 1, 2020.
                For purposes of the preceding sentence, the rate of 
                contribution shall be expressed as a percentage of 
                compensation (as defined for the plan year for which 
                such rate is being determined).
    (d) Other Definitions and Special Rules.--For purposes of this 
section--
            (1) Eligible employer.--
                    (A) In general.--The term ``eligible employer'' 
                means any employer--
                            (i) that has a temporary substantial 
                        business hardship (within the meaning of 
                        section 412(c)(2) of such Code) for the taxable 
                        year; and
                            (ii) in the case of employer that is not a 
                        tax-exempt or cooperative organization, the 
                        gross receipts (within the meaning of section 
                        448(c) of the Internal Revenue Code of 1986) of 
                        which during the preceding taxable year were 
                        not more than $41,500,000.
                    (B) Pre-guidance determination of hardship.--In the 
                case of any determination of the credit under 
                subsection (a) prior to the issuance of guidance by the 
                Secretary of the Treasury as to what constitutes a 
                temporary substantial business hardship under 
                subparagraph (A), the taxpayer may rely on a reasonable 
                good faith determination of whether such a hardship 
                exists.
            (2) Tax-exempt or cooperative organization.--The term ``tax 
        exempt or cooperative organization'' means--
                    (A) any organization exempt from tax under chapter 
                1 of the Internal Revenue Code of 1986;
                    (B) any organization to which subchapter T of 
                chapter 1 of such Code applies; or
                    (C) any organization described in section 
                1381(a)(2)(C) of such Code.
            (3) Recapture.--In the case of an employer allowed a credit 
        under this section for a taxable year with respect to an 
        applicable retirement plan, if such plan fails to meet the 
        requirements of subsection (c)(4)(B) for the following taxable 
        year, then the tax of the taxpayer under chapter 1 of such Code 
        for such following taxable year shall be increased by an amount 
        equal to the amount of the credit so allowed.
            (4) Aggregation rules.--All employees who are treated as 
        employed by a single employer under subsections (b), (c), (m), 
        and (o) of section 414 of such Code shall be treated as 
        employed by a single employer for purposes of this section. In 
        the case of a plan maintained by more than one employer, each 
        such employer shall be treated separately for purposes of this 
        section.
            (5) Third-party payors.--Any credit allowed under this 
        section shall be treated as a credit described in section 
        3511(d)(2) of such Code.
    (e) Credit Refundable for Tax-Exempt and Cooperative Employers.--In 
the case of an employer that is a tax exempt or cooperative 
organization, the credit allowed under this section shall be treated as 
a credit allowed under subpart C of part IV of subchapter A of chapter 
1 of such Code. Section 512(c)(12)(A) of such Code shall be applied 
without taking into account any such credit as income.
    (f) Application of Section.--This section shall apply to the 
taxable year of any taxpayer that includes June 30, 2020, and such 
taxpayer's first succeeding taxable year.
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