Title: Save America's Main Street Act
Policy area: Taxation

Summary:
Save America's Main Street Act
This bill allows (1) certain small businesses ($1 million or less in gross receipts and not more than 50 full time employees) a tax credit for the lesser of 30% of their gross receipts or $75,000 for the first taxable year beginning in 2020, (2) deferral of estimated tax payments for such businesses, and (3) certain small business employers a payroll tax credit for 50% of wages paid to their employees unable to work due to COVID-19 (i.e., the coronavirus disease 2019).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3549 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3549

   To amend the Internal Revenue Code of 1986 to provide advance tax 
          refunds to small businesses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2020

 Mr. Wyden (for himself and Mr. Cardin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide advance tax 
          refunds to small businesses, and for other purposes.

    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 ``Save America's Main Street Act''.

SEC. 2. SMALL BUSINESS REBATE.

    (a) In General.--Subchapter B of chapter 65 of subtitle F of the 
Internal Revenue Code of 1986 is amended by inserting after section 
6427 the following new section:

``SEC. 6428. SMALL BUSINESS REBATE.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of a qualifying business, 
        there shall be allowed as a credit against the tax imposed by 
        subtitle A for the first taxable year beginning in 2020 an 
        amount equal to the lesser of--
                    ``(A) 30 percent of qualified gross receipts of 
                such qualifying business for the first taxable year 
                beginning in 2019, or
                    ``(B) $75,000.
            ``(2) Special rule.--In the case of--
                    ``(A) a qualifying business which did not file a 
                tax return for the taxable year described in paragraph 
                (1)(A), or
                    ``(B) a sole proprietorship for which gross 
                receipts were not reported on a return of tax for such 
                taxable year,
        such paragraph shall be applied by substituting `2018' for 
        `2019'.
            ``(3) Qualified gross receipts.--For purposes of paragraph 
        (1)(A), the term `qualified gross receipts' means gross 
        receipts of the qualifying business which are effectively 
        connected with the conduct of a trade or business within the 
        United States (within the meaning of section 864(c), determined 
        by substituting `qualifying business' for `nonresident alien 
        individual or a foreign corporation' or for `foreign 
        corporation' each place it appears) for the applicable taxable 
        year under paragraph (1)(A), as reported by the taxpayer on--
                    ``(A) in the case of a qualifying business which is 
                a partnership, the return required to be filed under 
                section 6031,
                    ``(B) in the case of a qualifying business which is 
                an S corporation, the return required to be filed under 
                section 6037, and
                    ``(C) in the case of any other qualifying business, 
                the return of tax for the taxable year.
    ``(b) Qualifying Business.--
            ``(1) In general.--For purposes of this section, the term 
        `qualifying business' means any person which--
                    ``(A) meets the gross receipts test of subsection 
                (c) of section 448 for the applicable taxable year 
                under subsection (a)(1)(A), except that subsection (c) 
                of section 448 shall be applied--
                            ``(i) without regard to paragraph (4) of 
                        such subsection, and
                            ``(ii) by substituting `$1,000,000' for 
                        `$25,000,000', and
                    ``(B) with respect to the preceding calendar year, 
                employed an average of not greater than 50 full-time 
                employees (as such term is defined in paragraph (4) of 
                section 4980H(c)) on business days during such calendar 
                year.
            ``(2) Special rule.--For purposes of paragraph (1)(A), in 
        the case of any taxpayer which is not a corporation or a 
        partnership, the gross receipts test of section 448(c) shall be 
        applied in the same manner as if such taxpayer were a 
        corporation or partnership.
            ``(3) Full-time equivalents.--For purposes of paragraph 
        (1)(B), the number of full-time employees shall be determined 
        pursuant to rules similar to the rules described in paragraph 
        (2)(E) of section 4980H(c).
            ``(4) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as a 
        single person for purposes of paragraph (1)(B).
            ``(5) Qualified organizations.--
                    ``(A) Inclusion as qualifying business.--
                            ``(i) In general.--For purposes of this 
                        section, the term `qualifying business' shall 
                        include any qualified organization.
                            ``(ii) Definition.--For purposes of this 
                        paragraph, the term `qualified organization' 
