Sec. 9643. CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS
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## SEC. 9643 CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS **[**[26 U.S.C. 1401 note](/us/usc/t26/s1401)**]** ###
(a)In General In the case of an eligible self-employed individual, there shall be allowed as a credit against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for any taxable year an amount equal to 100 percent of the qualified family leave equivalent amount with respect to the individual. ###
(b)Eligible Self-employed Individual For purposes of this section— ####
(1)In general The term “eligible self-employed individual” means an individual who— #####
(A)regularly carries on any trade or business within the meaning of section 1402 of the Internal Revenue Code of 1986, and #####
(B)would be entitled to receive paid leave during the taxable year pursuant to the Emergency Family and Medical Leave Expansion Act if— ######
(i)the individual were an employee of an employer (other than himself or herself), ######
(ii)section 102(a)(1)(F) of the Family and Medical Leave Act of 1993 applied after March 31, 2021. ####
(2)Rules of application For purposes of paragraph (1)(B), in determining whether an individual would be entitled to receive paid leave under the Emergency Family and Medical Leave Act— #####
(A)section 110(a)(2)(A) of the Family and Medical Leave Act of 1993 shall be applied by inserting “or any reason for leave described in section 5102(a) of the Families First Coronavirus Response Act, or the employee is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID-19 and such employee has been exposed to COVID-19 or is unable to work pending the results of such test or diagnosis, or the employee is obtaining immunization related to COVID-19 or recovering from any injury, disability, illness, or condition related to such immunization” after “public health emergency”, and #####
(B)section 110(b) of such Act shall be applied— ######
(i)without regard to paragraph
(1)thereof, and ######
(ii)by striking “after taking leave after such section for 10 days” in paragraph (2)(A) thereof. ###
(c)Qualified Family Leave Equivalent Amount For purposes of this section— ####
(1)In general The term “qualified family leave equivalent amount” means, with respect to any eligible self-employed individual, an amount equal to the product of— #####
(A)the number of days (not to exceed 60) during the taxable year that the individual is unable to perform services in any trade or business referred to in section 1402 of the Internal Revenue Code of 1986 for a reason with respect to which such individual would be entitled to receive paid leave as described in subsection
(b)of this section, multiplied by #####
(B)the lesser of— ######
(i)67 percent of the average daily self-employment income of the individual for the taxable year, or ######
(ii)$200. ####
(2)Average daily self-employment income For purposes of this subsection, the term “average daily self-employment income” means an amount equal to— #####
(A)the net earnings from self-employment income of the individual for the taxable year, divided by #####
(B)260. ####
(3)Election to use prior year net earnings from self-employment income In the case of an individual who elects (at such time and in such manner as the Secretary may provide) the application of this paragraph, paragraph (2)(A) shall be applied by substituting “the prior taxable year” for “the taxable year”. ####
(4)Coordination with credit for sick leave Any day taken into account in determining the qualified sick leave equivalent amount with respect to any eligible-self employed individual under section 9642 shall not be take into account in determining the qualified family leave equivalent amount with respect to such individual under this section. ###
(d)Credit Refundable ####
(1)In general The credit determined under this section shall be treated as a credit allowed to the taxpayer under subpart C of part IV of subchapter A of chapter 1 of such Code. ####
(2)Treatment of payments For purposes of section 1324 of title 31, United States Code, any refund due from the credit determined under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. ###
(e)Special Rules ####
(1)Documentation No credit shall be allowed under this section unless the individual maintains such documentation as the Secretary may prescribe to establish such individual as an eligible self-employed individual. ####
(2)Denial of double benefit In the case of an individual who receives wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) or compensation (as defined in section 3231(e) of such Code) paid by an employer which are required to be paid by reason of the Emergency Family and Medical Leave Expansion Act, the qualified family leave equivalent amount otherwise described in subsection
(c)of this section shall be reduced (but not below zero) to the extent that the sum of the amount described in such subsection and in section 3132(b)(1) of such Code exceeds $12,000. ####
(3)References to emergency family and medical leave expansion act Any reference in this section to the Emergency Family and Medical Leave Expansion Act shall be treated as including a reference to the amendments made by such Act. ###
(f)Application of Section Only days occurring during the period beginning on April 1, 2021 and ending on September 30, 2021, may be taken into account under subsection (c)(1)(A). ###
(g)Application of Credit in Certain Possessions ####
(1)Payments to possessions with mirror code tax systems The Secretary shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of the provisions of this section. Such amounts shall be determined by the Secretary based on information provided by the government of the respective possession. ####
(2)Payments to other possessions The Secretary shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary, under which such possession will promptly distribute such payments to its residents. ####
(3)Mirror code tax system For purposes of this section, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. ####
(4)Treatment of payments For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. ###
(h)Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including— ####
(1)regulations or other guidance to prevent the avoidance of the purposes of this section, and ####
(2)regulations or other guidance to minimize compliance and record-keeping burdens under this section. ### PART 6 EMPLOYEE RETENTION CREDIT
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Sec. 9643
CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF-EMPLOYED INDIVIDUALS
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