,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fggf ,,in ,,the ,,house ,,of ,,representatives ,may #h1 #bjbj,mrs4 ,murphy of ,florida 7for herself1 ,mr4 ,katko1 ,ms4 ,del,bene1 ,mr4 ,fitzpatrick1 and ,mr4 ,pappas7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide for improvements related to the employee retention tax credit4 #a4 ,short title ,this ,act may be cited as the ,jumpstarting ,our ,businesses' ,success ,credit ,act of #bjbj or as the ,,jobs ,credit ,act of #bjbj4 #b4 ,improvements to employee retention credit 7a7 ,increase in credit percentage ,section #bcja7;a7 of the ,,cares ,act is amended by striking #ej percent and inserting #hj percent4 7b7 ,increase in per employee limitation ,section #bcja7;b77#a7 of the ,,cares ,act is amended by striking for all calendar quarters shall not exceed #aj1jjj4 and inserting shall not exceed-- 7,a7 #ae1jjj in any calendar quarter1 and 7,b7 #de1jjj in the aggregate for all calendar quarters4 4 7c7 ,modification of threshold for treatment as a large employer 7#a7 ,in general ,section #bcja7;c77#c77;,a7 of the ,,cares ,act is amended-- 7,a7 by striking for which the average number of full-time employees 7within the meaning of section #dihj;,h of the ,internal ,revenue ,code of #aihf7 employed by such eligible employer during #bjai was greater than #ajj in clause 7i7 and inserting which is a large employer1 and 7,b7 by striking for which the average number of full-time employees 7within the meaning of section #dihj;,h of the ,internal ,revenue ,code of #aihf7 employed by such eligible employer during #bjai was not greater than #ajj in clause 7ii7 and inserting which is not a large employer4 7#b7 ,large employer defined ,section #bcja7;c7 of the ,,cares ,act is amended by redesignating paragraph 7#f7 as paragraph 7#g7 and by inserting after paragraph 7#e7 the following new paragraph3 7#f7 ,large employer ,the term large employer means any eligible employer if-- 7,a7 the average number of full-time employees 7as determined for purposes of determining whether an employer is an applicable large employer for purposes of section #dihj;,h7c77#b7 of the ,internal ,revenue ,code of #aihf7 employed by such eligible employer during calendar year #bjai was greater than #a1ejj1 and 7,b7 the gross receipts 7within the meaning of section #ddh7;c7 of the ,internal ,revenue ,code of #aihf7 of such eligible employer during calendar year #bjai was greater than #da1ejj1jjj4 4 7d7 ,phase-,in of eligibility based on reduction in gross receipts 7#a7 ,decrease of reduction in gross receipts necessary to qualify for credit ,section #bcja7;c77#b77;,b77i7 of the ,,cares ,act is amended by striking #ej percent and inserting #hj percent4 7#b7 ,phase-in of credit if reduction in gross receipts is less than #ej percent ,section #bcja7;c77#b7 of the ,,cares ,act is amended by adding at the end the following new subparagraph3 7,d7 ,phase-in of credit where business not suspended and reduction in gross receipts less than #ej percent 7i7 ,in general ,in the case of any calendar quarter with respect to which an eligible employer would not be an eligible employer if subparagraph 7,b77i7 were applied by substituting #ej percent for #hj percent1 the amount of the credit allowed under subsection 7a7 shall be reduced by the amount which bears the same ratio to the amount of such credit 7determined without regard to this subparagraph7 as-- 7,i7 the excess gross receipts percentage point amount1 bears to 7,,ii7 #cj percentage points4 7ii7 ,excess gross receipts percentage point amount ,for purposes of this subparagraph1 the term excess gross receipts percentage point amount means1 with respect to any calendar quarter1 the excess of-- 7,i7 the lowest of the gross receipts percentage point amounts determined with respect to any calendar quarter during the period ending with such calendar quarter and beginning with the first calendar quarter during the period described in subparagraph 7,b71 over 7,,ii7 #ej percentage points4 7iii7 ,gross receipts percentage point amounts ,for purposes of this subparagraph1 the term gross receipts percentage point amount means1 with respect to any calendar quarter1 the percentage 7expressed as a number of percentage points7 obtained by dividing-- 7,i7 the gross receipts 7within the meaning of subparagraph 7,b77 for such calendar quarter1 by 7,,ii7 the gross receipts for the same calendar quarter in calendar year #bjai4 4 7#c7 ,gross receipts of tax-exempt organizations ,section #bcja7;c77#b77;,c7 of the ,,cares ,act is amended-- 7,a7 by striking of such ,code1 clauses 7i7 and 7ii77,i7 and inserting of such ,code-- 7i7 clauses 7i7 and 7ii77,i7 1 7,b7 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following new clause3 7ii7 any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section #fjcc of such ,code4 4 7e7 ,modification of treatment of health plan expenses 7#a7 ,in general ,section #bcja7;c77#e7 of the ,,cares ,act is amended to read as follows3 7#e7 ,wages 7,a7 ,in general ,the term wages means wages 7as defined in section #caba7;a7 of the ,internal ,revenue ,code of #aihf7 and compensation 7as defined in section #cbca7;e7 of such ,code74 7,b7 ,allowance for certain health plan expenses 7i7 ,in general ,such term shall include amounts paid or incurred by the eligible employer to provide and maintain a group health plan 7as defined in section #ejjj7;b77#a7 of the ,internal ,revenue ,code of #aihf71 but only to the extent that such amounts are excluded from the gross income of employees by reason of section #ajf7;a7 of such ,code4 7ii7 ,allocation rules ,for purposes of this section1 amounts treated as wages under clause 7i7 shall be treated as paid with respect to any employee 7and with respect to any period7 to the extent that such amounts are properly allocable to such employee 7and to such period7 in such manner as the ,secretary may prescribe4 ,except as otherwise provided by the ,secretary1 such allocation shall be treated as properly made if made on the basis of being pro rata among periods of coverage4 4 7#b7 ,conforming amendment ,section #bcja7;c77#c7 of the ,,cares ,act is amended by striking subparagraph 7,c74 7f7 ,qualified wages permitted ,to include amounts for tip replacement 7#a7 ,in general ,section #bcja7;c77#c77;,b7 of the ,,cares ,act is amended by inserting 7including tips which would have been deemed to be paid by the employer under section #caba7q77 after would have been paid4 7#b7 ,conforming amendment ,section #bcja7;h77#b7 of the ,,cares ,act is amended by inserting #de;,b or before #de,s4 7g7 ,certain governmental employers eligible for credit 7#a7 ,in general ,section #bcja7;f7 of the ,,cares ,act is amended to read as follows3 7f7 ,certain governmental employers 7#a7 ,in general ,the credit under this section shall not be allowed to the ,federal ,government or any agency or instrumentality thereof4 7#b7 ,exception ,paragraph 7#a7 shall not apply to any organization described in section #eja7;c77#a7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code4 7#c7 ,special rules ,in the case of any ,state government1 ,indian tribal government1 or any agency1 instrumentality1 or political subdivision of the foregoing-- 7,a7 clauses 7i7 and 7ii77,i7 of subsection 7c77#b77;,a7 shall apply to all operations of such entity1 and 7,b7 subclause 7,,ii7 of subsection 7c77#b77;,a77ii7 shall not apply4 4 7#b7 ,coordination with application of certain definitions 7,a7 ,in general ,section #bcja7;c77#e77;,a7 of the ,,cares ,act1 as amended by the preceding provisions of this ,act1 is amended by adding at the end the following3 ,for purposes of the preceding sentence 7other than for purposes of subsection 7b77#b771 wages as defined in section #caba7;a7 of the ,internal ,revenue ,code of #aihf shall be determined without regard to paragraphs 7#a71 7#e71 7#f71 7#g71 7#h71 7#aj71 7#ac71 7#ah71 7#ai71 and 7#bb7 of section #cbab7;b7 of such ,code 7except with respect to services performed in a penal institution by an inmate thereof744 7,b7 ,conforming amendments ,sections #bcja7;c77#f7 of the ,,cares ,act is amended by striking ,any term and inserting ,except as otherwise provided in this section1 any term4 7h7 ,effective date ,the amendments made by this section shall take effect as if included in section #bcja of the ,,cares ,act4 #c4 ,improved coordination between paycheck protection program and employee retention tax credit 7a7 ,amendment to paycheck protection program ,section #aajf7;a77#h7 of the ,,cares ,act is amended by inserting 1 except that such costs shall not include qualified wages taken into account in determining the credit allowed under section #bcja of this ,act before the period at the end4 7b7 ,amendments to employee retention tax credit 7#a7 ,in general ,section #bcja7;g7 of the ,,cares ,act is amended to read as follows3 7g7 ,election ,to not take certain wages into account 7#a7 ,in general ,this section shall not apply to qualified wages paid by an eligible employer with respect to which such employer makes an election 7at such time and in such manner as the ,secretary may prescribe7 to have this section not apply to such wages4 7#b7 ,coordination with paycheck protection program ,the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall issue guidance providing that payroll costs paid or incurred during the covered period shall not fail to be treated as qualified wages under this section by reason of an election under paragraph 7#a7 to the extent that a covered loan of the eligible employer is not forgiven by reason of a decision under section #aajf7;g74 ,terms used in the preceding sentence which are also used in section #aajf shall have the same meaning as when used in such section4 4 7#b7 ,conforming amendments 7,a7 ,section #bcja of the ,,cares ,act is amended by striking subsection 7j74 7,b7 ,section #bcja7l7 of the ,,cares ,act is amended by striking paragraph 7#c7 and by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#c7 and 7#d71 respectively4 7c7 ,effective date ,the amendments made by this section shall take effect as if included in the provisions of the ,,cares ,act to which they relate4