[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1944 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1944
To provide tax credits for certain expenses associated with protecting
employees from COVID-19.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 16, 2021
Mr. Rice of South Carolina (for himself, Mrs. Murphy of Florida, Mr.
LaHood, and Mr. Panetta) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide tax credits for certain expenses associated with protecting
employees from COVID-19.
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 ``Healthy Workplaces Act''.
SEC. 2. HEALTHY WORKPLACE PAYROLL TAX CREDIT.
(a) In General.--In the case of an employer, there shall be allowed
as a credit against applicable employment taxes for each calendar
quarter an amount equal to 50 percent of the sum of--
(1) the qualified employee protection expenses paid or
incurred by the employer during such calendar quarter,
(2) the qualified workplace reconfiguration expenses paid
or incurred by the employer during such calendar quarter, and
(3) the qualified education and training expenses paid or
incurred by the employer during such calendar quarter.
(b) Limitations and Refundability.--
(1) Overall dollar limitation on credit.--
(A) In general.--The amount of the credit allowed
under subsection (a) with respect to any employer for
any calendar quarter shall not exceed the excess (if
any) of--
(i) the applicable dollar limit with
respect to such employer for such calendar
quarter, over
(ii) the aggregate credits allowed under
subsection (a) with respect to such employer
for all preceding calendar quarters.
(B) Applicable dollar limit.--
(i) In general.--The term ``applicable
dollar limit'' means, with respect to any
employer for any calendar quarter, the sum of--
(I) $1,000, multiplied by so much
of the average number of full-time
employees employed by such employer
during such calendar quarter as does
not exceed 500, plus
(II) $750, multiplied by so much of
such average number of full-time
employees as exceeds 500 but does not
exceed 1,000, plus
(III) $500, multiplied by so much
of such average number of full-time
employees as exceeds 1,000 but does
note exceed 2,500, plus
(IV) $250, multiplied by so much of
such average number of full-time
employees as exceeds 2,500 but does not
exceed 5,000, plus
(V) $50, multiplied by so much of
such average number of full-time
employees as exceeds 5,000.
(ii) Average number of full-time
employees.--For purposes of this subsection,
the average number of full time employees shall
be determined in the same manner as such number
is determined for purposes of determining
whether an employer is an applicable large
employer for purposes of section 4980H(c)(2) of
the Internal Revenue Code of 1986, except
that--
(I) an individual shall not be
taken into account as an employee for
any period during which substantially
all of the services provided by such
individual as an employee are provided
outside the United States, and
(II) under regulations provided by
the Secretary, an individual who
performs services as an independent
contractor shall be treated as an
employee of the employer if no credit
under this section is allowed to any
other employer with respect to such
individual.
(2) Credit limited to employment taxes.--The credit allowed
by subsection (a) with respect to any calendar quarter shall
not exceed the applicable employment taxes (reduced by any
credits allowed under subsections (e) and (f) of section 3111
of the Internal Revenue Code of 1986, sections 7001 and 7003 of
the Families First Coronavirus Response Act, and section 2301
of the CARES Act) on the wages paid with respect to the
employment of all the employees of the employer for such
calendar quarter.
(3) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (2)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to the employer under this paragraph shall be treated
in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such
section.
(c) Qualified Employee Protection Expenses.--For purposes of this
section, the term ``qualified employee protection expenses'' means
amounts (other than any qualified workplace reconfiguration expense)
paid or incurred by the employer for--
(1) testing employees of the employer for COVID-19
(including on a periodic basis),
(2) equipment (including masks, gloves, and disinfectants)
and technology systems used--
(A) to protect customers or employees of the
employer from contracting COVID-19,
(B) to enhance social distancing and contact
tracing, or
(C) to improve indoor air quality, including
ventilation, filtration, and air purification,
(3) cleaning products or services (whether provided by an
employee of the taxpayer or a cleaning service provider)
related to preventing the spread of COVID-19, and
(4) such other equipment or technology which--
(A) is recommended as part of the Federal
government's recommendations for safe workplaces, and
(B) the Secretary, in consultation with the
Secretary of Health and Human Services and the Director
of the Centers for Disease Control and Prevention,
determines is necessary and appropriate for preventing
COVID-19.
