PLUS Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7707 To amend the Internal Revenue Code of 1986 to provide a credit for the uncollectible accounts of eligible wholesale distributors. IN THE HOUSE OF REPRESENTATIVES JULY 21, 2020 Mr. LAHOOD (for himself and Mr. PANETTA) 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 credit for the uncollectible accounts of eligible whole- sale distributors. 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 ‘‘Providing Liquidity 4 for Uncollectible Sales Act of 2020’’ or as the ‘‘PLUS Act 5 of 2020’’. 6 SEC. 2. CREDIT FOR UNCOLLECTIBLE ACCOUNTS OF ELIGI- 7 BLE WHOLESALE DISTRIBUTORS. 8 (a) IN GENERAL.—Subpart D of part IV of sub- 9 chapter A of chapter 1 of the Internal Revenue Code of 10 VerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 7707 IH 1986 is amended by adding after section 45T the following 1 new section: 2 ‘‘SEC. 45U. WHOLESALE DISTRIBUTOR UNCOLLECTIBLE AC- 3 COUNTS CREDIT. 4 ‘‘(a) IN GENERAL.—For purposes of section 38, in 5 the case of an eligible wholesale distributor, the wholesale 6 distributor uncollectible accounts credit determined under 7 this section for the taxable year is an amount equal to 8 the qualified accounts receivables of such distributor which 9 become uncollectible during such taxable year. 10 ‘‘(b) ELIGIBLE WHOLESALE DISTRIBUTOR.—For 11 purposes of this section, the term ‘eligible wholesale dis- 12 tributor’ means any person engaged in the trade or busi- 13 ness of selling inventory to food and beverage establish- 14 ments. 15 ‘‘(c) QUALIFIED ACCOUNTS RECEIVABLE.—For pur- 16 poses of this section— 17 ‘‘(1) IN GENERAL.—The term ‘qualified ac- 18 counts receivable’ means any accounts receivable 19 which was accrued pursuant to normal payment 20 terms by an eligible wholesale distributor for the sale 21 of inventory delivered on or before March 25, 2020, 22 to a qualified food and beverage establishment. 23 ‘‘(2) NORMAL PAYMENT TERMS.—An amount 24 shall be treated as accrued pursuant to normal pay- 25 VerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 7707 IH ment terms if it is accrued under the applicable pay- 1 ment terms in effect on March 25, 2020, under an 2 agreement established prior to that date between the 3 eligible wholesale distributor and the qualified food 4 and beverage establishment. 5 ‘‘(3) PRESUMPTION OF UNCOLLECTABILITY.— 6 For purposes of this section, a qualified accounts re- 7 ceivable shall be treated as becoming uncollectible 8 during the taxable year of the eligible wholesale dis- 9 tributor which includes July 15, 2020, if— 10 ‘‘(A) the qualified food and beverage estab- 11 lishment to which such qualified accounts re- 12 ceivable relates does not provide on-premises 13 consumption pursuant to an order or rec- 14 ommendation of an applicable Federal, State, 15 or municipal authority for at least 30 days dur- 16 ing the period beginning on March 25, 2020, 17 and ending on July 15, 2020, and 18 ‘‘(B) such qualified accounts receivable is 19 not paid before the close of such taxable year. 20 ‘‘(d) QUALIFIED FOOD AND BEVERAGE ESTABLISH- 21 MENT.—For purposes of this section— 22 ‘‘(1) QUALIFIED FOOD AND BEVERAGE ESTAB- 23 LISHMENT.—The term ‘qualified food and beverage 24 establishment’ means a food and beverage establish- 25 VerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 7707 IH ment within the United States that ceases to provide 1 on-premises consumption of food and beverage on or 2 after March 25, 2020, pursuant to an order or rec- 3 ommendation of an applicable Federal, State, or mu- 4 nicipal authority. 5 ‘‘(2) FOOD AND BEVERAGE ESTABLISHMENT.— 6 The term ‘food and beverage establishment’ means 7 a commercial establishment engaged in the trade or 8 business of preparing food and beverage for con- 9 sumption on-premises or off-premises. 10 ‘‘(e) INVENTORY.—For purposes of this section, the 11 term ‘inventory’ means property described in section 12 1221(a)(1) in the hands of the food and beverage estab- 13 lishments to which sold by the eligible wholesale dis- 14 tributor. 15 ‘‘(f) COORDINATION WITH DEDUCTION FOR BAD 16 DEBTS.—Any amount allowed as a credit under this sec- 17 tion will not be allowable as a deduction under section 18 166.’’. 19 (b) CONFORMING AMENDMENTS.—Section 38(b) of 20 the Internal Revenue Code of 1986 is amended by striking 21 ‘‘plus’’ at the end of paragraph (32), by striking the period 22 at the end of paragraph (33) and inserting ‘‘, plus’’, and 23 by adding after paragraph (33) the following new para- 24 graph: 25 VerDate Sep 11 2014 20:24 Aug 27, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7707.IH H7707 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 7707 IH ‘‘(34) in the case of an eligible wholesale dis- 1 tributor (as defined in section 45U(b)), the whole- 2 sale distributor uncollectible accounts credit deter- 3 mined under section 45U(a).’’. 4 (c) EFFECTIVE DATE.—The amendments made by 5 this sections shall apply to taxable years ending after 6 March 25, 2020. 7 Æ VerDate Sep 11 2014 21:08 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H7707.IH H7707 pbinns on DSKJLVW7X2PROD with BILLS