To provide a payroll tax credit for certain expenses associated with protecting employees from COVID-19.

I 116TH CONGRESS 2D SESSION H. R. 7615 To provide a payroll tax credit for certain expenses associated with protecting employees from COVID-19. IN THE HOUSE OF REPRESENTATIVES JULY 16, 2020 Mr. RICE of South Carolina introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide a payroll tax credit for certain expenses associated with protecting employees from COVID-19. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. HEALTHY WORKPLACE TAX CREDIT. 3 (a) IN GENERAL.—In the case of an employer, there 4 shall be allowed as a credit against applicable employment 5 taxes for each calendar quarter an amount equal to 50 6 percent of the sum of— 7 (1) the qualified employee protection expenses 8 paid or incurred by the employer during such cal- 9 endar quarter, 10 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7615 IH (2) the qualified workplace reconfiguration ex- 1 penses paid or incurred by the employer during such 2 calendar quarter, and 3 (3) the qualified workplace technology expenses 4 paid or incurred by the employer during such cal- 5 endar quarter. 6 (b) LIMITATIONS AND REFUNDABILITY.— 7 (1) OVERALL DOLLAR LIMITATION ON CRED- 8 IT.— 9 (A) IN GENERAL.—The amount of the 10 credit allowed under subsection (a) with respect 11 to any employer for any calendar quarter shall 12 not exceed the excess (if any) of— 13 (i) the applicable dollar limit with re- 14 spect to such employer for such calendar 15 quarter, over 16 (ii) the aggregate credits allowed 17 under subsection (a) with respect to such 18 employer for all preceding calendar quar- 19 ters. 20 (B) APPLICABLE DOLLAR LIMIT.—The 21 term ‘‘applicable dollar limit’’ means, with re- 22 spect to any employer for any calendar quarter, 23 the sum of— 24 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7615 IH (i) $1,000, multiplied so much of the 1 average number of employees employed by 2 such employer during such calendar quar- 3 ter as does not exceed 500, plus 4 (ii) $750, multiplied by so much of 5 such average number of employees as ex- 6 ceeds 500 but does not exceed 1,000, plus 7 (iii) $500, multiplied by so much of 8 such average number of employees as ex- 9 ceeds 1,000. 10 (2) CREDIT LIMITED TO EMPLOYMENT 11 TAXES.—The credit allowed by subsection (a) with 12 respect to any calendar quarter shall not exceed the 13 applicable employment taxes (reduced by any credits 14 allowed under subsections (e) and (f) of section 15 3111 of the Internal Revenue Code of 1986, sections 16 7001 and 7003 of the Families First Coronavirus 17 Response Act, and section 2301 of the CARES Act) 18 on the wages paid with respect to the employment 19 of all the employees of the eligible employer for such 20 calendar quarter. 21 (3) REFUNDABILITY OF EXCESS CREDIT.— 22 (A) IN GENERAL.—If the amount of the 23 credit under subsection (a) exceeds the limita- 24 tion of paragraph (2) for any calendar quarter, 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7615 IH such excess shall be treated as an overpayment 1 that shall be refunded under sections 6402(a) 2 and 6413(b) of the Internal Revenue Code of 3 1986. 4 (B) TREATMENT OF PAYMENTS.—For pur- 5 poses of section 1324 of title 31, United States 6 Code, any amounts due to the employer under 7 this paragraph shall be treated in the same 8 manner as a refund due from a credit provision 9 referred to in subsection (b)(2) of such section. 10 (c) QUALIFIED EMPLOYEE PROTECTION EX- 11 PENSES.—For purposes of this section, the term ‘‘quali- 12 fied employee protection expenses’’ means amounts paid 13 or incurred by the employer for— 14 (1) testing employees of the employer for 15 COVID-19 (including on a periodic basis), 16 (2) equipment to protect employees of the em- 17 ployer from contracting COVID-19, including masks, 18 gloves, and disinfectants, and 19 (3) cleaning products or services (whether pro- 20 vided by an employee of the taxpayer or a cleaning 21 service provider) related to preventing the spread of 22 COVID-19. 