Restore America’s Main Street Act

I 116TH CONGRESS 2D SESSION H. R. 6619 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 APRIL 24, 2020 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’’. 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 6428 the following new sec- 9 tion: 10 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6619 IH ‘‘SEC. 6428A. 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 2020 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— 12 ‘‘(A) a qualifying business which did not 13 file a tax return for the taxable year described 14 in paragraph (1)(A), or 15 ‘‘(B) a sole proprietorship for which gross 16 receipts were not reported on a return of tax 17 for such taxable year, 18 such paragraph shall be applied by substituting 19 ‘2018’ for ‘2019’. 20 ‘‘(3) QUALIFIED GROSS RECEIPTS.—For pur- 21 poses of paragraph (1)(A), the term ‘qualified gross 22 receipts’ means gross receipts of the qualifying busi- 23 ness which are effectively connected with the conduct 24 of a trade or business within the United States 25 (within the meaning of section 864(c), determined 26 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6619 IH by substituting ‘qualifying business’ for ‘nonresident 1 alien individual or a foreign corporation’ or for ‘for- 2 eign corporation’ each place it appears) for the ap- 3 plicable taxable year under paragraph (1)(A), as re- 4 ported by the taxpayer on— 5 ‘‘(A) in the case of a qualifying business 6 which is a partnership, the return required to 7 be filed under section 6031, 8 ‘‘(B) in the case of a qualifying business 9 which is an S corporation, the return required 10 to be filed under section 6037, and 11 ‘‘(C) in the case of any other qualifying 12 business, the return of tax for the taxable year. 13 ‘‘(b) QUALIFYING BUSINESS.— 14 ‘‘(1) IN GENERAL.—For purposes of this sec- 15 tion, the term ‘qualifying business’ means any per- 16 son which— 17 ‘‘(A) meets the gross receipts test of sub- 18 section (c) of section 448 for the applicable tax- 19 able year under subsection (a)(1)(A), except 20 that subsection (c) of section 448 shall be ap- 21 plied— 22 ‘‘(i) without regard to paragraph (4) 23 of such subsection, and 24 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6619 IH ‘‘(ii) by substituting ‘$1,500,000’ for 1 ‘$25,000,000’, and 2 ‘‘(B) with respect to the preceding cal- 3 endar year, employed an average of not greater 4 than 50 full-time employees (as such term is 5 defined in paragraph (4) of section 4980H(c)) 6 on business days during such calendar year. 7 ‘‘(2) SPECIAL RULE.—For purposes of para- 8 graph (1)(A), in the case of any taxpayer which is 9 not a corporation or a partnership, the gross re- 10 ceipts test of section 448(c) shall be applied in the 11 same manner as if such taxpayer were a corporation 12 or partnership. 13 ‘‘(3) FULL-TIME EQUIVALENTS.—For purposes 14 of paragraph (1)(B), the number of full-time em- 15 ployees shall be determined pursuant to rules similar 16 to the rules described in paragraph (2)(E) of section 17 4980H(c). 18 ‘‘(4) AGGREGATION RULES.—All persons treat- 19 ed as a single employer under subsection (a) or (b) 20 of section 52 or subsection (m) or (o) of section 414 21 shall be treated as a single person for purposes of 22 paragraph (1)(B). 23 ‘‘(5) QUALIFIED ORGANIZATIONS.— 24 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6619 IH ‘‘(A) INCLUSION AS QUALIFYING BUSI- 1 NESS.— 2 ‘‘(i) IN GENERAL.—For purposes of 3 this section, the term ‘qualifying business’ 4 shall include any qualified organization. 5 ‘‘(ii) DEFINITION.—For purposes of 6 this paragraph, the term ‘qualified organi- 7 zation’ means an organization which— 8 ‘‘(I) is described in section 9 501(c)(3) and exempt from tax under 10 section 501(a), 11 ‘‘(II) is described in section 12 170(b)(1)(A), 13 ‘‘(III) is not described in section 14 509(a)(3), and 15 ‘‘(IV) satisfies the requirements 16 under subparagraphs (A) and (B) of 17 paragraph (1). 18 ‘‘(B) QUALIFIED GROSS RECEIPTS.— 19 ‘‘(i) IN GENERAL.