Text of Amendments (Cong. Rec., Aug. 3, 2020)
Summary
A page of the Congressional Record, Senate, dated August 3, 2020, beginning at page S4670, under the heading Text of Amendments, in a long document. SA 2503, submitted by Mrs. Loeffler, Ms. Ernst and Mr. Cruz to an amendment by Mr. McConnell to the bill S. 178, would condemn gross human rights violations against ethnic Turkic Muslims in Xinjiang, and another amendment by Mr. Grassley is also listed. Other amendment text proposes a tax exclusion for gain on the disposition of property in a qualified relocation of manufacturing and a credit of $1,200, or $2,400 for joint returns, plus $500 per dependent, reduced by adjusted gross income.
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“Text of Amendments (Cong. Rec., Aug. 3, 2020).”
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S4670 CONGRESSIONAL RECORD — SENATE August 3, 2020
Xinjiang, and calling for an end to arbitrary previously manufactured in a foreign coun- A for the first taxable year beginning in 2020
detention, torture, and harassment of these try and the increase in the units of produc- an amount equal to the sum of—
communities inside and outside China; which tion of such property in the United States by ‘‘(1) $1,200 ($2,400 in the case of eligible in-
was ordered to lie on the table. the qualified manufacturer is not less than dividuals filing a joint return), plus
SA 2504. Mr. GRASSLEY submitted an the reduction in the units of production of ‘‘(2) an amount equal to the product of $500
amendment intended to be proposed to such property in such foreign country by multiplied by the number of dependents (as
amendment SA 2499 proposed by Mr. MCCON- such qualified manufacturer. defined in section 152(a)) of the taxpayer.
NELL to the bill S. 178, supra; which was or- ‘‘(7) APPLICATION TO POSSESSIONS OF THE ‘‘(b) TREATMENT OF CREDIT.—The credit al-
dered to lie on the table. UNITED STATES.—For purposes of this sub- lowed by subsection (a) shall be treated as
f section, the term ‘United States’ includes allowed by subpart C of part IV of sub-
any possession of the United States.’’. chapter A of chapter 1.
TEXT OF AMENDMENTS (b) EXCLUSION OF GAIN ON DISPOSITION OF ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS
SA 2503. Mrs. LOEFFLER (for her- PROPERTY IN CONNECTION WITH QUALIFIED RE- INCOME.—The amount of the credit allowed
LOCATION OF MANUFACTURING.— by subsection (a) (determined without regard
self, Ms. ERNST, and Mr. CRUZ) sub-
(1) IN GENERAL.—Part III of subchapter B of to this subsection and subsection (e)) shall
mitted an amendment intended to be
chapter 1 of such Code is amended by insert- be reduced (but not below zero) by 5 percent
proposed to amendment SA 2499 pro- ing after section 139H the following new sec- of so much of the taxpayer’s adjusted gross
posed by Mr. MCCONNELL to the bill S. tion: income as exceeds—
178, to condemn gross human rights ‘‘SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION ‘‘(1) $150,000 in the case of a joint return,
violations of ethnic Turkic Muslims in OF PROPERTY IN CONNECTION WITH ‘‘(2) $112,500 in the case of a head of house-
Xinjiang, and calling for an end to ar- QUALIFIED RELOCATION OF MANU-
hold, and
FACTURING.
bitrary detention, torture, and harass- ‘‘(a) IN GENERAL.—In the case of a qualified
‘‘(3) $75,000 in the case of a taxpayer not de-
ment of these communities inside and scribed in paragraph (1) or (2).
manufacturer, gross income shall not include
outside China; which was ordered to lie ‘‘(d) ELIGIBLE INDIVIDUAL.—
gain from the sale or exchange of qualified
on the table; as follows: ‘‘(1) IN GENERAL.—For purposes of this sec-
relocation disposition property.
‘‘(b) QUALIFIED RELOCATION DISPOSITION tion, the term ‘eligible individual’ means
At the appropriate place, insert the fol- any individual who is not described in para-
lowing: PROPERTY.—For purposes of this section, the
term ‘qualified relocation disposition prop- graph (2) and who was not deceased prior to
SEC. 3. TAX INCENTIVES FOR RELOCATING MAN-
erty’ means any property which— January 1, 2020.
UFACTURING OF PHARMA-
CEUTICALS AND MEDICAL SUPPLIES ‘‘(1) is sold or exchanged by a qualified ‘‘(2) EXCEPTIONS.—An individual is de-
AND DEVICES TO THE UNITED manufacturer in connection with a qualified scribed in this paragraph if such individual
STATES. relocation of manufacturing, and is—
(a) ACCELERATED DEPRECIATION FOR NON- ‘‘(2) was used by such qualified manufac- ‘‘(A) a nonresident alien individual,
RESIDENTIAL REAL PROPERTY.—Section 168 of turer in the trade or business of manufac- ‘‘(B) an individual with respect to whom a
the Internal Revenue Code of 1986 is amended turing a qualified medical product in the for- deduction under section 151 is allowable to
by adding at the end the following new sub- eign country from which such manufacturing another taxpayer for a taxable year begin-
section: is being relocated. ning in the calendar year in which the indi-
‘‘(n) ACCELERATED DEPRECIATION FOR NON- ‘‘(c) OTHER TERMS.—Terms used in this sec- vidual’s taxable year begins, or
RESIDENTIAL REAL PROPERTY ACQUIRED IN tion which are also used in subsection (n) of ‘‘(C) an estate or trust.
CONNECTION WITH THE RELOCATION OF MANU- section 168 shall have the same meaning ‘‘(e) COORDINATION WITH ADVANCE REFUNDS
FACTURING OF PHARMACEUTICALS AND MED- when used in this section as when used in OF CREDIT.—
ICAL SUPPLIES AND DEVICES TO THE UNITED such subsection.’’. ‘‘(1) IN GENERAL.—The amount of credit
STATES.— (2) CLERICAL AMENDMENT.—The table of which would (but for this paragraph) be al-
‘‘(1) TREATMENT AS 20-YEAR PROPERTY.—For sections for part III of subchapter B of chap- lowable under this section shall be reduced
purposes of this section, qualified nonresi- ter 1 of such Code is amended by inserting (but not below zero) by the aggregate refunds
dential real property shall be treated as 20- after the item relating to section 139H the and credits made or allowed to the taxpayer
year property. following new item: under subsection (f). Any failure to so reduce
‘‘(2) APPLICATION OF BONUS DEPRECIATION.— the credit shall be treated as arising out of
‘‘Sec. 139I. Exclusion of gain on disposition
For application of bonus depreciation to a mathematical or clerical error and as-
of property in connection with
qualified nonresidential real property, see sessed according to section 6213(b)(1).
qualified relocation of manu-
subsection (k). ‘‘(2) JOINT RETURNS.—In the case of a re-
facturing.’’.
‘‘(3) QUALIFIED NONRESIDENTIAL REAL PROP- fund or credit made or allowed under sub-
ERTY.—For purposes of this subsection, the
(c) EFFECTIVE DATES.— section (f) with respect to a joint return, half
(1) ACCELERATED DEPRECIATION.—The of such refund or credit shall be treated as
term ‘qualified nonresidential real property’
means nonresidential real property placed in amendment made by subsection (a) shall having been made or allowed to each indi-
service in the United States by a qualified apply to property placed in service after the vidual filing such return.
manufacturer if such property is acquired by date of the enactment of this Act. ‘‘(f) ADVANCE REFUNDS AND CREDITS.—
such qualified manufacturer in connection (2) EXCLUSION OF GAIN.—The amendments ‘‘(1) IN GENERAL.—Subject to paragraph (5),
with a qualified relocation of manufacturing. made by subsection (b) shall apply to sales each individual who was an eligible indi-
‘‘(4) QUALIFIED MANUFACTURER.—For pur- and exchanges after the date of the enact- vidual for such individual’s first taxable year
poses of this subsection, the term ‘qualified ment of this Act. beginning in 2019 shall be treated as having
manufacturer’ means any person engaged in made a payment against the tax imposed by
the trade or business of manufacturing a
SA 2504. Mr. GRASSLEY submitted chapter 1 for such taxable year in an amount
qualified medical product. an amendment intended to be proposed equal to the advance refund amount for such
‘‘(5) QUALIFIED MEDICAL PRODUCT.—For pur- to amendment SA 2499 proposed by Mr. taxable year.
poses of this subsection, the term ‘qualified MCCONNELL to the bill S. 178, to con- ‘‘(2) ADVANCE REFUND AMOUNT.—For pur-
medical product’ means any pharmaceutical, demn gross human rights violations of poses of paragraph (1), the advance refund
medical device, or medical supply. ethnic Turkic Muslims in Xinjiang, and amount is the amount that would have been
‘‘(6) QUALIFIED RELOCATION OF MANUFAC- calling for an end to arbitrary deten- allowed as a credit under this section for
TURING.—For purposes of this subsection— such taxable year if this section (other than
tion, torture, and harassment of these
‘‘(A) IN GENERAL.—The term ‘qualified relo- subsection (e) and this subsection) had ap-
cation of manufacturing’ means, with re-
communities inside and outside China; plied to such taxable year.
spect to any qualified manufacturer, the re- which was ordered to lie on the table; ‘‘(3) TIMING AND MANNER OF PAYMENTS.—
location of the manufacturing of a qualified as follows: ‘‘(A) TIMING.—The Secretary shall, subject
medical product from a foreign country to At the end, add the following: to the provisions of this title, refund or cred-
the United States. SEC. 3. ADDITIONAL 2020 RECOVERY REBATES it any overpayment attributable to this sec-
‘‘(B) RELOCATION OF PROPERTY NOT RE- FOR INDIVIDUALS. tion as rapidly as possible. No refund or cred-
QUIRED.—For purposes of subparagraph (A), (a) IN GENERAL.—Subchapter B of chapter it shall be made or allowed under this sub-
manufacturing shall not fail to be treated as 65 of the Internal Revenue Code of 1986 is section after December 31, 2020.
