,,ii #aagth ,,congress #ast ,session ,s4 #ecg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #b 7legislative day1 ,march #a71 #bjba ,mr4 ,portman 7for himself and ,ms4 ,sinema7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide a tax credit for certain expenses associated with protecting employees from ,,covid-#ai4 #a4 ,short title ,this ,act may be cited as the ,healthy ,workplaces ,act4 #b4 ,healthy workplace payroll 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 sum of-- 7#a7 the qualified employee protection expenses paid or incurred by the employer during such calendar quarter1 7#b7 the qualified workplace reconfiguration expenses paid or incurred by the employer during such calendar quarter1 and 7#c7 the qualified education and training 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 7i7 ,in general ,the term applicable dollar limit means1 with respect to any employer for any calendar quarter1 the sum of-- 7,i7 #a1jjj1 multiplied by so much of the average number of full-time employees employed by such employer during such calendar quarter as does not exceed #ejj1 plus 7,,ii7 #gej1 multiplied by so much of such average number of full-time employees as exceeds #ejj but does not exceed #a1jjj1 plus 7,,iii7 #ejj1 multiplied by so much of such average number of full-time employees as exceeds #a1jjj but does note exceed #b1ejj1 plus 7,,iv7 #bej1 multiplied by so much of such average number of full-time employees as exceeds #b1ejj but does not exceed #e1jjj1 plus 7,v7 #ej1 multiplied by so much of such average number of full-time employees as exceeds #e1jjj4 7ii7 ,average number of full-time employees ,for purposes of this subsection1 the average number of full time employees shall be determined in the same manner as such number is 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-- 7,i7 an individual shall not be taken into account as an employee for any period during which substantially all of the services provided by such individual as an employee are provided outside the ,united ,states1 and 7,,ii7 under regulations provided by the ,secretary1 an individual who performs services as an independent contractor shall be treated as an employee of the employer if no credit under this section is allowed to any other employer with respect to such individual4 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 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 protection expenses ,for purposes of this section1 the term qualified employee protection expenses means amounts 7other than any qualified workplace reconfiguration expense7 paid or incurred by the employer for-- 7#a7 testing employees of the employer for ,,covid-#ai 7including on a periodic basis71 7#b7 equipment 7including masks1 gloves1 and disinfectants7 and technology systems used-- 7,a7 to protect customers or employees of the employer from contracting ,,covid-#ai1 or 7,b7 to enhance social distancing and contact tracing4 7#c7 cleaning products or services 7whether provided by an employee of the taxpayer or a cleaning service provider7 related to preventing the spread of ,,covid-#ai1 and 7#d7 such other equipment or technology which-- 7,a7 is recommended as part of the ,federal government's recommendations for safe workplaces1 and 7,b7 the ,secretary1 in consultation with the ,secretary of ,health and ,human ,services and the ,director of the ,centers for ,disease ,control and ,prevention1 determines is necessary and appropriate for preventing ,,covid-#ai4 7d7 ,qualified workplace reconfiguration expenses ,for purposes of this section-- 7#a7 ,in general ,the term qualified workplace reconfiguration expenses means amounts paid or incurred by the employer to evaluate1 design1 and reconfigure retail space1 work areas1 break areas1 or other areas that employees or customers regularly use in the ordinary course of the employer's trade or business if such evaluation1 design1 and reconfiguration-- 7,a7 has a primary purpose of preventing the spread of ,,covid-#ai1 7,b7 is with respect to an area that is located in the ,united ,states and that is leased or owned by the employer1 7,c7 is consistent with the ordinary use of the property immediately before the reconfiguration1 7,d7 is commensurate with the risks faced by the employees or customers or is consistent with recommendations made by the ,centers for ,disease ,control and ,prevention or the ,occupational ,safety and ,health ,administration1 7,e7 is completed pursuant to a reconfiguration plan and no comparable reconfiguration plan was in place before ,march #ac1 #bjbj1 and 7,f7 is completed before ,january #a1 #bjbb4 7#b7 ,regulations ,the ,secretary shall prescribe such regulations and other guidance as may be necessary or appropriate to carry out the purposes of this subsection1 including guidance defining primary purpose and reconfiguration plan4 7e7 ,qualified education and training expenses ,for purposes of this section-- 7#a7 ,in general ,the term qualified education and training expenses means amount paid or incurred to a qualified entity for the training employees on new business procedures related to preventing ,,covid-#ai transmission4 7#b7 ,qualified entity ,the term qualified entity means any entity certified by the ,secretary as an accredited training institution1 an industry-recognized trade association1 or a nonprofit entity qualified to provide training described in paragraph 7#a74 7f7 ,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 ,,covid-#ai ,except where the context clearly indicates otherwise1 any reference in this section to ,,covid-#ai shall be treated as including a reference to the virus which causes ,,covid-#ai4 7#c7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#d7 ,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 7g7 ,certain governmental employers ,this section 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 7h7 ,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 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 7#e7 ,coordination with paycheck protection program and other government grants 7,a7 ,paycheck protection program 7i7 ,in general ,no credit shall be allowed under section with respect to any amounts