,,ii #aagth ,,congress #ast ,session ,s4 #dgg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #be1 #bjba,ms4 ,cortez ,masto 7for herself and ,mr4 ,cramer7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 #bjba4 #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 or participate in 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 or participation 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 sponsors1 operates1 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 7referred to in this section as ,,covid-#ai71 including-- 7,a7 any renovation1 remediation1 personal protective equipment1 cleaning1 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 #bjba4 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 #aihf and sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,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 #bjbd4 #c4 ,extension of employee retention tax credit 7a7 ,in general ,section #bcja7m7 of the ,,cares ,act 7,public ,law #aaf-acf7 is amended by striking ,july #a1 #bjba and inserting ,january #a1 #bjbb4 7b7 ,effective date ,the amendments made by this section shall apply to calendar quarters beginning after ,june #cj1 #bjba4 #d4 ,suspension 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 by adding at the end the following new subsection3 7q7 ,special rules for taxable years #bjba through #bjbb ,in the case of a taxable year beginning after ,december #ca1 #bjbj1 and before ,january #a1 #bjbc-- 7#a7 subsection 7a77#a77;,a7 shall not apply to any expense if the taxpayer establishes that the item was directly related to1 or1 in the case of an item directly preceding or following a substantial and bona fide business discussion 7including business meetings at a convention or otherwise71 that such item was associated with1 the active conduct of the taxpayer's trade or business1 except that the deduction under this section with respect to any such expense shall in no event exceed the portion of such expense with respect to which the taxpayer so establishes1 7#b7 in the case of a club1 subsection 7a77#a77;,b7 shall not apply if the taxpayer establishes that the facility was used primarily for the furtherance of the taxpayer's trade or business and that the item was directly related to the active conduct of such trade or business1 7#c7 no deduction or credit shall be allowed for any item 7not including any qualified nonpersonal use vehicle 7as defined in subsection 7i77 with respect to an activity which is of a type generally considered to constitute entertainment1 amusement1 or recreation1 or with respect to a facility used in connection with such an activity1 unless the taxpayer substantiates by adequate records or by sufficient evidence corroborating the taxpayer's own statement-- 7,a7 the amount of such expense or other item1 7,b7 the time and place of the entertainment1 amusement1 recreation1 or use of the facility or property1 7,c7 the business purpose of the expense or other item1 and 7,d7 the business relationship to the taxpayer of the persons entertained or using the facility or property1 except as the ,secretary may by regulations provide in the case of an expense which does not exceed an amount prescribed pursuant to such regulations1 7#d7 in determining the amount allowable as a deduction under this chapter for any ticket for any activity or facility described in paragraph 7#c71 the amount taken into account shall not exceed the face value of such ticket1 except that-- 7,a7 this paragraph shall not apply to any ticket for any sports event-- 7i7 which is organized for the primary purpose of benefiting an organization which is described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 7ii7 all of the net proceeds of which are contributed to such organization1 and 7iii7 which utilizes volunteers for substantially all of the work performed in carrying out such event1 and 7,b7 in the case of a skybox or other private luxury box leased for more than #a event1 the amount allowable as a deduction under this chapter with respect to such events shall not exceed the sum of the face value of non-luxury box seat tickets for the seats in such box covered by the lease 7determined by treating #b or more related leases as #a lease71 7#e7 the amount allowable as a deduction under this chapter for any item with respect to an activity which is of a type generally considered to constitute entertainment1 amusement1 or recreation1 or with respect to a facility used in connection with such activity1 shall not exceed #ej percent of the amount of such expense or item which would 7but for this paragraph7 be allowable as a deduction under this chapter1 and 7#f7 paragraph 7#e7 shall not apply to any expense if-- 7,a7 such expense is described in paragraph 7#b71 7#c71 7#d71 7#g71 7#h71 or 7#i7 of subsection 7e71 7,b7 such expense is excludable from the gross income