,,ii  #aag? ,,congress  #a/ ,session    
,s4 #dgg  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #be1 #bjba,ms4
 ,cortez ,ma/o 7= h]self & ,mr4 ,cram]7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to create a       
refundable tax cr$it = travel           
exp5ditures1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,hospitality & ,comm]ce ,job ,recov]y   
,act ( #bjba4  #b4 ,e/abli%m5t ( tax    
cr$it to support ! conv5tion & trade %[ 
indu/ry  7a7 ,9 g5]al ,= purposes (     
section #ch ( ! ,int]nal ,rev5ue ,code (
 #aihf1 ! conv5tion & trade %[ re/>t    
cr$it %all be treat$ z a cr$it li/$ at !
 end ( subsection 7b7 ( su* section4 ,= 
purposes ( ?is section1 ! conv5tion &   
trade %[ re/>t cr$it = any taxable ye>  
is an am\nt equal to ! sum (-- 7#a7 #ej 
p]c5t ( ! qualifi$ p>ticipation co/s    
paid or incurr$ by a taxpay] dur+ su*   
taxable ye>1 &  7#b7 9 ! case ( an      

eligible provid]1 #ajj p]c5t ( !        
qualifi$ re/>t co/s paid or incurr$ by  
su* provid] dur+ su* taxable ye>4  7b7  
,qualifi$ p>ticipation co/s ,= purposes 
( ?is section1 ! t]m qualifi$           
p>ticipation co/s means any co/s or     
exp5ses paid or incurr$ by ! taxpay]    
aft] ,decemb] #ca1 #bjbj1 = any employee
 or (fic] ( ! taxpay] to att5d or       
p>ticipate 9 a qualifi$ ev5t1 includ+   
regi/ration fees1 lodg+1 & co/s )       
respect to c>ry+ out an exhibition      
relat+ to ! taxpay]4 ,su* t]m %all n    
include any co/s :i* are n necess>y = ! 
att5dance or p>ticipation ( su* employee
 or (fic] at su* ev5t4  7c7 ,eligible   
provid]2 qualifi$ re/>t co/s ,9 ?is     
section-- 7#a7 ,eligible provid] ,! t]m 
eligible provid] means any p]son :i*--  
7,a7 provides facilities at :i* a       
qualifi$ ev5t may be held1 or  7,b7     
sponsors1 op]ates1 or is o!rwise        
responsible = ! adm9i/ration ( a        
qualifi$ ev5t4  7#b7 ,qualifi$ re/>t    
co/s ,! t]m qualifi$ re/>t co/s means   

any co/s paid or incurr$ by an eligible 
provid] aft] ,decemb] #ca1 #bjbj1 9     
reop5+ aft] su* date a facility describ$
 9 p>agraph 7#a77;,a7 :i* 0 clos$ or =c$
 to r$uce s]vices due to ! virus        
,,s>s-,co,v-#b or coronavirus disease   
#bjai 7ref]r$ to 9 ?is section z        
,,covid-#ai71 includ+-- 7,a7 any        
r5ovation1 rem$iation1 p]sonal          
protective equipm5t1 clean+1 or         
additional labor & r5tal co/s relat$ to 
prev5t+ individuals pres5t 9 su*        
facility f contract+ ,,covid-#ai1 &     
7,b7 any te/+ ( employees ( ! taxpay] or
 gue/s ( su* facility = symptoms (      
,,covid-#ai4  7d7 ,qualifi$ ev5t  7#a7  
,9 g5]al ,9 ?is section1 ! t]m qualifi$ 
ev5t means-- 7,a7 a conv5tion1 sem9>1 or
 simil> meet+ 7z su* t]ms are us$ 9     
section #bgd ( ! ,int]nal ,rev5ue ,code 
( #aihf71  7,b7 a bus9ess meet+ 7z su*  
t]m is us$ 9 su* section71 or  7,c7 a   
trade %[1  :i* takes place aft] ,decemb]
 #ca1 #bjba4  7#b7 ,trade %[ ,= purposes
 ( ?is subsection1 ! t]m trade %[ means 

