{"identifier":"/us/usc/t26/s3131","title":26,"num":"\u00a7\u202f3131.","heading":"Credit for paid sick leave","text":"\u00a7\u202f3131.\nCredit for paid sick leave\n(a)\nIn general\nIn the case of an employer, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to 100 percent of the qualified sick leave wages paid by such employer with respect to such calendar quarter.\n(b)\nLimitations and refundability\n(1)\nWages taken into account\nThe amount of qualified sick leave wages taken into account under subsection (a), plus any increases under subsection (e), with respect to any individual shall not exceed $200 ($511 in the case of any day any portion of which is paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act, applied with the modification described in subsection (c)(2)(A)(i)) for any day (or portion thereof) for which the individual is paid qualified sick leave wages.\n(2)\nOverall limitation on number of days taken into account\nThe aggregate number of days taken into account under paragraph (1) for any calendar quarter shall not exceed the excess (if any) of\u2014\n(A) 10, over\n(B) the aggregate number of days so taken into account during preceding calendar quarters in such calendar year (other than the first quarter of calendar year 2021).\n(3)\nCredit limited to certain employment taxes\nThe credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter on the wages paid with respect to the employment of all employees of the employer.\n(4)\nRefundability of excess credit\n(A)\nCredit is refundable\nIf the amount of the credit under subsection (a) exceeds the limitation of paragraph (3) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b).\n(B)\nAdvancing credit\nIn anticipation of the credit, including the refundable portion under subparagraph (A), the credit shall be advanced, according to forms and instructions provided by the Secretary, up to an amount calculated under subsection (a), subject to the limits under paragraph (1) and (2), all calculated through the end of the most recent payroll period in the quarter.\n(c)\nQualified sick leave wages\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201cqualified sick leave wages\u201d means wages paid by an employer which would be required to be paid by reason of the Emergency Paid Sick Leave Act as if such Act applied after\nMarch 31, 2021\n(2)\nRules of application\nFor purposes of determining whether wages are qualified sick leave wages under paragraph (1)\u2014\n(A)\nIn general\nThe Emergency Paid Sick Leave Act shall be applied\u2014\n(i) by inserting \u201c, the employee is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID\u201319 and such employee has been exposed to COVID\u201319 or the employee\u2019s employer has requested such test or diagnosis, or the employee is obtaining immunization related to COVID\u201319 or recovering from any injury, disability, illness, or condition related to such immunization\u201d after \u201cmedical diagnosis\u201d in section 5102(a)(3) thereof, and\n(ii) by applying section 5102(b)(1) of such Act separately with respect to each calendar year after 2020 (and, in the case of calendar year 2021, without regard to the first quarter thereof).\n(B)\nLeave must meet requirements\nIf an employer fails to comply with any requirement of such Act (determined without regard to section 5109 thereof) with respect to paid sick time (as defined in section 5110 of such Act), amounts paid by such employer with respect to such paid sick time shall not be taken into account as qualified sick leave wages. For purposes of the preceding sentence, an employer which takes an action described in section 5104 of such Act shall be treated as failing to meet a requirement of such Act.\n(d)\nAllowance of credit for certain health plan expenses\n(1)\nIn general\nThe amount of the credit allowed under subsection (a) shall be increased by so much of the employer\u2019s qualified health plan expenses as are properly allocable to the qualified sick leave wages for which such credit is so allowed.\n(2)\nQualified health plan expenses\nFor purposes of this subsection, the term \u201cqualified health plan expenses\u201d means amounts paid or incurred by the employer to provide and maintain a group health plan (as defined in section 5000(b)(1)), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a).\n(3)\nAllocation rules\nFor purposes of this section, qualified health plan expenses shall be allocated to qualified sick leave wages 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 covered employees and pro rata on the basis of periods of coverage (relative to the time periods of leave to which such wages relate).\n(e)\nAllowance of credit for amounts paid under certain collectively bargained agreements\n(1)\nIn general\nThe amount of the credit allowed under subsection (a) shall be increased by the sum of\u2014\n(A) so much of the employer\u2019s collectively bargained defined benefit pension plan contributions as are properly allocable to the qualified sick leave wages for which such credit is so allowed, plus\n(B) so much of the employer\u2019s collectively bargained apprenticeship program contributions as are properly allocable to the qualified sick leave wages for which such credit is so allowed.\n(2)\nCollectively bargained defined benefit pension plan contributions\nFor purposes of this subsection\u2014\n(A)\nIn general\nThe term \u201ccollectively bargained defined benefit pension plan contributions\u201d means, with respect to any calendar quarter, contributions which\u2014\n(i) are paid or incurred by an employer during the calendar quarter on behalf of its employees to a defined benefit plan (as defined in section 414(j)), which meets the requirements of section 401(a),\n(ii) are made based on a pension contribution rate, and\n(iii) are required to be made pursuant to the terms of a collective bargaining agreement in effect with respect to such calendar quarter.