[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3549 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3549
To amend the Internal Revenue Code of 1986 to provide advance tax
refunds to small businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2020
Mr. Wyden (for himself and Mr. Cardin) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide advance tax
refunds to small businesses, and for other purposes.
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 ``Save America's Main Street Act''.
SEC. 2. SMALL BUSINESS REBATE.
(a) In General.--Subchapter B of chapter 65 of subtitle F of the
Internal Revenue Code of 1986 is amended by inserting after section
6427 the following new section:
``SEC. 6428. SMALL BUSINESS REBATE.
``(a) Allowance of Credit.--
``(1) In general.--In the case of a qualifying business,
there shall be allowed as a credit against the tax imposed by
subtitle A for the first taxable year beginning in 2020 an
amount equal to the lesser of--
``(A) 30 percent of qualified gross receipts of
such qualifying business for the first taxable year
beginning in 2019, or
``(B) $75,000.
``(2) Special rule.--In the case of--
``(A) a qualifying business which did not file a
tax return for the taxable year described in paragraph
(1)(A), or
``(B) a sole proprietorship for which gross
receipts were not reported on a return of tax for such
taxable year,
such paragraph shall be applied by substituting `2018' for
`2019'.
``(3) Qualified gross receipts.--For purposes of paragraph
(1)(A), the term `qualified gross receipts' means gross
receipts of the qualifying business which are effectively
connected with the conduct of a trade or business within the
United States (within the meaning of section 864(c), determined
by substituting `qualifying business' for `nonresident alien
individual or a foreign corporation' or for `foreign
corporation' each place it appears) for the applicable taxable
year under paragraph (1)(A), as reported by the taxpayer on--
``(A) in the case of a qualifying business which is
a partnership, the return required to be filed under
section 6031,
``(B) in the case of a qualifying business which is
an S corporation, the return required to be filed under
section 6037, and
``(C) in the case of any other qualifying business,
the return of tax for the taxable year.
``(b) Qualifying Business.--
``(1) In general.--For purposes of this section, the term
`qualifying business' means any person which--
``(A) meets the gross receipts test of subsection
(c) of section 448 for the applicable taxable year
under subsection (a)(1)(A), except that subsection (c)
of section 448 shall be applied--
``(i) without regard to paragraph (4) of
such subsection, and
``(ii) by substituting `$1,000,000' for
`$25,000,000', and
``(B) with respect to the preceding calendar year,
employed an average of not greater than 50 full-time
employees (as such term is defined in paragraph (4) of
section 4980H(c)) on business days during such calendar
year.
``(2) Special rule.--For purposes of paragraph (1)(A), in
the case of any taxpayer which is not a corporation or a
partnership, the gross receipts test of section 448(c) shall be
applied in the same manner as if such taxpayer were a
corporation or partnership.
``(3) Full-time equivalents.--For purposes of paragraph
(1)(B), the number of full-time employees shall be determined
pursuant to rules similar to the rules described in paragraph
(2)(E) of section 4980H(c).
``(4) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52 or
subsection (m) or (o) of section 414 shall be treated as a
single person for purposes of paragraph (1)(B).
``(5) Qualified organizations.--
``(A) Inclusion as qualifying business.--
``(i) In general.--For purposes of this
section, the term `qualifying business' shall
include any qualified organization.
``(ii) Definition.--For purposes of this
paragraph, the term `qualified organization'
means an organization which--
``(I) is described in section
501(c)(3) and exempt from tax under
section 501(a),
``(II) is described in section
170(b)(1)(A),
``(III) is not described in section
509(a)(3), and
``(IV) satisfies the requirements
under subparagraphs (A) and (B) of
paragraph (1).
``(B) Qualified gross receipts.--
``(i) In general.--For purposes of
subsection (a)(1)(A), in the case of a
qualified organization, the term `qualified
gross receipts' means gross receipts of the
organization for the taxable year described in
such subsection.
``(ii) Special rule.--In the case of a
qualified organization which did not file a tax
return for the taxable year described in
subsection (a)(1)(A), such subsection shall be
applied by substituting `2018' for `2019'.
``(iii) Organization exempt from filing.--
``(I) In general.--In the case of
an organization which is exempt from
filing a return pursuant to section
6033(a) or which is not required to
include in such return the information
necessary to determine the amount of
the credit allowed under this section,
such organization may submit to the
Secretary (in such form and manner as
is deemed appropriate by the Secretary)
any information required for purposes
of determining--
``(aa) whether such
organization satisfies the
requirements under
subparagraphs (A) and (B) of
paragraph (1), and
``(bb) the amount of the
credit allowed under subsection
(a)(1).