                        means an organization which--
                                    ``(I) is described in section 
                                501(c)(3) and exempt from tax under 
                                section 501(a),
                                    ``(II) is described in section 
                                170(b)(1)(A),
                                    ``(III) is not described in section 
                                509(a)(3), and
                                    ``(IV) satisfies the requirements 
                                under subparagraphs (A) and (B) of 
                                paragraph (1).
                    ``(B) Qualified gross receipts.--
                            ``(i) In general.--For purposes of 
                        subsection (a)(1)(A), in the case of a 
                        qualified organization, the term `qualified 
                        gross receipts' means gross receipts of the 
                        organization for the taxable year described in 
                        such subsection.
                            ``(ii) Special rule.--In the case of a 
                        qualified organization which did not file a tax 
                        return for the taxable year described in 
                        subsection (a)(1)(A), such subsection shall be 
                        applied by substituting `2018' for `2019'.
                            ``(iii) Organization exempt from filing.--
                                    ``(I) In general.--In the case of 
                                an organization which is exempt from 
                                filing a return pursuant to section 
                                6033(a) or which is not required to 
                                include in such return the information 
                                necessary to determine the amount of 
                                the credit allowed under this section, 
                                such organization may submit to the 
                                Secretary (in such form and manner as 
                                is deemed appropriate by the Secretary) 
                                any information required for purposes 
                                of determining--
                                            ``(aa) whether such 
                                        organization satisfies the 
                                        requirements under 
                                        subparagraphs (A) and (B) of 
                                        paragraph (1), and
                                            ``(bb) the amount of the 
                                        credit allowed under subsection 
                                        (a)(1).
                                    ``(II) Publicity of information.--
                                For purposes of section 6104, any 
                                information submitted by an 
                                organization under subclause (I) shall 
                                be deemed to be information required to 
                                be furnished by such organization 
                                pursuant to section 6033.
    ``(c) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Coordination With Advance Refunds of Credit.--The amount of 
credit which would (but for this subsection) be allowable under this 
section shall be reduced (but not below zero) by the aggregate refunds 
and credits made or allowed to the taxpayer under subsection (e). Any 
failure to so reduce the credit shall be treated as arising out of a 
mathematical or clerical error and assessed according to section 
6213(b)(1).
    ``(e) Advance Refunds and Credits.--
            ``(1) In general.--Any person which was a qualifying 
        business for such person's last taxable year ending before 
        January 1, 2020, shall be treated as having made a payment 
        against the tax imposed by chapter 1 for such taxable year in 
        an amount equal to the advance refund amount for such taxable 
        year, regardless of whether such tax would have been imposed on 
        such person.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such taxable 
        year if this section (other than subsection (d) and this 
        subsection) had applied to such taxable year.
            ``(3) Timing of payments.--The Secretary shall, subject to 
        the provisions of this title, refund or credit any overpayment 
        attributable to this section as rapidly as possible. No refund 
        or credit shall be made or allowed under this subsection after 
        December 31, 2020.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.''.
    (b) Conforming Amendments.--
            (1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``and 36B, 
        168(k)(4)'' and inserting ``36B, and 6428''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``6428,'' after 
        ``54B(h),''.
            (3) The table of sections for subchapter B of chapter 65 of 
        subtitle F of the Internal Revenue Code of 1986 is amended by 
        inserting after the item relating to section 6427 the 
        following:

``Sec. 6428. Small Business Rebate.''.

SEC. 3. MODIFICATION OF ESTIMATED TAX PAYMENTS FOR SMALL BUSINESSES.

