Paycheck Protection Program Improved Coordination Act of 2020

Bill: 116-hr-6781
Sponsor: full_name: Rep. Pappas, Chris [D-NH-1]
Introduced: 2020-05-08
Policy area: Taxation
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Employment taxes

Government lending and loan guarantees

Infectious and parasitic diseases

Small business

Wages and earnings
Latest action: action_date: 2020-05-08
text: 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.

Summaries:
action_date: 2020-05-08
action_desc: Introduced in House
text: <p><b>Paycheck Protection Program Improved Coordination Act of 2020 </b></p> <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6781 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.

1. Short title This Act may be cited as the Paycheck Protection Program Improved Coordination Act of 2020 . 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.