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II
116TH CONGRESS
2D SESSION
S. 3549
To amend the Internal Revenue Code of 1986 to provide advance tax refunds
to small businesses, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 20, 2020
Mr. WYDEN (for himself and Mr. CARDIN) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide
advance tax refunds to small businesses, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Save America’s Main
4
Street Act’’.
5
SEC. 2. SMALL BUSINESS REBATE.
6
(a) IN GENERAL.—Subchapter B of chapter 65 of
7
subtitle F of the Internal Revenue Code of 1986 is amend-
8
ed by inserting after section 6427 the following new sec-
9
tion:
10
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‘‘SEC. 6428. SMALL BUSINESS REBATE.
1
‘‘(a) ALLOWANCE OF CREDIT.—
2
‘‘(1) IN GENERAL.—In the case of a qualifying
3
business, there shall be allowed as a credit against
4
the tax imposed by subtitle A for the first taxable
5
year beginning in 2020 an amount equal to the less-
6
er of—
7
‘‘(A) 30 percent of qualified gross receipts
8
of such qualifying business for the first taxable
9
year beginning in 2019, or
10
‘‘(B) $75,000.
11
‘‘(2) SPECIAL RULE.—In the case of—
12
‘‘(A) a qualifying business which did not
13
file a tax return for the taxable year described
14
in paragraph (1)(A), or
15
‘‘(B) a sole proprietorship for which gross
16
receipts were not reported on a return of tax
17
for such taxable year,
18
such paragraph shall be applied by substituting
19
‘2018’ for ‘2019’.
20
‘‘(3) QUALIFIED
GROSS
RECEIPTS.—For pur-
21
poses of paragraph (1)(A), the term ‘qualified gross
22
receipts’ means gross receipts of the qualifying busi-
23
ness which are effectively connected with the conduct
24
of a trade or business within the United States
25
(within the meaning of section 864(c), determined
26
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•S 3549 IS
by substituting ‘qualifying business’ for ‘nonresident
1
alien individual or a foreign corporation’ or for ‘for-
2
eign corporation’ each place it appears) for the ap-
3
plicable taxable year under paragraph (1)(A), as re-
4
ported by the taxpayer on—
5
‘‘(A) in the case of a qualifying business
6
which is a partnership, the return required to
7
be filed under section 6031,
8
‘‘(B) in the case of a qualifying business
9
which is an S corporation, the return required
10
to be filed under section 6037, and
11
‘‘(C) in the case of any other qualifying
12
business, the return of tax for the taxable year.
13
‘‘(b) QUALIFYING BUSINESS.—
14
‘‘(1) IN GENERAL.—For purposes of this sec-
15
tion, the term ‘qualifying business’ means any per-
16
son which—
17
‘‘(A) meets the gross receipts test of sub-
18
section (c) of section 448 for the applicable tax-
19
able year under subsection (a)(1)(A), except
20
that subsection (c) of section 448 shall be ap-
21
plied—
22
‘‘(i) without regard to paragraph (4)
23
of such subsection, and
24
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‘‘(ii) by substituting ‘$1,000,000’ for
1
‘$25,000,000’, and
2
‘‘(B) with respect to the preceding cal-
3
endar year, employed an average of not greater
4
than 50 full-time employees (as such term is
5
defined in paragraph (4) of section 4980H(c))
6
on business days during such calendar year.
7
‘‘(2) SPECIAL
RULE.—For purposes of para-
8
graph (1)(A), in the case of any taxpayer which is
9
not a corporation or a partnership, the gross re-
10
ceipts test of section 448(c) shall be applied in the
11
same manner as if such taxpayer were a corporation
12
or partnership.
13
‘‘(3) FULL-TIME EQUIVALENTS.—For purposes
14
of paragraph (1)(B), the number of full-time em-
15
ployees shall be determined pursuant to rules similar
16
to the rules described in paragraph (2)(E) of section
17
4980H(c).
18
‘‘(4) AGGREGATION RULES.—All persons treat-
19
ed as a single employer under subsection (a) or (b)
20
of section 52 or subsection (m) or (o) of section 414
21
shall be treated as a single person for purposes of
22
paragraph (1)(B).
23
‘‘(5) QUALIFIED ORGANIZATIONS.—
24
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‘‘(A) INCLUSION
AS
QUALIFYING
BUSI-
1
NESS.—
2
‘‘(i) IN
GENERAL.—For purposes of
3
this section, the term ‘qualifying business’
4
shall include any qualified organization.