    (a) Timing and Amount of Required Installments.--
            (1) In general.--In the case of any taxable year beginning 
        in 2020, with respect to a qualified individual, 
        notwithstanding section 6654(c) and section 6654(d)(1)(A) of 
        the Internal Revenue Code of 1986--
                    (A) there shall be 2 required installments (within 
                the meaning of section 6654 of such Code) for the 
                taxable year;
                    (B) the due date for the 1st installment is 
                September 15, 2020;
                    (C) the due date for the 2nd installment is January 
                15, 2021;
                    (D) the amount of each such required installment 
                shall be 50 percent of the required annual payment (as 
                defined in section 6654(d)(1)(B) of such Code, after 
                the application of subparagraph (E));
                    (E) in determining such required annual payment, 
                section 6654(d)(1)(C) of such Code shall not apply and 
                section 6654(d)(1)(B)(ii) of such Code shall be applied 
                by substituting ``75 percent'' for ``100 percent'';
                    (F) if (after the application of this paragraph) 
                section 6654(d)(2) of such Code applies to the 
                qualified individual, the table contained in 
                subparagraph (C)(ii) thereof shall be applied by 
                substituting ``0'' for ``22.5'' and for ``45'', and by 
                substituting ``45'' for ``67.5''; and
                    (G) section 6654(h) of such Code shall be applied 
                by treating the 2nd required installment as the 4th 
                required installment.
            (2) Qualified individual.--For purposes of this subsection, 
        the term ``qualified individual'' means any individual for a 
        taxable year if--
                    (A) the adjusted gross income shown on the return 
                of tax of such individual for the preceding taxable 
                year is less than $250,000 ($500,000 in the case of a 
                joint return); and
                    (B) such individual certifies, in such form or 
                manner as is required by the Secretary of the Treasury 
                (or the Secretary's delegate), that more than 50 
                percent of the gross income shown on the return of tax 
                of such individual for such preceding taxable year was 
                income from a qualified small business.
            (3) Income from qualified small business.--For purposes of 
        this section, the term ``income from a qualified small 
        business'' means, with respect to any taxable year, income from 
        a trade or business--
                    (A) which is located in the United States; and
                    (B) the average number of employees of which was 
                less than 500 full-time equivalent employees (within 
                the meaning of section 4980H of the Internal Revenue 
                Code of 1986) for the calendar year ending with or 
                within the preceding taxable year.
    (b) Coordination With Section 7508A.--In the case of any 
postponement or extension by the Secretary of the Treasury (or the 
Secretary's delegate) under section 7508A of the Internal Revenue Code 
of 1986 affecting the due date of the required installments under 
section 6654 of such Code, subsection (a) shall apply only if the due 
date for the 1st installment under paragraph (1)(B) thereof is later 
than the due date prescribed for the 1st installment under such 
postponement or extension.

SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS OF EMPLOYEES AFFECTED 
              BY COVID-19.

