Building Businesses Back Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7734 To provide much needed liquidity to America’s job creators. IN THE HOUSE OF REPRESENTATIVES JULY 23, 2020 Mr. ARRINGTON (for himself, Mr. REED, Mr. WENSTRUP, Mr. LAHOOD, and Mr. SMITH of Nebraska) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speak- er, in each case for consideration of such provisions as fall within the ju- risdiction of the committee concerned A BILL To provide much needed liquidity to America’s job creators. 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 ‘‘Building Businesses 4 Back Act of 2020’’. 5 SEC. 2. MONETIZATION OF GENERAL BUSINESS CREDITS. 6 (a) IN GENERAL.—Section 38 of the Internal Rev- 7 enue Code of 1986 is amended by inserting after sub- 8 section (d) the following: 9 ‘‘(e) SPECIAL RULES FOR ELIGIBLE YEARS.— 10 VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7734 IH ‘‘(1) IN GENERAL.—If a taxpayer elects the ap- 1 plication of this subsection for any eligible taxable 2 year— 3 ‘‘(A) the limitation under subsection (c) 4 shall be increased by an amount equal to the 5 excess (if any) of— 6 ‘‘(i) the credit allowed under sub- 7 section (a) for the taxable year (deter- 8 mined without regard to subsection (c)), 9 over 10 ‘‘(ii) the credit allowed under sub- 11 section (a) for such taxable year (deter- 12 mined after the application of subsection 13 (c)), and 14 ‘‘(B) the amount of the credit determined 15 under section 41(a) for such taxable year shall 16 be determined without regard to the limitation 17 in the first sentence of section 41(g). 18 ‘‘(2) TREATMENT OF CREDIT.—For purposes of 19 this title (other than this section and section 39), 20 the excess of— 21 ‘‘(A) amount of the credit allowed solely by 22 reason of this subsection, over 23 ‘‘(B) net income tax (as defined in sub- 24 section (c)(1)) reduced by credits allowable 25 VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7734 IH under subparts D (without regard to this sub- 1 section) and G, 2 shall be treated as an overpayment of tax for the 3 taxable year. 4 ‘‘(3) ELIGIBLE TAXABLE YEAR.—For purposes 5 of this subsection, the term ‘eligible taxable year’ 6 means any taxable year ending in 2019 or 2020. 7 ‘‘(4) ELECTION.—An election under paragraph 8 (1) shall be made at such time and in such manner 9 as the Secretary may prescribe. 10 ‘‘(5) GUIDANCE AND REGULATIONS.—The Sec- 11 retary shall prescribe such regulations and guidance 12 as may be necessary to carry out this subsection, in- 13 cluding regulations or guidance to prevent any dou- 14 ble counting of credits allowable under this section.’’. 15 (b) ALLOWANCE OF REFUNDS.—Section 1324(b)(2) 16 of title 31, United States Code, is amended by inserting 17 ‘‘38(e)’’ after ‘‘36B’’. 18 (c) CONFORMING AMENDMENT.—Section 19 6211(b)(4)(A) of the Internal Revenue Code of 1986 is 20 amended by inserting ‘‘38(e),’’ after ‘‘36B,’’. 21 (d) CREDITS NOT SUBJECT TO SEQUESTRATION.— 22 Section 255(d) of the Balanced Budget and Emergency 23 Deficit Control Act of 1985 (2 U.S.C. 905(d)) is amend- 24 ed— 25 VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7734 IH (1) by striking ‘‘Payments’’ and inserting the 1 following: 2 ‘‘(1) IN GENERAL.—Payments’’, and 3 (2) by adding at the end the following: 4 ‘‘(2) GENERAL BUSINESS CREDITS.—Payments 5 made under subsection (e) of section 38 of the Inter- 6 nal Revenue Code of 1986 shall be exempt from re- 7 duction under any order issued under this part.’’. 8 (e) SPECIAL RULE FOR REFUNDS.— 9 (1) IN GENERAL.—For purposes of the Internal 10 Revenue Code of 1986, a credit or refund for which 11 an application described in paragraph (2)(A) is filed 12 shall be treated as made under section 6411 of such 13 Code. 14 (2) TENTATIVE REFUND.— 15 (A) APPLICATION.—A taxpayer may file an 16 application for a tentative credit or refund of 17 any amount for which a credit or refund for 18 any taxable year is due by reason of section 19 38(e) of the Internal Revenue Code of 1986. 20 Such application shall be in such manner and 21 form as the Secretary of the Treasury (or the 22 Secretary’s delegate) may prescribe and shall— 23 VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7734 IH (i) be verified in the same manner as 1 an application under section 6411(a) of 2 such Code, 3 (ii) be filed not later than the date 4 that is 120 days after the date of the en- 5 actment of this Act, and 6 (iii) set forth— 7 (I) the amount of the credit 8 claimed under section 38(e) of such 9 Code for such taxable year, and 10 (II) the amount of the refund 11 claimed. 12 (B) ALLOWANCE OF ADJUSTMENTS.— 13 Within a period of 90 days from the date on 14 which an application is filed under subpara- 15 graph (A), the Secretary of the Treasury (or 16 the Secretary’s delegate) shall— 17 (i) review the application, 18 (ii) determine the amount of the over- 19 payment, and 20 (iii) apply, credit, or refund such over- 21 payment, 22 in a manner similar to the manner provided in 23 section 6411(b) of the Internal Revenue Code 24 of 1986. 25 VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7734 IH (C) CONSOLIDATED RETURNS.—The provi- 1 sions of section 6411(c) of the Internal Revenue 2 Code of 1986 shall apply to an adjustment 3 under this paragraph to the same extent and 4 manner as the Secretary of the Treasury (or 5 the Secretary’s delegate) may provide. 6 (3) APPLICATION FOR ADJUSTMENT OF OVER- 7 PAYMENT OF ESTIMATED INCOME TAX.—An applica- 8 tion for adjustment of overpayment of estimated in- 9 come tax under section 6425 of the Internal Rev- 10 enue Code of 1986 by reason of section 38(e) of 11 such Code shall not fail to be treated as timely filed 12 if filed not later than the date which is 120 days 13 after the date of the enactment of this Act. 14 (f) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to taxable years ending after De- 16 cember 31, 2018. 17 Æ VerDate Sep 11 2014 19:30 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H7734.IH H7734 pamtmann on DSKBC07HB2PROD with BILLS