5
‘‘(ii) DEFINITION.—For purposes of
6
this paragraph, the term ‘qualified organi-
7
zation’ means an organization which—
8
‘‘(I)
is
described
in
section
9
501(c)(3) and exempt from tax under
10
section 501(a),
11
‘‘(II) is described in section
12
170(b)(1)(A),
13
‘‘(III) is not described in section
14
509(a)(3), and
15
‘‘(IV) satisfies the requirements
16
under subparagraphs (A) and (B) of
17
paragraph (1).
18
‘‘(B) QUALIFIED GROSS RECEIPTS.—
19
‘‘(i) IN
GENERAL.—For purposes of
20
subsection (a)(1)(A), in the case of a quali-
21
fied organization, the term ‘qualified gross
22
receipts’ means gross receipts of the orga-
23
nization for the taxable year described in
24
such subsection.
25
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‘‘(ii) SPECIAL RULE.—In the case of a
1
qualified organization which did not file a
2
tax return for the taxable year described in
3
subsection (a)(1)(A), such subsection shall
4
be applied by substituting ‘2018’ for
5
‘2019’.
6
‘‘(iii) ORGANIZATION
EXEMPT
FROM
7
FILING.—
8
‘‘(I) IN GENERAL.—In the case
9
of an organization which is exempt
10
from filing a return pursuant to sec-
11
tion 6033(a) or which is not required
12
to include in such return the informa-
13
tion
necessary
to
determine
the
14
amount of the credit allowed under
15
this section, such organization may
16
submit to the Secretary (in such form
17
and manner as is deemed appropriate
18
by the Secretary) any information re-
19
quired for purposes of determining—
20
‘‘(aa) whether such organi-
21
zation satisfies the requirements
22
under subparagraphs (A) and
23
(B) of paragraph (1), and
24
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‘‘(bb) the amount of the
1
credit allowed under subsection
2
(a)(1).
3
‘‘(II) PUBLICITY
OF
INFORMA-
4
TION.—For purposes of section 6104,
5
any information submitted by an or-
6
ganization under subclause (I) shall
7
be deemed to be information required
8
to be furnished by such organization
9
pursuant to section 6033.
10
‘‘(c) TREATMENT OF CREDIT.—The credit allowed by
11
subsection (a) shall be treated as allowed by subpart C
12
of part IV of subchapter A of chapter 1.
13
‘‘(d) COORDINATION WITH ADVANCE REFUNDS OF
14
CREDIT.—The amount of credit which would (but for this
15
subsection) be allowable under this section shall be re-
16
duced (but not below zero) by the aggregate refunds and
17
credits made or allowed to the taxpayer under subsection
18
(e). Any failure to so reduce the credit shall be treated
19
as arising out of a mathematical or clerical error and as-
20
sessed according to section 6213(b)(1).
21
‘‘(e) ADVANCE REFUNDS AND CREDITS.—
22
‘‘(1) IN GENERAL.—Any person which was a
23
qualifying business for such person’s last taxable
24
year ending before January 1, 2020, shall be treated
25
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as having made a payment against the tax imposed
1
by chapter 1 for such taxable year in an amount
2
equal to the advance refund amount for such taxable
3
year, regardless of whether such tax would have
4
been imposed on such person.
5
‘‘(2) ADVANCE
REFUND
AMOUNT.—For pur-
6
poses of paragraph (1), the advance refund amount
7
is the amount that would have been allowed as a
8
credit under this section for such taxable year if this
9
section (other than subsection (d) and this sub-
10
section) had applied to such taxable year.
11
‘‘(3) TIMING
OF
PAYMENTS.—The Secretary
12
shall, subject to the provisions of this title, refund
13
or credit any overpayment attributable to this sec-
14
tion as rapidly as possible. No refund or credit shall
15
be made or allowed under this subsection after De-
16
cember 31, 2020.
17
‘‘(4) NO INTEREST.—No interest shall be al-
18
lowed on any overpayment attributable to this sec-
19
tion.’’.
20
(b) CONFORMING AMENDMENTS.—
21
(1)
DEFINITION
OF
DEFICIENCY.—Section
22
6211(b)(4)(A) of the Internal Revenue Code of 1986
23
is amended by striking ‘‘and 36B, 168(k)(4)’’ and
24
inserting ‘‘36B, and 6428’’.
25
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(2) Paragraph (2) of section 1324(b) of title
1
31, United States Code, is amended by inserting
2
‘‘6428,’’ after ‘‘54B(h),’’.
3
(3) The table of sections for subchapter B of
4
chapter 65 of subtitle F of the Internal Revenue
5
Code of 1986 is amended by inserting after the item
6
relating to section 6427 the following:
7
‘‘Sec. 6428. Small Business Rebate.’’.