any exhibition at :i* diff]5t bus9esses 
)9 a p>ticul> indu/ry promote _!        
products & s]vices4  7e7 ,d5ial ( d\ble 
b5efit ,no d$uction %all be all[$ "u any
 provision ( *apt] #a ( ! ,int]nal      
,rev5ue ,code ( #aihf ) respect to any  
am\nt tak5 9 acc\nt 9 det]m9+ ! cr$it   
all[$ to a taxpay] "u ?is section4  7f7 
,location requirem5t ,no cr$it %all be  
all[$ "u ?is section ) respect to any   
qualifi$ ev5t unless su* ev5t is held )9
 ! ,unit$ ,/ates 7includ+ any t]ritory  
or possession ( ! ,unit$ ,/ates74  7g7  
,payroll cr$it = nonpr(it employ]s  7#a7
 ,9 g5]al ,9 ! case ( an organization   
:i* is describ$ 9 section #eja7;c7 ( !  
,int]nal ,rev5ue ,code ( #aihf & exempt 
f tax "u section #eja7;a7 ( su* ,code1 !
 cr$it det]m9$ "u ?is section %all be   
all[$ z a cr$it aga9/ applicable        
employm5t taxes paid by su* organization
 = cal5d> qu>t]s 9 ! taxable ye>1 & n   
treat$ z a cr$it li/$ at ! end ( section
 #ch7;b7 ( su* ,code4  7#b7 ,limitations
 & refundability  7,a7 ,cr$it limit$ to 

employm5t taxes ,! cr$it all[$ by       
p>agraph 7#a7 ) respect to cal5d> qu>t]s
 9 any taxable ye> %all n exce$ !       
applicable employm5t taxes 7r$uc$ by any
 cr$its all[$ "u subsections 7e7 & 7f7 (
 section #caaa ( ! ,int]nal ,rev5ue     
,code ( #aihf & sections #gjja & #gjjc (
 ! ,families ,fir/ ,coronavirus         
,response ,act7 on ! wages paid )       
respect to ! employm5t ( all ! employees
 ( ! organization = su* taxable ye>4    
7,b7 ,refundability ( excess cr$it  7i7 
,9 g5]al ,if ! am\nt ( ! cr$it "u       
p>agraph 7#a7 exce$s ! limitation (     
subp>agraph 7,a7 = any cal5d> qu>t]1 su*
 excess %all be treat$ z an ov]paym5t t 
%all be refund$ "u sections #fdjb7;a7 & 
#fdac7;b7 ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7ii7 ,treatm5t ( paym5ts ,=     
purposes ( section #acbd ( title #ca1   
,unit$ ,/ates ,code1 any am\nts due to !
 employ] "u ?is p>agraph %all be treat$ 
9 ! same mann] z a refund due f a cr$it 
provision ref]r$ to 9 subsection 7b77#b7
 ( su* section4  7#c7 ,applicable       

employm5t taxes ,= purposes ( ?is       
subsection1 ! t]m applicable employm5t  
taxes means ! foll[+3 7,a7 ,! taxes     
impos$ "u section #caaa7;a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf4  7,b7 ,s mu* ( !
 taxes impos$ "u section #cbba7;a7 ( su*
 ,code z are attributable to ! rate 9   
effect "u section #caaa7;a7 ( su* ,code4
  7h7 ,regulations & guidance ,!        
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 may prescribe su* 
regulations & o!r guidance z may be     
appropriate or necess>y to c>ry out !   
purposes ( ?is section4  7i7 ,t]m9ation 
,?is section %all n apply to any co/s   
paid or incurr$ 9 taxable ye>s beg9n+   
aft] ,decemb] #ca1 #bjbd4  #c4 ,ext5sion
 ( employee ret5tion tax cr$it  7a7 ,9  
g5]al ,section #bcja7m7 ( ! ,,c>es ,act 
7,public ,law #aaf-acf7 is am5d$ by     
/rik+ ,july #a1 #bjba & ins]t+ ,janu>y  
#a1 #bjbb4  7b7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to cal5d> qu>t]s beg9n+ aft] ,june #cj1 
#bjba4  #d4 ,susp5sion ( limitation on  