(d) Qualified Workplace Reconfiguration Expenses.--For purposes of
this section--
(1) In general.--The term ``qualified workplace
reconfiguration expenses'' means amounts paid or incurred by
the employer to evaluate, design, and reconfigure retail space,
work areas, break areas, or other areas that employees or
customers regularly use in the ordinary course of the
employer's trade or business if such evaluation, design, and
reconfiguration--
(A) has a primary purpose of preventing the spread
of COVID-19,
(B) is with respect to an area that is located in
the United States and that is leased or owned by the
employer,
(C) is consistent with the ordinary use of the
property immediately before the reconfiguration,
(D) is commensurate with the risks faced by the
employees or customers or is consistent with
recommendations made by the Centers for Disease Control
and Prevention or the Occupational Safety and Health
Administration,
(E) is completed pursuant to a reconfiguration plan
and no comparable reconfiguration plan was in place
before March 13, 2020, and
(F) is completed before January 1, 2022.
(2) Regulations.--The Secretary shall prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including guidance defining primary purpose and reconfiguration
plan.
(e) Qualified Education and Training Expenses.--For purposes of
this section--
(1) In general.--The term ``qualified education and
training expenses'' means amount paid or incurred to a
qualified entity for the training employees on new business
procedures related to preventing COVID-19 transmission.
(2) Qualified entity.--The term ``qualified entity'' means
any entity certified by the Secretary as an accredited training
institution, an industry-recognized trade association, or a
nonprofit entity qualified to provide training described in
paragraph (1).
(f) Other Definitions.--For purposes of this section--
(1) Applicable employment taxes.--The term ``applicable
employment taxes'' means the following:
(A) The taxes imposed under section 3111(a) of the
Internal Revenue Code of 1986.
(B) So much of the taxes imposed under section
3221(a) of such Code as are attributable to the rate in
effect under section 3111(a) of such Code.
(2) COVID-19.--Except where the context clearly indicates
otherwise, any reference in this section to COVID-19 shall be
treated as including a reference to the virus which causes
COVID-19.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(4) Other terms.--Any term used in this section (other than
subsection (b)(1)(B)) which is also used in chapter 21 or 22 of
the Internal Revenue Code of 1986 shall have the same meaning
as when used in such chapter.
(g) Certain Governmental Employers.--This section shall not apply
to the Government of the United States, the government of any State or
political subdivision thereof, or any agency or instrumentality of any
of the foregoing.
(h) Special Rules.--
(1) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986, or subsection (m) or (o) of
section 414 of such Code, shall be treated as one employer for
purposes of this section.
(2) Denial of double benefit.--Rules similar to the rules
of section 280C(a) of the Internal Revenue Code of 1986 shall
apply for purposes of this section.
(3) Third-party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2) of such Code.
(4) Election not to have section apply.--This section shall
not apply with respect to any employer for any calendar quarter
if such employer elects (at such time and in such manner as the
Secretary may prescribe) not to have this section apply.
(5) Coordination with paycheck protection program and other
government grants.--
(A) Paycheck protection program.--
(i) In general.--No credit shall be allowed
under section with respect to any amounts taken
into account in connection with a covered loan
under section 7(a)(37) or 7A of the Small
Business Act.
(ii) Application where loans not
forgiven.--The Secretary, in consultation with
the Administrator of the Small Business
Administration, shall issue guidance providing
that amounts taken into account during the
covered period shall not fail to be treated as
qualified wages under this section by reason of
subparagraph (A) to the extent that--
(I) a covered loan of the taxpayer
under section 7(a)(37) of the Small
Business Act is not forgiven by reason
of a decision under section 7(a)(37)(J)
of such Act, or
(II) a covered loan of the taxpayer
under section 7A of the Small Business
Act is not forgiven by reason of a
decision under section 7A(g) of such
Act.
(B) Government grants.--No credit shall be allowed
under this section with respect to any amount paid or
incurred for property or services if such property or
services are financed with funding provided under a
Federal, State, or local program a principal purpose of
which is to provide subsidized financing for such
property or services.
(6) Expenses must be for property or services within the
united states.--An amount paid or incurred by the employer
shall not be taken into account as a qualified employee
protection expense, a qualified workplace reconfiguration
expense, or a qualified education and training expense if such
amount is paid or incurred for--
(A) equipment which is not for use in the United
States, or
(B) services which are not conducted in the United
States.
(i) Transfers to Certain Trust Funds.--There are hereby
appropriated 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. 14 231n-1(a)) amounts
equal to the reduction in revenues to the Treasury by reason of this
section (without regard to this subsection). 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 or Account
had this section not been enacted.
(j) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of the Internal Revenue Code of 1986 for any failure
to make a deposit of any applicable employment taxes if the Secretary
determines that such failure was due to the reasonable anticipation of
the credit allowed under this section.