SEC. 3. MODIFICATION OF ESTIMATED TAX PAYMENTS FOR
8
SMALL BUSINESSES.
9
(a) TIMING AND AMOUNT OF REQUIRED INSTALL-
10
MENTS.—
11
(1) IN GENERAL.—In the case of any taxable
12
year beginning in 2020, with respect to a qualified
13
individual, notwithstanding section 6654(c) and sec-
14
tion 6654(d)(1)(A) of the Internal Revenue Code of
15
1986—
16
(A) there shall be 2 required installments
17
(within the meaning of section 6654 of such
18
Code) for the taxable year;
19
(B) the due date for the 1st installment is
20
September 15, 2020;
21
(C) the due date for the 2nd installment is
22
January 15, 2021;
23
(D) the amount of each such required in-
24
stallment shall be 50 percent of the required
25
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•S 3549 IS
annual
payment
(as
defined
in
section
1
6654(d)(1)(B) of such Code, after the applica-
2
tion of subparagraph (E));
3
(E) in determining such required annual
4
payment, section 6654(d)(1)(C) of such Code
5
shall not apply and section 6654(d)(1)(B)(ii) of
6
such Code shall be applied by substituting ‘‘75
7
percent’’ for ‘‘100 percent’’;
8
(F) if (after the application of this para-
9
graph) section 6654(d)(2) of such Code applies
10
to the qualified individual, the table contained
11
in subparagraph (C)(ii) thereof shall be applied
12
by substituting ‘‘0’’ for ‘‘22.5’’ and for ‘‘45’’,
13
and by substituting ‘‘45’’ for ‘‘67.5’’; and
14
(G) section 6654(h) of such Code shall be
15
applied by treating the 2nd required installment
16
as the 4th required installment.
17
(2) QUALIFIED INDIVIDUAL.—For purposes of
18
this subsection, the term ‘‘qualified individual’’
19
means any individual for a taxable year if—
20
(A) the adjusted gross income shown on
21
the return of tax of such individual for the pre-
22
ceding taxable year is less than $250,000
23
($500,000 in the case of a joint return); and
24
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(B) such individual certifies, in such form
1
or manner as is required by the Secretary of
2
the Treasury (or the Secretary’s delegate), that
3
more than 50 percent of the gross income
4
shown on the return of tax of such individual
5
for such preceding taxable year was income
6
from a qualified small business.
7
(3) INCOME
FROM
QUALIFIED
SMALL
BUSI-
8
NESS.—For purposes of this section, the term ‘‘in-
9
come from a qualified small business’’ means, with
10
respect to any taxable year, income from a trade or
11
business—
12
(A) which is located in the United States;
13
and
14
(B) the average number of employees of
15
which was less than 500 full-time equivalent
16
employees (within the meaning of section
17
4980H of the Internal Revenue Code of 1986)
18
for the calendar year ending with or within the
19
preceding taxable year.
20
(b) COORDINATION WITH SECTION 7508A.—In the
21
case of any postponement or extension by the Secretary
22
of the Treasury (or the Secretary’s delegate) under section
23
7508A of the Internal Revenue Code of 1986 affecting the
24
due date of the required installments under section 6654
25
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of such Code, subsection (a) shall apply only if the due
1
date for the 1st installment under paragraph (1)(B) there-
2
of is later than the due date prescribed for the 1st install-
3
ment under such postponement or extension.
4
SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS
5
OF EMPLOYEES AFFECTED BY COVID–19.
6
(a) IN GENERAL.—In the case of an eligible em-
7
ployer, there shall be allowed as a credit against the tax
8
imposed by section 3111(a) of the Internal Revenue Code
9
of 1986 or section 3221(a) of such Code for each calendar
10
quarter an amount equal to 50 percent of the qualified
11
wages with respect to each eligible employee of such em-
12
ployer for such taxable year. The amount of qualified
13
wages with respect to any eligible employee which may be
14
taken into account under this subsection by the eligible
15
employer for all calendar quarters during any designated
16
period shall not exceed $7,500.
17
(b) ELIGIBLE EMPLOYER.—
18
(1) IN
GENERAL.—The term ‘‘eligible em-
19
ployer’’ means any employer which—
20
(A) which has less than 500 full-time em-
21
ployees on the first day of the designated period
22
with respect to the employer; and
23
(B) which—
24
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(i) conducted an active trade or busi-
1
ness in a qualified coronavirus disaster
2
zone and meets the requirements of para-
3
graph (2)(A); or
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