Clean Start: Back to Work Tax Credit Act

I 116TH CONGRESS 2D SESSION H. R. 7079 To amend the Internal Revenue Code of 1986 to provide a tax credit to ensure that businesses are properly cleaned and disinfected when ‘‘stay- at-home’’ restrictions are lifted and to help prevent further infections. IN THE HOUSE OF REPRESENTATIVES JUNE 1, 2020 Mr. LAHOOD (for himself and Mrs. MURPHY of Florida) 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 a tax credit to ensure that businesses are properly cleaned and disinfected when ‘‘stay-at-home’’ restrictions are lifted and to help prevent further infections. 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 ‘‘Clean Start: Back to 4 Work Tax Credit Act’’. 5 SEC. 2. CLEAN START BACK TO WORK TAX CREDIT. 6 (a) IN GENERAL.—Subpart D of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 VerDate Sep 11 2014 03:16 Jul 07, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7079.IH H7079 SSpencer on DSK126QN23PROD with BILLS 2 •HR 7079 IH 1986 is amended by adding at the end the following new 1 section: 2 ‘‘SEC. 45U. CLEAN START BACK TO WORK CREDIT. 3 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec- 4 tion 38, the clean start back to work credit determined 5 under this section for the taxable year is an amount equal 6 to 50 percent of the amount paid by the taxpayer— 7 ‘‘(1) in carrying on any trade or business for 8 qualified cleaning expenses during such year, or 9 ‘‘(2) with respect to owning or operating com- 10 mercial real estate. 11 ‘‘(b) MAXIMUM CREDIT.—The credit determined 12 under this section for a taxpayer for a taxable year shall 13 not exceed— 14 ‘‘(1) $25,000 per location, and 15 ‘‘(2) $250,000 per entity. 16 ‘‘(c) DEFINITION AND SPECIAL RULES.—For pur- 17 poses of this section— 18 ‘‘(1) QUALIFIED CLEANING EXPENSES.—The 19 term ‘qualified cleaning expenses’ includes amounts 20 paid or incurred— 21 ‘‘(A) for cleaning services, whether pro- 22 vided by a cleaning service provider that em- 23 ploys workers who have received training and 24 VerDate Sep 11 2014 03:16 Jul 07, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7079.IH H7079 SSpencer on DSK126QN23PROD with BILLS 3 •HR 7079 IH certification in cleaning or by an employee of 1 the taxpayer, 2 ‘‘(B) for cleaning products, tools, machin- 3 ery, personal protective equipment, and other 4 sanitary related equipment needed to help en- 5 sure a safe and sanitary environment, and 6 ‘‘(C) to obtain a certification in cleaning. 7 ‘‘(2) EXCEPTION.—The term ‘qualified cleaning 8 expenses’ does not include the cost of manufac- 9 turing, producing, or importing of, or for the acqui- 10 sition for purposes of resale of, any product, tool, 11 machine or other sanitary-related equipment. 12 ‘‘(3) TRAINING AND CERTIFICATION IN CLEAN- 13 ING.—The term ‘training and certification in clean- 14 ing’ means a training and certification program in 15 custodial cleaning or cleaning management provided 16 by an entity that has demonstrated expertise in the 17 field of cleaning, such as a distributor of cleaning 18 products, cleaning product manufacturer, cleaning 19 service provider, accredited training institution, in- 20 dustry-recognized trade association, or other non- 21 profit entity. 22 ‘‘(4) CERTIFICATION IN CLEANING.—The term 23 ‘certification in cleaning’ means an industry-recog- 24 nized certificate in custodial cleaning or cleaning 25 VerDate Sep 11 2014 03:16 Jul 07, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7079.IH H7079 SSpencer on DSK126QN23PROD with BILLS 4 •HR 7079 IH management provided by an entity that has dem- 1 onstrated expertise in the field of cleaning such as 2 a distributor of cleaning products, cleaning product 3 manufacturer, cleaning service provider, accredited 4 training institution, industry-recognized trade asso- 5 ciation or other non-profit entity. 6 ‘‘(5) RELATED PERSONS.— 7 ‘‘(A) IN GENERAL.—The taxpayer and all 8 persons related to the taxpayer shall be treated 9 as one person. 10 ‘‘(B) RELATIONSHIP TEST.—A person is 11 related to the taxpayer if the person bears a re- 12 lationship to the taxpayer specified in section 13 267(b) or 707(b)(1), or the person and the tax- 14 payer are engaged in trades or businesses under 15 common control (within the meaning of sub- 16 sections (a) and (b) of section 52). 17 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 18 shall be allowed under this chapter for any amount taken 19 into account in determining the credit under this section. 20 ‘‘(e) TERMINATION.—This section shall not apply to 21 expenses paid or incurred after March 31, 2021.’’. 22 (b) CREDIT MADE PART OF GENERAL BUSINESS 23 CREDIT.—Subsection (b) of section 38 of such Code is 24 amended by striking ‘‘plus’’ at the end of paragraph (32), 25 VerDate Sep 11 2014 03:16 Jul 07, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7079.IH H7079 SSpencer on DSK126QN23PROD with BILLS 5 •HR 7079 IH by striking the period at the end of paragraph (33) and 1 inserting ‘‘, plus’’, and by adding at the end the following 2 new paragraph: 3 ‘‘(34) the clean start back to work credit deter- 4 mined under section 45U.’’. 5 (c) CLERICAL AMENDMENT.—The table of sections 6 for subpart D of part IV of subchapter A of chapter 1 7 is amended by adding at the end the following new item: 8 ‘‘Sec. 45U. Clean Start Back To Work Credit.’’. (d) EFFECTIVE DATE.—The amendments made by 9 this section shall apply to expenses made or incurred after 10 December 31, 2019, in taxable years ending after such 11 date. 12 Æ VerDate Sep 11 2014 03:16 Jul 07, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H7079.IH H7079 SSpencer on DSK126QN23PROD with BILLS