(k) Regulations and Guidance.--The Secretary shall prescribe such
regulations and other guidance as may be necessary or appropriate to
carry out the purposes of this section, including--
(1) with respect to the application of the credit under
subsection (a) to third-party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), regulations or other guidance allowing
such payors to submit documentation necessary to substantiate
the amount of the credit allowed under subsection (a),
(2) regulations or other guidance with respect to amounts
paid or incurred by an employer on behalf of the owner or
lessee, or paid or incurred by such owner or lessee, of a
property that is the subject of a management agreement or other
similar legal arrangement, and
(3) regulations or other guidance to prevent abusive
transactions.
(l) Application.--This section shall only apply to amounts paid or
incurred after December 31, 2020, and before January 1, 2022.
SEC. 3. INCOME TAX CREDIT FOR 2020 QUALIFIED WORKPLACE RECONFIGURATION
EXPENSES.
(a) In General.--For purposes of section 38 of the Internal Revenue
Code of 1986, in the case of an employer, the 2020 qualified workplace
reconfiguration credit shall be treated as a credit listed at the end
of subsection (b) of such section. For purposes of this subsection, the
2020 qualified workplace reconfiguration credit for any taxable year is
an amount equal to 50 percent of the qualified workplace
reconfiguration expenses paid or incurred by the employer during such
taxable year.
(b) Limitation.--
(1) In general.--The amount of the credit allowed under
subsection (a) with respect to any employer for any taxable
year shall not exceed--
(A) $3,000, multiplied by so much of the average
number of full-time employees employed by such employer
during such taxable year as does not exceed 500, plus
(B) $0, multiplied by so much of such average
number of full-time employees as exceeds 500.
(2) Average number of full-time employees.--For purposes of
this subsection, the average number of full time employees
shall be determined in the same manner as such number is
determined for purposes of determining whether an employer is
an applicable large employer for purposes of section
4980H(c)(2) of the Internal Revenue Code of 1986, except that--
(A) an individual shall not be taken into account
as an employee for any period during which
substantially all of the services provided by such
individual as an employee are provided outside the
United States, and
(B) under regulations provided by the Secretary, an
individual who performs services as an independent
contractor shall be treated as an employee of the
employer if no credit under this section is allowed to
any other employer with respect to such individual.
(c) Qualified Workplace Reconfiguration Expenses.--For purposes of
this section--
(1) In general.--The term ``qualified workplace
reconfiguration expenses'' has the meaning given such term
under section 2(d).
(2) Expenses must be for property or services within the
united states.--An amount paid or incurred by the employer
shall not be taken into account as a qualified workplace
reconfiguration expense if such amount is paid or incurred
for--
(A) equipment which is not for use in the United
States, or
(B) services which are not conducted in the United
States.
(d) Other Rules.--
(1) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986, or subsection (m) or (o) of
section 414 of such Code, shall be treated as one employer for
purposes of this section.
(2) Denial of double benefit.--Rules similar to the rules
of section 280C(a) of the Internal Revenue Code of 1986 shall
apply for purposes of this section.
(3) Election not to have section apply.--This section shall
not apply with respect to any employer for any calendar quarter
if such employer elects (at such time and in such manner as the
Secretary may prescribe) not to have this section apply.
(4) Coordination with paycheck protection program and other
government grants.--
(A) Paycheck protection program.--
(i) In general.--No credit shall be allowed
under section with respect to any amounts taken
into account in connection with a covered loan
under section 7(a)(37) or 7A of the Small
Business Act.
(ii) Application where loans not
forgiven.--The Secretary, in consultation with
the Administrator of the Small Business
Administration, shall issue guidance providing
that amounts taken into account during the
covered period shall not fail to be treated as
qualified wages under this section by reason of
subparagraph (A) to the extent that--
(I) a covered loan of the taxpayer
under section 7(a)(37) of the Small
Business Act is not forgiven by reason
of a decision under section 7(a)(37)(J)
of such Act, or
(II) a covered loan of the taxpayer
under section 7A of the Small Business
Act is not forgiven by reason of a
decision under section 7A(g) of such
Act.
(B) Government grants.--No credit shall be allowed
under this section with respect to any amount paid or
incurred for property or services if such property or
services are financed with funding provided under a
Federal, State, or local program a principal purpose of
which is to provide subsidized financing for such
property or services.
(e) Applicability.--This section shall apply to qualified workplace
reconfiguration expenses paid or incurred after March 12, 2020, and
before January 1, 2021.
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