\n(B)\nPension contribution rate\nThe term \u201cpension contribution rate\u201d means the contribution rate that the employer is obligated to pay on behalf of its employees under the terms of a collective bargaining agreement for benefits under a defined benefit plan under such agreement, as such rate is applied to contribution base units (as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (\n29 U.S.C. 1301(a)(11)\n1\n1 So in original. Another closing parenthesis probably should precede the period.\n(C)\nAllocation rules\nThe amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages for any calendar quarter shall be the product of\u2014\n(i) the pension contribution rate (expressed as an hourly rate), and\n(ii) the number of hours for which qualified sick leave wages were provided to employees covered under the collective bargaining agreement described in subparagraph (A)(iii) during the calendar quarter.\n(3)\nCollectively bargained apprenticeship program contributions\nFor purposes of this section\u2014\n(A)\nIn general\nThe term \u201ccollectively bargained apprenticeship program contributions\u201d means, with respect to any calendar quarter, contributions which\u2014\n(i) are paid or incurred by an employer on behalf of its employees with respect to the calendar quarter to a registered apprenticeship program,\n(ii) are made based on an apprenticeship program contribution rate, and\n(iii) are required to be made pursuant to the terms of a collective bargaining agreement that is in effect with respect to such calendar quarter.\n(B)\nRegistered apprenticeship program\nThe term \u201cregistered apprenticeship program\u201d means an apprenticeship registered under the Act of\nAugust 16, 1937\n50 Stat. 664\n29 U.S.C. 50\n(C)\nApprenticeship program contribution rate\nThe term \u201capprenticeship program contribution rate\u201d means the contribution rate that the employer is obligated to pay on behalf of its employees under the terms of a collective bargaining agreement for benefits under a registered apprenticeship program under such agreement, as such rate is applied to contribution base units (as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (\n29 U.S.C. 1301(a)(11)\n1\n(D)\nAllocation rules\nThe amount of collectively bargained apprenticeship program contributions allocated to qualified sick leave wages for any calendar quarter shall be the product of\u2014\n(i) the apprenticeship program contribution rate (expressed as an hourly rate), and\n(ii) the number of hours for which qualified sick leave wages were provided to employees covered under the collective bargaining agreement described in subparagraph (A)(iii) during the calendar quarter.\n(f)\nDefinitions and special rules\n(1)\nApplicable employment taxes\nFor purposes of this section, the term \u201capplicable employment taxes\u201d means the following:\n(A) The taxes imposed under section 3111(b).\n(B) So much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b).\n(2)\nWages\nFor purposes of this section, the term \u201cwages\u201d means wages (as defined in section 3121(a), determined without regard to paragraphs (1) through (22) of section 3121(b)) and compensation (as defined in section 3231(e), determined without regard to the sentence in paragraph (1) thereof which begins \u201cSuch term does not include remuneration\u201d).\n(3)\nDenial of double benefit\nFor purposes of chapter 1, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under sections 45A, 45P, 45S, 51, 3132, and 3134. In the case of any credit allowed under section 2301 of the CARES Act or section 41 with respect to wages taken into account under this section, the credit allowed under this section shall be reduced by the portion of the credit allowed under such section 2301 or section 41 which is attributable to such wages.\n(4)\nElection to not take certain wages into account\nThis section shall not apply to so much of the qualified sick leave wages paid by an eligible employer as such employer elects (at such time and in such manner as the Secretary may prescribe) to not take into account for purposes of this section.\n(5)\nCertain governmental employers\nNo credit shall be allowed under this section to the Government of the United States or to any agency or instrumentality thereof. The preceding sentence shall not apply to any organization described in section 501(c)(1) and exempt from tax under section 501(a).\n(6)\nExtension of limitation on assessment\nNotwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 5 years after the later of\u2014\n(A) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, or\n(B) the date on which such return is treated as filed under section 6501(b)(2).\n(7)\nCoordination with certain programs\n(A)\nIn general\nThis section shall not apply to so much of the qualified sick leave wages paid by an eligible employer as are taken into account as payroll costs in connection with\u2014\n(i) a covered loan under section 7(a)(37) or 7A of the Small Business Act,\n(ii) a grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or\n(iii) a restaurant revitalization grant under section 5003 of the American Rescue Plan Act of 2021.