,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #giag  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjbj,mr4  
,phillips 7= himself & ,mrs4 ,walorski7 
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide = advance      
refunds ( c]ta9 net op]at+ losses &     
rese>* exp5ditures relat+ to            
,,covid-#ai1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,innovation & ,gr[? ,n[ by ,inve/+ 9    
,tomorr['s ,ent]prises ,act or !        
,,ignite ,am]ican ,innovation ,act4  #b4
 ,advance refunds ( net op]at+ losses = 
,c corporation taxpay]s  7a7 ,9 g5]al   
7#a7 ,net op]at+ loss c>ryov]s ,section 
#agb ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by r$esignat+ subsection 7g7 z 
subsection 7h7 & by ins]t+ aft]         
subsection 7f7 ! foll[+3  7g7 ,advance  
refund = ,c corporations relat+ to c]ta9
 c>ryov]s aris+ dur+ #bjae ?r\gh #bjba  
7#a7 ,9 g5]al  7,a7 ,election ,a taxpay]

 to :om ?is p>agraph applies may elect  
an advance refund ( net op]at+ loss     
c>ryov]s 9 ! am\nts & mann] det]m9$ "u  
subp>agraphs 7,b7 & 7,c74  7,b7 ,net    
op]at+ loss c>ryov]s aris+ dur+ #bjae   
?r\gh #bjba ,! advance refund det]m9$ "u
 ?is subp>agraph is an am\nt elect$ by !
 taxpay] 9 lieu ( an election ) respect 
to a net op]at+ loss c>ryback "u        
subsection 7b77#a77;,d71 9 ! am\nt equal
 to-- 7i7 ! rate set =? 9 section #aa 7z
 9 effect on ! date ( ! enactm5t ( ?is  
p>agraph71 multipli$ by  7ii7 any net   
op]at+ loss c>ryov]s t arose-- 7,i7 9 a 
taxable ye> beg9n+ on or aft] ,janu>y   
#a1 #bjae1 & be=e ,janu>y #a1 #bjbj1 or 
7,,ii7 9 a taxable ye> beg9n+ on or aft]
 ,janu>y #a1 #bjai1 & be=e ,janu>y #a1  
#bjbb4  7,c7 ,,covid-#ai rese>*         
exp5ditures = #bjbj & #bjba ,! advance  
refund "u ?is subp>agraph is ! am\nt ( !
 advance refund ) respect to ! portion (
 any net op]at+ loss attributable to &  
aris+ f qualifi$ ,,covid-#ai rese>*     
exp5ditures t are paid or incurr$ on or 

aft] ,febru>y #ae1 #bjbj & be=e ,janu>y 
#a1 #bjbb1 t is equal to #bjj p]c5t ( ! 
am\nt o!rwise tak5 into acc\nt "u       
p>agraph 7#a77;,b77ii74 ,a net op]at+   
loss %all be treat$ z aris+ f qualifi$  
,,covid-#ai rese>* exp5ditures to !     
ext5t t su* exp5ses are paid or incurr$ 
by ! taxpay]4  7#b7 ,qualifi$           
,,covid-#ai rese>* exp5ditures ,=       
purposes ( ?is subsection1 ! t]m        
qualifi$ ,,covid-#ai rese>* exp5ditures 
means exp5ditures paid or incurr$ 9     
connection ) ! rese>* & developm5t (    
products regulat$ by ! ,food & ,drug    
,adm9i/ration 7includ+ biologics1 drugs1
 & devices7 t are int5d$ to be us$ 9 !  
diagnosis1 prev5tion & treatm5t (       
coronavirus disease #bjai 7,,covid-#ai71
 & su* o!r simil> exp5ditures z         
prescrib$ by ! ,secret>y 9 regulations4 
7#c7 ,taxpay] describ$ ,= purposes (    
p>agraph 7#a71 ?is subsection applies to
 a taxpay] if-- 7,a7 ! taxpay] is a ,c  
corporation1  7,b7 ! av]age numb] (     
full-"t employees 7z det]m9$ = purposes 

