H.R. 7222, Safe Reopening Tax Credit
Summary
H.R. 7222, the Safe Reopening Tax Credit, was introduced in the House of Representatives on June 15, 2020 by Mr. Panetta and referred to the Committee on Ways and Means. It would give an eligible employer, for each calendar quarter, a credit against applicable employment taxes equal to 30 percent of qualified virus transmission prevention expenses. Qualified expenses counted in a quarter could not exceed the least of $15,000 or the greater of 25 percent of wages paid for the quarter or 6.25 percent of gross receipts for calendar year 2019. Listed expenses include plexiglass barriers, contactless point-of-sale systems and personal protective equipment. The credit would apply to expenses in calendar quarters ending before January 1, 2021.
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“H.R. 7222, Safe Reopening Tax Credit.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr7222ih-bills-116hr7222ih/
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I
116TH CONGRESS
2D SESSION
H. R. 7222
To provide for a credit against employment taxes for certain virus
transmission prevention expenses, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 15, 2020
Mr. PANETTA introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To provide for a credit against employment taxes for certain
virus transmission prevention expenses, and for other
purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Safe Reopening Tax
5 Credit’’.
6 SEC. 2. TAX CREDIT FOR SAFETY IMPROVEMENTS.
7 (a) IN GENERAL.—In the case of an eligible em-
8 ployer, there shall be allowed as a credit against applicable
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9 employment taxes for each calendar quarter an amount
10 equal to 30 percent of the qualified virus transmission pre-
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2
1 vention expenses paid or incurred by such employer during
2 such calendar quarter.
3 (b) LIMITATIONS AND REFUNDABILITY.—
4 (1) LIMITATION.—The qualified fixed expenses
5 which may be taken into account under subsection
6 (a) by any eligible employer for any calendar quarter
7 shall not exceed the least of—
8 (A) $15,000, or
9 (B) the greater of—
10 (i) 25 percent of the wages paid with
11 respect to the employment of all employees
12 of the eligible employer for such calendar
13 quarter, or
14 (ii) 6.25 percent of gross receipts of
15 the eligible employer for calendar year
16 2019.
17 (2) CREDIT LIMITED TO CERTAIN EMPLOYMENT
18 TAXES.—The credit allowed by subsection (a) with
19 respect to any calendar quarter shall not exceed the
20 applicable employment taxes for such calendar quar-
21 ter (reduced by any credits allowed under sub-
22 sections (e) and (f) of section 3111 of such Code,
23 sections 7001 and 7003 of the Families First
24 Coronavirus Response Act, and section 2301 of the
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25 CARES Act, for such quarter) on the wages paid
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1 with respect to the employment of all the employees
2 of the eligible employer for such calendar quarter.
3 (3) REFUNDABILITY OF EXCESS CREDIT.—
4 (A) IN GENERAL.—If the amount of the
5 credit under subsection (a) exceeds the limita-
6 tion of paragraph (2) for any calendar quarter,
7 such excess shall be treated as an overpayment
8 that shall be refunded under sections 6402(a)
9 and 6413(b) of the Internal Revenue Code of
10 1986.
11 (B) TREATMENT OF PAYMENTS.—For pur-
12 poses of section 1324 of title 31, United States
13 Code, any amounts due to an employer under
14 this paragraph shall be treated in the same
15 manner as a refund due from a credit provision
16 referred to in subsection (b)(2) of such section.
17 (c) DEFINITIONS.—For purposes of this section—
18 (1) APPLICABLE EMPLOYMENT TAXES.—The
19 term ‘‘applicable employment taxes’’ means the fol-
20 lowing:
21 (A) The taxes imposed under section
22 3111(a) of the Internal Revenue Code of 1986.
23 (B) So much of the taxes imposed under
24 section 3221(a) of such Code as are attrib-
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1 utable to the rate in effect under section
2 3111(a) of such Code.
3 (2) ELIGIBLE EMPLOYER.—
4 (A) IN GENERAL.—The term ‘‘eligible em-
5 ployer’’ means any employer—
6 (i) which was carrying on a trade or
7 business at any time during calendar year
8 2020,
9 (ii) which had either—
10 (I) not more than 1,500 full time
11 equivalent employees (as determined
12 for the purposes of determining
13 whether an employer is an applicable
14 large employer for the purposes of
15 section 4980H(c)(2) of the Internal
16 Revenue Code of 1986) for calendar
17 year 2019, or
18 (II) not more than $41,500,000
19 in gross receipts in the last taxable
20 year ending in 2019, and
21 (iii) is primarily an establishment
22 classified under one of the following:
23 (I) The North American Industry
24 Classification System Sector codes 44,
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25 45, 71, or 72.
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1 (II) The North American Indus-
2 try Classification System Subsector
3 code 624.
4 (III) The North American Indus-
5 try Classification System codes
6 512131 or 519120.