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relocated merely because property used in amended by inserting after section 6428 the ‘‘(B) DELIVERY OF PAYMENTS.—Notwith-
such manufacturing was not relocated. following new section: standing any other provision of law, the Sec-
‘‘(C) RELOCATION OF NOT LESS THAN EQUIVA- ‘‘SEC. 6428A. ADDITIONAL 2020 RECOVERY RE- retary may certify and disburse refunds pay-
LENT PRODUCTIVE CAPACITY REQUIRED.—For BATES FOR INDIVIDUALS. able under this subsection electronically
purposes of subparagraph (A), manufacturing ‘‘(a) IN GENERAL.—In addition to the credit to—
shall not be treated as relocated unless the allowed under section 6428, in the case of an ‘‘(i) any account to which the payee re-
property manufactured in the United States eligible individual, there shall be allowed as ceived or authorized, on or after January 1,
is substantially identical to the property a credit against the tax imposed by subtitle 2018, a refund of taxes under this title or of
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August 3, 2020 CONGRESSIONAL RECORD — SENATE S4671
a Federal payment (as defined in section 3332 1611(e)(1)(B) of such Act (42 U.S.C. specified supplemental security income re-
of title 31, United States Code), 1382(e)(1)(B)), including— cipient, section 1129(a)(3) of the Social Secu-
‘‘(ii) any account belonging to a payee ‘‘(i) payments made pursuant to section rity Act (42 U.S.C. 1320a–8(a)(3)) shall apply
from which that individual, on or after Janu- 1614(a)(3)(C) of such Act (42 U.S.C. to such payment in the same manner as such
ary 1, 2018, made a payment of taxes under 1382c(a)(3)(C)), section applies to a payment under title II or
this title, or ‘‘(ii) payments made pursuant to section XVI of such Act.
‘‘(iii) any Treasury-sponsored account (as 1619(a) (42 U.S.C. 1382h(a)) or subsections ‘‘(II) In the case of a payment described in
defined in section 208.2 of title 31, Code of (a)(4), (a)(7), or (p)(7) of section 1631 (42 U.S.C. clause (i) which is made with respect to a
Federal Regulations). 1383) of such Act, and specified railroad retirement beneficiary,
‘‘(C) WAIVER OF CERTAIN RULES.—Notwith- ‘‘(iii) State supplementary payments of the section 13 of the Railroad Retirement Act (45
standing section 3325 of title 31, United type referred to in section 1616(a) of such Act U.S.C. 231l) shall apply to such payment in
States Code, or any other provision of law, (42 U.S.C. 1382e(a)) (or payments of the type the same manner as such section applies to
with respect to any payment of a refund described in section 212(a) of Public Law 93– a payment under such Act.
under this subsection, a disbursing official in 66) which are paid by the Commissioner ‘‘(III) In the case of a payment described in
the executive branch of the United States under an agreement referred to in such sec- clause (i) which is made with respect to a
Government may modify payment informa- tion 1616(a) (or section 212(a) of Public Law specified veterans beneficiary, sections 5502,
tion received from an officer or employee de- 93–66). 6106, and 6108 of title 38, United States Code,
scribed in section 3325(a)(1)(B) of such title ‘‘(E) SPECIFIED RAILROAD RETIREMENT BENE- shall apply to such payment in the same
for the purpose of facilitating the accurate FICIARY.—For purposes of this paragraph, the
manner as such sections apply to a payment
and efficient delivery of such payment. Ex- term ‘specified railroad retirement bene-
under such title.
cept in cases of fraud or reckless neglect, no ficiary’ means any individual who, for the
‘‘(6) NOTICE TO INDIVIDUALS.—Not later
liability under sections 3325, 3527, 3528, or last month that ends prior to the date of en-
than 15 days after the date on which the Sec-
3529 of title 31, United States Code, shall be actment of this section, is entitled to a
retary distributed any payment to an eligi-
imposed with respect to payments made monthly annuity or pension payment pay-
ble individual pursuant to this subsection,
under this subparagraph. able (without regard to section 5(a)(ii) of the
notice shall be sent by mail to such individ-
‘‘(4) NO INTEREST.—No interest shall be al- Railroad Retirement Act of 1974 (45 U.S.C.
lowed on any overpayment attributable to 231d(a)(ii))) under— ual’s last known address. Such notice shall
this section. ‘‘(i) section 2(a)(1) of such Act (45 U.S.C. indicate the method by which such payment
‘‘(5) APPLICATION TO CERTAIN INDIVIDUALS 231a(a)(1)), was made, the amount of such payment, and
WHO DO NOT FILE A RETURN OF TAX FOR 2019.— ‘‘(ii) section 2(c) of such Act (45 U.S.C. a phone number for the appropriate point of
‘‘(A) IN GENERAL.—In the case of an indi- 231a(c)), contact at the Internal Revenue Service to
vidual who, at the time of any determination ‘‘(iii) section 2(d)(1) of such Act (45 U.S.C. report any failure to receive such payment.
made pursuant to paragraph (3), has not filed 231a(d)(1)), or ‘‘(g) IDENTIFICATION NUMBER REQUIRE-
a tax return for the year described in para- ‘‘(iv) section 7(b)(2) of such Act (45 U.S.C. MENT.—
graph (1), the Secretary may— 231f(b)(2)) with respect to any of the benefit ‘‘(1) IN GENERAL.—No credit shall be al-
‘‘(i) apply such paragraph by substituting payments described in subparagraph (C). lowed under subsection (a) to an eligible in-
‘2018’ for ‘2019’, ‘‘(F) SPECIFIED VETERANS BENEFICIARY.— dividual who does not include on the return
‘‘(ii) use information with respect to such For purposes of this paragraph, the term of tax for the taxable year—
individual for calendar year 2019 provided ‘specified veterans beneficiary’ means any ‘‘(A) such individual’s valid identification
in— individual who, for the last month that ends number,
‘‘(I) Form SSA–1099, Social Security Ben- prior to the date of enactment of this sec- ‘‘(B) in the case of a joint return, the valid
efit Statement, or tion, is entitled to a compensation or pen- identification number of such individual’s
‘‘(II) Form RRB–1099, Social Security sion payment payable under— spouse, and
Equivalent Benefit Statement, or ‘‘(i) section 1110, 1117, 1121, 1131, 1141, or ‘‘(C) in the case of any dependent taken
‘‘(iii) use information with respect to such 1151 of title 38, United States Code, into account under subsection (a)(2), the
individual which is provided by— ‘‘(ii) section 1310, 1312, 1313, 1315, 1316, or valid identification number of such depend-
‘‘(I) in the case of a specified social secu- 1318 of title 38, United States Code, ent.
rity beneficiary or a specified supplemental ‘‘(iii) section 1513, 1521, 1533, 1536, 1537, 1541, ‘‘(2) VALID IDENTIFICATION NUMBER.—
security income recipient, the Commissioner 1542, or 1562 of title 38, United States Code, ‘‘(A) IN GENERAL.—For purposes of para-
of Social Security, or graph (1), the term ‘valid identification num-
‘‘(II) in the case of a specified railroad re- ‘‘(iv) section 1805, 1815, or 1821 of title 38, ber’ means a social security number (as such
tirement beneficiary, the Railroad Retire- United States Code, term is defined in section 24(h)(7)).
ment Board, and to a veteran, surviving spouse, child, or par- ‘‘(B) ADOPTION TAXPAYER IDENTIFICATION
‘‘(III) in the case of a specified veterans ent as described in paragraph (2), (3), NUMBER.—For purposes of paragraph (1)(C),
beneficiary, the Secretary of Veterans Af- (4)(A)(ii), or (5) of section 101, title 38, United in the case of a dependent who is adopted or
fairs (in coordination with, and with the as- States Code. placed for adoption, the term ‘valid identi-
sistance of, the Commissioner of Social Se- ‘‘(G) SUBSEQUENT DETERMINATIONS AND RE-
fication number’ shall include the adoption
curity if appropriate). DETERMINATIONS NOT TAKEN INTO ACCOUNT.—
taxpayer identification number of such de-
‘‘(B) SPECIFIED INDIVIDUAL.—For purposes For purposes of this section, any individual’s
pendent.
of this paragraph, the term ‘specified indi- status as a specified social security bene-
‘‘(3) SPECIAL RULE FOR MEMBERS OF THE
vidual’ means any individual who is— ficiary, a specified supplemental security in-
ARMED FORCES.—Paragraph (1)(B) shall not
‘‘(i) a specified social security beneficiary, come recipient, a specified railroad retire-
apply in the case where at least 1 spouse was
‘‘(ii) a specified supplemental security in- ment beneficiary, or a specified veterans
a member of the Armed Forces of the United
come recipient, beneficiary shall be unaffected by any deter-
States at any time during the taxable year
‘‘(iii) a specified railroad retirement bene- mination or redetermination of any entitle-
and at least 1 spouse satisfies paragraph
ficiary, or ment to, or eligibility for, any benefit, pay-
(1)(A).
