Sec. 211. Enhanced employee hiring and retention payroll tax credit
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Section 2301(a) of the CARES Act is amended by striking 50 percent and inserting 65 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— $10,000 in any calendar quarter, and $30,000 in the aggregate for all calendar quarters. . Section 2301(c)(2)(B)(i) of the CARES Act ( Public Law 116–136 ) is amended by striking 50 percent and inserting 75 percent . Section 2301(c)(2) of the CARES Act is amended by redesignating subparagraph
(C)as subparagraph
(D)and by inserting after subparagraph
(B)the following new subparagraph: At the election of an employer who was not an eligible employer for the calendar quarter ending on June 30, 2020, subparagraph (B)(i) shall be applied— by substituting for the prior calendar quarter for for the calendar quarter , and by substituting the corresponding calendar quarter in the prior year for the same calendar quarter in the prior year . An election under this subparagraph shall be made at such time and in such manner as the Secretary shall prescribe. . Section 2301(c)(2)(D) of the CARES Act (as redesignated by subsection (c)(2)) 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)(3)(A) of the CARES Act is amended by striking 100 each place it appears in clauses
(i)and
(ii)and inserting 500 . Section 2301(c)(3) of the CARES Act is amended— by striking subparagraph (B), and by striking Such term in the second sentence of subparagraph
(A)and inserting the following: The term qualified wages . Section 2301(c) of the CARES Act is amended— by striking subparagraph
(C)of paragraph (3), and by striking paragraph
(5)and inserting the following: 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 1106(a)(8) of the CARES Act is amended by striking of this Act. and inserting of this Act, except that such costs shall not include qualified wages (as defined in section 2301(c) of this Act) which— are paid or incurred in calendar quarters beginning after June 30, 2020, and are taken into account in determining the credit allowed under section 2301 of this Act. . Section 2301(g) of the CARES Act is amended to read as follows: This section shall not apply to qualified wages paid by an eligible employer with respect to which such employer makes an election (at such time and in such manner as the Secretary may prescribe) to have this section not apply to such wages. The Secretary, in consultation with the Administrator of the Small Business Administration, shall issue guidance providing that payroll costs paid or incurred during the covered period shall not fail to be treated as qualified wages under this section by reason of an election under paragraph
(1)to the extent that a covered loan of the eligible employer is not forgiven under section 1106(b) by reason of such payroll costs. Terms used in the preceding sentence which are also used in section 1106 shall have the same meaning as when used in such section. . Section 2301(j) of the CARES Act is amended by inserting for any calendar quarter beginning after June 30, 2020 before the period at the end. Section 2301(h) of the CARES Act is amended— by striking paragraphs
(1)and
(2)and inserting the following: Any wages taken into account in determining the credit allowed under this section shall not be taken into account as wages for purposes of sections 45A, 45B, 45P, 45S, 51, and 1396 of the Internal Revenue Code of 1986. , and by redesignating paragraph
(3)as paragraph (2). Section 2301(l) of the CARES Act is amended by striking and at the end of paragraph (4), by striking the period at the end of paragraph
(5)and inserting , and , and by adding at the end the following new paragraph: to prevent the avoidance of the purposes of the limitations under this section, including through the leaseback of employees. . Except as provided in paragraph (2), the amendments made by this section shall apply to the calendar quarters beginning after June 30, 2020. The amendments made subsections (d), (e)(3), and
(h)shall take effect as if included in section 2301 of the CARES Act. For purposes of section 2301 of the CARES Act, an employer who has filed a return of tax with respect to applicable employment taxes (as defined in section 2301(c)(1) of such Act) before the date of the enactment of this Act may elect (in such manner as the Secretary of the Treasury (or the Secretary's delegate) shall prescribe) to treat any applicable amount as an amount paid in the calendar quarter which includes the date of the enactment of this Act. For purposes of clause (i), the term applicable amount means the amount of wages described in section 2301(c)(5)(B) of the CARES Act, as added by the amendments made by subsection (e)(3)), which— were paid or incurred in a calendar quarter beginning after December 31, 2019, and before July 1, 2020, and were not taken into account by the taxpayer in calculating the credit allowed under section 2301(a) of such Act for such calendar quarter.
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Sec. 211
Enhanced employee hiring and retention payroll tax credit
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