,,ii #aahth ,,congress #ast ,session ,s4 #bh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd 7legislative day1 ,january #c71 #bjbc,mr4 ,cardin 7for himself1 ,mr4 ,brown1 ,mrs4 ,murray1 and ,mr4 ,markey7 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 provide a partially refundable credit against payroll taxes for certain restaurants affected by the ,,covid-#ai pandemic4 #a4 ,short title ,this ,act may be cited as the ,restaurant ,revitalization ,tax ,credit ,act4 #b4 ,restaurant revitalization credit 7a7 ,in general ,subchapter ,d of chapter #ba of subtitle ,c of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #cace4 ,restaurant revitalization credit 7a7 ,in general ,in the case of an eligible employer1 there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to #ajj percent of the wages with respect to each employee of such employer for such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,in general ,the aggregate amount of wages which may be taken into account under subsection 7a7 by the eligible employer for any calendar quarter shall not exceed #be1jjj4 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 #caaa7 on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter4 ,for purposes of the preceding sentence1 the credit allowed under subsection 7a7 shall be applied first against applicable employment taxes described in subsection 7c77#a77;,a74 7#c7 ,partial refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#b71 so much of such excess as does not exceed the applicable employer refund limitation shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b74 7,b7 ,applicable employer refund limitation ,for purposes of subparagraph 7,a71 the applicable employer refund limitation is the excess of-- 7i7 #be1jjj1 over 7ii7 the amount of credit treated as an overpayment of the eligible employer by reason of this paragraph for all preceding calendar quarters4 7,c7 ,reduction based on number of employees ,in the case of any eligible employer for which the average number of full-time employees 7within the meaning of section #dihj;,h7 employed by such eligible employer during the last calendar quarter of #bjbb 7rounded to the nearest multiple of #a7 exceeds #aj1 the #be1jjj dollar amount under subparagraph 7,a77ii77,i7 shall be reduced 7but not below zero7 by the product of such excess and #b1ejj4 7c7 ,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;a74 7,b7 ,the taxes imposed under section #caaa7;b74 7#b7 ,eligible employer 7,a7 ,in general ,the term eligible employer means any employer-- 7i7 which is an eligible entity 7as defined in section #ejjc7;a7 of the ,american ,rescue ,plan ,act of #bjba7 which-- 7,i7 was established before ,march #ad1 #bjbj1 7,,ii7 submitted an application for a grant under section #ejjc7;c7 of such ,act in accordance with the procedures established by the ,administrator of the ,small ,business ,administration under such section1 7,,iii7 certifies to the ,secretary 7in such form and manner as the ,secretary requires7 that such employer was eligible for a grant under such section1 and 7,,iv7 did not receive any grant funds under such section due to a lack of funding1 7ii7 which paid applicable employment taxes with respect to pay periods occurring in at least #b calendar quarters of calendar year #bjba1 and 7iii7 which meets the gross receipts test of subparagraph 7,b74 7,b7 ,gross receipts test ,an employer meets the gross receipts test of this subparagraph if-- 7i7 the gross receipts of such employer for any applicable calendar year were less than #ej percent the gross receipts of such employer for calendar year #bjai1 or 7ii7 the average gross receipts of such employer for all applicable calendar years were less than #gj percent the gross receipts of such employer for the calendar year #bjai4 7,c7 ,applicable calendar year ,for purposes of this paragraph1 the term applicable calendar year means any of the following3 7i7 ,calendar year #bjbj4 7ii7 ,calendar year #bjba4 7,d7 ,special rule for employers not in existence for entirety of #bjai ,in the case of any employer that was in existence before ,january #a1 #bjbj1 but not in existence on ,january #a1 #bjai1 the amount of gross receipts taken into account for any applicable calendar year shall be the amount of such gross receipts 7determined without regard to this clause7 multiplied by the ratio of-- 7i7 the number of days during #bjai during which such employer was in existence1 to 7ii7 #cfe4 7,e7 ,special rule for employers not in existence before #bjbj ,in the case of any employer that was not in existence before ,january #a1 #bjbj1 in applying this paragraph-- 7i7 the amount of gross receipts for calendar year #bjai shall be equal to the product of-- 7,i7 the amount of gross receipts for the period beginning on the date the employer was established and ending before ,march #ad1 #bjbj1 and 7,,ii7 the ratio of #cff to the number of days in the period described in subclause 7,i71 and 7ii7 the amount of gross receipts for calendar year #bjbj shall be equal to the product of-- 7,i7 the amount of gross receipts for the period beginning after ,march #ac1 #bjbj1 and ending on ,december #ca1 #bjbj1 and 7,,ii7 the ratio of #cff to the number of days in the period described in subclause 7,i74 7#c7 ,wages 7,a7 ,in general ,the term wages has the meaning given such term under section #caba7;a71 determined without regard to paragraph 7#a7 thereof4 7,b7 ,exception ,such term shall not include any wages taken into account under sections #da1 #de;,a1 #de,p1 #de,s1 #ea1 and #acif4 7#d7 ,other terms ,any term used in this section which is also used in this chapter shall have the same meaning as when used in this chapter4 7d7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one employer for purposes of this section4 7e7 ,election ,to not take certain wages into account ,this section shall not apply to so much of the wages paid by an eligible employer as such employer elects 7at such time and in such manner as the ,secretary may prescribe7 to not take into account for purposes of this section4 7f7 ,third party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b74 7g7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef 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 7h7 ,extension of limitation on assessment ,notwithstanding section #feja1 the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is #e years after the later of-- 7#a7 the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed1 or 7#b7 the date on which such return is treated as filed under section #feja7;b77#b74 7i7 ,regulations and guidance ,the ,secretary shall issue such forms1 instructions1 regulations1 and other guidance as are necessary-- 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 #cejd71 including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors1 and 7#b7 to prevent the avoidance of the purposes of the limitations under this section1 including through the leaseback of employees4 ,any forms1 instructions1 regulations1 or other guidance described in paragraph 7#a7 shall require the customer to be responsible for the accounting of the credit and for any liability for improperly claimed credits and shall require the certified professional employer organization or other third party payor to accurately report such tax credits based on the information provided by the customer4 7j7 ,application ,this section shall only apply to wages paid after ,december #ca1 #bjbb1 and before ,january #a1 #bjbd4 4 7b7 ,refunds ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting 8#cace10 after 8#cacd104 7c7 ,clerical amendment ,the table of sections for subchapter ,d of chapter #ba of subtitle ,c of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,sec4 #cace4 ,restaurant revitalization credit4 4 7d7 ,coordination with ,small ,business ,administration ,the ,administrator of the ,small ,business ,administration shall coordinate with and provide information to the ,secretary of the ,treasury 7or the ,secretary's delegate7 to assist in identifying employers that are eligible for the credit allowed by section #cace of the ,internal ,revenue ,code of #aihf1 as added by this section4 7e7 ,effective date ,the amendments made by this section shall apply to calendar quarters beginning after ,december #ca1 #bjbb4