‘‘(iv) a specified veterans beneficiary. ment, or compensation, if such determina-
‘‘(4) MATHEMATICAL OR CLERICAL ERROR AU-
‘‘(C) SPECIFIED SOCIAL SECURITY BENE- tion or redetermination occurs after the last
THORITY.—Any omission of a correct valid
FICIARY.—For purposes of this paragraph, the month that ends prior to the date of enact-
identification number required under this
term ‘specified social security beneficiary’ ment of this section.
subsection shall be treated as a mathe-
means any individual who, for the last ‘‘(H) PAYMENT TO REPRESENTATIVE PAYEES
matical or clerical error for purposes of ap-
month that ends prior to the date of enact- AND FIDUCIARIES.—
plying section 6213(g)(2) to such omission.
ment of this section, is entitled to any ‘‘(i) IN GENERAL.—If the benefit, payment,
monthly insurance benefit payable under or compensation referred to in subparagraph ‘‘(h) SPECIAL RULES WITH RESPECT TO PRIS-
title II of the Social Security Act (42 U.S.C. (C), (D), (E), or (F) with respect to any speci- ONERS.—
401 et seq.), including payments made pursu- fied individual is paid to a representative ‘‘(1) DISALLOWANCE OF CREDIT.—
ant to sections 202(d), 223(g), and 223(i)(7) of payee or fiduciary, payment by the Sec- ‘‘(A) IN GENERAL.—Subject to subparagraph
such Act. retary under paragraph (3) with respect to (B), no credit shall be allowed under sub-
‘‘(D) SPECIFIED SUPPLEMENTAL SECURITY IN- such specified individual shall be made to section (a) to an eligible individual who is,
COME RECIPIENT.—For purposes of this para- such individual’s representative payee or fi- for each day during calendar year 2020, de-
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graph, the term ‘specified supplemental se- duciary and the entire payment shall be used scribed in clause (i), (ii), (iii), (iv), or (v) of
curity income recipient’ means any indi- only for the benefit of the individual who is section 202(x)(1)(A) of the Social Security
vidual who, for the last month that ends entitled to the payment. Act (42 U.S.C. 402(x)(1)(A)).
prior to the date of enactment of this sec- ‘‘(ii) APPLICATION OF ENFORCEMENT PROVI- ‘‘(B) JOINT RETURN.—In the case of eligible
tion, is eligible for a monthly benefit pay- SIONS.— individuals filing a joint return where 1
able under title XVI of the Social Security ‘‘(I) In the case of a payment described in spouse is described in subparagraph (A), sub-
Act (42 U.S.C. 1381 et seq.) (other than a ben- clause (i) which is made with respect to a section (a)(1) shall be applied by substituting
efit to an individual described in section specified social security beneficiary or a ‘$1,200’ for ‘$2,400’.
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S4672 CONGRESSIONAL RECORD — SENATE August 3, 2020
‘‘(2) DENIAL OF ADVANCE REFUND OR CRED- ceived by a financial institution and that ap- tion with respect to individuals who may not
IT.—No refund or credit shall be made or al- plies to an account into which an applicable have filed a tax return for taxable year 2018
lowed under subsection (f) with respect to payment that has not been encoded as pro- or 2019.
any individual whom the Secretary has vided in subparagraph (B) has been deposited (f) APPROPRIATIONS TO CARRY OUT RE-
knowledge is, at the time of any determina- electronically or by an applicable payment BATES.—
tion made pursuant to paragraph (3) of such that has been deposited by check on any date (1) IN GENERAL.—Immediately upon the en-
subsection, described in clause (i), (ii), (iii), in the lookback period, the financial institu- actment of this Act, the following sums are
(iv), or (v) of section 202(x)(1)(A) of the Social tion, upon the request of the account holder, appropriated, out of any money in the Treas-
Security Act. shall treat the amount of the funds in the ac- ury not otherwise appropriated, for the fiscal
‘‘(i) REGULATIONS.—The Secretary shall count at the time of the request, up to the year ending September 30, 2020:
prescribe such regulations or other guidance amount of the applicable payment (in addi- (A) DEPARTMENT OF THE TREASURY.—
as may be necessary to carry out the pur- tion to any amounts otherwise protected (i) For an additional amount for ‘‘Depart-
poses of this section, including any such under part 212 of title 31, Code of Federal ment of the Treasury—Internal Revenue
measures as are deemed appropriate to avoid Regulations), as exempt from a garnishment Service—Taxpayer Services’’, $29,027,000, to
allowing multiple credits or rebates to a tax- order without requiring the consent of the remain available until September 30, 2021.
payer.’’. party serving the garnishment order or the (ii) For an additional amount for ‘‘Depart-
(b) DEFINITION OF DEFICIENCY.—Section judgment creditor. ment of the Treasury—Internal Revenue
6211(b)(4)(A) of the Internal Revenue Code of (iii) LIABILITY.—A financial institution Service—Operations Support’’, $236,548,000,
1986 is amended by striking ‘‘and 6428’’ and that acts in good faith in reliance on clauses to remain available until September 30, 2021.
inserting ‘‘6428, and 6428A’’. (i) or (ii) shall not be subject to liability or (iii) For an additional amount for ‘‘Depart-
(c) TREATMENT OF POSSESSIONS.—Rules regulatory action under any Federal or State ment of the Treasury—Internal Revenue
similar to the rules of subsection (c) of sec- law, regulation, court or other order, or reg-
tion 2201 of the CARES Act (Public Law 116– Service—Enforcement’’, $54,425,000, to re-
ulatory interpretation for actions con- main available until September 30, 2021.
136) shall apply for purposes of this section. cerning any applicable payments.
(d) EXCEPTION FROM REDUCTION OR OFF- Amounts made available in appropriations
(D) DEFINITIONS.—For purposes of this under this subparagraph may be transferred
SET.—
paragraph— between such appropriations upon the ad-
(1) IN GENERAL.—Any credit or refund al- (i) ACCOUNT HOLDER.—The term ‘‘account
lowed or made to any individual by reason of vance notification of the Committees on Ap-
holder’’ means a natural person whose name propriations of the House of Representatives
section 6428A of the Internal Revenue Code appears in a financial institution’s records as
of 1986 (as added by this section) or by reason and the Senate. Such transfer authority is in
the direct or beneficial owner of an account. addition to any other transfer authority pro-
of subsection (c) of this section shall not be— (ii) ACCOUNT REVIEW.—The term ‘‘account
(A) subject to reduction or offset pursuant vided by law.
review’’ means the process of examining de- (B) SOCIAL SECURITY ADMINISTRATION.—For
to section 3716 or 3720A of title 31, United posits in an account to determine if an appli-
States Code, an additional amount for ‘‘Social Security
cable payment has been deposited into the Administration—Limitation on Administra-
(B) subject to reduction or offset pursuant account during the lookback period. The fi-
to subsection (d), (e), or (f) of section 6402 of tive Expenses’’, $38,000,000, to remain avail-
nancial institution shall perform the ac- able until September 30, 2021.
the Internal Revenue Code of 1986, or count review following the procedures out-
(C) reduced or offset by other assessed Fed- (2) REPORTS.—No later than 15 days after
lined in section 212.5 of title 31, Code of Fed- enactment of this Act, the Secretary of the
eral taxes that would otherwise be subject to eral Regulations and in accordance with the
levy or collection. Treasury shall submit a plan to the Commit-
requirements of section 212.6 of title 31, Code tees on Appropriations of the House of Rep-
(2) ASSIGNMENT OF BENEFITS.— of Federal Regulations.
