To provide a Federal income tax credit for State income taxes paid by individuals temporarily providing certain health or emergency services in the State, and to provide a corresponding reduction in Federal highway funds to the State.

I 117TH CONGRESS 1ST SESSION H. R. 312 To provide a Federal income tax credit for State income taxes paid by individuals temporarily providing certain health or emergency services in the State, and to provide a corresponding reduction in Federal high- way funds to the State. IN THE HOUSE OF REPRESENTATIVES JANUARY 13, 2021 Mr. POSEY introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, 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 a Federal income tax credit for State income taxes paid by individuals temporarily providing certain health or emergency services in the State, and to provide a corresponding reduction in Federal highway funds to the State. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H312.IH H312 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 312 IH SECTION 1. CREDIT FOR STATE INCOME TAXES PAID BY IN- 1 DIVIDUALS TEMPORARILY PROVIDING CER- 2 TAIN HEALTH OR EMERGENCY SERVICES. 3 (a) IN GENERAL.—Subpart C of part IV of sub- 4 chapter A of chapter 1 of the Internal Revenue Code of 5 1986 (relating to refundable credits) is amended by insert- 6 ing after section 36B the following new section: 7 ‘‘SEC. 36C. CREDIT FOR STATE INCOME TAXES PAID BY IN- 8 DIVIDUALS TEMPORARILY PROVIDING CER- 9 TAIN HEALTH OR EMERGENCY SERVICES. 10 ‘‘(a) IN GENERAL.—In the case of an eligible indi- 11 vidual, there shall be allowed as a credit against the tax 12 imposed by this subtitle for any taxable year an amount 13 equal to the income taxes imposed by a service-recipient 14 State on the wages (as defined in section 3401) paid to 15 such eligible individual for providing specified health or 16 emergency services in such State on a temporary basis 17 during such taxable year. 18 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 19 section, the term ‘eligible individual’ means any individual 20 legally domiciled in a State who provides specified health 21 or emergency services in another State on a temporary 22 basis. 23 ‘‘(c) SPECIFIED HEALTH OR EMERGENCY SERV- 24 ICES.—For purposes of this section, the term ‘specified 25 health or emergency services’ means service as a first re- 26 VerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H312.IH H312 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 312 IH sponder, doctor, nurse, or such other health or emergency 1 service as may be specified by the Secretary for purposes 2 of this section. 3 ‘‘(d) SERVICE-RECIPIENT STATE.—For purposes of 4 this section, the term ‘service-recipient State’ means the 5 State referred to in subsection (b) in which the eligible 6 individual provides specified health or emergency services 7 on a temporary basis. 8 ‘‘(e) DETERMINATION OF TAX.—The amount of the 9 income tax referred to in subsection (a) shall be equal to 10 the excess (if any) of— 11 ‘‘(1) the amount of income taxes imposed by 12 the service-recipient State on the income of such eli- 13 gible individual, over 14 ‘‘(2) the amount of such income taxes which 15 would be imposed without regard to the wages re- 16 ferred to in subsection (a). 17 ‘‘(f) TERMINATION.—Subsection (a) shall not apply 18 with respect to wages paid for services which are provided 19 after the date on which the Secretary certifies that the 20 COVID–19 emergency has concluded.’’. 21 (b) CORRESPONDING REDUCTION IN FEDERAL 22 HIGHWAY FUNDS PAID TO SERVICE-RECIPIENT 23 STATES.—The amount made available by the Federal 24 Government as Federal highway funds to any service-re- 25 VerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H312.IH H312 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 312 IH cipient State (as defined in section 36C(d) of the Internal 1 Revenue Code of 1986) shall be reduced by the aggregate 2 amount of credits (as estimated by the Secretary of the 3 Treasury) allowed under section 36C of the Internal Rev- 4 enue Code of 1986 with respect to income taxes imposed 5 by such State. 6 (c) CONFORMING AMENDMENTS.— 7 (1) Section 6211(b)(4)(A) of such Code is 8 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 9 (2) Section 1324(b)(2) of title 31, United 10 States Code, is amended by inserting ‘‘36C,’’ after 11 ‘‘36B,’’. 12 (3) The table of sections for subpart C of part 13 IV of subchapter A of chapter 1 of the Internal Rev- 14 enue Code of 1986 is amended by inserting after the 15 item relating to section 36B the following new item: 16 ‘‘Sec. 36C. Credit for State income taxes paid by individuals temporarily pro- viding certain health or emergency services.’’. (d) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to wages paid for services provided 18 after March 16, 2020. 19 Æ VerDate Sep 11 2014 02:30 Feb 08, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H312.IH H312 pbinns on DSKJLVW7X2PROD with BILLS