ent]ta9m5t1 etc4 exp5ses relat$ to trade
 or bus9ess  7a7 ,9 g5]al ,section #bgd 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7q7 ,special rules =       
taxable ye>s #bjba ?r\gh #bjbb ,9 ! case
 ( a taxable ye> beg9n+ aft] ,decemb]   
#ca1 #bjbj1 & be=e ,janu>y #a1 #bjbc--  
7#a7 subsection 7a77#a77;,a7 %all n     
apply to any exp5se if ! taxpay]        
e/abli%es t ! item 0 directly relat$ to1
 or1 9 ! case ( an item directly prec$+ 
or foll[+ a sub/antial & bona fide      
bus9ess discussion 7includ+ bus9ess     
meet+s at a conv5tion or o!rwise71 t su*
 item 0 associat$ )1 ! active conduct ( 
! taxpay]'s trade or bus9ess1 except t !
 d$uction "u ?is section ) respect to   
any su* exp5se %all 9 no ev5t exce$ !   
portion ( su* exp5se ) respect to :i* ! 
taxpay] s e/abli%es1  7#b7 9 ! case ( a 
club1 subsection 7a77#a77;,b7 %all n    
apply if ! taxpay] e/abli%es t !        
facility 0 us$ prim>ily = ! fur!rance ( 
! taxpay]'s trade or bus9ess & t ! item 

0 directly relat$ to ! active conduct ( 
su* trade or bus9ess1  7#c7 no d$uction 
or cr$it %all be all[$ = any item 7n    
includ+ any qualifi$ nonp]sonal use     
vehicle 7z def9$ 9 subsection 7i77 )    
respect to an activity :i* is ( a type  
g5]ally consid]$ to con/itute           
ent]ta9m5t1 amusem5t1 or recreation1 or 
) respect to a facility us$ 9 connection
 ) su* an activity1 unless ! taxpay]    
sub/antiates by adequate records or by  
suffici5t evid5ce corroborat+ !         
taxpay]'s own /atem5t-- 7,a7 ! am\nt (  
su* exp5se or o!r item1  7,b7 ! "t &    
place ( ! ent]ta9m5t1 amusem5t1         
recreation1 or use ( ! facility or      
prop]ty1  7,c7 ! bus9ess purpose ( !    
exp5se or o!r item1 &  7,d7 ! bus9ess   
relation%ip to ! taxpay] ( ! p]sons     
ent]ta9$ or us+ ! facility or prop]ty1  
except z ! ,secret>y may by regulations 
provide 9 ! case ( an exp5se :i* does n 
exce$ an am\nt prescrib$ pursuant to su*
 regulations1  7#d7 9 det]m9+ ! am\nt   
all[able z a d$uction "u ?is *apt] = any

 ticket = any activity or facility      
describ$ 9 p>agraph 7#c71 ! am\nt tak5  
into acc\nt %all n exce$ ! face value ( 
su* ticket1 except t-- 7,a7 ?is p>agraph
 %all n apply to any ticket = any sports
 ev5t-- 7i7 :i* is organiz$ = ! prim>y  
purpose ( b5efit+ an organization :i* is
 describ$ 9 section #eja7;c77#c7 &      
exempt f tax "u section #eja7;a71  7ii7 
all ( ! net proce$s ( :i* are contribut$
 to su* organization1 &  7iii7 :i*      
utilizes volunte]s = sub/antially all ( 
! "w p]=m$ 9 c>ry+ out su* ev5t1 &  7,b7
 9 ! case ( a skybox or o!r private     
luxury box leas$ = m ?an #a ev5t1 !     
am\nt all[able z a d$uction "u ?is *apt]
 ) respect to su* ev5ts %all n exce$ !  
sum ( ! face value ( non-luxury box seat
 tickets = ! seats 9 su* box cov]$ by ! 
lease 7det]m9$ by treat+ #b or m relat$ 
leases z #a lease71  7#e7 ! am\nt       
all[able z a d$uction "u ?is *apt] = any
 item ) respect to an activity :i* is ( 
a type g5]ally consid]$ to con/itute    
ent]ta9m5t1 amusem5t1 or recreation1 or 