—For purposes of 20 subsection (a)(1)(A), in the case of a quali- 21 fied organization, the term ‘qualified gross 22 receipts’ means gross receipts of the orga- 23 nization for the taxable year described in 24 such subsection. 25 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6619 IH ‘‘(ii) SPECIAL RULE.—In the case of a 1 qualified organization which did not file a 2 tax return for the taxable year described in 3 subsection (a)(1)(A), such subsection shall 4 be applied by substituting ‘2018’ for 5 ‘2019’. 6 ‘‘(iii) ORGANIZATION EXEMPT FROM 7 FILING.— 8 ‘‘(I) IN GENERAL.—In the case 9 of an organization which is exempt 10 from filing a return pursuant to sec- 11 tion 6033(a) or which is not required 12 to include in such return the informa- 13 tion necessary to determine the 14 amount of the credit allowed under 15 this section, such organization may 16 submit to the Secretary (in such form 17 and manner as is deemed appropriate 18 by the Secretary) any information re- 19 quired for purposes of determining— 20 ‘‘(aa) whether such organi- 21 zation satisfies the requirements 22 under subparagraphs (A) and 23 (B) of paragraph (1), and 24 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6619 IH ‘‘(bb) the amount of the 1 credit allowed under subsection 2 (a)(1). 3 ‘‘(II) PUBLICITY OF INFORMA- 4 TION.—For purposes of section 6104, 5 any information submitted by an or- 6 ganization under subclause (I) shall 7 be deemed to be information required 8 to be furnished by such organization 9 pursuant to section 6033. 10 ‘‘(c) TREATMENT OF CREDIT.—The credit allowed by 11 subsection (a) shall be treated as allowed by subpart C 12 of part IV of subchapter A of chapter 1. 13 ‘‘(d) COORDINATION WITH ADVANCE REFUNDS OF 14 CREDIT.—The amount of credit which would (but for this 15 subsection) be allowable under this section shall be re- 16 duced (but not below zero) by the aggregate refunds and 17 credits made or allowed to the taxpayer under subsection 18 (e). Any failure to so reduce the credit shall be treated 19 as arising out of a mathematical or clerical error and as- 20 sessed according to section 6213(b)(1). 21 ‘‘(e) ADVANCE REFUNDS AND CREDITS.— 22 ‘‘(1) IN GENERAL.—Any person which was a 23 qualifying business for such person’s last taxable 24 year ending before January 1, 2020, shall be treated 25 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 6619 IH as having made a payment against the tax imposed 1 by chapter 1 for such taxable year in an amount 2 equal to the advance refund amount for such taxable 3 year, regardless of whether such tax would have 4 been imposed on such person. 5 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur- 6 poses of paragraph (1), the advance refund amount 7 is the amount that would have been allowed as a 8 credit under this section for such taxable year if this 9 section (other than subsection (d) and this sub- 10 section) had applied to such taxable year. 11 ‘‘(3) TIMING OF PAYMENTS.—The Secretary 12 shall, subject to the provisions of this title, refund 13 or credit any overpayment attributable to this sec- 14 tion as rapidly as possible. No refund or credit shall 15 be made or allowed under this subsection after De- 16 cember 31, 2020. 17 ‘‘(4) NO INTEREST.—No interest shall be al- 18 lowed on any overpayment attributable to this sec- 19 tion.’’. 20 (b) CONFORMING AMENDMENTS.— 21 (1) DEFINITION OF DEFICIENCY.—Section 22 6211(b)(4)(A) of the Internal Revenue Code of 1986 23 is amended by striking ‘‘and 36B, 168(k)(4)’’ and 24 inserting ‘‘36B, and 6428A’’. 25 VerDate Sep 11 2014 21:51 Apr 27, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6619.IH H6619 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 6619 IH (2) Paragraph (2) of section 1324(b) of title 1 31, United States Code, is amended by inserting 2 ‘‘6428A,’’ after ‘‘54B(h),’’. 3 (3) The table of sections for subchapter B of 4 chapter 65 of subtitle F of the Internal Revenue 5 Code of 1986 is amended by inserting after the item 6 relating to section 6428 the following: 7 ‘‘Sec. 6428A. Small business rebate.’’. 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