[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6221 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6221
To allow a tax credit for employers under the Internal Revenue Code of
1986 for certain mandated paid sick leave.
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IN THE HOUSE OF REPRESENTATIVES
March 12, 2020
Mr. Harder of California introduced the following bill; which was
referred to the Committee on Ways and Means
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A BILL
To allow a tax credit for employers under the Internal Revenue Code of
1986 for certain mandated paid sick leave.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Paid Sick Leave Credit Act of
2020''.
SEC. 2. PAYROLL CREDIT FOR REQUIRED PAID SICK LEAVE.
(a) In General.--In the case of a employer who elects (at such time
and in such manner as the Secretary may provide) the application of
this section there shall be allowed as a credit against the tax imposed
by section 3111(a) of the Internal Revenue Code of 1986 for the first
calendar quarter beginning after such election an amount equal to the
excess (if any) of--
(1) 90 percent of the qualified sick leave wages paid by an
employer by reason of the requirements of section 2 of the
Emergency Paid Sick Leave Act; over
(2) the aggregate credits allowed under this section with
respect to all prior calendar quarters.
(b) Limitations.--
(1) Wages taken into account.--The amount of qualified sick
leave wages which may be taken into account under subsection
(a) for the taxable year with respect to any individual shall
not exceed--
(A) for any day (or portion thereof) the individual
is on sick leave during the taxable year, $511; and
(B) in the aggregate for any four consecutive
calendar quarters, $7,156.
(2) Credit limited to certain employment taxes.--The credit
allowed by subsection (a) with respect to any calendar quarter
shall not exceed the tax imposed under section 3111(a) for such
calendar quarter on the wages paid with respect to the
employment of all individuals in the employ of the employer.
(3) Carryover of unused credit.--If the amount of the
credit under subsection (a) exceeds the limitation of paragraph
(2) for any calendar quarter, such excess shall be carried to
the succeeding calendar quarter and allowed as a credit under
subsection (a) for such quarter.
(c) Qualified Sick Leave Wages.--For purposes of this section--
(1) In general.--The term ``qualified sick leave wages''
means wages (as defined in section 51(c)(1) of the Internal
Revenue Code of 1986, but without regard to section
3306(b)(2)(B) of such Code) paid or incurred by an employer to
an employee with respect to employment for a period during
which such employee is on sick leave with the employer.
(2) Only additional paid sick time taken into account.--In
the case of any employer with a sick leave plan in effect on
March 12, 2020, only wages in excess of the wages the employer
would have otherwise paid such employee (but for section 2 of
the Emergency Paid Sick Leave Act) under such plan shall be
taken into account.
(3) Sick leave wages must meet requirements of act.--Wages
shall not be taken into account under this section unless such
wages meet the requirements of, and are required by, section 2
of the Emergency Paid Sick Leave Act.
(d) Special Rules.--
(1) Certain rules to apply.--For purposes of this section,
rules similar to the rules of sections 51(i)(1) and 52 of the
Internal Revenue Code of 1986 shall apply.
(2) Related employers.--For purposes of this section, all
persons treated as a single employer under subsection (b), (c),
(m), or (o) of section 414 of such Code shall be treated as 1
employer.
(3) Denial of double benefit.--No deduction shall be
allowed under such Code for the portion of wages paid or
incurred for the taxable year which is equal to the sum of the
credits determined under this section for calendar quarters
ending in such taxable year. Rules similar to the rules under
the second sentence of section 280C(a) of such Code shall apply
for purposes of the preceding sentence.
(e) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of subsection (a). Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such times and
in such manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund had such paragraphs not
been enacted.
(f) Regulations.--The Secretary shall prescribe such regulations as
may be necessary to carry out the purposes of this subsection,
including--
(1) regulations to prevent the avoidance of the purposes of
the limitations and aggregation rules under this subsection
through the use of successor companies or other means,
(2) regulations to minimize compliance and record-keeping
burdens under this subsection, and
(3) regulations for recapturing the benefit of credits
determined under this section in cases where there is a
subsequent adjustment to the credit determined under subsection
(a).
(g) Termination.--This section shall not apply to any wages paid
more than 2 years after the date of the effective date of the Emergency
Paid Sick Leave Act.
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