) respect to a facility us$ 9 connection
 ) su* activity1 %all n exce$ #ej p]c5t 
( ! am\nt ( su* exp5se or item :i* w\ld 
7b = ?is p>agraph7 be all[able z a      
d$uction "u ?is *apt]1 &  7#f7 p>agraph 
7#e7 %all n apply to any exp5se if--    
7,a7 su* exp5se is describ$ 9 p>agraph  
7#b71 7#c71 7#d71 7#g71 7#h71 or 7#i7 ( 
subsection 7e71  7,b7 su* exp5se is     
excludable f ! gross income ( ! recipi5t
 "u section #acb by reason ( subsection 
7e7 !re( 7relat+ to de m9imis fr+es71 or
  7,c7 su* exp5se is cov]$ by a package 
involv+ a ticket describ$ 9 p>agraph    
7#d77;,a74  4  7b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbj4  #e4 ,e/abli%m5t ( tax cr$it
 to support ! re/aurant indu/ry  7a7 ,9 
g5]al ,= purposes ( section #ch ( !     
,int]nal ,rev5ue ,code ( #aihf1 9 ! case
 ( an eligible taxpay]1 ! re/aurant &   
d9+ re/>t cr$it %all be treat$ z a cr$it
 li/$ at ! end ( subsection 7b7 ( su*   
section4 ,= purposes ( ?is section1 !   

re/aurant & d9+ re/>t cr$it = any       
taxable ye> is an am\nt equal to !      
qualifi$ re/>t co/s paid or incurr$ by !
 eligible taxpay] dur+ ! taxable ye>4   
7b7 ,eligible taxpay] ,= purposes ( ?is 
section1 ! t]m eligible taxpay] means a 
taxpay]-- 7#a7 :i* owns a trade or      
bus9ess devot$ to prep>ation ( food &   
bev]ages = on-premises consumption or   
c>ry out 7n includ+ a trade or bus9ess  
:i* sells items o!r ?an prep>$ food &   
bev]ages71 or  7#b7 :i* owns prop]ty on 
:i* su* a trade or bus9ess op]ates1 if m
 ?an #ej p]c5t ( ! squ>e footage ( su*  
prop]ty is devot$ to prep>ation (1 &    
seat+ = on-premises consumption (1      
prep>$ meals4  7c7 ,qualifi$ re/>t co/s 
,= purposes ( ?is section1 ! t]m        
qualifi$ re/>t co/s means any co/s paid 
or incurr$ by an eligible taxpay] on or 
aft] ! date ( ! enactm5t ( ?is ,act 9   
reop5+ a trade or bus9ess or prop]ty    
describ$ 9 subsection 7b71 or increas+  
meal & bev]age s]vices provid$ by su*   
trade or bus9ess or at su* prop]ty1 :i* 

