Text: S.4290 — 116th Congress (2019-2020)All Information (Except Text)

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Introduced in Senate (07/23/2020)


116th CONGRESS
2d Session
S. 4290


To provide much needed liquidity to America’s job creators.


IN THE SENATE OF THE UNITED STATES

July 23, 2020

Mr. Cornyn introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To provide much needed liquidity to America’s job creators.

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 “Building Businesses Back Act of 2020”.

SEC. 2. Monetization of general business credits.

(a) In general.—Section 38 of the Internal Revenue Code of 1986 is amended by inserting after subsection (d) the following:

“(e) Special rules for eligible years.—

“(1) IN GENERAL.—If a taxpayer elects the application of this subsection for any eligible taxable year—

“(A) the limitation under subsection (c) shall be increased by an amount equal to the excess (if any) of—

“(i) the credit allowed under subsection (a) for the taxable year (determined without regard to subsection (c)), over

“(ii) the credit allowed under subsection (a) for such taxable year (determined after the application of subsection (c)), and

“(B) the amount of the credit determined under section 41(a) for such taxable year shall be determined without regard to the limitation in the first sentence of section 41(g).

“(2) TREATMENT OF CREDIT.—For purposes of this title (other than this section and section 39), the excess of—

“(A) amount of the credit allowed solely by reason of this subsection, over

“(B) net income tax (as defined in subsection (c)(1)) reduced by credits allowable under subparts D (without regard to this subsection) and G,

shall be treated as an overpayment of tax for the taxable year.

“(3) ELIGIBLE TAXABLE YEAR.—For purposes of this subsection, the term ‘eligible taxable year’ means any taxable year ending in 2019 or 2020.

“(4) ELECTION.—An election under paragraph (1) shall be made at such time and in such manner as the Secretary may prescribe.

“(5) GUIDANCE AND REGULATIONS.—The Secretary shall prescribe such regulations and guidance as may be necessary to carry out this subsection, including regulations or guidance to prevent any double counting of credits allowable under this section.”.

(b) Allowance of refunds.—Section 1324(b)(2) of title 31, United States Code, is amended by inserting “38(e)” after “36B”.

(c) Conforming amendment.—Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting “38(e),” after “36B,”.

(d) Credits not subject to sequestration.—Section 255(d) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 905(d)) is amended—

(1) by striking “Payments” and inserting the following:

“(1) IN GENERAL.—Payments”; and

(2) by adding at the end the following:

“(2) GENERAL BUSINESS CREDITS.—Payments made under subsection (e) of section 38 of the Internal Revenue Code of 1986 shall be exempt from reduction under any order issued under this part.”.

(e) Special rule for refunds.—

(1) IN GENERAL.—For purposes of the Internal Revenue Code of 1986, a credit or refund for which an application described in paragraph (2)(A) is filed shall be treated as made under section 6411 of such Code.

(2) TENTATIVE REFUND.—

(A) APPLICATION.—A taxpayer may file an application for a tentative credit or refund of any amount for which a credit or refund for any taxable year is due by reason of section 38(e) of the Internal Revenue Code of 1986. Such application shall be in such manner and form as the Secretary of the Treasury (or the Secretary’s delegate) may prescribe and shall—

(i) be verified in the same manner as an application under section 6411(a) of such Code;

(ii) be filed not later than the date that is 120 days after the date of the enactment of this Act; and

(iii) set forth—

(I) the amount of the credit claimed under section 38(e) of such Code for such taxable year; and

(II) the amount of the refund claimed.

(B) ALLOWANCE OF ADJUSTMENTS.—Within a period of 90 days from the date on which an application is filed under subparagraph (A), the Secretary of the Treasury (or the Secretary’s delegate) shall—

(i) review the application;

(ii) determine the amount of the overpayment; and

(iii) apply, credit, or refund such overpayment,

in a manner similar to the manner provided in section 6411(b) of the Internal Revenue Code of 1986.

(C) CONSOLIDATED RETURNS.—The provisions of section 6411(c) of the Internal Revenue Code of 1986 shall apply to an adjustment under this paragraph to the same extent and manner as the Secretary of the Treasury (or the Secretary’s delegate) may provide.

(3) APPLICATION FOR ADJUSTMENT OF OVERPAYMENT OF ESTIMATED INCOME TAX.—An application for adjustment of overpayment of estimated income tax under section 6425 of the Internal Revenue Code of 1986 by reason of section 38(e) of such Code shall not fail to be treated as timely filed if filed not later than the date which is 120 days after the date of the enactment of this Act.

(f) Effective date.—The amendments made by this section shall apply to taxable years ending after December 31, 2018.


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