``(II) Publicity of information.--
For purposes of section 6104, any
information submitted by an
organization under subclause (I) shall
be deemed to be information required to
be furnished by such organization
pursuant to section 6033.
``(c) Treatment of Credit.--The credit allowed by subsection (a)
shall be treated as allowed by subpart C of part IV of subchapter A of
chapter 1.
``(d) Coordination With Advance Refunds of Credit.--The amount of
credit which would (but for this subsection) be allowable under this
section shall be reduced (but not below zero) by the aggregate refunds
and credits made or allowed to the taxpayer under subsection (e). Any
failure to so reduce the credit shall be treated as arising out of a
mathematical or clerical error and assessed according to section
6213(b)(1).
``(e) Advance Refunds and Credits.--
``(1) In general.--Any person which was a qualifying
business for such person's last taxable year ending before
January 1, 2020, shall be treated as having made a payment
against the tax imposed by chapter 1 for such taxable year in
an amount equal to the advance refund amount for such taxable
year, regardless of whether such tax would have been imposed on
such person.
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such taxable
year if this section (other than subsection (d) and this
subsection) had applied to such taxable year.
``(3) Timing of payments.--The Secretary shall, subject to
the provisions of this title, refund or credit any overpayment
attributable to this section as rapidly as possible. No refund
or credit shall be made or allowed under this subsection after
December 31, 2020.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this section.''.
(b) Conforming Amendments.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``and 36B,
168(k)(4)'' and inserting ``36B, and 6428''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``6428,'' after
``54B(h),''.
(3) The table of sections for subchapter B of chapter 65 of
subtitle F of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 6427 the
following:
``Sec. 6428. Small Business Rebate.''.
SEC. 3. MODIFICATION OF ESTIMATED TAX PAYMENTS FOR SMALL BUSINESSES.
(a) Timing and Amount of Required Installments.--
(1) In general.--In the case of any taxable year beginning
in 2020, with respect to a qualified individual,
notwithstanding section 6654(c) and section 6654(d)(1)(A) of
the Internal Revenue Code of 1986--
(A) there shall be 2 required installments (within
the meaning of section 6654 of such Code) for the
taxable year;
(B) the due date for the 1st installment is
September 15, 2020;
(C) the due date for the 2nd installment is January
15, 2021;
(D) the amount of each such required installment
shall be 50 percent of the required annual payment (as
defined in section 6654(d)(1)(B) of such Code, after
the application of subparagraph (E));
(E) in determining such required annual payment,
section 6654(d)(1)(C) of such Code shall not apply and
section 6654(d)(1)(B)(ii) of such Code shall be applied
by substituting ``75 percent'' for ``100 percent'';
(F) if (after the application of this paragraph)
section 6654(d)(2) of such Code applies to the
qualified individual, the table contained in
subparagraph (C)(ii) thereof shall be applied by
substituting ``0'' for ``22.5'' and for ``45'', and by
substituting ``45'' for ``67.5''; and
(G) section 6654(h) of such Code shall be applied
by treating the 2nd required installment as the 4th
required installment.
(2) Qualified individual.--For purposes of this subsection,
the term ``qualified individual'' means any individual for a
taxable year if--
(A) the adjusted gross income shown on the return
of tax of such individual for the preceding taxable
year is less than $250,000 ($500,000 in the case of a
joint return); and
(B) such individual certifies, in such form or
manner as is required by the Secretary of the Treasury
(or the Secretary's delegate), that more than 50
percent of the gross income shown on the return of tax
of such individual for such preceding taxable year was
income from a qualified small business.
(3) Income from qualified small business.--For purposes of
this section, the term ``income from a qualified small
business'' means, with respect to any taxable year, income from
a trade or business--
(A) which is located in the United States; and
(B) the average number of employees of which was
less than 500 full-time equivalent employees (within
the meaning of section 4980H of the Internal Revenue
Code of 1986) for the calendar year ending with or
within the preceding taxable year.
(b) Coordination With Section 7508A.--In the case of any
postponement or extension by the Secretary of the Treasury (or the
Secretary's delegate) under section 7508A of the Internal Revenue Code
of 1986 affecting the due date of the required installments under
section 6654 of such Code, subsection (a) shall apply only if the due
date for the 1st installment under paragraph (1)(B) thereof is later
than the due date prescribed for the 1st installment under such
postponement or extension.
SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS OF EMPLOYEES AFFECTED
BY COVID-19.