0 clos$ or =c$ to r$uce s]vices due to !
 virus ,,s>s-,co,v-#b or coronavirus    
disease #bjai 7ref]r$ to 9 ?is section z
 ,,covid-#ai71 includ+-- 7#a7 any       
r5ovation1 rem$iation1 or additional    
labor & r5tal co/s relat$ to prev5t+    
individuals pres5t at su* trade or      
bus9ess or on su* prop]ty f contract+   
,,covid-#ai1 &  7#b7 any te/+ (         
employees ( ! eligible taxpay] or gue/s 
( su* trade or bus9ess or su* prop]ty = 
symptoms ( ,,covid-#ai4  ,= purposes ( !
 prec$+ s5t5ce1 a trade or bus9ess %all 
be treat$ z hav+ r$uc$ s]vices if su*   
trade or bus9ess r$uc$ h\rs ( op]ation1 
numb] ( employees or employee h\rs1 or  
capacity ( seat+ areas1 clos$ seat+     
areas1 or took any o!r measures :i*     
r$uc$ s]vices provid$ or op]ations ( !  
trade or bus9ess z det]m9$ by !         
,secret>y ( ! ,treasury4  7d7 ,d5ial (  
d\ble b5efit ,no d$uction %all be all[$ 
"u any provision ( *apt] #a ( ! ,int]nal
 ,rev5ue ,code ( #aihf ) respect to any 
am\nt tak5 9 acc\nt 9 det]m9+ ! cr$it   

all[$ to a taxpay] "u ?is section4  7e7 
,regulations & guidance ,! ,secret>y ( !
 ,treasury 7or ! ,secret>y's delegate7  
may prescribe su* regulations & o!r     
guidance z may be appropriate or        
necess>y to c>ry out ! purposes ( ?is   
section4  7f7 ,t]m9ation ,?is section   
%all n apply to any co/s paid or incurr$
 9 taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbb4  #f4 ,cr$it = travel        
exp5ditures  7a7 ,9 g5]al ,subp>t ,c (  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #cf ! foll[+ new 
section3  #cf;,a4 ,cr$it = travel       
exp5ditures  7a7 ,all[ance ( cr$it ,9 ! 
case ( an individual :o pays or incurs  
any qualifi$ travel exp5ses dur+ a      
taxable ye>1 !re %all be all[$ z a cr$it
 aga9/ ! tax impos$ by ?is subtitle =   
su* taxable ye> an am\nt equal to #ej   
p]c5t ( su* exp5ses4  7b7 ,limitations  
7#a7 ,doll> limitation ,! cr$it all[$ "u
 subsection 7a7 = any taxable ye> %all n
 exce$ ! sum (-- 7,a7 #a1ejj 7#gej 9 !  

case ( a m>ri$ individual fil+ a sep>ate
 return71 plus  7,b7 #ejj = ea* qualify+
 *ild 7z def9$ 9 section #aeb7;c77 ( !  
individual1 b n to exce$ #a1ejj4  7#b7  
,limitation bas$ on adju/$ gross income 
7,a7 ,9 g5]al ,! am\nt all[able z a     
cr$it "u subsection 7a7 7aft] !         
application ( p>agraph 7#a7 & det]m9$   
)\t reg>d to ?is p>agraph7 = ! taxable  
ye> %all be r$uc$ 7b n bel[ z]o7 by #b =
 e #ej by :i* ! taxpay]'s modifi$ adju/$
 gross income = su* taxable ye> exce$s  
#ge1jjj 7#aej1jjj 9 ! case ( a jo9t     
return74  7,b7 ,modifi$ adju/$ gross    
income ,! t]m modifi$ adju/$ gross      
income means ! adju/$ gross income ( !  
taxpay] = ! taxable ye> increas$ by any 
am\nt exclud$ f gross income "u section 
#iaa1 #ica1 or #icc4  7c7 ,qualifi$     
travel exp5se ,= purposes ( ?is         
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
travel exp5se means any am\nt paid or   
incurr$ = travel )9 ! ,unit$ ,/ates :i* 
is at lea/ #ej miles f ! individual's   
home & includes an ov]night /ay1 includ+

