Paycheck Protection Program Improved Coordination Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 6781 To provide for improved coordination between the paycheck protection program and the employee retention tax credit. IN THE HOUSE OF REPRESENTATIVES MAY 8, 2020 Mr. PAPPAS (for himself, Mr. HAGEDORN, and Mrs. MURPHY of Florida) in- troduced 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 com- mittee concerned A BILL To provide for improved coordination between the paycheck protection program and the employee retention tax credit. 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 ‘‘Paycheck Protection 4 Program Improved Coordination Act of 2020’’. 5 VerDate Sep 11 2014 22:30 May 22, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6781.IH H6781 khammond on DSK30NT082PROD with BILLS 2 •HR 6781 IH SEC. 2. IMPROVED COORDINATION BETWEEN PAYCHECK 1 PROTECTION PROGRAM AND EMPLOYEE RE- 2 TENTION TAX CREDIT. 3 (a) AMENDMENT TO PAYCHECK PROTECTION PRO- 4 GRAM.—Section 1106(a)(8) of the CARES Act is amended 5 by inserting ‘‘, except that such costs shall not include 6 qualified wages taken into account in determining the 7 credit allowed under section 2301 of this Act’’ before the 8 period at the end. 9 (b) AMENDMENTS TO EMPLOYEE RETENTION TAX 10 CREDIT.— 11 (1) IN GENERAL.—Section 2301(g) of the 12 CARES Act is amended to read as follows: 13 ‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES 14 INTO ACCOUNT.— 15 ‘‘(1) IN GENERAL.—This section shall not apply 16 to qualified wages paid by an eligible employer with 17 respect to which such employer makes an election 18 (at such time and in such manner as the Secretary 19 may prescribe) to have this section not apply to such 20 wages. 21 ‘‘(2) COORDINATION WITH PAYCHECK PROTEC- 22 TION PROGRAM.—The Secretary, in consultation 23 with the Administrator of the Small Business Ad- 24 ministration, shall issue guidance providing that 25 payroll costs paid or incurred during the covered pe- 26 VerDate Sep 11 2014 22:30 May 22, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6781.IH H6781 khammond on DSK30NT082PROD with BILLS 3 •HR 6781 IH riod shall not fail to be treated as qualified wages 1 under this section by reason of an election under 2 paragraph (1) to the extent that a covered loan of 3 the eligible employer is not forgiven by reason of a 4 decision under section 1106(g). Terms used in the 5 preceding sentence which are also used in section 6 1106 shall have the same meaning as when used in 7 such section.’’. 8 (2) CONFORMING AMENDMENTS.— 9 (A) Section 2301 of the CARES Act is 10 amended by striking subsection (j). 11 (B) Section 2301(l) of the CARES Act is 12 amended by striking paragraph (3) and by re- 13 designating paragraphs (4) and (5) as para- 14 graphs (3) and (4), respectively. 15 (c) EFFECTIVE DATE.—The amendments made by 16 this section shall take effect as if included in the provisions 17 of the CARES Act to which they relate. 18 Æ VerDate Sep 11 2014 22:30 May 22, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H6781.IH H6781 khammond on DSK30NT082PROD with BILLS