(A) IN GENERAL.—The right of any person resentatives and the Senate detailing the ex-
(iii) APPLICABLE PAYMENT.—The term ‘‘ap- pected use of the funds provided by para-
to any applicable payment shall not be plicable payment’’ means—
transferable or assignable, at law or in eq- graph (1)(A). Beginning 90 days after enact-
(I) any advance refund amount paid pursu- ment of this Act, the Secretary of the Treas-
uity, and no applicable payment shall be sub- ant to subsection (f) of section 6428A of the
ject to, execution, levy, attachment, gar- ury shall submit a quarterly report to the
Internal Revenue Code of 1986 (as so added), Committees on Appropriations of the House
nishment, or other legal process, or the oper- (II) any payment made by a possession of
ation of any bankruptcy or insolvency law. of Representatives and the Senate detailing
the United States with a mirror code tax the actual expenditure of funds provided by
(B) ENCODING OF PAYMENTS.—In the case of system (as defined in subsection (c) of sec-
an applicable payment described in subpara- paragraph (1)(A) and the expected expendi-
tion 2201 of the CARES Act (Public Law 116– ture of such funds in the subsequent quarter.
graph (D)(iii)(I) that is paid electronically by 136)) pursuant to such subsection which cor-
direct deposit through the Automated Clear- (g) CONFORMING AMENDMENTS.—
responds to a payment described in subclause (1) Paragraph (2) of section 1324(b) of title
ing House (ACH) network, the Secretary of (I), and
the Treasury (or the Secretary’s delegate) 31, United States Code, is amended by insert-
(III) any payment made by a possession of ing ‘‘6428A,’’ after ‘‘6428,’’.
shall— the United States without a mirror code tax
(i) issue the payment using a unique iden- (2) The table of sections for subchapter B
system (as so defined) pursuant to section of chapter 65 of the Internal Revenue Code of
tifier that is reasonably sufficient to allow a 2201(c) of such Act.
financial institution to identify the payment 1986 is amended by inserting after the item
(iv) GARNISHMENT.—The term ‘‘garnish- relating to section 6428 the following:
as an applicable payment, and ment’’ means execution, levy, attachment,
(ii) further encode the payment pursuant garnishment, or other legal process. ‘‘Sec. 6428A. Additional 2020 Recovery Re-
to the same specifications as required for a (v) GARNISHMENT ORDER.—The term ‘‘gar- bates for individuals.’’.
benefit payment defined in section 212.3 of nishment order’’ means a writ, order, notice, SEC. 4. MODIFICATIONS TO RECOVERY REBATES
title 31, Code of Federal Regulations. MADE UNDER THE CARES ACT.
summons, judgment, levy, or similar written
(C) GARNISHMENT.— instruction issued by a court, a State or (a) PROHIBITION ON PAYMENTS TO DECEASED
(i) ENCODED PAYMENTS.—In the case of a State agency, a municipality or municipal INDIVIDUALS.—Subsection (d) of section 6428
garnishment order that applies to an ac- corporation, or a State child support en- of the Internal Revenue Code of 1986 is
count that has received an applicable pay- forcement agency, including a lien arising by amended to read as follows:
ment that is encoded as provided in subpara- operation of law for overdue child support or ‘‘(d) ELIGIBLE INDIVIDUAL.—
graph (B), a financial institution shall follow an order to freeze the assets in an account, ‘‘(1) IN GENERAL.—For purposes of this sec-
the requirements and procedures set forth in to effect a garnishment against a debtor. tion, the term ‘eligible individual’ means
part 212 of title 31, Code of Federal Regula- (vi) LOOKBACK PERIOD.—The term any individual who is not described in para-
tions, except a financial institution shall ‘‘lookback period’’ means the two month pe- graph (2) and who was not deceased prior to
not, with regard to any applicable payment, riod that begins on the date preceding the January 1, 2020.
be required to provide the notice referenced date of account review and ends on the cor- ‘‘(2) EXCEPTIONS.—An individual is de-
in sections 212.6 and 212.7 of title 31, Code of responding date of the month two months scribed in this paragraph if such individual
Federal Regulations. This paragraph shall earlier, or on the last date of the month two is—
not alter the status of applicable payments months earlier if the corresponding date does ‘‘(A) a nonresident alien individual,
as tax refunds or other nonbenefit payments not exist. ‘‘(B) an individual with respect to whom a
for purpose of any reclamation rights of the (e) PUBLIC AWARENESS CAMPAIGN.—The deduction under section 151 is allowable to
Department of the Treasury or the Internal another taxpayer for a taxable year begin-
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Secretary of the Treasury (or the Secretary’s
Revenue Service as per part 210 of title 31 of delegate) shall conduct a public awareness ning in the calendar year in which the indi-
the Code of Federal Regulations. campaign, in coordination with the Commis- vidual’s taxable year begins, or
(ii) OTHER PAYMENTS.—If a financial insti- sioner of Social Security and the heads of ‘‘(C) an estate or trust.’’.
tution receives a garnishment order, other other relevant Federal agencies, to provide (b) PROHIBITION ON PAYMENTS TO PRIS-
than an order that has been served by the information regarding the availability of the ONERS.—Section 6428 of the Internal Revenue
United States or an order that has been credit and rebate allowed under section Code of 1986 is amended—
served by a Federal, State, or local child sup- 6428A of the Internal Revenue Code of 1986 (1) by redesignating subsection (h) as sub-
port enforcement agency, that has been re- (as added by this section), including informa- section (i), and
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August 3, 2020 CONGRESSIONAL RECORD — SENATE S4673
(2) by inserting after subsection (g) the fol- United States or an order that has been SEC. 5. ENHANCED EMPLOYEE HIRING AND RE-
lowing new subsection: served by a Federal, State, or local child sup- TENTION PAYROLL TAX CREDIT.
‘‘(h) SPECIAL RULES WITH RESPECT TO PRIS- port enforcement agency, that has been re- (a) INCREASE IN CREDIT PERCENTAGE.—Sec-
ONERS.— ceived by a financial institution after the tion 2301(a) of the CARES Act is amended by
‘‘(1) DISALLOWANCE OF CREDIT.— date that is 10 days after the date of the en- striking ‘‘50 percent’’ and inserting ‘‘65 per-
‘‘(A) IN GENERAL.—Subject to subparagraph actment of this paragraph and that applies cent’’.
(B), no credit shall be allowed under sub- to an account into which an applicable pay- (b) INCREASE IN PER EMPLOYEE LIMITA-
section (a) to an eligible individual who, for ment that has not been encoded as provided TION.—Section 2301(b)(1) of the CARES Act is
each day during calendar year 2020, is de- in subparagraph (B) has been deposited elec- amended by striking ‘‘for all calendar quar-
scribed in clause (i), (ii), (iii), (iv), or (v) of tronically or by an applicable payment that ters shall not exceed $10,000.’’ and inserting
section 202(x)(1)(A) of the Social Security has been deposited by check on any date in ‘‘shall not exceed—
Act (42 U.S.C. 402(x)(1)(A)). the lookback period, the financial institu- ‘‘(A) $10,000 in any calendar quarter, and
‘‘(B) JOINT RETURN.—In the case of eligible tion, upon the request of the account holder, ‘‘(B) $30,000 in the aggregate for all cal-
individuals filing a joint return where 1 shall treat the amount of the funds in the ac- endar quarters.’’.
spouse is described in subparagraph (A), sub- (c) MODIFICATIONS TO DEFINITION OF ELIGI-
count at the time of the request, up to the
BLE EMPLOYER.—
section (a)(1) shall be applied by substituting amount of the applicable payment (in addi-
‘$1,200’ for ‘$2,400’. (1) DECREASE OF REDUCTION IN GROSS RE-
tion to any amounts otherwise protected
CEIPTS NECESSARY TO QUALIFY AS ELIGIBLE
‘‘(2) DENIAL OF ADVANCE REFUND OR CRED- under part 212 of title 31, Code of Federal
EMPLOYER.—Section 2301(c)(2)(B)(i) of the
IT.—No refund or credit shall be made or al- Regulations), as exempt from a garnishment
lowed under subsection (f) with respect to CARES Act (Public Law 116–136) is amended
order without requiring the consent of the
any individual whom the Secretary has by striking ‘‘50 percent’’ and inserting ‘‘75
party serving the garnishment order or the
knowledge is, at the time of any determina- percent’’.
judgment creditor.
tion made pursuant to paragraph (3) of such (2) ELECTION TO DETERMINE GROSS RECEIPTS
‘‘(iii) LIABILITY.—A financial institution
TEST BASED ON PRIOR QUARTER.—Section
subsection, described in clause (i), (ii), (iii), that acts in good faith in reliance on clauses
(iv), or (v) of section 202(x)(1)(A) of the Social 2301(c)(2) of the CARES Act is amended by
(i) or (ii) shall not be subject to liability or
Security Act.’’. redesignating subparagraph (C) as subpara-
regulatory action under any Federal or State
(c) PROTECTION OF RECOVERY REBATES.— graph (D) and by inserting after subpara-
law, regulation, court or other order, or reg-
Subsection (d) of section 2201 of the CARES graph (B) the following new subparagraph:
ulatory interpretation for actions con-
Act (Public Law 116–136) is amended— ‘‘(C) ELECTION TO USE ALTERNATIVE QUAR-
cerning any applicable payments.
(1) by redesignating paragraphs (1), (2), and TER.—At the election of an employer who
‘‘(D) DEFINITIONS.—For purposes of this
(3) as subparagraphs (A), (B), and (C), and by was not an eligible employer for the calendar
paragraph—
moving such subparagraphs 2 ems to the quarter ending on June 30, 2020, subpara-
‘‘(i) ACCOUNT HOLDER.—The term ‘account
right, graph (B)(i) shall be applied—
holder’ means a natural person whose name
(2) by striking ‘‘REDUCTION OR OFFSET.— ‘‘(i) by substituting ‘for the prior calendar
appears in a financial institution’s records as
Any credit’’ and inserting ‘‘REDUCTION, OFF- quarter’ for ‘for the calendar quarter’, and
the direct or beneficial owner of an account.