 am\nts paid or incurr$ = food &        
bev]ages1 lodg+1 recreation1            
transportation1 amusem5t or ent]ta9m5t1 
includ+ live ent]ta9m5t & sport+ ev5ts1 
& gasol9e4  7#b7 ,m9imum am\nt ,any     
exp5se 7det]m9$ by treat+ all items on a
 s+le receipt z #a exp5se7 :i* is less  
?an #be %all n be tak5 into acc\nt "u   
p>agraph 7#a74  7#c7 ,unit$ ,/ates ,!   
t]m ,unit$ ,/ates includes ! t]ritories 
& possessions ( ! ,unit$ ,/ates4  7#d7  
,exception ,= purposes ( p>agraph 7#a71 
am\nts paid ) respect to a resid5ce or  
o!r lodg+ own$ by ! individual %all n be
 treat$ z qualifi$ travel exp5ses4  7d7 
,election ,to c>ry cr$it to prec$+ ye>  
,at ! election ( ! taxpay]1 any cr$it   
all[able "u ?is section = a taxable ye> 
may be c>ri$ back 79 its entirety7 to ! 
prec$+ taxable ye> & treat$ z a cr$it   
all[$ "u ?is subp>t = su* ye>4  7e7     
,re/rictions ,no cr$it %all be all[$ to 
an individual "u subsection 7a7 )       
respect to a qualifi$ travel exp5se if--
 7#a7 ! individual receives a refund or 

reimbursem5t f any p]son = ! exp5se1    
7#b7 a d$uction is all[$ "u section #afb
 ) respect to ! exp5se1  7#c7 a d$uction
 "u section #aea ) respect to individual
 is all[able to ano!r taxpay] = su*     
taxable ye>1 or  7#d7 ! individual does 
n atta* suffici5t evid5ce ( ! exp5se1 z 
prescrib$ by ! ,secret>y1 to ! return ( 
tax = su* taxable ye>4  7f7 ,t]m9ation  
,?is section %all n apply to any        
qualifi$ travel exp5ses paid or incurr$ 
aft] ,decemb] #ca1 #bjbc4  4  7b7       
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,c ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #cf ! foll[+ new item3
  7c7 ,con=m+ am5dm5t ,section          
#fbaa7;b77#d77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ 1      
#cf;,a aft] #cf4  7d7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to am\nts paid or incurr$ aft] ,decemb]
 #ca1 #bjbj4  #g4 ,e/abli%m5t ( tempor>y
 tax cr$it = unm]*antable inv5tory  7a7 

,9 g5]al ,= purposes ( section #ch ( !  
,int]nal ,rev5ue ,code ( #aihf1 9 ! case
 ( an eligible taxpay]1 ! unm]*antable  
inv5tory cr$it %all be treat$ z a cr$it 
li/$ at ! end ( subsection 7b7 ( su*    
section4 ,= purposes ( ?is subsection1 !
 unm]*antable inv5tory cr$it = any      
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjai1 & end+ be=e ,april #a1 #bjba1    
%all be equal to #ij p]c5t ( ! qualifi$ 
unm]*antable inv5tory co/s incurr$ by ! 
eligible taxpay] dur+ su* taxable ye>4  
7b7 ,eligible taxpay] ,= purposes ( ?is 
section1 ! t]m eligible taxpay] means   
any taxpay] :i*-- 7#a7 on ,m>* #ac1     
#bjbj1 0 engag$ 9 an active trade or    
bus9ess ( sell+ food or bev]age inv5tory
 z a manufactur]1 import]1 :olesale     
di/ributor1 or retail]1 &  7#b7 )       
respect to su* trade or bus9ess-- 7,a7  
on or aft] ,m>* #ac1 #bjbj1 held        
qualifi$ unm]*antable inv5tory1 or  7,b7
 incurr$ co/s describ$ 9 subsection     
7c77#a77;,a77i74  7c7 ,qualifi$         
unm]*antable inv5tory co/s  7#a7 ,9     

