,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gfeh ,,in ,,the ,,house ,,of ,,representatives ,july #af1 #bjbj ,mr4 ,schweikert introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide a payroll tax credit for certain costs of providing employees with testing for ,,covid-#ai4 #a4 ,employee testing tax credit 7a7 ,in general ,in the case of an 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 employee testing expenses paid or incurred by the employer during such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,overall dollar limitation on credit 7,a7 ,in general ,the amount of the credit allowed under subsection 7a7 with respect to any employer for any calendar quarter shall not exceed the excess 7if any7 of-- 7i7 the applicable dollar limit with respect to such employer for such calendar quarter1 over 7ii7 the aggregate credits allowed under subsection 7a7 with respect to such employer for all preceding calendar quarters4 7,b7 ,applicable dollar limit ,the term applicable dollar limit means1 with respect to any employer for any calendar quarter1 the sum of-- 7i7 #ejj1 multiplied so much of 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 #aihf1 except that an individual shall not be taken into account as employee for any period during which substantially all of the services provided by such individual as an employee are provided outside the ,united ,states7 employed by such employer during such calendar quarter as does not exceed #ejj1 plus 7ii7 #cge1 multiplied by so much of such average number of full-time employees as exceeds #ejj but does not exceed #a1jjj1 plus 7iii7 #bej1 multiplied by so much of such average number of full-time employees as exceeds #a1jjj4 7#b7 ,credit limited to employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of the ,internal ,revenue ,code of #aihf1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 and section #bcja of the ,,cares ,act7 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 the 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 ,qualified employee testing expenses ,for purposes of this section1 the term qualified employee testing expenses means amounts paid or incurred by the employer for testing employees of the employer for ,,covid-#ai or ,,sars-,co,v-#b 7including on a periodic basis74 7d7 ,other 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 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#c7 ,other terms ,any term used in this section 7other than subsection 7b77#a77;,b77 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 7e7 ,certain governmental employers ,this credit shall not apply to the ,government of the ,united ,states1 the government of any ,state or political subdivision thereof1 or any agency or instrumentality of any of the foregoing4 7f7 ,special rules 7#a7 ,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 7#b7 ,denial of double benefit ,rules similar to the rules of section #bhj;,c7a7 of the ,internal ,revenue ,code of #aihf shall apply for purposes of this section4 7#c7 ,third-party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7#d7 ,election not to have section apply ,this section shall not apply with respect to any eligible employer for any calendar quarter if such employer elects 7at such time and in such manner as the ,secretary may prescribe7 not to have this section apply4 7g7 ,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 #ad #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 7h7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of the ,internal ,revenue ,code of #aihf 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 section4 7i7 ,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 section1 including-- 7#a7 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 regulations or other guidance allowing such payors to submit documentation necessary to substantiate the amount of the credit allowed under subsection 7a71 and 7#b7 regulations or other guidance to prevent abusive transactions4 7j7 ,application ,this section shall only apply to amounts paid or incurred after ,march #ab1 #bjbj1 and before ,january #a1 #bjba4