SET, GARNISHMENT, ETC.— ‘‘(ii) by substituting ‘the corresponding
‘‘(ii) ACCOUNT REVIEW.—The term ‘account
‘‘(1) IN GENERAL.—Any credit’’, and calendar quarter in the prior year’ for ‘the
review’ means the process of examining de-
(3) by adding at the end the following new same calendar quarter in the prior year’.
posits in an account to determine if an appli-
paragraphs: An election under this subparagraph shall be
cable payment has been deposited into the
‘‘(2) ASSIGNMENT OF BENEFITS.— made at such time and in such manner as the
account during the lookback period. The fi-
‘‘(A) IN GENERAL.—The right of any person Secretary shall prescribe.’’.
nancial institution shall perform the ac- (d) GROSS RECEIPTS OF TAX-EXEMPT ORGA-
to any applicable payment shall not be count review following the procedures out- NIZATIONS.—Section 2301(c)(2)(D) of the
transferable or assignable, at law or in eq- lined in section 212.5 of title 31, Code of Fed-
uity, and no applicable payment shall be sub- CARES Act (as redesignated by subsection
eral Regulations and in accordance with the (c)(2)) is amended—
ject to, execution, levy, attachment, gar- requirements of section 212.6 of title 31, Code
nishment, or other legal process, or the oper- (1) by striking ‘‘of such Code, clauses (i)
of Federal Regulations. and (ii)(I)’’ and inserting ‘‘of such Code—
ation of any bankruptcy or insolvency law. ‘‘(iii) APPLICABLE PAYMENT.—The term ‘ap- ‘‘(i) clauses (i) and (ii)(I)’’,
‘‘(B) ENCODING OF PAYMENTS.—As soon as plicable payment’ means— (2) by striking the period at the end and in-
practicable, but not earlier than 10 days ‘‘(I) any advance refund amount paid pur- serting ‘‘, and’’, and
after the date of the enactment of this para- suant to subsection (f) of section 6428 of the (3) by adding at the end the following new
graph, in the case of an applicable payment Internal Revenue Code of 1986, clause:
described in subparagraph (D)(iii)(I) that is ‘‘(II) any payment made by a possession of ‘‘(ii) any reference in this section to gross
paid electronically by direct deposit through the United States with a mirror code tax receipts shall be treated as a reference to
the Automated Clearing House (ACH) net- system (as defined in subsection (c)) pursu- gross receipts within the meaning of section
work, the Secretary of the Treasury (or the ant to such subsection which corresponds to 6033 of such Code.’’.
Secretary’s delegate) shall— a payment described in subclause (I), and (e) MODIFICATION OF DETERMINATION OF
‘‘(i) issue the payment using a unique iden- ‘‘(III) any payment made by a possession of QUALIFIED WAGES.—
tifier that is reasonably sufficient to allow a the United States without a mirror code tax (1) MODIFICATION OF THRESHOLD FOR TREAT-
financial institution to identify the payment system (as so defined) pursuant to subsection MENT AS A LARGE EMPLOYER.—Section
as an applicable payment, and (c). 2301(c)(3)(A) of the CARES Act is amended by
‘‘(ii) further encode the payment pursuant ‘‘(iv) GARNISHMENT.—The term ‘garnish- striking ‘‘100’’ each place it appears in
to the same specifications as required for a ment’ means execution, levy, attachment, clauses (i) and (ii) and inserting ‘‘500’’.
benefit payment defined in section 212.3 of garnishment, or other legal process. (2) ELIMINATION OF LIMITATION.—Section
title 31, Code of Federal Regulations. ‘‘(v) GARNISHMENT ORDER.—The term ‘gar- 2301(c)(3) of the CARES Act is amended—
‘‘(C) GARNISHMENT.— nishment order’ means a writ, order, notice, (A) by striking subparagraph (B), and
‘‘(i) ENCODED PAYMENTS.—In the case of a summons, judgment, levy, or similar written (B) by striking ‘‘Such term’’ in the second
garnishment order received after the date instruction issued by a court, a State or sentence of subparagraph (A) and inserting
that is 10 days after the date of the enact- State agency, a municipality or municipal the following:
ment of this paragraph and that applies to corporation, or a State child support en- ‘‘(B) EXCEPTION.—The term ‘qualified
an account that has received an applicable forcement agency, including a lien arising by wages’ ’’.
payment that is encoded as provided in sub- operation of law for overdue child support or (3) MODIFICATION OF TREATMENT OF HEALTH
paragraph (B), a financial institution shall an order to freeze the assets in an account, PLAN EXPENSES.—Section 2301(c) of the
follow the requirements and procedures set to effect a garnishment against a debtor. CARES Act is amended—
forth in part 212 of title 31, Code of Federal ‘‘(vi) LOOKBACK PERIOD.—The term (A) by striking subparagraph (C) of para-
Regulations, except a financial institution ‘lookback period’ means the two month pe- graph (3), and
shall not, with regard to any applicable pay- riod that begins on the date preceding the (B) by striking paragraph (5) and inserting
ment, be required to provide the notice ref- date of account review and ends on the cor- the following:
erenced in sections 212.6 and 212.7 of title 31, responding date of the month two months ‘‘(5) WAGES.—
Code of Federal Regulations. This paragraph earlier, or on the last date of the month two ‘‘(A) IN GENERAL.—The term ‘wages’ means
shall not alter the status of applicable pay- months earlier if the corresponding date does wages (as defined in section 3121(a) of the In-
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ments as tax refunds or other nonbenefit not exist.’’. ternal Revenue Code of 1986) and compensa-
payments for purpose of any reclamation (d) EFFECTIVE DATES.— tion (as defined in section 3231(e) of such
rights of the Department of the Treasury or (1) PROHIBITIONS.—The amendments made Code).
the Internal Revenue Service as per part 210 by subsections (a) and (b) shall take effect as ‘‘(B) ALLOWANCE FOR CERTAIN HEALTH PLAN
of title 31 of the Code of Federal Regulations. if included in section 2201 of the CARES Act. EXPENSES.—
‘‘(ii) OTHER PAYMENTS.—If a financial insti- (2) PROTECTION.—The amendments made by ‘‘(i) IN GENERAL.—Such term shall include
tution receives a garnishment order, other subsection (c) shall take effect on the date of amounts paid or incurred by the eligible em-
than an order that has been served by the the enactment of this Act. ployer to provide and maintain a group
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S4674 CONGRESSIONAL RECORD — SENATE August 3, 2020
health plan (as defined in section 5000(b)(1) of section shall apply to the calendar quarters (1) by striking ‘‘No wages’’ and inserting
the Internal Revenue Code of 1986), but only beginning after June 30, 2020. the following:
to the extent that such amounts are ex- (2) RETROACTIVE APPLICATION OF CERTAIN ‘‘(A) IN GENERAL.—No wages’’, and
cluded from the gross income of employees AMENDMENTS.— (2) by adding at the end the following new
by reason of section 106(a) of such Code. (A) IN GENERAL.—The amendments made subparagraph:
‘‘(ii) ALLOCATION RULES.—For purposes of subsections (d), (e)(3), and (h) shall take ef- ‘‘(B) EXCEPTION.—
this section, amounts treated as wages under fect as if included in section 2301 of the ‘‘(i) IN GENERAL.—This paragraph shall not
clause (i) shall be treated as paid with re- CARES Act. apply to any qualified 2020 COVID–19 unem-
spect to any employee (and with respect to (B) SPECIAL RULE.— ployment recipient.
any period) to the extent that such amounts (i) IN GENERAL.—For purposes of section ‘‘(ii) REGULATIONS AND GUIDANCE.—The Sec-
are properly allocable to such employee (and 2301 of the CARES Act, an employer who has retary shall prescribe such regulations and
to such period) in such manner as the Sec- filed a return of tax with respect to applica- other guidance as may be necessary to pre-
retary may prescribe. Except as otherwise ble employment taxes (as defined in section vent the abuse of the purposes of this sub-
provided by the Secretary, such allocation 2301(c)(1) of such Act) before the date of the paragraph, including through the termi-
shall be treated as properly made if made on enactment of this Act may elect (in such nation of employment of an individual by an
the basis of being pro rata among periods of manner as the Secretary of the Treasury (or employer for the purposes of claiming the
coverage.’’. the Secretary’s delegate) shall prescribe) to credit allowed under this subsection by rea-
(f) IMPROVED COORDINATION WITH PAYCHECK treat any applicable amount as an amount son of the application of clause (i).’’.