g5]al ,= purposes ( ?is section1 !      
qualifi$ unm]*antable inv5tory co/s     
incurr$ by an eligible taxpay] dur+ any 
taxable ye> %all be equal to-- 7,a7 an  
am\nt equal to ! sum (-- 7i7 any co/s   
describ$ 9 section #bfc;,a7a77#b7 ( !   
,int]nal ,rev5ue ,code ( #aihf ) respect
 to ! pur*ase or acquisition ( any      
qualifi$ unm]*antable inv5tory dur+ su* 
taxable ye>1  7ii7 any co/s relat+ to   
disposal or de/ruction ( any qualifi$   
unm]*antable inv5tory dur+ su* taxable  
ye>1 &  7iii7 any am\nt paid or cr$it$  
by su* eligible taxpay] dur+ su* taxable
 ye> to any o!r p]son = purposes (      
apportion+ or %>+ co/s relat+ to        
products :i*1 9 ! h&s ( su* eligible    
taxpay]1 w\ld be deem$ to be qualifi$   
unm]*antable inv5tory1 m9us  7,b7 an    
am\nt equal to ! sum (-- 7i7 any am\nt  
receiv$ by su* eligible taxpay] dur+ su*
 taxable ye> f any o!r p]son = purposes 
( apportion+ or %>+ co/s ) respect to   
qualifi$ unm]*antable inv5tory1  7ii7   
any am\nts comp5sat$ by insurance = any 

loss su/a9$ by su* eligible taxpay] dur+
 su* taxable ye> ) respect to qualifi$  
unm]*antable inv5tory1 &  7iii7 any     
am\nts receiv$ "u ! ,coronavirus ,food  
,assi/ance ,program "u "p #i ( title #g1
 ,code ( ,f$]al ,regulations 7or        
successor regulations74  7#b7 ,direct   
co/s = manufactur]s ,9 ! case ( a       
manufactur]1 ! co/s describ$ 9 p>agraph 
7#a77;,a77i7 %all include any           
transportation co/s :i* w\ld n o!rwise h
 be5 capitaliz$ pursuant to section     
#bfc;,a ( ! ,int]nal ,rev5ue ,code (    
#aihf4  7d7 ,qualifi$ unm]*antable      
inv5tory  7#a7 ,9 g5]al ,= purposes (   
?is section1 ! t]m qualifi$ unm]*antable
 inv5tory means any food or bev]age     
inv5tory :i*-- 7,a7 0 manufactur$ or    
acquir$ by ! eligible taxpay]1 &  7,b7  
became unm]*antable dur+ ! p]iod beg9n+ 
on ,m>* #ac1 #bjbj1 & end+ on ,septemb] 
#cj1 #bjbj4  7#b7 ,unm]*antable ,=      
purposes ( ?is subsection1 ! t]m        
unm]*antable %all include any food or   
bev]age products :i* _c be sold due to--

 7,a7 spoilage1  7,b7 expiration        
pursuant to ! manufactur] code date or  
applicable indu/ry fre%ness /&>ds1 or   
7,c7 a *ange or limitation 9 m>ket      
conditions result+ 9 ! lack ( a cu/om>y 
& reasonable m>ket = su* products4  7e7 
,election ,to h cr$it n apply  7#a7 ,9  
g5]al ,a taxpay] may elect to h ?is     
section n apply = any taxable ye>4  7#b7
 ,"t = mak+ election ,an election "u    
p>agraph 7#a7 = any taxable ye> may be  
made 7or revok$7 at any "t be=e !       
expiration ( ! #c-ye> p]iod beg9n+ on ! 
la/ date prescrib$ by law = fil+ !      
return = su* taxable ye> 7det]m9$ )\t   
reg>d to ext5sions74  7#c7 ,mann] ( mak+
 election ,an election "u p>agraph 7#a7 
7or revocation !re(7 %all be made 9 su* 
mann] z ! ,secret>y ( ! ,treasury1 or ! 
,secret>y's delegate1 may by regulations
 prescribe4  7f7 ,d5ial ( d\ble b5efit  
,no d$uction %all be all[$ "u any       
provision ( *apt] #a ( ! ,int]nal       
,rev5ue ,code ( #aihf ) respect to any  
am\nt tak5 9 acc\nt 9 det]m9+ ! cr$it   

all[$ to a taxpay] "u ?is section4