7 (B) TAX-EXEMPT ORGANIZATIONS.—In the
8 case of an organization which is described in
9 section 501(c) of the Internal Revenue Code of
10 1986 and exempt from tax under section 501(a)
11 of such Code—
12 (i) clauses (i) and (iii)(I) of subpara-
13 graph (A) shall apply to all operations of
14 such organization, and
15 (ii) any reference in this section to
16 gross receipts shall be treated as a ref-
17 erence to gross receipts within the meaning
18 of section 6033 of the Internal Revenue
19 Code of 1986.
20 (3) QUALIFIED VIRUS TRANSMISSION PREVEN-
21 TION EXPENSES.—The term ‘‘qualified virus trans-
22 mission prevention expenses’’ means the payment or
23 accrual of any expense which is intended to reduce
24 or prevent the transmission of communicable viruses
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25 (including Severe Acute Respiratory Syndrome
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1 Coronavirus 2 (SARS–CoV–2)), which is used in the
2 operation of a trade or business in the United States
3 (including the possessions of the United States), in-
4 cluding—
5 (A) barriers erected to prevent virus
6 spread between customers and employees, in-
7 cluding plexiglass installed at cashiers and
8 other counters, and partitions to separate cus-
9 tomers,
10 (B) changes to fixtures to facilitate social
11 distancing, including additional check-out sta-
12 tions,
13 (C) contactless point-of-sale systems,
14 (D) enhanced sanitation, including deep
15 cleaning and hand sanitizer,
16 (E) thermometers and other virus moni-
17 toring devices or methods, including COVID–19
18 testing,
19 (F) ventilation or air filtration,
20 (G) signage related to public health aware-
21 ness, social distancing, or altered services like
22 curbside pickups,
23 (H) employee health education,
24 (I) training for new business procedures
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25 resulting from COVID–19,
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1 (J) personal protective equipment, and
2 (K) such additional expenses as the Sec-
3 retary, in consultation with the Secretary of
4 Health and Human Services, determines to be
5 necessary.
6 (4) SECRETARY.—The term ‘‘Secretary’’ means
7 the Secretary of the Treasury or the Secretary’s del-
8 egate.
9 (d) AGGREGATION RULE.—All persons treated as a
10 single employer under subsection (a) or (b) of section 52
11 of the Internal Revenue Code of 1986, or subsection (m)
12 or (o) of section 414 of such Code, shall be treated as
13 one employer for purposes of this section.
14 (e) DENIAL OF DOUBLE BENEFIT.—For purposes of
15 chapter 1 of such Code, the gross income of any eligible
16 employer, for the taxable year which includes the last day
17 of any calendar quarter with respect to which a credit is
18 allowed under this section, shall be increased by the
19 amount of such credit.
20 (f) ELECTION NOT TO HAVE SECTION APPLY.—This
21 section shall not apply with respect to any eligible em-
22 ployer for any calendar quarter if such employer elects (at
23 such time and in such manner as the Secretary may pre-
24 scribe) not to have this section apply.
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1 (g) TRANSFERS TO CERTAIN TRUST FUNDS.—There
2 are hereby appropriated to the Federal Old-Age and Sur-
3 vivors Insurance Trust Fund and the Federal Disability
4 Insurance Trust Fund established under section 201 of
5 the Social Security Act (42 U.S.C. 401) and the Social
6 Security Equivalent Benefit Account established under
7 section 15A(a) of the Railroad Retirement Act of 1974
8 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in
9 revenues to the Treasury by reason of this section (without
10 regard to this subsection). Amounts appropriated by the
11 preceding sentence shall be transferred from the general
12 fund at such times and in such manner as to replicate
13 to the extent possible the transfers which would have oc-
14 curred to such Trust Fund or Account had this section
15 not been enacted.
16 (h) TREATMENT OF DEPOSITS.—The Secretary shall
17 waive any penalty under section 6656 of such Code for
18 any failure to make a deposit of applicable employment
19 taxes if the Secretary determines that such failure was due
20 to the anticipation of the credit allowed under this section.
21 (i) REGULATIONS AND GUIDANCE.—The Secretary
22 shall issue such forms, instructions, regulations, and guid-
23 ance as are necessary—
24 (1) to allow the advance payment of the credit
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25 under subsection (a), subject to the limitations pro-
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1 vided in this section, based on such information as
2 the Secretary shall require,
3 (2) to provide for the reconciliation of such ad-
4 vance payment with the amount of the credit at the
5 time of filing the return of tax for the applicable
6 quarter or taxable year,
7 (3) with respect to the application of the credit
8 under subsection (a) to third-party payors (including
9 professional employer organizations, certified profes-
10 sional employer organizations, or agents under sec-
11 tion 3504 of the Internal Revenue Code of 1986),
12 including regulations or guidance allowing such
13 payors to submit documentation necessary to sub-
14 stantiate the eligible employer status of employers
15 that use such payors,
16 (4) for application of subsection (c)(2)(A)(ii) in
17 the case of any employer which was not carrying on
18 a trade or business for all or part of the same cal-
19 endar quarter in the prior year, and
20 (5) for recapturing the benefit of credits deter-
21 mined under this section in cases where there is a
22 subsequent adjustment to the credit determined
23 under subsection (a).
24 (j) APPLICATION OF SECTION.—This section shall
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25 apply only to qualified fixed expenses paid or accrued in
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1 calendar quarters beginning on or after the date of the
2 enactment of this Act and before January 1, 2021.
Æ
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