1. Short title
This Act may be cited as the “Paycheck Protection Program Improved Coordination Act of 2020”.
Paycheck Protection Program Improved Coordination Act of 2020
A BILL
To provide for improved coordination between the paycheck protection program and the employee retention tax credit.
2. Improved coordination between paycheck protection program and employee retention tax credit
Amendment to paycheck protection program— Section 1106(a)(8) of the CARES Act is amended by inserting “, except that such costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of this Act” before the period at the end.
Amendments to employee retention tax credit—
In general— Section 2301(g) of the CARES Act is amended to read as follows:
“(g) Election To not take certain wages into account
“(1) In general—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.
“(2) Coordination with paycheck protection program—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 by reason of a decision under section 1106(g). Terms used in the preceding sentence which are also used in section 1106 shall have the same meaning as when used in such section.”
Conforming amendments—
Section 2301 of the CARES Act is amended by striking subsection (j).
Section 2301(l) of the CARES Act is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
Effective date— The amendments made by this section shall take effect as if included in the provisions of the CARES Act to which they relate.