23 (d) QUALIFIED WORKPLACE RECONFIGURATION EX- 24 PENSES.—For purposes of this section— 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7615 IH (1) IN GENERAL.—The term ‘‘qualified work- 1 place reconfiguration expenses’’ means amounts paid 2 or incurred by the employer to design and recon- 3 figure retail space, work areas, break areas, or other 4 areas that employees or customers regularly use in 5 the ordinary course of the employer’s trade or busi- 6 ness if such design and reconfiguration— 7 (A) has a primary purpose of preventing 8 the spread of COVID-19, 9 (B) is with respect to an area that is lo- 10 cated in the United States and that is leased or 11 owned by the employer, 12 (C) is consistent with the purpose of the 13 property immediately before the reconfigura- 14 tion, 15 (D) is commensurate with the risks faced 16 by the employees or customers or is consistent 17 with recommendations made by the Centers for 18 Disease Control and Prevention or the Occupa- 19 tional Safety and Health Administration, 20 (E) is completed pursuant to a reconfig- 21 uration plan and no comparable reconfiguration 22 plan was in place before March 13, 2020, and 23 (F) is completed before January 1, 2021. 24 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7615 IH (2) REGULATIONS.—The Secretary shall pre- 1 scribe such regulations and other guidance as may 2 be necessary or appropriate to carry out the pur- 3 poses of this subsection, including guidance defining 4 primary purpose and reconfiguration plan. 5 (e) QUALIFIED WORKPLACE TECHNOLOGY EX- 6 PENSES.—For purposes of this section— 7 (1) IN GENERAL.—The term ‘‘qualified work- 8 place technology expenses’’ means amounts paid or 9 incurred by the employer for technology systems 10 that employees or customers use in the ordinary 11 course of the employer’s trade or business if such 12 technology system— 13 (A) has a primary purpose of preventing 14 the spread of COVID-19, 15 (B) is used for limiting physical contact 16 between customers and employees in the United 17 States, 18 (C) is commensurate with the risks faced 19 by the employees or customers or is consistent 20 with recommendations made by the Centers for 21 Disease Control and Prevention or the Occupa- 22 tional Safety and Health Administration, 23 (D) is acquired by the taxpayer after 24 March 12, 2020, and is not acquired pursuant 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7615 IH to a written binding contract entered into be- 1 fore such date, and 2 (E) is placed in service by the taxpayer be- 3 fore January 1, 2021. 4 (2) TECHNOLOGY SYSTEMS.—The term ‘‘tech- 5 nology systems’’ means computer software (as de- 6 fined in section 167(f)(1)) and qualified techno- 7 logical equipment (as defined in section 168(i)(2)). 8 (3) REGULATIONS.—The Secretary shall pre- 9 scribe such regulations and other guidance as may 10 be necessary or appropriate to carry out the pur- 11 poses of this subsection, including guidance defining 12 primary purpose. 13 (f) OTHER DEFINITIONS.—For purposes of this sec- 14 tion— 15 (1) APPLICABLE EMPLOYMENT TAXES.—The 16 term ‘‘applicable employment taxes’’ means the fol- 17 lowing: 18 (A) The taxes imposed under section 19 3111(a) of the Internal Revenue Code of 1986. 20 (B) So much of the taxes imposed under 21 section 3221(a) of such Code as are attrib- 22 utable to the rate in effect under section 23 3111(a) of such Code. 24 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 7615 IH (2) COVID-19.—Except where the context 1 clearly indicates otherwise, any reference in this sec- 2 tion to COVID-19 shall be treated as including a 3 reference to the virus which causes COVID-19. 4 (3) SECRETARY.—The term ‘‘Secretary’’ means 5 the Secretary of the Treasury or the Secretary’s del- 6 egate. 7 (4) OTHER TERMS.