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 116TH CONGRESS 2D SESSION H. R. 6911 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 MAY 15, 2020 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 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6911.IH H6911 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6911 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 an amount equal to the income 13 taxes imposed by a service-recipient State on the wages 14 (as defined in section 3401) paid to such eligible individual 15 for providing specified health or emergency services in 16 such State on a temporary basis. 17 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 18 section, the term ‘eligible individual’ means any individual 19 legally domiciled in a State who provides specified health 20 or emergency services in another State on a temporary 21 basis. 22 ‘‘(c) SPECIFIED HEALTH OR EMERGENCY SERV- 23 ICES.—For purposes of this section, the term ‘specified 24 health or emergency services’ means service as a first re- 25 sponder, doctor, nurse, or such other health or emergency 26 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6911.IH H6911 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6911 IH service as may be specified by the Secretary for purposes 1 of this section. 2 ‘‘(d) SERVICE-RECIPIENT STATE.—For purposes of 3 this section, the term ‘service-recipient State’ means the 4 State referred to in subsection (b) in which the eligible 5 individual provides specified health or emergency services 6 on a temporary basis. 7 ‘‘(e) DETERMINATION OF TAX.—The amount of the 8 income tax referred to in subsection (a) shall be equal to 9 the excess (if any) of— 10 ‘‘(1) the amount of income taxes imposed by 11 the service-recipient State on the income of such eli- 12 gible individual, over 13 ‘‘(2) the amount of such income taxes which 14 would be imposed without regard to the wages re- 15 ferred to in subsection (a). 16 ‘‘(f) TERMINATION.—Subsection (a) shall not apply 17 with respect to wages paid for services which are provided 18 after the date on which the Secretary certifies that the 19 COVID-19 emergency has concluded.’’. 20 (b) CORRESPONDING REDUCTION IN FEDERAL 21 HIGHWAY FUNDS PAID TO SERVICE-RECIPIENT 22 STATES.—The amount made available by the Federal 23 Government as Federal highway funds to any service-re- 24 cipient State (as defined in section 36C(d) of the Internal 25 VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6911.IH H6911 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6911 IH Revenue Code of 1986) shall be reduced by the aggregate 1 amount of credits (as estimated by the Secretary of the 2 Treasury) allowed under section 36C of the Internal Rev- 3 enue Code of 1986 with respect to income taxes imposed 4 by such State. 5 (c) CONFORMING AMENDMENTS.— 6 (1) Section 6211(b)(4)(A) of such Code is 7 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 8 (2) Section 1324(b)(2) of title 31, United 9 States Code, is amended by inserting ‘‘36C,’’ after 10 ‘‘36B,’’. 11 (3) The table of sections for subpart C of part 12 IV of subchapter A of chapter 1 of the Internal Rev- 13 enue Code of 1986 is amended by inserting after the 14 item relating to section 36B the following new item: 15 ‘‘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 16 this section shall apply to wages paid for services provided 17 after March 16, 2020. 18 Æ VerDate Sep 11 2014 22:33 Jun 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H6911.IH H6911 kjohnson on DSK79L0C42PROD with BILLS