Sec. 20211. Improvements to employee retention credit
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/bill/116/hr/6800/ih/section-20211·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 2301(a) of the CARES Act is amended by striking 50 percent and inserting 80 percent . Section 2301(b)(1) of the CARES Act is amended by striking for all calendar quarters shall not exceed $10,000. and inserting shall not exceed— $15,000 in any calendar quarter, and $45,000 in the aggregate for all calendar quarters. . Section 2301(c)(3)(A) of the CARES Act is amended— by striking for which the average number of full-time employees (within the meaning of in clause
(i)and inserting section 4980H of the Internal Revenue Code of 1986) employed by such eligible employer during 2019 was greater than 100 which is a large employer , and by striking for which the average number of full-time employees (within the meaning of in clause
(ii)and inserting section 4980H of the Internal Revenue Code of 1986) employed by such eligible employer during 2019 was not greater than 100 which is not a large employer . Section 2301(c) of the CARES Act is amended by redesignating paragraph
(6)as paragraph
(7)and by inserting after paragraph
(5)the following new paragraph: The term large employer means any eligible employer if— the average number of full-time employees (as determined for purposes of determining whether an employer is an applicable large employer for purposes of section 4980H(c)(2) of the Internal Revenue Code of 1986) employed by such eligible employer during calendar year 2019 was greater than 1,500, and the gross receipts (within the meaning of section 448(c) of the Internal Revenue Code of 1986) of such eligible employer during calendar year 2019 was greater than $41,500,000. . Section 2301(c)(2)(B) of the CARES Act is amended— by striking 50 percent in clause
(i)and inserting 90 percent , and by striking 80 percent in clause
(ii)and inserting 90 percent . Section 2301(c)(2) of the CARES Act is amended by adding at the end the following new subparagraph: In the case of any calendar quarter with respect to which an eligible employer would not be an eligible employer if subparagraph (B)(i) were applied by substituting 50 percent for 90 percent , the amount of the credit allowed under subsection
(a)shall be reduced by the amount which bears the same ratio to the amount of such credit (determined without regard to this subparagraph) as— the excess gross receipts percentage point amount, bears to 40 percentage points. For purposes of this subparagraph, the term excess gross receipts percentage point amount means, with respect to any calendar quarter, the excess of— the lowest of the gross receipts percentage point amounts determined with respect to any calendar quarter during the period ending with such calendar quarter and beginning with the first calendar quarter during the period described in subparagraph (B), over 50 percentage points. For purposes of this subparagraph, the term gross receipts percentage point amount means, with respect to any calendar quarter, the percentage (expressed as a number of percentage points) obtained by dividing— the gross receipts (within the meaning of subparagraph (B)) for such calendar quarter, by the gross receipts for the same calendar quarter in calendar year 2019. . Section 2301(c)(2)(C) of the CARES Act is amended— by striking of such Code, clauses
(i)and (ii)(I) and inserting of such Code— clauses
(i)and (ii)(I) , by striking the period at the end and inserting , and , and by adding at the end the following new clause: any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section 6033 of such Code. . Section 2301(c)(5) of the CARES Act is amended to read as follows: The term wages means wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) and compensation (as defined in section 3231(e) of such Code). Such term shall include amounts paid or incurred by the eligible employer to provide and maintain a group health plan (as defined in section 5000(b)(1) of the Internal Revenue Code of 1986), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a) of such Code. For purposes of this section, amounts treated as wages under clause
(i)shall be treated as paid with respect to any employee (and with respect to any period) to the extent that such amounts are properly allocable to such employee (and to such period) in such manner as the Secretary may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among periods of coverage. . Section 2301(c)(3) of the CARES Act is amended by striking subparagraph (C). Section 2301(c)(3)(B) of the CARES Act is amended by inserting (including tips which would have been deemed to be paid by the employer under section 3121(q)) after would have been paid . Section 2301(h)(2) of the CARES Act is amended by inserting 45B or before 45S . Section 2301(f) of the CARES Act is amended to read as follows: The credit under this section shall not be allowed to the Federal Government or any agency or instrumentality thereof. Paragraph
(1)shall not apply to any organization described in section 501(c)(1) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code. In the case of any State government, Indian tribal government, or any agency, instrumentality, or political subdivision of the foregoing— clauses
(i)and (ii)(I) of subsection (c)(2)(A) shall apply to all operations of such entity, and subclause
(II)of subsection (c)(2)(A)(ii) shall not apply. . Section 2301(c)(5)(A) of the CARES Act, as amended by the preceding provisions of this Act, is amended by adding at the end the following: For purposes of the preceding sentence (other than for purposes of subsection (b)(2)), wages as defined in . section 3121(a) of the Internal Revenue Code of 1986 shall be determined without regard to paragraphs (1), (5), (6), (7), (8), (10), (13), (18), (19), and
(22)of section 3212(b) of such Code (except with respect to services performed in a penal institution by an inmate thereof). Sections 2301(c)(6) of the CARES Act is amended by striking Any term and inserting Except as otherwise provided in this section, any term . The amendments made by this section shall take effect as if included in section 2301 of the CARES Act.