\n(B)\nApplication where PPP loans not forgiven\nThe Secretary shall issue guidance providing that payroll costs paid during the covered period shall not fail to be treated as qualified sick leave wages under this section by reason of subparagraph (A)(i) to the extent that\u2014\n(i) a covered loan of the taxpayer under section 7(a)(37) of the Small Business Act is not forgiven by reason of a decision under section 7(a)(37)(J) of such Act, or\n(ii) a covered loan of the taxpayer under section 7A of the Small Business Act is not forgiven by reason of a decision under section 7A(g) of such Act.\nTerms used in the preceding sentence which are also used in section 7A(g) or 7(a)(37)(J) of the Small Business Act shall, when applied in connection with either such section, have the same meaning as when used in such section, respectively.\n(g)\nRegulations\nThe Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including\u2014\n(1) regulations or other guidance to prevent the avoidance of the purposes of the limitations under this section,\n(2) regulations or other guidance to minimize compliance and record-keeping burdens under this section,\n(3) regulations or other guidance providing for waiver of penalties for failure to deposit amounts in anticipation of the allowance of the credit allowed under this section,\n(4) regulations or other guidance for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection (a),\n(5) regulations or other guidance to ensure that the wages taken into account under this section conform with the paid sick time required to be provided under the Emergency Paid Sick Leave Act,\n(6) regulations or other guidance to permit the advancement of the credit determined under subsection (a), and\n(7) regulations or other guidance with respect to the allocation, reporting, and substantiation of collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions.\n(h)\nApplication of section\nThis section shall apply only to wages paid with respect to the period beginning on\nApril 1, 2021\nSeptember 30, 2021\n(i)\nTreatment of deposits\nThe Secretary shall waive any penalty under section 6656 for any failure to make a deposit of applicable employment taxes if the Secretary determines that such failure was due to the anticipation of the credit allowed under this section.\n(j)\nNon-discrimination requirement\nNo credit shall be allowed under this section to any employer for any calendar quarter if such employer, with respect to the availability of the provision of qualified sick leave wages to which this section otherwise applies for such calendar quarter, discriminates in favor of highly compensated employees (within the meaning of section 414(q)), full-time employees, or employees on the basis of employment tenure with such employer.","url":"https://projectusc.org/usc/t26/s3131.html","content":[{"t":"sec","id":"/us/usc/t26/s3131","children":[{"t":"num","text":"\u00a7\u202f3131."},{"t":"heading","text":"Credit for paid sick leave"},{"t":"subsec","id":"/us/usc/t26/s3131/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"In the case of an employer, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to 100 percent of the qualified sick leave wages paid by such employer with respect to such calendar quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Limitations and refundability"},{"t":"para","id":"/us/usc/t26/s3131/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Wages taken into account"},{"t":"content","children":[{"t":"p","text":"The amount of qualified sick leave wages taken into account under subsection (a), plus any increases under subsection (e), with respect to any individual shall not exceed $200 ($511 in the case of any day any portion of which is paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the Emergency Paid Sick Leave Act, applied with the modification described in subsection (c)(2)(A)(i)) for any day (or portion thereof) for which the individual is paid qualified sick leave wages.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Overall limitation on number of days taken into account"},{"t":"chapeau","text":"The aggregate number of days taken into account under paragraph (1) for any calendar quarter shall not exceed the excess (if any) of\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 10, over","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the aggregate number of days so taken into account during preceding calendar quarters in such calendar year (other than the first quarter of calendar year 2021).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Credit limited to certain employment taxes"},{"t":"content","children":[{"t":"p","text":"The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter on the wages paid with respect to the employment of all employees of the employer.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Refundability of excess credit"},{"t":"subpara","id":"/us/usc/t26/s3131/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Credit is refundable"},{"t":"content","children":[{"t":"p","text":"If the amount of the credit under subsection (a) exceeds the limitation of paragraph (3) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Advancing credit"},{"t":"content","children":[{"t":"p","text":"In anticipation of the credit, including the refundable portion under subparagraph (A), the credit shall be advanced, according to forms and instructions provided by the Secretary, up to an amount calculated under subsection (a), subject to the limits under paragraph (1) and (2), all calculated through the end of the most recent payroll period in the quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Qualified sick leave wages"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s3131/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201cqualified sick leave wages\u201d means wages paid by an employer which would be required to be paid by reason of the Emergency Paid Sick Leave Act as if such Act