,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fgii ,,in ,,the ,,house ,,of ,,representatives ,may #ab1 #bjbj,mr4 ,thompson of ,california 7for himself1 ,mr4 ,kelly of ,pennsylvania1 ,mr4 ,kind1 ,mr4 ,panetta1 and ,mr4 ,horsford7 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 a payroll credit for certain fixed expenses of employers subject to closure by reason of ,,covid-#ai4 #a4 ,short title ,this ,act may be cited as the ,keeping the ,lights ,on ,act of #bjbj4 #b4 ,payroll credit for certain fixed expenses of employers subject to closure by reason of ,,covid-#ai 7a7 ,in general ,in the case of an eligible employer1 there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to #ej percent of the qualified fixed expenses paid or incurred by such employer during such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,limitation ,the qualified fixed expenses which may be taken into account under subsection 7a7 by any eligible employer for any calendar quarter shall not exceed the least of-- 7,a7 the qualified fixed expenses paid by the eligible employer in the same calendar quarter of calendar year #bjai1 7,b7 #ej1jjj2 or 7,c7 the greater of-- 7i7 #be percent of the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter2 or 7ii7 #f4be percent of the gross receipts of the eligible employer for calendar year #bjai4 7#b7 ,credit limited to certain employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of such ,code1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 section #bcja of the ,,cares ,act1 and sections #aja1 #ajb1 and #cjd of this division1 for such quarter7 on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter4 7#c7 ,refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#b7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,applicable employment taxes ,the term applicable employment taxes means the following3 7,a7 ,the taxes imposed under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,so much of the taxes imposed under section #cbba7;a7 of such ,code as are attributable to the rate in effect under section #caaa7;a7 of such ,code4 7#b7 ,eligible employer 7,a7 ,in general ,the term eligible employer means any employer-- 7i7 which was carrying on a trade or business during calendar year #bjbj2 7ii7 which had either-- 7,i7 not more than #a1ejj full-time equivalent 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 for calendar year #bjai2 or 7,,ii7 not more than #da1ejj1jjj of gross receipts in the last taxable year ending in #bjai2 and 7iii7 with respect to any calendar quarter1 for which-- 7,i7 the operation of the trade or business described in clause 7i7 is fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce1 travel1 or group meetings 7for commercial1 social1 religious1 or other purposes7 due to the coronavirus disease #bjai 7,,covid-#ai72 or 7,,ii7 such calendar quarter is within the period described in subparagraph 7,b74 7,b7 ,significant decline in gross receipts ,the period described in this subparagraph is the period-- 7i7 beginning with the first calendar quarter beginning after ,december #ca1 #bjai1 for which gross receipts 7within the meaning of section #ddh7;c7 of the ,internal ,revenue ,code of #aihf7 for the calendar quarter are less than #hj percent of gross receipts for the same calendar quarter in the prior year2 and 7ii7 ending with the calendar quarter following the first calendar quarter beginning after a calendar quarter described in clause 7i7 for which gross receipts of such employer are greater than #hj percent of gross receipts for the same calendar quarter in the prior year4 7,c7 ,tax-,exempt organizations ,in the case of an organization which is described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code-- 7i7 clauses 7i7 and 7iii77,i7 of subparagraph 7,a7 shall apply to all operations of such organization2 and 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 the ,internal ,revenue ,code of #aihf4 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 amount2 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,b72 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 quarter2 by 7,,ii7 the gross receipts for the same calendar quarter in calendar year #bjai4 7#c7 ,qualified fixed expenses 7,a7 ,in general ,the term qualified fixed expenses means the payment or accrual of any covered mortgage obligation1 covered rent obligation1 or covered utility payment4 ,such term shall not include the prepayment of any obligation for a period in excess of a month unless the payment for such period is customarily due in advance4 7,b7 ,application of definitions ,the terms covered mortgage obligation1 covered rent obligation1 and covered utility payment shall each have the same meaning as when used in section #aajf of the ,,cares ,act4 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 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 ,for purposes of the preceding sentence 7other than for purposes of subsection 7b77#b771 wages as defined in section #caba7;a7 of such ,code shall be determined without regard to paragraphs 7#a71 7#h71 7#aj71 7#ac71 7#ah71 7#ai71 and 7#bb7 of section #caba7;b7 of such ,code4 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 7#f7 ,other terms ,except as otherwise provided in this section1 any term used in this section which is also used in chapter #ba or #bb of the ,internal ,revenue ,code of #aihf shall have the same meaning as when used in such chapter4 7d7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf1 or subsection 7m7 or 7o7 of section #dad of such ,code1 shall be treated as one employer for purposes of this section4 7e7 ,denial of double benefit ,for purposes of chapter #a of such ,code1 the gross income of any eligible employer1 for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section1 shall be increased by the amount of such credit4 7f7 ,certain governmental employers 7#a7 ,in general ,the credit under this section shall not be allowed to the ,federal ,government1 the government of any ,state1 of the ,district of ,columbia1 or of any possession of the ,united ,states1 any tribal government1 or any political subdivision1 agency1 or instrumentality of any of the foregoing4 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 7g7 ,election ,to not take certain expenses into account 7#a7 ,in general ,if an eligible employer elects 7at such time and in such manner as the ,secretary may prescribe7 to not take into account any amount of qualified fixed expensees for purposes of determining the credit under this section1 such amount of qualified fixed expenses shall not be so taken into account4 7#b7 ,coordination with paycheck protection program ,the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall issue guidance providing that covered mortgage obligations1 covered rent obligations1 and covered utility payments paid or incurred during the covered period shall not fail to be taken into account as qualified fixed expenses for purposes of determining the credit 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 7h7 ,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 #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 and the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of this section 7without regard to this subsection74 ,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 enacted4 7i7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of such ,code for any failure to make a deposit of applicable employment taxes if the ,secretary determines that such failure was due to the anticipation of the credit allowed under this section4 7j7 ,third-,party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7k7 ,regulations and guidance ,the ,secretary shall issue such forms1 instructions1 regulations1 and guidance as are necessary-- 7#a7 to allow the advance payment of the credit under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require2 7#b7 regulations or other guidance to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year2 7#c7 with respect to the application of the credit under subsection 7a7 to third-party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd of the ,internal ,revenue ,code of #aihf71 including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors2 7#d7 for application of subsection 7b77#a77;,a7 and subparagraphs 7,a77ii77,,ii7 and 7,b7 of subsection 7c77#b7 in the case of any employer which was not carrying on a trade or business for all or part of the same calendar quarter in the prior year2 and 7#e7 for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection 7a74 7l7 ,application of section ,this section shall apply only to qualified fixed expenses paid or accrued after ,march #ab1 #bjbj1 and before ,january #a1 #bjba4 7m7 ,amendment to paycheck protection program to coordination with credit for qualified fixed expenses ,section #aajf of the ,,cares ,act is amended by adding at the end the following new subsection3 7l7 ,coordination with payroll tax credit for qualified fixed expenses ,for purposes of this section1 any payment of interest on any covered mortgage obligation1 any payment on any covered rent obligation1 and any covered utility payment shall not include any qualified fixed expenses which are taken into account in determining the credit allowed under section #b of the ,keeping the ,lights ,on ,act of #bjbj4 4