( det]m9+ :e!r an employ] is an         
applicable l>ge employ] = purposes (    
section #dihj;,h7c77#b7 ( ! ,int]nal    
,rev5ue ,code ( #aihf7 employ$ by !     
taxpay] dur+ cal5d> ye> #bjai or #bjbj1 
:i*ev] is great]1 is great] ?an five &  
did n exce$ #a1ejj1 &  7,c7 ! taxpay]   
has compli$ to date ) fil+ ( all =ms or 
return requirem5ts "u section #cajb1    
#caaa1 #ccja1 & #cdjb ) respect to      
cal5d> ye>s #bjai & #bjbj4  7#d7        
,special rules ,= purposes ( ?is        
subsection-- 7,a7 ,c]ta9 contributions (
 capital n tak5 into acc\nt 9 det]m9+   
own]%ip *ange "u section #chb ,=        
purposes ( det]m9+ :e!r an own]%ip *ange
 has occurr$ ) respect to ! loss        
corporation "u section #chb7;g7 9       
comput+ ! am\nt ( any advance refund "u 
?is section1 a transf] ( /ock 9 ex*ange 
= a capital contribution to su* loss    
corporation %all n be tak5 into acc\nt  
if-- 7i7 ! value ( ! /ock transf]r$ is  
comm5surate ) ! am\nt ( capital be+     
contribut$1 &  7ii7 su* ex*ange is n "p 

( a plan to r$eem o!r %>ehold]s4  7,b7  
,aggregate limitation ,! aggregate am\nt
 ( net op]at+ loss or net op]at+ loss   
c>ryov] = :i* an advance refund is      
elect$ pursuant to ?is subsection %all n
 exce$ #ajj1jjj1jjj4  7,c7 ,r$uction (  
net op]at+ loss ,! net op]at+ losses ( !
 taxpay] det]m9$ "u subsection 7c7 %all 
be r$uc$ by ! am\nt ( any net op]at+    
loss or net op]at+ loss c>ryov] = :i* an
 advance refund is elect$ pursuant to   
?is subsection1 includ+ ! am\nt ( any   
net op]at+ loss to :i* p>agraph         
7#a77;,c7 applies4  7,d7 ,aggregation   
rule ,all corporations treat$ z a s+le  
employ] "u subsection 7a7 ( section #eb 
or subsection 7m7 or 7o7 "u section #dad
 %all be treat$ z a s+le taxpay] =      
purposes ( ?is section4  7#e7           
,regulations & guidance ,! ,secret>y    
%all issue su* regulations & o!r        
guidance z may be necess>y to c>ry out !
 purposes ( ?is section1 includ+        
regulations & o!r guidance to c>ry out !
 purposes ( ?is subsection-- 7,a7 to    

all[ = ! mak+ ( an election = !         
application ( ?is subsection 9 su* mann]
 z ! ,secret>y may by regulations       
prescribe1  7,b7 to all[ ! paym5t ( !   
advance refund 9 accordance ) section   
#fdbi bas$ on su* in=mation z !         
,secret>y %all require1  7,c7 to all[   
advance refunds p]mitt$ "u ?is          
subsection to be claim$ on su* =ms z !  
,secret>y %all prescribe1 &  7,d7 to    
provide = ! application ( ?is subsection
 to taxpay]s t file consolidat$ returns4
  7#f7 ,advance refund ,see section     
#fdbi = rules = claim+ ! advance refund4
  4  7#b7 ,con=m+ am5dm5t ,section      
#agb7;c7 ( su* ,code is am5d$ by ins]t+ 
be=e ! p]iod at ! end ! foll[+3 & ) !   
r$uction requir$ by subsection 7g74  7b7
 ,advance refund ( rese>* cr$its &      
orphan drug cr$its = ,c corporation     
taxpay]s ,section #ci ( su* ,code is    
am5d$ by add+ at ! end ! foll[+3  7e7   
,advance refund ( rese>* & orphan drug  
cr$its  7#a7 ,9 g5]al ,a taxpay] t is a 
,c corporation may elect an advance     