—Any term used in this sec- 8 tion (other than subsection (b)(1)(B)) which is also 9 used in chapter 21 or 22 of the Internal Revenue 10 Code of 1986 shall have the same meaning as when 11 used in such chapter. 12 (g) CERTAIN GOVERNMENTAL EMPLOYERS.—This 13 credit shall not apply to the Government of the United 14 States, the government of any State or political subdivi- 15 sion thereof, or any agency or instrumentality of any of 16 the foregoing. 17 (h) SPECIAL RULES.— 18 (1) AGGREGATION RULE.—All persons treated 19 as a single employer under subsection (a) or (b) of 20 section 52 of the Internal Revenue Code of 1986, or 21 subsection (m) or (o) of section 414 of such Code, 22 shall be treated as one employer for purposes of this 23 section. 24 (2) DENIAL OF DOUBLE BENEFIT.— 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 7615 IH (A) IN GENERAL.—Rules similar to the 1 rules of paragraphs (1) and (2) of section 2 280C(b) shall apply for purposes of this section. 3 (B) EXPENSES NOT TAKEN INTO ACCOUNT 4 MORE THAN ONCE.—Any qualified workplace 5 reconfiguration expense or qualified workplace 6 technology expense shall not be treated as a 7 qualified employee protection expense and any 8 qualified workplace technology expense shall not 9 be treated as a qualified workplace reconfigura- 10 tion expense. 11 (3) THIRD-PARTY PAYORS.—Any credit allowed 12 under this section shall be treated as a credit de- 13 scribed in section 3511(d)(2) of such Code. 14 (4) ELECTION NOT TO HAVE SECTION APPLY.— 15 This section shall not apply with respect to any eligi- 16 ble employer for any calendar quarter if such em- 17 ployer elects (at such time and in such manner as 18 the Secretary may prescribe) not to have this section 19 apply. 20 (i) TRANSFERS TO CERTAIN TRUST FUNDS.—There 21 are hereby appropriated to the Federal Old-Age and Sur- 22 vivors Insurance Trust Fund and the Federal Disability 23 Insurance Trust Fund established under section 201 of 24 the Social Security Act (42 U.S.C. 401) and the Social 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 7615 IH Security Equivalent Benefit Account established under 1 section 15A(a) of the Railroad Retirement Act of 1974 2 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 3 revenues to the Treasury by reason of this section (without 4 regard to this subsection). Amounts appropriated by the 5 preceding sentence shall be transferred from the general 6 fund at such times and in such manner as to replicate 7 to the extent possible the transfers which would have oc- 8 curred to such Trust Fund or Account had this section 9 not been enacted. 10 (j) TREATMENT OF DEPOSITS.—The Secretary shall 11 waive any penalty under section 6656 of the Internal Rev- 12 enue Code of 1986 for any failure to make a deposit of 13 any applicable employment taxes if the Secretary deter- 14 mines that such failure was due to the reasonable anticipa- 15 tion of the credit allowed under this section. 16 (k) REGULATIONS AND GUIDANCE.—The Secretary 17 shall prescribe such regulations and other guidance as 18 may be necessary or appropriate to carry out the purposes 19 of this section, including— 20 (1) with respect to the application of the credit 21 under subsection (a) to third-party payors (including 22 professional employer organizations, certified profes- 23 sional employer organizations, or agents under sec- 24 tion 3504 of the Internal Revenue Code of 1986), 25 VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 7615 IH regulations or other guidance allowing such payors 1 to submit documentation necessary to substantiate 2 the amount of the credit allowed under subsection 3 (a), and 4 (2) regulations or other guidance to prevent 5 abusive transactions. 6 (l) APPLICATION.—This section shall only apply to 7 amounts paid or incurred after March 12, 2020, and be- 8 fore January 1, 2021. 9 Æ VerDate Sep 11 2014 04:51 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H7615.IH H7615 kjohnson on DSK79L0C42PROD with BILLS