applied after ","children":[{"t":"text","text":"March 31, 2021","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Rules of application"},{"t":"chapeau","text":"For purposes of determining whether wages are qualified sick leave wages under paragraph (1)\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The Emergency Paid Sick Leave Act shall be applied\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/c/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" by inserting \u201c, the employee is seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID\u201319 and such employee has been exposed to COVID\u201319 or the employee\u2019s employer has requested such test or diagnosis, or the employee is obtaining immunization related to COVID\u201319 or recovering from any injury, disability, illness, or condition related to such immunization\u201d after \u201cmedical diagnosis\u201d in section 5102(a)(3) thereof, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/c/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" by applying section 5102(b)(1) of such Act separately with respect to each calendar year after 2020 (and, in the case of calendar year 2021, without regard to the first quarter thereof).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Leave must meet requirements"},{"t":"content","children":[{"t":"p","text":"If an employer fails to comply with any requirement of such Act (determined without regard to section 5109 thereof) with respect to paid sick time (as defined in section 5110 of such Act), amounts paid by such employer with respect to such paid sick time shall not be taken into account as qualified sick leave wages. For purposes of the preceding sentence, an employer which takes an action described in section 5104 of such Act shall be treated as failing to meet a requirement of such Act.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Allowance of credit for certain health plan expenses"},{"t":"para","id":"/us/usc/t26/s3131/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The amount of the credit allowed under subsection (a) shall be increased by so much of the employer\u2019s qualified health plan expenses as are properly allocable to the qualified sick leave wages for which such credit is so allowed.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Qualified health plan expenses"},{"t":"content","children":[{"t":"p","text":"For purposes of this subsection, the term \u201cqualified health plan expenses\u201d means amounts paid or incurred by the employer to provide and maintain a group health plan (as defined in section 5000(b)(1)), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/d/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Allocation rules"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, qualified health plan expenses shall be allocated to qualified sick leave wages 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 covered employees and pro rata on the basis of periods of coverage (relative to the time periods of leave to which such wages relate).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Allowance of credit for amounts paid under certain collectively bargained agreements"},{"t":"para","id":"/us/usc/t26/s3131/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The amount of the credit allowed under subsection (a) shall be increased by the sum of\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" so much of the employer\u2019s collectively bargained defined benefit pension plan contributions as are properly allocable to the qualified sick leave wages for which such credit is so allowed, plus","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" so much of the employer\u2019s collectively bargained apprenticeship program contributions as are properly allocable to the qualified sick leave wages for which such credit is so allowed.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Collectively bargained defined benefit pension plan contributions"},{"t":"chapeau","text":"For purposes of this subsection\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201ccollectively bargained defined benefit pension plan contributions\u201d means, with respect to any calendar quarter, contributions which\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/e/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" are paid or incurred by an employer during the calendar quarter on behalf of its employees to a defined benefit plan (as defined in section 414(j)), which meets the requirements of section 401(a),","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" are made based on a pension contribution rate, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" are required to be made pursuant to the terms of a collective bargaining agreement in effect with respect to such calendar quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Pension contribution rate"},{"t":"content","children":[{"t":"p","text":"The term \u201cpension contribution rate\u201d means the contribution rate that the employer is obligated to pay on behalf of its employees under the terms of a collective bargaining agreement for benefits under a defined benefit plan under such agreement, as such rate is applied to contribution base units (as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (","children":[{"t":"ref","text":"29 U.S.C. 1301(a)(11)","href":"/us/usc/t29/s1301/a/11","tail":")."},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Another closing parenthesis probably should precede the period."},{"t":"text","text":"\u202fSo in original. Another closing parenthesis probably should precede the period."