Restore America’s Main Street Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 524 To amend the Internal Revenue Code of 1986 to provide advance tax refunds to small businesses, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 28, 2021 Ms. DEAN (for herself and Mr. KILMER) 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 advance tax refunds to small businesses, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Restore America’s 4 Main Street Act of 2021’’. 5 SEC. 2. SMALL BUSINESS REBATE. 6 (a) IN GENERAL.—Subchapter B of chapter 65 of 7 subtitle F of the Internal Revenue Code of 1986 is amend- 8 ed by inserting after section 6428A the following new sec- 9 tion: 10 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 524 IH ‘‘SEC. 6428B. SMALL BUSINESS REBATE. 1 ‘‘(a) ALLOWANCE OF CREDIT.— 2 ‘‘(1) IN GENERAL.—In the case of a qualifying 3 business, there shall be allowed as a credit against 4 the tax imposed by subtitle A for the first taxable 5 year beginning in 2021 an amount equal to the less- 6 er of— 7 ‘‘(A) 30 percent of qualified gross receipts 8 of such qualifying business for the first taxable 9 year beginning in 2019, or 10 ‘‘(B) $120,000. 11 ‘‘(2) SPECIAL RULE.—In the case of a quali- 12 fying business or sole proprietorship which was not 13 formed or active in the taxable year described in 14 paragraph (1)(A), such paragraph shall be applied 15 by substituting ‘2020’ for ‘2019’. 16 ‘‘(3) QUALIFIED GROSS RECEIPTS.—For pur- 17 poses of paragraph (1)(A), the term ‘qualified gross 18 receipts’ means gross receipts of the qualifying busi- 19 ness which are effectively connected with the conduct 20 of a trade or business within the United States 21 (within the meaning of section 864(c), determined 22 by substituting ‘qualifying business’ for ‘nonresident 23 alien individual or a foreign corporation’ or for ‘for- 24 eign corporation’ each place it appears) for the ap- 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 524 IH plicable taxable year under paragraph (1)(A), as re- 1 ported by the taxpayer on— 2 ‘‘(A) in the case of a qualifying business 3 which is a partnership, the return required to 4 be filed under section 6031, 5 ‘‘(B) in the case of a qualifying business 6 which is an S corporation, the return required 7 to be filed under section 6037, and 8 ‘‘(C) in the case of any other qualifying 9 business, the return of tax for the taxable year. 10 ‘‘(b) QUALIFYING BUSINESS.— 11 ‘‘(1) IN GENERAL.—For purposes of this sec- 12 tion, the term ‘qualifying business’ means any per- 13 son which— 14 ‘‘(A) meets the gross receipts test of sub- 15 section (c) of section 448 for the applicable tax- 16 able year under subsection (a)(1)(A), except 17 that subsection (c) of section 448 shall be ap- 18 plied— 19 ‘‘(i) without regard to paragraph (4) 20 of such subsection, and 21 ‘‘(ii) by substituting ‘$1,500,000’ for 22 ‘$25,000,000’, and 23 ‘‘(B) with respect to the preceding cal- 24 endar year, employed an average of not greater 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 524 IH than 50 full-time employees (as such term is 1 defined in paragraph (4) of section 4980H(c)) 2 on business days during such calendar year. 3 ‘‘(2) SPECIAL RULE.—For purposes of para- 4 graph (1)(A), in the case of any taxpayer which is 5 not a corporation or a partnership, the gross re- 6 ceipts test of section 448(c) shall be applied in the 7 same manner as if such taxpayer were a corporation 8 or partnership. 9 ‘‘(3) FULL-TIME EQUIVALENTS.—For purposes 10 of paragraph (1)(B), the number of full-time em- 11 ployees shall be determined pursuant to rules similar 12 to the rules described in paragraph (2)(E) of section 13 4980H(c). 14 ‘‘(4) AGGREGATION RULES.—All persons treat- 15 ed as a single employer under subsection (a) or (b) 16 of section 52 or subsection (m) or (o) of section 414 17 shall be treated as a single person for purposes of 18 paragraph (1)(B). 19 ‘‘(5) QUALIFIED ORGANIZATIONS.— 20 ‘‘(A) INCLUSION AS QUALIFYING BUSI- 21 NESS.— 22 ‘‘(i) IN GENERAL.—For purposes of 23 this section, the term ‘qualifying business’ 24 shall include any qualified organization. 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 524 IH ‘‘(ii) DEFINITION.