Construction Jobs During Coronavirus Act

I 116TH CONGRESS 2D SESSION H. R. 7874 To temporarily provide a zero rate of Federal income tax on income properly attributable to the trade or business of home construction. IN THE HOUSE OF REPRESENTATIVES JULY 30, 2020 Mr. HARDER of California introduced the following bill; which was referred to the Committee on Ways and Means A BILL To temporarily provide a zero rate of Federal income tax on income properly attributable to the trade or business of home construction. 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 ‘‘Construction Jobs 4 During Coronavirus Act’’. 5 SEC. 2. ZERO RATE OF FEDERAL INCOME TAX ON INCOME 6 PROPERLY ATTRIBUTABLE TO THE TRADE 7 OR BUSINESS OF HOME CONSTRUCTION. 8 (a) IN GENERAL.—In the case of any specified tax- 9 able year of a taxpayer engaged in the trade or business 10 VerDate Sep 11 2014 04:05 Aug 18, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7874.IH H7874 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7874 IH of home construction, the rate of tax imposed under sec- 1 tion 1 or 15 of the Internal Revenue Code of 1986 on 2 so much of the taxpayer’s taxable income as is properly 3 allocable to such trade or business shall be zero percent. 4 (b) TRADE OR BUSINESS OF HOME CONSTRUC- 5 TION.—For purposes of this section, the term ‘‘trade or 6 business of home construction’’ means the trade or busi- 7 ness of constructing dwelling units in the United States. 8 Such term shall include the construction of components 9 of such dwelling units only if such construction is per- 10 formed at the location of the final assembly of such dwell- 11 ing unit. Such term shall not include any trade or business 12 if such trade or business consists of services rendered as 13 an employee. 14 (c) SPECIFIED TAXABLE YEAR.—For purposes of 15 this section, the term ‘‘specified taxable year’’ means any 16 taxable year beginning during the period beginning on 17 January 1, 2020, and ending on the date on which the 18 nationwide public health emergency declared under section 19 319 of the Public Health Service Act as a result of 20 COVID-19 ends. 21 (d) REGULATIONS.—The Secretary of the Treasury 22 (or the Secretary’s designee) shall issue such regulations 23 or other guidance as may be necessary or appropriate to 24 carry out this section, including regulations or other guid- 25 VerDate Sep 11 2014 04:05 Aug 18, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7874.IH H7874 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7874 IH ance providing for the proper application of sections 1 and 1 15 of the Internal Revenue Code of 1986 to taxable in- 2 come to which subsection (a) of this section does not 3 apply. 4 Æ VerDate Sep 11 2014 04:05 Aug 18, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H7874.IH H7874 kjohnson on DSK79L0C42PROD with BILLS