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Allocation rules"},{"t":"chapeau","text":"The amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages for any calendar quarter shall be the product of\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/e/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the pension contribution rate (expressed as an hourly rate), and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the number of hours for which qualified sick leave wages were provided to employees covered under the collective bargaining agreement described in subparagraph (A)(iii) during the calendar quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Collectively bargained apprenticeship program contributions"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201ccollectively bargained apprenticeship program contributions\u201d means, with respect to any calendar quarter, contributions which\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/e/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" are paid or incurred by an employer on behalf of its employees with respect to the calendar quarter to a registered apprenticeship program,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" are made based on an apprenticeship program contribution rate, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/3/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" are required to be made pursuant to the terms of a collective bargaining agreement that is in effect with respect to such calendar quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Registered apprenticeship program"},{"t":"content","children":[{"t":"p","text":"The term \u201cregistered apprenticeship program\u201d means an apprenticeship registered under the Act of ","children":[{"t":"text","text":"August 16, 1937","tail":" (commonly known as the \u201cNational Apprenticeship Act\u201d; "},{"t":"ref","text":"50 Stat. 664","href":"/us/stat/50/664","tail":", chapter 663; "},{"t":"ref","text":"29 U.S.C. 50","href":"/us/usc/t29/s50","tail":" et seq.) that meets the standards of subpart A of part 29 and part 30 of title 29, Code of Federal Regulations."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Apprenticeship program contribution rate"},{"t":"content","children":[{"t":"p","text":"The term \u201capprenticeship program contribution rate\u201d means the contribution rate that the employer is obligated to pay on behalf of its employees under the terms of a collective bargaining agreement for benefits under a registered apprenticeship program under such agreement, as such rate is applied to contribution base units (as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (","children":[{"t":"ref","text":"29 U.S.C. 1301(a)(11)","href":"/us/usc/t29/s1301/a/11","tail":")."},{"t":"text","text":"1"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/e/3/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Allocation rules"},{"t":"chapeau","text":"The amount of collectively bargained apprenticeship program contributions allocated to qualified sick leave wages for any calendar quarter shall be the product of\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/e/3/D/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the apprenticeship program contribution rate (expressed as an hourly rate), and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/e/3/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the number of hours for which qualified sick leave wages were provided to employees covered under the collective bargaining agreement described in subparagraph (A)(iii) during the calendar quarter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Definitions and special rules"},{"t":"para","id":"/us/usc/t26/s3131/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Applicable employment taxes"},{"t":"chapeau","text":"For purposes of this section, the term \u201capplicable employment taxes\u201d means the following:"},{"t":"subpara","id":"/us/usc/t26/s3131/f/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" The taxes imposed under section 3111(b).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/f/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" So much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Wages"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201cwages\u201d means wages (as defined in section 3121(a), determined without regard to paragraphs (1) through (22) of section 3121(b)) and compensation (as defined in section 3231(e), determined without regard to the sentence in paragraph (1) thereof which begins \u201cSuch term does not include remuneration\u201d).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Denial of double benefit"},{"t":"content","children":[{"t":"p","text":"For purposes of chapter 1, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under sections 45A, 45P, 45S, 51, 3132, and 3134. In the case of any credit allowed under section 2301 of the CARES Act or section 41 with respect to wages taken into account under this section, the credit allowed under this section shall be reduced by the portion of the credit allowed under such section 2301 or section 41 which is attributable to such wages.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Election to not take certain wages into account"},{"t":"content","children":[{"t":"p","text":"This section shall not apply to so much of the qualified sick leave wages paid by an eligible employer as such employer elects (at such time and in such manner as the Secretary may prescribe) to not take into account for purposes of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Certain governmental employers"},{"t":"content","children":[{"t":"p","text":"No credit shall be allowed under this section to the Government of the United States or to any agency or instrumentality thereof. The preceding sentence shall not apply to any organization described in section 501(c)(1) and exempt from tax under section 501(a).