refund ( ! portion ( any unus$ bus9ess  
cr$it c>ry=w>d "u section #ci t-- 7,a7  
is attributable to ! cr$it det]m9$ "u   
section #da or ! cr$it det]m9$ "u       
section #de;,c1 &  7,b7 is an unus$     
bus9ess cr$it c>ry=w>d c>ri$ to a       
taxable ye> beg9n+ on or aft] ,janu>y   
#a1 #bjbj1 & be=e ,janu>y #a1 #bjbb1 & t
 arose 9 taxable ye>s beg9n+ aft]       
,janu>y #a1 #bjae4  7#b7 ,limitation ,! 
am\nt elect$ "u p>agraph 7#a7 = a       
taxable ye> may n exce$ ! excess (      
#be1jjj1jjj r$uc$ by ! am\nt elect$ = ! 
taxable ye> z an advance refund ( net   
op]at+ loss c>ryov]s "u section         
#agb7;g74  7#c7 ,inapplicability (      
sections #ch7;c7 & #chc7;a7 ,= purposes 
( ?is subsection1 ! am\nt ( any advance 
refund %all be comput$ )\t respect to ! 
limitations "u sections #ch7;c7 &       
#chc7;a74  7#d7 ,regulations & guidance 
,! ,secret>y %all issue su* regulations 
& o!r guidance z may be necess>y-- 7,a7 
to all[ = ! mak+ ( an election "u       
p>agraph 7#a7 9 su* mann] z ! ,secret>y 

may by regulations prescribe1  7,b7 to  
all[ ! advance refund "u ?is subsection 
& section #fdbi bas$ on su* in=mation z 
! ,secret>y %all require1 &  7,c7 to    
all[ advance refunds "u ?is section to  
be claim$ on su* =ms z ! ,secret>y %all 
prescribe4  4  7c7 ,advance refund (    
c]ta9 net op]at+ losses1 rese>* cr$it1 &
 orphan drug cr$it  7#a7 ,9 g5]al       
,sub*apt] ,b ( *apt] #fe ( su* ,code is 
am5d$ by ins]t+ aft] section #fdbh !    
foll[+ new section3  #fdbi4 ,advance    
refund ( c]ta9 net op]at+ losses1 rese>*
 cr$it1 & orphan drug cr$it  7a7 ,9     
g5]al ,9 ! case ( a ,c corporation1 !   
advance refund sum may be claim$ by !   
taxpay] z foll[s3 7#a7 ,payroll taxes   
,fir/1 by r$uc+ deposits or paym5ts (-- 
7,a7 ! applicable employm5t taxes impos$
 "u sections #caja7;a71 #caja7;b71      
#caaa7;a71 & #caaa7;b7 7r$uc$ by any    
cr$its all[$ "u subsections 7e7 & 7f7 ( 
section #caaa1 sections #gjja & #gjjc ( 
! ,families ,fir/ ,coronavirus ,response
 ,act & section #bcja ( ! ,coronavirus1 

,aid1 ,relief1 & ,economic ,security    
,act7 on ! wages paid ) respect to !    
employm5t ( all ! employees ( ! taxpay] 
= a cal5d> qu>t]1 &  7,b7 ! )hold+ taxes
 requir$ to be paid by an employ]       
pursuant to section #cdjc1 ) ! balance (
 ! advance refund payable to ! taxpay]4 
7#b7 ,advance refundability ( excess    
losses ,second1 any rema9+ am\nt to be  
refund$ to ! taxpay] aft] ! application 
( p>agraph 7#a7 %all be treat$ z an     
ov]paym5t & %all be refund$ 9 a mann]   
simil> to t prescrib$ 9 subsection      
#bcja7;b77#c7 ( ! ,coronavirus1 ,aid1   
,relief1 & ,economic ,security ,act4    
7b7 ,advance refund sum ,= purposes (   
subsection 7a71 ! t]m advance refund sum
 means ! sum (-- 7#a7 ! am\nt elect$ by 
! taxpay] z an advance refund ( net     
op]at+ loss c>ryov]s "u section         
#agb7;g71 &  7#b7 ! am\nt ( any unus$   
bus9ess cr$it c>ry=w>d elect$ "u section
 #ci7;e7 t is attributable to ! rese>*  
cr$it det]m9$ "u section #da or ! orphan
 drug cr$it det]m9$ "u section #de;,c4  