(a) In General.--In the case of an eligible employer, there shall
be allowed as a credit against the tax imposed by section 3111(a) of
the Internal Revenue Code of 1986 or section 3221(a) of such Code for
each calendar quarter an amount equal to 50 percent of the qualified
wages with respect to each eligible employee of such employer for such
taxable year. The amount of qualified wages with respect to any
eligible employee which may be taken into account under this subsection
by the eligible employer for all calendar quarters during any
designated period shall not exceed $7,500.
(b) Eligible Employer.--
(1) In general.--The term ``eligible employer'' means any
employer which--
(A) which has less than 500 full-time employees on
the first day of the designated period with respect to
the employer; and
(B) which--
(i) conducted an active trade or business
in a qualified coronavirus disaster zone and
meets the requirements of paragraph (2)(A); or
(ii) meets the requirement of paragraph
(2)(B).
(2) Requirements.--
(A) In general.--An employer meets the requirements
of this subparagraph if--
(i) the employer is required to close as a
result of a directive by a Federal, State, or
local authority; or
(ii) the employer is required to close due
to lack of available employees due to
qualifying needs related to a public health
emergency (as defined in section 110 of the
Family and Medical Leave Act of 1993, as added
by section 3102 of the Emergency Family and
Medical Leave Expansion Act).
(B) Alternative requirements.--An employer meets
the requirements of this subparagraph if the employer's
gross receipts for any 30-day period during the
calendar year are more than 25 percent less than such
gross receipts for the corresponding 30-day period for
the preceding calendar year.
(c) Other Definitions.--For purposes of this section--
(1) Eligible employee.--The term ``eligible employee''
means any employee whose principle place of employment was with
an eligible employer.
(2) Qualified wages.--The term ``qualified wages'' means
wages (as defined in section 3121(a) of the Internal Revenue
Code of 1986) and compensation (as defined in section 3231(e)
of the Internal Revenue Code) paid by an employer, except that
such term shall not include any wages taken into account under
section 7001 or section 7003 of the Families First Coronavirus
Response Act.
(3) Designated period.--The term ``designated period''
means, with respect to any eligible employer, the period--
(A) beginning on the date the employer first meets
the requirements of subparagraph (A) or (B) of
subsection (b)(2); and
(B) ending on the earlier of--
(i)(I) in the case of an employer who is an
eligible employer by reason of meeting the
requirements of subsection (b)(2)(A)(i), the
date the directive requiring the closure is no
longer in effect;
(II) in the case of an employer who is an
eligible employer by reason of meeting the
requirements of subsection (b)(2)(A)(ii), the
date the public health emergency lapses; and
(III) in the case of an employer who is an
eligible employer by reason of meeting the
requirements of subsection (b)(2)(B), the date
on which the employer's gross receipts for any
30-day period beginning after the date
described in subparagraph (A) are more than 90
percent of such gross receipts for the
corresponding 30-day period in the preceding
calendar year; or
(ii) the date which is 120 days after the
date described in subparagraph (A).
(4) Qualified coronavirus disaster zone.--The term
``qualified coronavirus disaster zone'' means any State or
geographic area for which an emergency with respect to COVID-19
has been declared by a Federal, State, or local authority.
(d) Other Rules.--
(1) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the tax imposed by section
3111(a) of the Internal Revenue Code of 1986 or section
3221(a) of such Code for any calendar quarter, such
excess shall be treated as an overpayment that shall be
refunded under sections 6402(a) and 6413(b) of such
Code.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to an employer under this subsection shall be treated
in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such
section.
(2) Treatment of deposits.--The Secretary of the Treasury
(or the Secretary's delegate) shall waive any penalty under
section 6656 of the Internal Revenue Code of 1986 for any
failure to make a deposit of the tax imposed by section 3111(a)
of such Code or section 3221(a) of such Code if the Secretary
determines that such failure was due to the anticipation of the
credit allowed under this section.
(3) Application of other rules.--For purposes of this
section, rules similar to the rules of sections 51(i)(1), 52,
and 280C(a), of the Internal Revenue Code of 1986, shall apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this section for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
(e) Trust Funds Held Harmless.--There are hereby appropriated (out
of any money in the Treasury not otherwise appropriated) for each
fiscal year to the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund established under
section 201 of the Social Security Act (42 U.S.C. 401) and the Social
Security Equivalent Benefit Account established under section 15A(a) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) an amount
equal to the reduction in the transfers to such fund for such fiscal
year by reason of this section. 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 amendments not
been enacted.
<all>