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Extension of limitation on assessment"},{"t":"chapeau","text":"Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 5 years after the later of\u2014"},{"t":"subpara","id":"/us/usc/t26/s3131/f/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/f/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the date on which such return is treated as filed under section 6501(b)(2).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/f/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Coordination with certain programs"},{"t":"subpara","id":"/us/usc/t26/s3131/f/7/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"This section shall not apply to so much of the qualified sick leave wages paid by an eligible employer as are taken into account as payroll costs in connection with\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/f/7/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a covered loan under section 7(a)(37) or 7A of the Small Business Act,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/f/7/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/f/7/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" a restaurant revitalization grant under section 5003 of the American Rescue Plan Act of 2021.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s3131/f/7/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Application where PPP loans not forgiven"},{"t":"chapeau","text":"The Secretary shall issue guidance providing that payroll costs paid during the covered period shall not fail to be treated as qualified sick leave wages under this section by reason of subparagraph (A)(i) to the extent that\u2014"},{"t":"clause","id":"/us/usc/t26/s3131/f/7/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a covered loan of the taxpayer under section 7(a)(37) of the Small Business Act is not forgiven by reason of a decision under section 7(a)(37)(J) of such Act, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s3131/f/7/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a covered loan of the taxpayer under section 7A of the Small Business Act is not forgiven by reason of a decision under section 7A(g) of such Act.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"Terms used in the preceding sentence which are also used in section 7A(g) or 7(a)(37)(J) of the Small Business Act shall, when applied in connection with either such section, have the same meaning as when used in such section, respectively.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Regulations"},{"t":"chapeau","text":"The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including\u2014"},{"t":"para","id":"/us/usc/t26/s3131/g/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" regulations or other guidance to prevent the avoidance of the purposes of the limitations under this section,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" regulations or other guidance to minimize compliance and record-keeping burdens under this section,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" regulations or other guidance providing for waiver of penalties for failure to deposit amounts in anticipation of the allowance of the credit allowed under this section,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" regulations or other guidance for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection (a),","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" regulations or other guidance to ensure that the wages taken into account under this section conform with the paid sick time required to be provided under the Emergency Paid Sick Leave Act,","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" regulations or other guidance to permit the advancement of the credit determined under subsection (a), and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s3131/g/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" regulations or other guidance with respect to the allocation, reporting, and substantiation of collectively bargained defined benefit pension plan contributions and collectively bargained apprenticeship program contributions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Application of section"},{"t":"content","children":[{"t":"p","text":"This section shall apply only to wages paid with respect to the period beginning on ","children":[{"t":"text","text":"April 1, 2021","tail":", and ending on "},{"t":"text","text":"September 30, 2021","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Treatment of deposits"},{"t":"content","children":[{"t":"p","text":"The Secretary shall waive any penalty under section 6656 for any failure to make a deposit of applicable employment taxes if the Secretary determines that such failure was due to the anticipation of the credit allowed under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s3131/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Non-discrimination requirement"},{"t":"content","children":[{"t":"p","text":"No credit shall be allowed under this section to any employer for any calendar quarter if such employer, with respect to the availability of the provision of qualified sick leave wages to which this section otherwise applies for such calendar quarter, discriminates in favor of highly compensated employees (within the meaning of section 414(q)), full-time employees, or employees on the basis of employment tenure with such employer.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}