taken into account in connection with a covered loan under section #g7;a77#cg7 or #g;,a of the ,small ,business ,act4 7ii7 ,application where loans not forgiven ,the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall issue guidance providing that amounts taken into account during the covered period shall not fail to be treated as qualified wages under this section by reason of subparagraph 7,a7 to the extent that-- 7,i7 a covered loan of the taxpayer under section #g7;a77#cg7 of the ,small ,business ,act is not forgiven by reason of a decision under section #g7;a77#cg77;,j7 of such ,act1 or 7,,ii7 a covered loan of the taxpayer under section #g;,a of the ,small ,business ,act is not forgiven by reason of a decision under section #g;,a7g7 of such ,act4 7,b7 ,government grants ,no credit shall be allowed under this section with respect to any amount paid or incurred for property or services if such property or services are financed with funding provided under a ,federal1 ,state1 or local program a principal purpose of which is to provide subsidized financing for such property or services4 7#f7 ,expenses must be for property or services within the ,united ,states ,an amount paid or incurred by the employer shall not be taken into account as a qualified employee protection expense1 a qualified workplace reconfiguration expense1 or a qualified education and training expense if such amount is paid or incurred for-- 7,a7 equipment which is not for use in the ,united ,states1 or 7,b7 services which are not conducted in the ,united ,states4 7i7 ,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 #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 7j7 ,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 7k7 ,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 7#b7 regulations or other guidance with respect to amounts paid or incurred by an employer on behalf of the owner or lessee1 or paid or incurred by such owner or lessee1 of a property that is the subject of a management agreement or other similar legal arrangement1 and 7#c7 regulations or other guidance to prevent abusive transactions4 7l7 ,application ,this section shall only apply to amounts paid or incurred after ,december #ca1 #bjbj1 and before ,january #a1 #bjbb4 #c4 ,income tax credit for #bjbj qualified workplace reconfiguration expenses 7a7 ,in general ,for purposes of section #ch of the ,internal ,revenue ,code of #aihf1 in the case of an employer1 the #bjbj qualified workplace reconfiguration credit shall be treated as a credit listed at the end of subsection 7b7 of such section4 ,for purposes of this subsection1 the #bjbj qualified workplace reconfiguration credit for any taxable year is an amount equal to #ej percent of the qualified workplace reconfiguration expenses paid or incurred by the employer during such taxable year4 7b7 ,limitation 7#a7 ,in general ,the amount of the credit allowed under subsection 7a7 with respect to any employer for any taxable year shall not exceed-- 7,a7 #c1jjj1 multiplied by so much of the average number of full-time employees employed by such employer during such taxable year as does not exceed #ejj1 plus 7,b7 #j1 multiplied by so much of such average number of full-time employees as exceeds #ejj4 7#b7 ,average number of full-time employees ,for purposes of this subsection1 the average number of full time employees shall be determined in the same manner as such number is 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-- 7,a7 an individual shall not be taken into account as an employee for any period during which substantially all of the services provided by such individual as an employee are provided outside the ,united ,states1 and 7,b7 under regulations provided by the ,secretary1 an individual who performs services as an independent contractor shall be treated as an employee of the employer if no credit under this section is allowed to any other employer with respect to such individual4 7c7 ,qualified workplace reconfiguration expenses ,for purposes of this section-- 7#a7 ,in general ,the term qualified workplace reconfiguration expenses has the meaning given such term under section #b7;d74 7#b7 ,expenses must be for property or services within the ,united ,states ,an amount paid or incurred by the employer shall not be taken into account as a qualified workplace reconfiguration expense if such amount is paid or incurred for-- 7,a7 equipment which is not for use in the ,united ,states1 or 7,b7 services which are not conducted in the ,united ,states4 7d7 ,other 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 ,election not to have section apply ,this section shall not apply with respect to any 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 7#d7 ,coordination with paycheck protection program and other government grants 7,a7 ,paycheck protection program 7i7 ,in general ,no credit shall be allowed under section with respect to any amounts taken into account in connection with a covered loan under section #g7;a77#cg7 or #g;,a of the ,small ,business ,act4 7ii7 ,application where loans not forgiven ,the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall issue guidance providing that amounts taken into account during the covered period shall not fail to be treated as qualified wages under this section by reason of subparagraph 7,a7 to the extent that-- 7,i7 a covered loan of the taxpayer under section #g7;a77#cg7 of the ,small ,business ,act is not forgiven by reason of a decision under section #g7;a77#cg77;,j7 of such ,act1 or 7,,ii7 a covered loan of the taxpayer under section #g;,a of the ,small ,business ,act is not forgiven by reason of a decision under section #g;,a7g7 of such ,act4 7,b7 ,government grants ,no credit shall be allowed under this section with respect to any amount paid or incurred for property or services if such property or services are financed with funding provided under a ,federal1 ,state1 or local program a principal purpose of which is to provide subsidized financing for such property or services4 7e7 ,applicability ,this section shall apply to qualified workplace reconfiguration expenses paid or incurred after ,march #ab1 #bjbj1 and before ,january #a1 #bjba4