[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8083 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8083
To establish a temporary tax credit for maintaining retirement benefits
during the COVID-19 pandemic.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 21, 2020
Mr. Schneider (for himself and Mr. Kelly of Pennsylvania) introduced
the following bill; which was referred to the Committee on Ways and
Means
_______________________________________________________________________
A BILL
To establish a temporary tax credit for maintaining retirement benefits
during the COVID-19 pandemic.
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 ``Preserving Employee Retirement
Savings Act of 2020''.
SEC. 2. TEMPORARY CREDIT FOR MAINTAINING RETIREMENT BENEFITS DURING
PANDEMIC.
(a) In General.--In the case of an eligible employer, there shall
be allowed as a credit against the tax imposed by chapter 1 of the
Internal Revenue Code of 1986 an amount equal to 20 percent of the
qualified retirement contributions by the employer for the taxable
year.
(b) Limitation.--The amount of credit allowed to the taxpayer under
subsection (a) for any taxable year shall not exceed $100,000.
(c) Qualified Retirement Contributions.--For purposes of this
section--
(1) In general.--The term ``qualified retirement
contribution'' means, with respect to any taxable year, any
employer contribution (other than an elective deferral (as
defined in section 402(g)(3) of such Code) to an applicable
retirement plan on behalf of an employee other than a highly
compensated employee (as defined in section 414(q) of such
Code)).
(2) Determining contribution to defined benefit plan.--In
the case of a defined benefit plan (as defined in section
414(j) of such Code), the amount treated as an employer
contribution under paragraph (1) shall be the amount described
with respect to the plan in section 430(b)(1)(A)(i),
431(b)(2)(A), or 433(b)(2)(A) of such Code, as the case may be,
or in the case of a CSEC plan that uses a spread gain funding
method (as defined in section 433(j)(5)(D)) of such Code), the
amount described in 433(j)(1)(B) of such Code.
(3) Coordination with other assistance.--Such term shall
not include any amount taken into account in determining any
loan amount forgiven under section 1106 or 1109(d)(1)(D) of the
Coronavirus Aid, Relief, and Economic Security Act.
(4) Applicable retirement plan.--
(A) In general.--For purposes of this section, the
term ``applicable retirement plan'' means any plan,
annuity contract, pension, or account described in
clause (i), (ii), (iv), (v), or (vi) of section
219(g)(5)(A) of such Code (other than a governmental
plan (within the meaning of section 414(d))).
(B) Plans with contribution level reduction not
eligible.--Such term shall not include any plan,
annuity contract, pension, or account which for any
plan year which includes the taxable year--
(i) is amended after December 31, 2019, to
reduce allocations or benefit accruals; or
(ii) in any case in which the employer has
discretion over allocations, has a rate of
contribution for any class of employees that
includes an employee who is not a highly
compensated employee which is less than the
greater of--
(I) the rate of contribution for
such class for the last plan year
ending before January 1, 2019; or
(II) the rate of contribution for
such class for the last plan year
ending before January 1, 2020.
For purposes of the preceding sentence, the rate of
contribution shall be expressed as a percentage of
compensation (as defined for the plan year for which
such rate is being determined).
(d) Other Definitions and Special Rules.--For purposes of this
section--
(1) Eligible employer.--
(A) In general.--The term ``eligible employer''
means any employer--
(i) that has a temporary substantial
business hardship (within the meaning of
section 412(c)(2) of such Code) for the taxable
year; and
(ii) in the case of employer that is not a
tax-exempt or cooperative organization, the
gross receipts (within the meaning of section
448(c) of the Internal Revenue Code of 1986) of
which during the preceding taxable year were
not more than $41,500,000.
(B) Pre-guidance determination of hardship.--In the
case of any determination of the credit under
subsection (a) prior to the issuance of guidance by the
Secretary of the Treasury as to what constitutes a
temporary substantial business hardship under
subparagraph (A), the taxpayer may rely on a reasonable
good faith determination of whether such a hardship
exists.
(2) Tax-exempt or cooperative organization.--The term ``tax
exempt or cooperative organization'' means--
(A) any organization exempt from tax under chapter
1 of the Internal Revenue Code of 1986;
(B) any organization to which subchapter T of
chapter 1 of such Code applies; or
(C) any organization described in section
1381(a)(2)(C) of such Code.
(3) Recapture.--In the case of an employer allowed a credit
under this section for a taxable year with respect to an
applicable retirement plan, if such plan fails to meet the
requirements of subsection (c)(4)(B) for the following taxable
year, then the tax of the taxpayer under chapter 1 of such Code
for such following taxable year shall be increased by an amount
equal to the amount of the credit so allowed.
(4) Aggregation rules.--All employees who are treated as
employed by a single employer under subsections (b), (c), (m),
and (o) of section 414 of such Code shall be treated as
employed by a single employer for purposes of this section. In
the case of a plan maintained by more than one employer, each
such employer shall be treated separately for purposes of this
section.
(5) Third-party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2) of such Code.
(e) Credit Refundable for Tax-Exempt and Cooperative Employers.--In
the case of an employer that is a tax exempt or cooperative
organization, the credit allowed under this section shall be treated as
a credit allowed under subpart C of part IV of subchapter A of chapter
1 of such Code. Section 512(c)(12)(A) of such Code shall be applied
without taking into account any such credit as income.
(f) Application of Section.--This section shall apply to the
taxable year of any taxpayer that includes June 30, 2020, and such
taxpayer's first succeeding taxable year.
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