PROTECTION PROGRAM.— paid in the calendar quarter which includes (f) EFFECTIVE DATE.—The amendments
(1) AMENDMENT TO PAYCHECK PROTECTION the date of the enactment of this Act. made by this section shall apply to individ-
PROGRAM.—Section 1106(a)(8) of the CARES (ii) APPLICABLE AMOUNT.—For purposes of uals who begin work for the employer after
Act is amended by striking ‘‘of this Act.’’ clause (i), the term ‘‘applicable amount’’ the date of the enactment of this Act.
and inserting ‘‘of this Act, except that such means the amount of wages described in sec- SEC. 7. SAFE AND HEALTHY WORKPLACE TAX
costs shall not include qualified wages (as tion 2301(c)(5)(B) of the CARES Act, as added CREDIT.
defined in section 2301(c) of this Act) which— by the amendments made by subsection (a) IN GENERAL.—In the case of an em-
‘‘(A) are paid or incurred in calendar quar- (e)(3)), which— ployer, there shall be allowed as a credit
ters beginning after June 30, 2020, and (I) were paid or incurred in a calendar against applicable employment taxes for
‘‘(B) are taken into account in determining quarter beginning after December 31, 2019, each calendar quarter an amount equal to 50
the credit allowed under section 2301 of this and before July 1, 2020, and percent of the sum of—
Act.’’. (II) were not taken into account by the (1) the qualified employee protection ex-
(2) AMENDMENTS TO EMPLOYEE RETENTION taxpayer in calculating the credit allowed penses,
TAX CREDIT.— under section 2301(a) of such Act for such (2) the qualified workplace reconfiguration
(A) IN GENERAL.—Section 2301(g) of the calendar quarter. expenses, and
CARES Act is amended to read as follows: SEC. 6. EXPANSION OF WORK OPPORTUNITY (3) the qualified workplace technology ex-
‘‘(g) ELECTION TO NOT TAKE CERTAIN CREDIT. penses,
WAGES INTO ACCOUNT.— (a) IN GENERAL.—Section 51(d)(1) of the In-
‘‘(1) IN GENERAL.—This section shall not paid or incurred by the employer during such
ternal Revenue Code of 1986 is amended by calendar quarter.
apply to qualified wages paid by an eligible striking ‘‘or’’ at the end of subparagraph (I), (b) LIMITATIONS AND REFUNDABILITY.—
employer with respect to which such em- by striking the period at the end of subpara- (1) OVERALL DOLLAR LIMITATION ON CRED-
ployer makes an election (at such time and graph (J) and inserting ‘‘, or’’, and by adding IT.—
in such manner as the Secretary may pre- at the end the following new subparagraph:
(A) IN GENERAL.—The amount of the credit
scribe) to have this section not apply to such ‘‘(K) a qualified 2020 COVID–19 unemploy-
allowed under subsection (a) with respect to
wages. ment recipient.’’.
any employer for any calendar quarter shall
‘‘(2) COORDINATION WITH PAYCHECK PROTEC- (b) QUALIFIED 2020 COVID–19 UNEMPLOY-
MENT RECIPIENT.—Section 51(d) of the Inter-
not exceed the excess (if any) of—
TION PROGRAM.—The Secretary, in consulta-
nal Revenue Code of 1986 is amended by add- (i) the applicable dollar limit with respect
tion with the Administrator of the Small
ing at the end the following new paragraph: to such employer for such calendar quarter,
Business Administration, shall issue guid-
‘‘(16) QUALIFIED 2020 COVID–19 UNEMPLOYMENT over
ance providing that payroll costs paid or in-
RECIPIENT.—The term ‘qualified 2020 COVID–
(ii) the aggregate credits allowed under
curred during the covered period shall not
19 unemployment recipient’ means any indi- subsection (a) with respect to such employer
fail to be treated as qualified wages under
vidual who— for all preceding calendar quarters.
this section by reason of an election under
‘‘(A) is certified by the designated local (B) APPLICABLE DOLLAR LIMIT.—The term
paragraph (1) to the extent that a covered
agency as having received, or having been ‘‘applicable dollar limit’’ means, with re-
loan of the eligible employer is not forgiven
approved to receive, unemployment com- spect to any employer for any calendar quar-
under section 1106(b) by reason of such pay-
pensation under State or Federal law for ei- ter, the sum of—
roll costs. Terms used in the preceding sen-
ther of— (i) $1,000, multiplied by the average number
tence which are also used in section 1106
‘‘(i) the week immediately preceding the of employees employed by such employer
shall have the same meaning as when used in
hiring date, or during such calendar quarter not in excess of
such section.’’.
‘‘(ii) the week which includes the hiring 500, plus
(B) CONFORMING AMENDMENTS.—Section
date, and (ii) $750, multiplied by such average num-
2301(j) of the CARES Act is amended by in-
‘‘(B) begins work for the employer before ber of employees in excess of 500 but not in
serting ‘‘for any calendar quarter beginning
January 1, 2021.’’. excess of 1,000, plus
after June 30, 2020’’ before the period at the
(c) INCREASED CREDIT PERCENTAGE.— (iii) $500, multiplied by such average num-
end.
(g) DENIAL OF DOUBLE BENEFIT.—Section (1) IN GENERAL.—Section 51(a) of the Inter- ber of employees in excess of 1,000.
2301(h) of the CARES Act is amended— nal Revenue Code of 1986 is amended by in- (2) CREDIT LIMITED TO EMPLOYMENT
(1) by striking paragraphs (1) and (2) and serting ‘‘(50 percent in the case of a qualified TAXES.—The credit allowed by subsection (a)
inserting the following: 2020 COVID–19 unemployment recipient)’’ with respect to any calendar quarter shall
‘‘(1) DENIAL OF DOUBLE BENEFIT.—Any after ‘‘40 percent’’. not exceed the applicable employment taxes
wages taken into account in determining the (2) REDUCTION FOR CERTAIN INDIVIDUALS.— (reduced by any credits allowed under sub-
credit allowed under this section shall not be Section 51(i)(3)(A) of such Code is amended— sections (e) and (f) of section 3111 of the In-
taken into account as wages for purposes of (A) by striking ‘‘shall be applied by’’ and ternal Revenue Code of 1986, sections 7001
sections 45A, 45B, 45P, 45S, 51, and 1396 of the inserting ‘‘shall be applied— and 7003 of the Families First Coronavirus
Internal Revenue Code of 1986.’’, and ‘‘(i) by’’, Response Act, and section 2301 of the CARES
(2) by redesignating paragraph (3) as para- (B) by striking the period at the end and Act) on the wages paid with respect to the
graph (2). inserting ‘‘and’’, and employment of all the employees of the em-
(h) REGULATORY AUTHORITY.—Section (C) by adding at the end the following new ployer for such calendar quarter.
2301(l) of the CARES Act is amended by clause: (3) REFUNDABILITY OF EXCESS CREDIT.—
striking ‘‘and’’ at the end of paragraph (4), ‘‘(ii) by substituting ‘25 percent’ for ‘50 per- (A) IN GENERAL.—If the amount of the cred-
by striking the period at the end of para- cent’.’’. it under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quar-
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graph (5) and inserting ‘‘, and’’, and by add- (d) INCREASED LIMITATION ON WAGES TAKEN
ing at the end the following new paragraph: INTO ACCOUNT.—Section 51(b)(3) of the Inter- ter, such excess shall be treated as an over-
‘‘(6) to prevent the avoidance of the pur- nal Revenue Code of 1986 is amended by in- payment that shall be refunded under sec-
poses of the limitations under this section, serting ‘‘$10,000 per year in the case of a tions 6402(a) and 6413(b) of the Internal Rev-
including through the leaseback of employ- qualified 2020 COVID–19 unemployment re- enue Code of 1986.
ees.’’. cipient,’’ after ‘‘$6,000 per year (’’. (B) TREATMENT OF PAYMENTS.—For pur-
(i) EFFECTIVE DATE.— (e) REHIRES ELIGIBLE FOR CREDIT.—Section poses of section 1324 of title 31, United States
(1) IN GENERAL.—Except as provided in 51(i)(2) of the Internal Revenue Code of 1986 Code, any amounts due to the employer
paragraph (2), the amendments made by this is amended— under this paragraph shall be treated in the
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August 3, 2020 CONGRESSIONAL RECORD — SENATE S4675
same manner as a refund due from a credit out the purposes of this subsection, includ- (A) IN GENERAL.—For purposes of this sec-
provision referred to in subsection (b)(2) of ing guidance defining the terms ‘‘primary tion, the term ‘‘self-employed individual’’
such section. purpose’’ and ‘‘plan’’. means an individual who regularly carries on
(c) QUALIFIED EMPLOYEE PROTECTION EX- (f) OTHER DEFINITIONS.—For purposes of any trade or business within the meaning of
PENSES.—For purposes of this section, the this section— section 1402 of the Internal Revenue Code of
term ‘‘qualified employee protection ex- (1) APPLICABLE EMPLOYMENT TAXES.—The 1986, other than any such trade or business
penses’’ means amounts paid or incurred by term ‘‘applicable employment taxes’’ means which is carried on by a partnership.
the employer for— the following: (B) DOCUMENTATION.—No credit shall be al-
(1) testing (including on a periodic basis) (A) The taxes imposed under section 3111(a) lowed under paragraph (1) to any individual
employees and customers of the employer for of the Internal Revenue Code of 1986. unless the individual maintains such docu-
coronavirus disease 2019, hereafter referred (B) So much of the taxes imposed under mentation as the Secretary may prescribe to
to in this section as ‘‘COVID–19’’ (including section 3221(a) of such Code as are attrib- establish such individual as an eligible self-
antibodies related to COVID–19), utable to the rate in effect under section employed individual.