—For purposes of 1 this paragraph, the term ‘qualified organi- 2 zation’ means an organization which— 3 ‘‘(I) is described in section 4 501(c)(3) and exempt from tax under 5 section 501(a), 6 ‘‘(II) is described in section 7 170(b)(1)(A), 8 ‘‘(III) is not described in section 9 509(a)(3), and 10 ‘‘(IV) satisfies the requirements 11 under subparagraphs (A) and (B) of 12 paragraph (1). 13 ‘‘(B) QUALIFIED GROSS RECEIPTS.— 14 ‘‘(i) IN GENERAL.—For purposes of 15 subsection (a)(1)(A), in the case of a quali- 16 fied organization, the term ‘qualified gross 17 receipts’ means gross receipts of the orga- 18 nization for the taxable year described in 19 such subsection. 20 ‘‘(ii) SPECIAL RULE.—In the case of a 21 qualified organization which did not file a 22 tax return for the taxable year described in 23 subsection (a)(1)(A), such subsection shall 24 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 524 IH be applied by substituting ‘2020’ for 1 ‘2019’. 2 ‘‘(iii) ORGANIZATION EXEMPT FROM 3 FILING.— 4 ‘‘(I) IN GENERAL.—In the case 5 of an organization which is exempt 6 from filing a return pursuant to sec- 7 tion 6033(a) or which is not required 8 to include in such return the informa- 9 tion necessary to determine the 10 amount of the credit allowed under 11 this section, such organization may 12 submit to the Secretary (in such form 13 and manner as is deemed appropriate 14 by the Secretary) any information re- 15 quired for purposes of determining— 16 ‘‘(aa) whether such organi- 17 zation satisfies the requirements 18 under subparagraphs (A) and 19 (B) of paragraph (1), and 20 ‘‘(bb) the amount of the 21 credit allowed under subsection 22 (a)(1). 23 ‘‘(II) PUBLICITY OF INFORMA- 24 TION.—For purposes of section 6104, 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 524 IH any information submitted by an or- 1 ganization under subclause (I) shall 2 be deemed to be information required 3 to be furnished by such organization 4 pursuant to section 6033. 5 ‘‘(c) TREATMENT OF CREDIT.—The credit allowed by 6 subsection (a) shall be treated as allowed by subpart C 7 of part IV of subchapter A of chapter 1. 8 ‘‘(d) COORDINATION WITH ADVANCE REFUNDS OF 9 CREDIT.—The amount of credit which would (but for this 10 subsection) be allowable under this section shall be re- 11 duced (but not below zero) by the aggregate refunds and 12 credits made or allowed to the taxpayer under subsection 13 (e). Any failure to so reduce the credit shall be treated 14 as arising out of a mathematical or clerical error and as- 15 sessed according to section 6213(b)(1). 16 ‘‘(e) ADVANCE REFUNDS AND CREDITS.— 17 ‘‘(1) IN GENERAL.—Any person which was a 18 qualifying business for such person’s last taxable 19 year ending before January 1, 2021, shall be treated 20 as having made a payment against the tax imposed 21 by chapter 1 for such taxable year in an amount 22 equal to the advance refund amount for such taxable 23 year, regardless of whether such tax would have 24 been imposed on such person. 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 524 IH ‘‘(2) ADVANCE REFUND AMOUNT.—For pur- 1 poses of paragraph (1), the advance refund amount 2 is the amount that would have been allowed as a 3 credit under this section for such taxable year if this 4 section (other than subsection (d) and this sub- 5 section) had applied to such taxable year. 6 ‘‘(3) TIMING OF PAYMENTS.—The Secretary 7 shall, subject to the provisions of this title, refund 8 or credit any overpayment attributable to this sec- 9 tion as rapidly as possible. No refund or credit shall 10 be made or allowed under this subsection after De- 11 cember 31, 2021. 12 ‘‘(4) NO INTEREST.—No interest shall be al- 13 lowed on any overpayment attributable to this sec- 14 tion.’’. 15 (b) CONFORMING AMENDMENTS.— 16 (1) DEFINITION OF DEFICIENCY.—Section 17 6211(b)(4)(A) of the Internal Revenue Code of 1986 18 is amended by striking ‘‘6428, and 6428A’’ and in- 19 serting ‘‘6428, 6428A, and 6428B’’. 20 (2) Paragraph (2) of section 1324(b) of title 21 31, United States Code, is amended by inserting 22 ‘‘6428B,’’ after ‘‘6428A,’’. 23 (3) The table of sections for subchapter B of 24 chapter 65 of subtitle F of the Internal Revenue 25 VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 524 IH Code of 1986 is amended by inserting after the item 1 relating to section 6428A the following: 2 ‘‘Sec. 6428B. Small business rebate.’’. Æ VerDate Sep 11 2014 02:20 Feb 16, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H524.IH H524 kjohnson on DSK79L0C42PROD with BILLS