    (a) In General.--In the case of an eligible employer, there shall 
be allowed as a credit against the tax imposed by section 3111(a) of 
the Internal Revenue Code of 1986 or section 3221(a) of such Code for 
each calendar quarter an amount equal to 50 percent of the qualified 
wages with respect to each eligible employee of such employer for such 
taxable year. The amount of qualified wages with respect to any 
eligible employee which may be taken into account under this subsection 
by the eligible employer for all calendar quarters during any 
designated period shall not exceed $7,500.
    (b) Eligible Employer.--
            (1) In general.--The term ``eligible employer'' means any 
        employer which--
                    (A) which has less than 500 full-time employees on 
                the first day of the designated period with respect to 
                the employer; and
                    (B) which--
                            (i) conducted an active trade or business 
                        in a qualified coronavirus disaster zone and 
                        meets the requirements of paragraph (2)(A); or
                            (ii) meets the requirement of paragraph 
                        (2)(B).
            (2) Requirements.--
                    (A) In general.--An employer meets the requirements 
                of this subparagraph if--
                            (i) the employer is required to close as a 
                        result of a directive by a Federal, State, or 
                        local authority; or
                            (ii) the employer is required to close due 
                        to lack of available employees due to 
                        qualifying needs related to a public health 
                        emergency (as defined in section 110 of the 
                        Family and Medical Leave Act of 1993, as added 
                        by section 3102 of the Emergency Family and 
                        Medical Leave Expansion Act).
                    (B) Alternative requirements.--An employer meets 
                the requirements of this subparagraph if the employer's 
                gross receipts for any 30-day period during the 
                calendar year are more than 25 percent less than such 
                gross receipts for the corresponding 30-day period for 
                the preceding calendar year.
    (c) Other Definitions.--For purposes of this section--
            (1) Eligible employee.--The term ``eligible employee'' 
        means any employee whose principle place of employment was with 
        an eligible employer.
            (2) Qualified wages.--The term ``qualified wages'' means 
        wages (as defined in section 3121(a) of the Internal Revenue 
        Code of 1986) and compensation (as defined in section 3231(e) 
        of the Internal Revenue Code) paid by an employer, except that 
        such term shall not include any wages taken into account under 
        section 7001 or section 7003 of the Families First Coronavirus 
        Response Act.
            (3) Designated period.--The term ``designated period'' 
        means, with respect to any eligible employer, the period--
                    (A) beginning on the date the employer first meets 
                the requirements of subparagraph (A) or (B) of 
                subsection (b)(2); and
                    (B) ending on the earlier of--
                            (i)(I) in the case of an employer who is an 
                        eligible employer by reason of meeting the 
                        requirements of subsection (b)(2)(A)(i), the 
                        date the directive requiring the closure is no 
                        longer in effect;
                            (II) in the case of an employer who is an 
                        eligible employer by reason of meeting the 
                        requirements of subsection (b)(2)(A)(ii), the 
                        date the public health emergency lapses; and
                            (III) in the case of an employer who is an 
                        eligible employer by reason of meeting the 
                        requirements of subsection (b)(2)(B), the date 
                        on which the employer's gross receipts for any 
                        30-day period beginning after the date 
                        described in subparagraph (A) are more than 90 
                        percent of such gross receipts for the 
                        corresponding 30-day period in the preceding 
                        calendar year; or
                            (ii) the date which is 120 days after the 
                        date described in subparagraph (A).
            (4) Qualified coronavirus disaster zone.--The term 
        ``qualified coronavirus disaster zone'' means any State or 
        geographic area for which an emergency with respect to COVID-19 
        has been declared by a Federal, State, or local authority.
    (d) Other Rules.--
            (1) Refundability of excess credit.--
                    (A) In general.--If the amount of the credit under 
                subsection (a) exceeds the tax imposed by section 
                3111(a) of the Internal Revenue Code of 1986 or section 
                3221(a) of such Code for any calendar quarter, such 
                excess shall be treated as an overpayment that shall be 
                refunded under sections 6402(a) and 6413(b) of such 
                Code.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, any amounts due 
                to an employer under this subsection shall be treated 
                in the same manner as a refund due from a credit 
                provision referred to in subsection (b)(2) of such 
                section.
            (2) Treatment of deposits.--The Secretary of the Treasury 
        (or the Secretary's delegate) shall waive any penalty under 
        section 6656 of the Internal Revenue Code of 1986 for any 
        failure to make a deposit of the tax imposed by section 3111(a) 
        of such Code or section 3221(a) of such Code if the Secretary 
        determines that such failure was due to the anticipation of the 
        credit allowed under this section.
            (3) Application of other rules.--For purposes of this 
        section, rules similar to the rules of sections 51(i)(1), 52, 
        and 280C(a), of the Internal Revenue Code of 1986, shall apply.
            (4) Employee not taken into account more than once.--An 
        employee shall not be treated as an eligible employee for 
        purposes of this section for any period with respect to any 
        employer if such employer is allowed a credit under section 51 
        of the Internal Revenue Code of 1986 with respect to such 
        employee for such period.
    (e) Trust Funds Held Harmless.--There are hereby appropriated (out 
of any money in the Treasury not otherwise appropriated) for each 
fiscal year 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. 231n-1(a)) an amount 
equal to the reduction in the transfers to such fund for such fiscal 
year by reason of this section. 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 had such amendments not 
been enacted.
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