of the recipient under section #acb by reason of subsection 7e7 thereof 7relating to de minimis fringes71 or 7,c7 such expense is covered by a package involving a ticket described in paragraph 7#d77;,a74 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #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 of food and beverages for on-premises consumption or carry out 7not including a trade or business which sells items other than prepared food and beverages71 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-#ai1 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 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 #g4 ,establishment of temporary tax credit for unmerchantable inventory 7a7 ,in general ,for purposes of section #ch of the ,internal ,revenue ,code of #aihf1 in the case of an eligible taxpayer1 the unmerchantable inventory credit shall be treated as a credit listed at the end of subsection 7b7 of such section4 ,for purposes of this subsection1 the unmerchantable inventory credit for any taxable year beginning after ,december #ca1 #bjai1 and ending before ,april #a1 #bjba1 shall be equal to #ij percent of the qualified unmerchantable inventory costs incurred by the eligible taxpayer during such taxable year4 7b7 ,eligible taxpayer ,for purposes of this section1 the term eligible taxpayer means any taxpayer which-- 7#a7 on ,march #ac1 #bjbj1 was engaged in an active trade or business of selling food or beverage inventory as a manufacturer1 importer1 wholesale distributor1 or retailer1 and 7#b7 with respect to such trade or business-- 7,a7 on or after ,march #ac1 #bjbj1 held qualified unmerchantable inventory1 or 7,b7 incurred costs described in subsection 7c77#a77;,a77i74 7c7 ,qualified unmerchantable inventory costs 7#a7 ,in general ,for purposes of this section1 the qualified unmerchantable inventory costs incurred by an eligible taxpayer during any taxable year shall be equal to-- 7,a7 an amount equal to the sum of-- 7i7 any costs described in section #bfc;,a7a77#b7 of the ,internal ,revenue ,code of #aihf with respect to the purchase or acquisition of any qualified unmerchantable inventory during such taxable year1 7ii7 any costs relating to disposal or destruction of any qualified unmerchantable inventory during such taxable year1 and 7iii7 any amount paid or credited by such eligible taxpayer during such taxable year to any other person for purposes of apportioning or sharing costs relating to products which1 in the hands of such eligible taxpayer1 would be deemed to be qualified unmerchantable inventory1 minus 7,b7 an amount equal to the sum of-- 7i7 any amount received by such eligible taxpayer during such taxable year from any other person for purposes of apportioning or sharing costs with respect to qualified unmerchantable inventory1 7ii7 any amounts compensated by insurance for any loss sustained by such eligible taxpayer during such taxable year with respect to qualified unmerchantable inventory1 and 7iii7 any amounts received under the ,coronavirus ,food ,assistance ,program under part #i of title #g1 ,code of ,federal ,regulations 7or successor regulations74 7#b7 ,direct costs for manufacturers ,in the case of a manufacturer1 the costs described in paragraph 7#a77;,a77i7 shall include any transportation costs which would not otherwise have been capitalized pursuant to section #bfc;,a of the ,internal ,revenue ,code of #aihf4 7d7 ,qualified unmerchantable inventory 7#a7 ,in general ,for purposes of this section1 the term qualified unmerchantable inventory means any food or beverage inventory which-- 7,a7 was manufactured or acquired by the eligible taxpayer1 and 7,b7 became unmerchantable during the period beginning on ,march #ac1 #bjbj1 and ending on ,september #cj1 #bjbj4 7#b7 ,unmerchantable ,for purposes of this subsection1 the term unmerchantable shall include any food or beverage products which cannot be sold due to-- 7,a7 spoilage1 7,b7 expiration pursuant to the manufacturer code date or applicable industry freshness standards1 or 7,c7 a change or limitation in market conditions resulting in the lack of a customary and reasonable market for such products4 7e7 ,election ,to have credit not apply 7#a7 ,in general ,a taxpayer may elect to have this section not apply for any taxable year4 7#b7 ,time for making election ,an election under paragraph 7#a7 for any taxable year may be made 7or revoked7 at any time before the expiration of the #c-year period beginning on the last date prescribed by law for filing the return for such taxable year 7determined without regard to extensions74 7#c7 ,manner of making election ,an election under paragraph 7#a7 7or revocation thereof7 shall be made in such manner as the ,secretary of the ,treasury1 or the ,secretary's delegate1 may by regulations prescribe4 7f7 ,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