(2) equipment to protect employees and 3111(a) of such Code. (k) SPECIAL RULES.—
customers of the employer from contracting (2) COVID–19.—Except where the context (1) DENIAL OF DOUBLE BENEFIT.—For pur-
COVID–19, including masks, gloves, and dis- clearly indicates otherwise, any reference in poses of this section—
infectants, and this section to COVID–19 shall be treated as (A) IN GENERAL.—Any deduction or other
(3) cleaning products or services related to including a reference to the virus which credit otherwise allowable under any provi-
preventing the spread of COVID–19. causes COVID–19. sion of the Internal Revenue Code of 1986
(d) QUALIFIED WORKPLACE RECONFIGURA- (3) SECRETARY.—The term ‘‘Secretary’’
TION EXPENSES.—For purposes of this sec-
with respect to any expense for which a cred-
means the Secretary of the Treasury or such it is allowed under this section shall be re-
tion— Secretary’s delegate.
(1) IN GENERAL.—The term ‘‘qualified work- duced by the amount of the credit under this
(4) OTHER TERMS.—Any term used in this section with respect to such expense.
place reconfiguration expenses’’ means section which is also used in chapter 21 or 22
amounts paid or incurred by the employer to (B) BASIS ADJUSTMENT.—If a credit is al-
of the Internal Revenue Code of 1986 shall lowed under this section with respect to any
design and reconfigure retail space, work have the same meaning as when used in such
areas, break areas, or other areas that em- property of a character which is subject to
chapter. the allowance for depreciation under section
ployees or customers regularly use in the or- (g) CERTAIN GOVERNMENTAL EMPLOYERS.—
dinary course of the employer’s trade or 167 of such Code, the basis of such property
This section shall not apply to the Govern- shall be reduced by the amount of the credit
business if such design and reconfiguration— ment of the United States, the government
(A) has a primary purpose of preventing so allowed, and such reduction shall be taken
of any State or political subdivision thereof, into account before determining the amount
the spread of COVID–19, or any agency or instrumentality of any of
(B) is with respect to tangible property of any allowance for depreciation with re-
the foregoing.
(within the meaning of section 168 of the In- spect to such property for purposes of such
(h) RULES RELATING TO EMPLOYER, ETC.—
ternal Revenue Code of 1986) which is located Code.
(1) AGGREGATION RULE.—All persons treat-
in the United States and which is leased or (C) EXPENSES NOT TAKEN INTO ACCOUNT
ed as a single employer under subsection (a)
owned by the employer, MORE THAN ONCE.—The same expense shall
or (b) of section 52 of the Internal Revenue
(C) is commensurate with the risks faced not be treated as described in more than one
Code of 1986, or subsection (m) or (o) of sec-
by the employees or customers, or is con- paragraph of subsection (a) or more than one
tion 414 of such Code, shall be treated as one
sistent with recommendations made by the subparagraph of subsection (j)(1), whichever
employer for purposes of this section.
Centers for Disease Control and Prevention is applicable.
(2) THIRD-PARTY PAYORS.—Any credit al-
or the Occupational Safety and Health Ad- (D) EMPLOYER OR SELF-EMPLOYMENT CREDIT
lowed under subsection (a) shall be treated
ministration, ALLOWED.—The credit under subsection (a)
as a credit described in section 3511(d)(2) of
(D) is completed pursuant to a reconfigura- and the credit for self-employed individuals
such Code.
tion (or similar) plan that was not in place (i) TREATMENT OF DEPOSITS.—The Sec- under subsection (j) shall not apply to the
before March 13, 2020, and retary shall waive any penalty under section same taxpayer.
(E) is completed before January 1, 2021. 6656 of the Internal Revenue Code of 1986 for (2) ELECTION NOT TO HAVE SECTION APPLY.—
(2) REGULATIONS.—The Secretary shall pre- any failure to make a deposit of any applica- This section shall not apply with respect to
scribe such regulations and other guidance ble employment taxes if the Secretary deter- any employer for any calendar quarter, or
as may be necessary or appropriate to carry mines that such failure was due to the rea- with respect to any self-employed individual
out the purposes of this subsection, includ- sonable anticipation of the credit allowed for any taxable year, if such employer or
ing guidance defining primary purpose and under subsection (a). self-employed individual elects (at such time
reconfiguration plan. (j) CREDIT FOR SELF-EMPLOYED INDIVID- and in such manner as the Secretary may
(e) QUALIFIED WORKPLACE TECHNOLOGY EX- UALS.— prescribe) not to have this section apply.
PENSES.—For purposes of this section— (1) IN GENERAL.—In the case of a self-em- (l) TRANSFERS TO CERTAIN TRUST FUNDS.—
(1) IN GENERAL.—The term ‘‘qualified work- ployed individual, there shall be allowed as a There are hereby appropriated to the Federal
place technology expenses’’ means amounts credit against the tax imposed by subtitle A Old-Age and Survivors Insurance Trust Fund
paid or incurred by the employer for tech- of the Internal Revenue Code of 1986 for any and the Federal Disability Insurance Trust
nology systems that employees or customers taxable year an amount equal to 50 percent Fund established under section 201 of the So-
use in the ordinary course of the employer’s of the sum of— cial Security Act (42 U.S.C. 401) and the So-
trade or business if such technology sys- (A) the qualified employee protection ex- cial Security Equivalent Benefit Account es-
tem— penses (as determined by treating the self- tablished under section 15A(a) of the Rail-
(A) has a primary purpose of preventing employed individual both as the employer road Retirement Act of 1974 (45 U.S.C. 231n–
the spread of COVID–19, and an employee), 1(a)) amounts equal to the reduction in reve-
(B) is used for limiting physical contact (B) the qualified workplace reconfiguration nues to the Treasury by reason of this sec-
between customers and employees in the expenses (as so determined), and tion (without regard to this subsection).
United States, (C) the qualified workplace technology ex- Amounts appropriated by the preceding sen-
(C) is commensurate with the risks faced penses (as so determined), tence shall be transferred from the general
by the employees or customers, or is con- paid or incurred by the individual during fund at such times and in such manner as to
sistent with recommendations made by the such taxable year. replicate to the extent possible the transfers
Centers for Disease Control and Prevention (2) LIMITATION.—The amount of the credit which would have occurred to such Trust
or the Occupational Safety and Health Ad- allowed under paragraph (1) with respect to Fund or Account had this section not been
ministration, any self-employed individual for any taxable enacted.
(D) is acquired by the employer on or after year shall not exceed $500. (m) REGULATIONS AND GUIDANCE.—The Sec-
March 13, 2020, and is not acquired pursuant (3) REFUNDABILITY.— retary shall prescribe such regulations and
to a plan that was in place before such date, (A) IN GENERAL.—The credit determined other guidance as may be necessary or ap-
and under paragraph (1) shall be treated as a propriate to carry out the purposes of this
(E) is placed in service by the employer be- credit allowed to the taxpayer under subpart section, including—
fore January 1, 2021. C of part IV of subchapter A of chapter 1 of (1) with respect to the application of the
(2) TECHNOLOGY SYSTEMS.—The term ‘‘tech- such Code. credit under subsection (a) to third-party
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nology systems’’ means computer software (B) TREATMENT OF PAYMENTS.—For pur- payors (including professional employer or-
(as defined in section 167(f)(1) of the Internal poses of section 1324 of title 31, United States ganizations, certified professional employer
Revenue Code of 1986) and qualified techno- Code, any refund due from the credit deter- organizations, or agents under section 3504 of
logical equipment (as defined in section mined under paragraph (1) shall be treated in the Internal Revenue Code of 1986), regula-
168(i)(2) of such Code). the same manner as a refund due from a tions or other guidance allowing such payors
(3) REGULATIONS.—The Secretary shall pre- credit provision referred to in subsection to submit documentation necessary to sub-
scribe such regulations and other guidance (b)(2) of such section. stantiate the amount of the credit allowed
as may be necessary or appropriate to carry (4) SELF-EMPLOYED INDIVIDUAL.— under subsection (a),
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S4676 CONGRESSIONAL RECORD — SENATE August 3, 2020
(2) regulations or other guidance for recap- SEC. 9. APPLICATION OF SPECIAL RULES TO payer’s return for the first taxable year end-
turing the benefit of credits determined MONEY PURCHASE PENSION PLANS. ing after the date of the enactment of the
under subsection (a) in cases where there is (a) IN GENERAL.—Section 2202(a)(6)(B) of Coronavirus Relief Fair Unemployment
a subsequent adjustment to the credit deter- the CARES Act (Public Law 116–136) is Compensation Act of 2020.
mined under such subsection, and amended by inserting ‘‘, and, in the case of a ‘‘(C) REGULATIONS.—The Secretary of the
(3) regulations or other guidance to pre- money purchase pension plan, a coronavirus- Treasury (or the Secretary’s delegate) shall
vent abuse of the purposes of this section. related distribution which is an in-service issue such regulations and other guidance as
(n) APPLICATION.— withdrawal shall be treated as meeting the may be necessary to carry out the purposes
(1) IN GENERAL.—This section shall only distribution rules of section 401(a) of the In- of this paragraph, including regulations and
apply to amounts paid or incurred after ternal Revenue Code of 1986’’ before the pe- guidance relating to the application of the
March 12, 2020, and before January 1, 2021. riod. rules of section 172(a) of the Internal Rev-
(2) SPECIAL RULE FOR CERTAIN AMOUNTS (b) EFFECTIVE DATE.—The amendment enue Code of 1986 (as in effect before the date
PAID OR INCURRED IN CALENDAR QUARTERS made by this section shall apply as if in- of the enactment of the CARES Act) to tax-
ENDING BEFORE THE DATE OF THE ENACTMENT cluded in the enactment of section 2202 of payers making an election under this para-
OF THIS ACT.—For purposes of this section, in the CARES Act (Public Law 116–136). graph.
the case of any amount paid or incurred SEC. 10. CLARIFICATION OF DELAY IN PAYMENT ‘‘(2) REVOCATION OF ELECTION TO WAIVE
after March 12, 2020, and on or before the last OF MINIMUM REQUIRED CONTRIBU- CARRYBACK.—The last sentence of section
TIONS.
day of the last calendar quarter ending be- 172(b)(3) of the Internal Revenue Code of 1986
fore the date of the enactment of this Act, Section 3608(a)(1) of the CARES Act (Pub- and the last sentence of section 172(b)(1)(B)
such amount shall be treated as paid or in- lic Law 116–136) is amended by striking ‘‘Jan- of such Code shall not apply to any elec-
curred on such date of enactment. uary 1, 2021’’ and inserting ‘‘January 4, 2021’’. tion—
SEC. 11. EMPLOYEE CERTIFICATION AS TO ELIGI- ‘‘(A) which was made before the date of the
SEC. 8. COVID–19 ASSISTANCE PROVIDED TO
BILITY FOR INCREASED CARES ACT enactment of the Coronavirus Relief Fair
INDEPENDENT CONTRACTORS.
LOAN LIMITS FROM EMPLOYER
(a) INDEPENDENT CONTRACTOR STATUS.— PLAN.
Unemployment Compensation Act of 2020,
With respect to an individual providing serv- and
(a) IN GENERAL.—Section 2202(b) of the
ices for compensation for any service recipi- ‘‘(B) which relates to the carryback period
CARES Act (Public Law 116–136) is amended
ent or through any marketplace platform, if provided under section 172(b)(1)(B) of such
by adding at the end the following new para-
the service recipient or marketplace plat- Code with respect to any net operating loss
graph:
form operator provides any of the benefits arising in taxable years beginning in 2018 or
‘‘(4) EMPLOYEE CERTIFICATION.—The admin-
described in subsection (c) to such indi- 2019.’’.
istrator of a qualified employer plan may
vidual, the provision of such benefits shall (b) EFFECTIVE DATE.—The amendment
rely on an employee’s certification that the
not be taken into account in determining the made by this section shall take effect as if
requirements of subsection (a)(4)(A)(ii) are
status of such individual as an employee for included in section 2303 of the CARES Act
satisfied in determining whether the em-
purposes of the Internal Revenue Code of (Public Law 116–136).
ployee is a qualified individual for purposes
1986. of this subsection.’’. SEC. 13. OVERSIGHT AND AUDIT REPORTING.
(b) TREATMENT AS QUALIFIED DISASTER RE- (b) EFFECTIVE DATE.—The amendment Section 19010(a)(1) of the CARES Act is
LIEF PAYMENTS.—Any benefit described in made by this section shall take effect as if amended by striking ‘‘and’’ at the end of sub-
subsection (c) (other than paragraph (1) included in the enactment of section 2202(b) paragraph (F), by striking ‘‘and’’ at the end
thereof) which is provided as described in of the CARES Act (Public Law 116–136). of subparagraph (G), and by adding at the
subsection (a) by a service recipient or mar- SEC. 12. ELECTION TO WAIVE APPLICATION OF end the following new subparagraphs:
ketplace platform operator shall be treated CERTAIN MODIFICATIONS TO FARM- ‘‘(H) the Committee on Finance of the Sen-
for purposes of section 139 of the Internal ING LOSSES. ate; and
Revenue Code of 1986 as a qualified disaster (a) IN GENERAL.—Section 2303 of the ‘‘(I) the Committee on Ways and Means of
relief payment to the individual so de- CARES Act is amended by adding at the end the House of Representatives; and’’.
scribed. the following new subsection:
(c) BENEFITS DESCRIBED.—The benefits de- ‘‘(e) SPECIAL RULES WITH RESPECT TO f
scribed in this subsection are— FARMING LOSSES.— NOTICE OF INTENT TO OBJECT TO
(1) financial assistance provided to an indi- ‘‘(1) ELECTION TO DISREGARD APPLICATION OF
vidual while the individual is not performing
PROCEEDING
AMENDMENTS MADE BY SUBSECTIONS (a) AND
services for the service recipient or through (b).— I, Senator RON WYDEN, intend to ob-
the marketplace platform, or is performing ‘‘(A) IN GENERAL.—If a taxpayer who has a ject to proceeding to S. 3398, a bill to
reduced services or reduced hours of service, farming loss (within the meaning of section eliminate abusive and rampant neglect
because of COVID–19; 172(b)(1)(B)(ii) of the Internal Revenue Code of interactive technologies, and for
(2) health care benefits provided to an indi- of 1986) for a taxable year beginning in 2018,
vidual which are related to COVID–19, in-
other purposes, dated August 3, 2020.
2019, or 2020 makes an election under this
cluding testing of the individual for, or for paragraph, then— f
antibodies related to, COVID–19; ‘‘(i) the amendments made by subsection
(3) equipment to protect the individual, (a) shall not apply to any taxable year begin- AUTHORITY FOR COMMITIEE TO
service recipients, or customers from con- ning in 2018, 2019, or 2020, and MEET
tracting COVID–19, including masks, gloves, ‘‘(ii) the amendments made by subsection
and disinfectants;
Mr. MCCONNELL. Mr. President, I
(b) shall not apply to any net operating loss
(4) cleaning products or services related to arising in any taxable year beginning in 2018, have one request for a committee to
preventing the spread of COVID–19; and 2019, or 2020. meet during today’s session of the Sen-
(5) training, standards, and guidelines or ‘‘(B) ELECTION.— ate. It has the approval of the Majority
other similar information provided to an in- ‘‘(i) IN GENERAL.—Except as provided in and Minority leaders.
dividual related to COVID–19. clause (ii)(II), an election under this para- COMMITTIEE ON FINANCE
(d) MARKETPLACE PLATFORM, ETC.—For graph shall be made in such manner as may
purposes of this section—
The Committee on Finance is author-
be prescribed by the Secretary. Such elec-
(1) MARKETPLACE PLATFORM OPERATOR.— tion, once made for any taxable year, shall ized to meet during the session of the
The term ‘‘marketplace platform operator’’ be irrevocable for such taxable year. Senate on Monday, August 3, 2020, at
means any person operating a marketplace ‘‘(ii) TIME FOR MAKING ELECTION.— 5:30 p.m. to consider favorably report-
platform. ‘‘(I) IN GENERAL.—An election under this ing pending nominations.
(2) MARKETPLACE PLATFORM.—The term paragraph shall be made by the due date (in-
‘‘marketplace platform’’ means any digital f
cluding extensions of time) for filing the tax-
website, mobile application, or similar sys- payer’s return for the taxable year. PRIVILEGES OF THE FLOOR
tem that facilitates the provision of goods or ‘‘(II) PREVIOUSLY FILED RETURNS.—In the
services by providers to recipients. case of any taxable year for which the tax- Mr. PAUL. Mr. President, I ask unan-
(e) COVID–19.—For purposes of this sec- payer has filed a return of Federal income imous consent that the following in-
tion, the term ‘‘COVID–19’’ means tax before the date of the enactment of the terns in my office be granted floor
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coronavirus disease 2019. Except where the Coronavirus Relief Fair Unemployment privileges until August 8, 2020: Rachel
context clearly indicates otherwise, any ref- Compensation Act of 2020 which disregards Carpenter, Brett Abbott, Rachel Alt-
erence in this section to such disease shall be the amendments made by subsections (a) and
treated as including a reference to the virus
man, Daniel Rankin, Maddie Martin,
(b), such taxpayer shall be treated as having
which causes such disease. made an election under this paragraph un- Jacob Lambert, Noah Vehafric, Jack-
(f) APPLICATION.—This section shall only less the taxpayer modifies such return to re- son Berryman, and Duke Garschina.
apply to benefits provided after March 12, flect such amendments by the due date (in- The PRESIDING OFFICER. Without
2020, and before January 1, 2021. cluding extensions of time) for filing the tax- objection, it is so ordered.
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