Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB28

Introduced
1/24/23  

Caption

Restaurant Revitalization Tax Credit Act This bill allows certain restaurants affected by the COVID-19 pandemic a credit against payroll tax liability up to 100% of the wages paid to their employees, not to exceed $25,000 in any calendar quarter.

Impact

If enacted, SB28 would significantly amend the Internal Revenue Code by establishing a new framework for payroll tax credits aimed specifically at restaurants. This legislation addresses the financial difficulties many of these businesses faced during the pandemic-related economic downturn, helping them to retain employees and stabilize their operations. The credit is partially refundable, meaning employers can receive some reimbursement, potentially easing cash flow challenges while supporting job retention in the sector.

Summary

Senate Bill 28, known as the Restaurant Revitalization Tax Credit Act, aims to provide financial relief to restaurants impacted by the COVID-19 pandemic. The bill allows eligible employers, particularly those within the restaurant industry, to receive a payroll tax credit that covers 100% of the wages paid to employees for each calendar quarter. However, this credit is capped at a maximum of $25,000 per employer per quarter, encompassing various stipulations to ascertain eligibility based on prior earnings and operational status during the pandemic.

Contention

While the intent behind SB28 is to bolster the struggling restaurant sector, there are aspects that may lead to contention in legislative discussions. Previously established guidelines for eligibility, including ensuring employers did not receive grant funds due to a lack of funding and meeting gross receipts criteria from 2019, pose barriers that could exclude some businesses. Critics may argue that such limitations could undermine the bill's effectiveness in providing widespread relief to all deserving establishments. Additionally, the coordination with the Small Business Administration for identifying eligible employers could present bureaucratic challenges, potentially complicating access to the benefits offered under this proposed law.

Companion Bills

US HB2575

Identical bill Restaurant Revitalization Tax Credit Act

Previously Filed As

US HB2575

Restaurant Revitalization Tax Credit Act

US SB33

Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 This bill provides incentives for relocating medical manufacturing facilities in the United States and for manufacturing medical products (i.e., drugs and devices) in economically distressed zones. Specifically, the bill allows a income tax credit for 40% of the sum of wages paid in a medical product manufacturing economically distressed zone, employee fringe benefit expenses, and depreciation and amortization allowances with respect to qualified medical product manufacturing facility property, and a credit for economically distressed zone products and services acquired by domestic medical product manufacturers.. The bill also directs the Department of Health and Human Services to study the extent to which the health of aging individuals and vulnerable populations have been disproportionately harmed by the COVID-19 (i.e., coronavirus disease 2019) pandemic and prior epidemics and pandemics.

US SB1489

National Task Force on the COVID-19 Pandemic Act

US HB4026

To amend the Internal Revenue Code of 1986 to allow certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, and to extend such credits and deductions to possessions of the United States.

US SB3552

A bill to amend the Taxpayer Certainty and Disaster Tax Relief Act of 2020 to allow qualified tax-exempt organizations to claim the employee retention credit for employers affected by qualified disasters against Medicare hospital insurance taxes.

US SB56

Education Freedom Scholarships and Opportunity Act This bill allows individual and corporate taxpayers a tax credit for cash contributions to certain scholarship-granting and workforce training organizations. It imposes a cap of $10 billion on the sum of contributions that qualify for a tax credit under this bill. The bill requires the Department of Education, in coordination with the Departments of the Treasury and Labor, to establish, host, and maintain a web portal that (1) lists all eligible scholarship-granting and workforce training organizations; (2) enables contributions to such organizations; (3) provides information about the benefits of this bill; and (4) enables a state to submit and update information about its programs and educational organizations, including information on student eligibility and allowable educational expenses.

US HB368

American Innovation Act of 2023 This bill revises the tax treatment of business start-up or organizational expenditures. Specifically, it allows an election to deduct such expenditures in an amount equal to the lesser of the aggregate amount of such expenditures incurred by an active trade of business, or $20,000, reduced by the amount by which such aggregate amount exceeds $120,000. The remaining amount of such expenditures shall be amortized over the 180 month period after the trade or business begins. The bill also revises the tax treatment of partnership syndication fees and start-up net operating losses and tax credits after an ownership change.

US SB35

New Parents Act of 2023 This bill allows parents to use a portion of their Social Security benefits for up to three months of paid parental leave after the birth or adoption of a child. To receive the parental leave benefit, parents must choose to either increase their retirement age or temporarily receive a reduction in Social Security benefits upon retirement, as specified.

US HR714

Recognizing Hispanic Restaurant Week and the contributions of Hispanic restaurant owners and employees to the restaurant industry.

US SR377

A resolution recognizing Hispanic Restaurant Week and the contributions of Hispanic restaurant owners and employees to the restaurant industry.

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US HB2575

Restaurant Revitalization Tax Credit Act

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