,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hhjb ,,in ,,the ,,house ,,of ,,representatives ,november #bj1 #bjbj,mr4 ,horsford 7for himself1 ,mr4 ,la,hood1 and ,mr4 ,panetta7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to create a refundable tax credit for travel expenditures1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,hospitality and ,commerce ,job ,recovery ,act of #bjbj4 #b4 ,establishment of tax credit to support the convention and trade show industry 7a7 ,in general ,for purposes of section #ch of the ,internal ,revenue ,code of #aihf1 the convention and trade show restart credit shall be treated as a credit listed at the end of subsection 7b7 of such section4 ,for purposes of this section1 the convention and trade show restart credit for any taxable year is an amount equal to the sum of-- 7#a7 #ej percent of the qualified participation costs paid or incurred by a taxpayer during such taxable year1 and 7#b7 in the case of an eligible provider1 #ajj percent of the qualified restart costs paid or incurred by such provider during such taxable year4 7b7 ,qualified participation costs ,for purposes of this section1 the term qualified participation costs means any costs or expenses paid or incurred by the taxpayer after ,december #ca1 #bjbj1 for any employee or officer of the taxpayer to attend a qualified event1 including registration fees1 lodging1 and costs with respect to carrying out an exhibition relating to the taxpayer4 ,such term shall not include any costs which are not necessary for the attendance of such employee or officer at such event4 7c7 ,eligible provider2 qualified restart costs ,in this section-- 7#a7 ,eligible provider ,the term eligible provider means any person which-- 7,a7 provides facilities at which a qualified event may be held1 or 7,b7 sponsors or is otherwise responsible for the administration of a qualified event4 7#b7 ,qualified restart costs ,the term qualified restart costs means any costs paid or incurred by an eligible provider after ,december #ca1 #bjbj1 in reopening after such date a facility described in paragraph 7#a77;,a7 which was closed or forced to reduce services due to the virus ,,sars-,co,v-#b or coronavirus disease #bjai 7hereinafter referred to in this section as ,,covid-#ai71 including-- 7,a7 any renovation1 remediation1 or additional labor and rental costs related to preventing individuals present in such facility from contracting ,,covid-#ai1 and 7,b7 any testing of employees of the taxpayer or guests of such facility for symptoms of ,,covid-#ai4 7d7 ,qualified event 7#a7 ,in general ,in this section1 the term qualified event means-- 7,a7 a convention1 seminar1 or similar meeting 7as such terms are used in section #bgd of the ,internal ,revenue ,code of #aihf71 7,b7 a business meeting 7as such term is used in such section71 or 7,c7 a trade show1 which takes place after ,december #ca1 #bjbj4 7#b7 ,trade show ,for purposes of this subsection1 the term trade show means any exhibition at which different businesses within a particular industry promote their products and services4 7e7 ,denial of double benefit ,no deduction shall be allowed under any provision of chapter #a of the ,internal ,revenue ,code of #aihf with respect to any amount taken in account in determining the credit allowed to a taxpayer under this section4 7f7 ,location requirement ,no credit shall be allowed under this section with respect to any qualified event unless such event is held within the ,united ,states 7including any territory or possession of the ,united ,states74 7g7 ,payroll credit for nonprofit employers 7#a7 ,in general ,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 ,code1 the credit determined under this section shall be allowed as a credit against applicable employment taxes paid by such organization for calendar quarters in the taxable year1 and not treated as a credit listed at the end of section #ch7;b7 of such ,code4 7#b7 ,limitations and refundability 7,a7 ,credit limited to employment taxes ,the credit allowed by paragraph 7#a7 with respect to calendar quarters in any taxable year 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 organization for such taxable year4 7,b7 ,refundability of excess credit 7i7 ,in general ,if the amount of the credit under paragraph 7#a7 exceeds the limitation of subparagraph 7,a7 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 7ii7 ,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 7#c7 ,applicable employment taxes ,for purposes of this subsection1 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 7h7 ,regulations and guidance ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 may prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of this section4 7i7 ,termination ,this section shall not apply to any costs paid or incurred in taxable years beginning after ,december #ca1 #bjbc4 #c4 ,improvements to employee retention tax credit 7a7 ,increase in credit percentage ,section #bcja7;a7 of the ,,cares ,act 7,public ,law #aaf-acf7 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 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 ,reduction of decline in gross receipts necessary to qualify for credit ,section #bcja7;c77#b77;,b7 of the ,,cares ,act is amended-- 7,a7 by striking #ej percent in clause 7i7 and inserting #ij percent1 and 7,b7 by striking #hj percent in clause 7ii7 and inserting #ij 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 #ij 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 #dj 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 with respect to any calendar quarter occurring during the period described in clause 7iii71 over 7,,ii7 #ej percentage points4 7iii7 ,period described ,for purposes of applying clause 7ii7 to any calendar quarter1 the period described in this clause is the period ending with such calendar quarter and beginning with the first calendar quarter during the period described in subparagraph 7,b74 7iv7 ,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 which is 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 ,application of credit to employers of domestic workers 7#a7 ,in general ,section #bcja7;c77#b7 of the ,,cares ,act1 as amended by the preceding provisions of this ,act1 is amended by adding at the end the following new subparagraph3 7,e7 ,employers of domestic workers ,in the case of an employer with one or more employees who perform domestic service 7within the meaning of section #caba7;a77#g7 of such ,code7 in the private home of such employer1 with respect to such employees-- 7i7 subparagraph 7,a7 shall be applied-- 7,i7 by substituting employing an employee who performs domestic service in the private home of such employer for carrying on a trade or business in clause 7i7 thereof1 7,,ii7 by substituting such employment for the operation of the trade or business described in clause 7i7 in clause 7ii77,i7 thereof1 and 7,,iii7 without regard to clause 7ii77,,ii71 and 7ii7 such employer shall be treated as a large employer4 4 7#b7 ,denial of double benefit ,section #bcja7;h77#b7 of the ,,cares ,act1 as amended by preceding provisions of this ,act1 is amended-- 7,a7 by striking shall not be taken into account for purposes of and inserting shall not be taken into account-- 7,a7 for purposes of 1 7,b7 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7,b7 if such wages are paid for domestic service described in subsection 7c77#b77;,e71 as employment-related expenses for purposes of section #ba of such ,code4 ,in the case of any individual who pays wages for domestic service described in subsection 7c77#b77;,e7 and receives a reimbursement for such wages which is excludible from gross income under section #abi of such ,code1 such wages shall not be treated as qualified wages for purposes of this section4 4 7i7 ,effective date ,the amendments made by this section shall take effect as if included in section #bcja of the ,,cares ,act4 #d4 ,repeal of limitation on entertainment1 etc4 expenses related to trade or business 7a7 ,in general ,section #bgd of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subsection 7o7 as subsection 7p71 7#b7 by redesignating subsection 7l71 as added by section #accjd7;c7 of ,public ,law #aae-ig1 as subsection 7o71 and 7#c7 by moving such subsection 7o71 as so redesignated1 to the location after subsection 7n74 7b7 ,repeal ,the amendments made by subsections 7a7 and 7b7 of section #accjd of ,public ,law #aae-ig are repealed and the provisions of law amended by such subsections are restored as if such subsections had never been enacted4 7c7 ,conforming amendment ,subsection 7d7 of section #accjd of ,public ,law #aae-ig is amended by striking subsection 7o7 as subsection 7p7 in paragraph 7#a7 and inserting subsections 7o7 and 7p7 as subsections 7p7 and 7q71 respectively4 7d7 ,effective date 7#a7 ,in general ,the amendments made by subsections 7a7 and 7c7 and the repeal made by subsection 7b7 shall take effect on the date of the enactment of this ,act4 7#b7 ,application ,the provisions of law as restored by subsection 7b7 shall apply to amounts paid or incurred in taxable years ending after the date of the enactment of this ,act4 #e4 ,establishment of tax credit to support the restaurant industry 7a7 ,in general ,for purposes of section #ch of the ,internal ,revenue ,code of #aihf1 in the case of an eligible taxpayer1 the restaurant and dining restart credit shall be treated as a credit listed at the end of subsection 7b7 of such section4 ,for purposes of this section1 the restaurant and dining restart credit for any taxable year is an amount equal to the qualified restart costs paid or incurred by the eligible taxpayer during the taxable year4 7b7 ,eligible taxpayer ,for purposes of this section1 the term eligible taxpayer means a taxpayer-- 7#a7 which owns a trade or business devoted to preparation and on-premises consumption of food and beverages1 or 7#b7 which owns property on which such a trade or business operates1 if more than #ej percent of the square footage of such property is devoted to preparation of1 and seating for on-premises consumption of1 prepared meals4 7c7 ,qualified restart costs ,for purposes of this section1 the term qualified restart costs means any costs paid