[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 537 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 537

To provide a tax credit for certain expenses associated with protecting 
                        employees from COVID-19.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                March 2 (legislative day, March 1), 2021

Mr. Portman (for himself and Ms. Sinema) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide a tax credit 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, or
                    (B) to enhance social distancing and contact 
                tracing.
            (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. 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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