7c7 ,recapture  7#a7 ,9 g5]al ,!        
,secret>y %all1 by regulations1 provide 
= recaptur+ ! b5efit ( any advance      
refund all[able "u ?is section if !re is
 a sale or full or p>tial liquidation ( 
! corporation dur+ ! recapture p]iod4 ,!
 recapture am\nt %all n exce$ ! less]   
(-- 7,a7 ! am\nt ( any proce$s or       
di/ributions receiv$ by %>ehold]s ( !   
corporation attributable to su* sale or 
liquidation1 or  7,b7 ! am\nt t !       
advance refund exce$s ! aggregate am\nt 
sp5t by ! corporation on payroll1 rese>*
 exp5ses1 & prop]ty1 plant & equipm5t   
dur+ ! recapture p]iod4  7#b7 ,recapture
 p]iod ,= purposes ( p>agraph 7#a71 !   
t]m recapture p]iod means ! two-ye>     
p]iod beg9n+ on ! date ( ! advance      
refund4  4  7#b7 ,transf]s to ,f$]al    
old-age & survivors insurance tru/ fund 
,!re are h]eby appropriat$ to ! ,f$]al  
,old-,age & ,survivors ,insurance ,tru/ 
,fund & ! ,f$]al ,disability ,insurance 
,tru/ ,fund e/abli%$ "u section #bja ( !
 ,social ,security ,act 7#db ,u4,s4,c4  

#dja71 ! ,f$]al ,hospital ,insurance    
,tru/ ,fund e/abli%$ "u section         
#ahag7;a7 ( ! ,social ,security ,act    
7#db ,u4,s4,c4 #acie;i7a771 & ! ,social 
,security ,equival5t ,b5efit ,acc\nt    
e/abli%$ "u section #ae;,a7a7 ( !       
,railroad ,retirem5t ,act ( #aigd 7#de  
,u4,s4,c4 #ad #bcan-#a7;a77 am\nts equal
 to ! r$uction 9 rev5ues to ! ,treasury 
by reason ( ?is section 7)\t reg>d to   
?is subsection74 ,am\nts appropriat$ by 
! prec$+ s5t5ce %all be transf]r$ f !   
g5]al fund at su* times & 9 su* mann] z 
to replicate to ! ext5t possible !      
transf]s :i* w\ld h occurr$ to su* ,tru/
 ,fund or ,acc\nt _h ?is section n be5  
enact$4  7#c7 ,cl]ical am5dm5t ,! table 
( sections = sub*apt] ,b ( *apt] #fe (  
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #fdbh ! foll[+ new   
item3  ,sec4 #fdbi4 ,advance refund (   
c]ta9 net op]at+ losses1 rese>* cr$it1 &
 orphan drug cr$it4  4  7d7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  

,decemb] #ca1 #bjai4  #c4 ,enhanc$      
rese>* cr$it = ,,covid-#ai exp5ditures  
7a7 ,9 g5]al ,section #da ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  7i7 ,enhanc$ cr$it =
 ,,covid-#ai rese>* exp5ditures  7#a7 ,9
 g5]al ,= purposes ( det]m9+ ! am\nt (  
qualifi$ rese>* exp5ses "u subsection   
7b7 = ! taxable ye>1 ! am\nt ( any      
qualifi$ ,,covid-#ai rese>* exp5ditures 
paid or incurr$ by a taxpay] on or aft] 
,febru>y #ae1 #bjbj1 & be=e ,janu>y #a1 
#bjbb1 %all be equal to #bjj p]c5t ( !  
am\nt paid or incurr$4  7#b7 ,qualifi$  
,,covid-#ai rese>* exp5ditures ,! t]m   
qualifi$ ,,covid-#ai rese>* exp5ditures 
has ! mean+ giv5 su* t]m by section     
#agb7;g77#b74  4  7b7 ,effective date ,!
 am5dm5t made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4