or incurred by an eligible taxpayer on or after the date of the enactment of this ,act in reopening a trade or business or property described in subsection 7b71 or increasing meal and beverage services provided by such trade or business or at such property1 which was closed or forced to reduce services due to the virus ,,sars-,co,v-#b or coronavirus disease #bjai 7referred to in this section as ,,covid-#ai71 including-- 7#a7 any renovation1 remediation1 or additional labor and rental costs related to preventing individuals present at such trade or business or on such property from contracting ,,covid-#ai2 and 7#b7 any testing of employees of the eligible taxpayer or guests of such trade or business or such property for symptoms of ,,covid-#ai4 ,for purposes of the preceding sentence1 a trade or business shall be treated as having reduced services if such trade or business reduced hours of operation1 number of employees or employee hours1 or capacity of seating areas1 closed seating areas1 or took any other measures which reduced services provided or operations of the trade or business as determined by the ,secretary of the ,treasury4 7d7 ,denial of double benefit ,no deduction shall be allowed under any provision of chapter #a of the ,internal ,revenue ,code of #aihf with respect to any amount taken in account in determining the credit allowed to a taxpayer under this section4 7e7 ,regulations and guidance ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 may prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of this section4 7f7 ,termination ,this section shall not apply to any costs paid or incurred in taxable years beginning after ,december #ca1 #bjbb4 #f4 ,credit for travel expenditures 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf the following new section3 #cf;,a4 ,credit for travel expenditures 7a7 ,allowance of credit ,in the case of an individual who pays or incurs any qualified travel expenses during a taxable year1 there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to #ej percent of such expenses4 7b7 ,limitations 7#a7 ,dollar limitation ,the credit allowed under subsection 7a7 for any taxable year shall not exceed the sum of-- 7,a7 #a1ejj 7#gej in the case of a married individual filing a separate return71 plus 7,b7 #ejj for each qualifying child 7as defined in section #aeb7;c77 of the individual1 but not to exceed #a1ejj4 7#b7 ,limitation based on adjusted gross income 7,a7 ,in general ,the amount allowable as a credit under subsection 7a7 7after the application of paragraph 7#a7 and determined without regard to this paragraph7 for the taxable year shall be reduced 7but not below zero7 by #b for every #ej by which the taxpayer's modified adjusted gross income for such taxable year exceeds #ge1jjj 7#aej1jjj in the case of a joint return74 7,b7 ,modified adjusted gross income ,the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7c7 ,qualified travel expense ,for purposes of this section-- 7#a7 ,in general ,the term qualified travel expense means any amount paid or incurred for travel within the ,united ,states which is at least #ej miles from the individual's home and includes an overnight stay1 including amounts paid or incurred for food and beverages1 lodging1 recreation1 transportation1 amusement or entertainment1 including live entertainment and sporting events1 and gasoline4 7#b7 ,minimum amount ,any expense 7determined by treating all items on a single receipt as #a expense7 which is less than #be shall not be taken into account under paragraph 7#a74 7#c7 ,united ,states ,the term ,united ,states includes the territories and possessions of the ,united ,states4 7#d7 ,exception ,for purposes of paragraph 7#a71 amounts paid with respect to a residence or other lodging owned by the individual shall not be treated as qualified travel expenses4 7d7 ,election ,to carry credit to preceding year ,at the election of the taxpayer1 any credit allowable under this section for a taxable year may be carried back 7in its entirety7 to the preceding taxable year and treated as a credit allowed under this subpart for such year4 7e7 ,restrictions ,no credit shall be allowed to an individual under subsection 7a7 with respect to a qualified travel expense if-- 7#a7 the individual receives a refund or reimbursement from any person for the expense1 7#b7 a deduction is allowed under section #afb with respect to the expense1 7#c7 a deduction under section #aea with respect to individual is allowable to another taxpayer for such taxable year1 or 7#d7 the individual does not attach sufficient evidence of the expense1 as prescribed by the ,secretary1 to the return of tax for such taxable year4 7f7 ,termination ,this section shall not apply to any qualified travel expenses paid or incurred after ,december #ca1 #bjbc4 4 7b7 ,clerical amendment ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf the following new item3 ,sec4 #cf;,a4 ,credit for travel expenditures4 4 7c7 ,conforming amendment ,section #fbaa7;b77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 #cf;,a after #cf4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjbj4