[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 524 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 524
To amend the Internal Revenue Code of 1986 to provide advance tax
refunds to small businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2021
Ms. Dean (for herself and Mr. Kilmer) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
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 ``Restore America's Main Street Act of
2021''.
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
6428A the following new section:
``SEC. 6428B. 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 2021 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) $120,000.
``(2) Special rule.--In the case of a qualifying business
or sole proprietorship which was not formed or active in the
taxable year described in paragraph (1)(A), such paragraph
shall be applied by substituting `2020' 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 `$1,500,000' 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 `2020' 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, 2021, 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, 2021.
``(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 ``6428,
and 6428A'' and inserting ``6428, 6428A, and 6428B''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``6428B,'' after
``6428A,''.
(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 6428A the
following:
``Sec. 6428B. Small business rebate.''.
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