S. 178 - Delivering Immediate Relief to America's Families, Schools and Small Businesses Act

AMENDMENT NO.___
Calendar No. ___

Purpose: To provide for a complete substitute.

IN THE SENATE OF THE UNITED STATES — 116th Cong., 2d Sess.

S. 178

To condemn gross human rights violations of ethnic
Turkic Muslims in Xinjiang, and calling for an end
to arbitrary detention, torture, and harassment
of these communities inside and outside China.

Referred to the Committee on _____ and ordered to be printed

Ordered to lie on the table and to be printed

AMENDMENT intended to be proposed by

Viz:

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the "Delivering Immediate

Relief to America's Families, Schools and Small Businesses Act".

* * *

TITLE IV — SMALL BUSINESS PROGRAMS

SEC. 4001. SMALL BUSINESS RECOVERY.

(a) SHORT TITLE. — This section may be cited as the "Continuing the Paycheck Protection Program Act".

(b) DEFINITIONS. — In this section:

(1) ADMINISTRATION; ADMINISTRATOR. — The terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator thereof, respectively.

(2) SMALL BUSINESS CONCERN. — The term "small business concern" has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).

(c) EMERGENCY RULEMAKING AUTHORITY. — Not later than 30 days after the date of enactment of this Act, the Administrator shall issue regulations to carry out this section and the amendments made by this section without regard to the notice requirements under section 553(b) of title 5, United States Code.

(d) ADDITIONAL ELIGIBLE EXPENSES. —

(1) ALLOWABLE USE OF PPP LOAN. — Section 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 636(a)(36)(F)(i)) is amended —

(A) in subclause (VI), by striking "and" at the end;

(B) in subclause (VII), by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

"(VIII) covered operations expenditures, as defined in section 1106(a) of the CARES Act (15 U.S.C. 9005(a));

"(IX) covered property damage costs, as defined in such section 1106(a);

"(X) covered supplier costs, as defined in such section 1106(a); and

"(XI) covered worker protection expenditures, as defined in such section 1106(a).".

(2) LOAN FORGIVENESS. — Section 1106 of the CARES Act (15 U.S.C. 9005) is amended —

(A) in subsection (a) —

(i) by redesignating paragraphs (6), (7), and (8) as paragraphs (10), (11), and (12), respectively;

(ii) by redesignating paragraph (5) as paragraph (8);

(iii) by redesignating paragraph (4) as paragraph (6);

(iv) by redesignating paragraph (3) as paragraph (4);

(v) by inserting after paragraph (2) the following:

"(3) the term 'covered operations expenditure' means a payment for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses;";

(vi) by inserting after paragraph (4), as so redesignated, the following:

"(5) the term 'covered property damage cost' means a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation;";

(vii) by inserting after paragraph (6), as so redesignated, the following:

"(5) the term 'covered supplier cost' means an expenditure made by an entity to a supplier of goods pursuant to a contract in effect before February 15, 2020 for the supply of goods that are essential to the operations of the entity at the time at which the expenditure is made;";

(viii) by inserting after paragraph (8), as so redesignated, the following:

"(9) the term 'covered worker protection expenditure' —

"(A) means an operating or a capital expenditure that is required to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020 and ending December 31, 2020 related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19;

"(B) may include —

"(i) the purchase, maintenance, or renovation of assets that create or expand —

"(I) a drive-through window facility;

"(II) an indoor, outdoor, or combined air or air pressure ventilation or filtration system;

"(III) a physical barrier such as a sneeze guard;

"(IV) an indoor, outdoor, or combined commercial real property;

"(V) an onsite or offsite health screening capability; or

"(VI) other assets relating to the compliance with the requirements or guidance described in subparagraph (A), as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and

"(ii) the purchase of —

"(I) covered materials described in section 328.103(a) of title 44, Code of Federal Regulations, or any successor regulation;

"(II) particulate filtering face piece respirators approved by the National Institute for Occupational Safety and Health, including those approved only for emergency use authorization; or

"(III) other kinds of personal protective equipment, as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and

"(C) does not include residential real property or intangible property;"; and

(ix) in paragraph (11), as so redesignated —

(I) in subparagraph (C), by striking "and" at the end;

(II) in subparagraph (D), by striking "and" at the end; and

(III) by adding at the end the following:

"(E) covered operations expenditures;

"(F) covered property damage costs;

"(G) covered supplier costs; and

"(H) covered worker protection expenditures; and";

(B) in subsection (b), by adding at the end the following:

"(5) Any covered operations expenditure.

"(6) Any covered property damage cost.

"(7) Any covered supplier cost.

"(8) Any covered worker protection expenditure.";

(C) in subsection (d)(8), by inserting "any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure," after "rent obligation,"; and

(D) in subsection (e) —

(i) in paragraph (2), by inserting "payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures," after "lease obligations,"; and

(ii) in paragraph (3)(B), by inserting "make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures," after "rent obligation,".

(e) LENDER SAFE HARBOR. — Subsection (h) of section 1106 of the CARES Act (15 U.S.C. 9005) is amended to read as follows:

"(h) HOLD HARMLESS. —

"(1) IN GENERAL. — A lender may rely on any certification or documentation submitted by an applicant for a covered loan or an eligible recipient of a covered loan that —

"(A) is submitted pursuant to any statutory requirement relating to covered loans or any rule or guidance issued to carry out any action relating to covered loans; and

"(B) attests that the applicant or eligible recipient, as applicable, has accurately verified any certification or documentation provided to the lender.

"(2) NO ENFORCEMENT ACTION. — With respect to a lender that relies on a certification or documentation described in paragraph (1) —

"(A) an enforcement action may not be taken against the lender acting in good faith relating to origination or forgiveness of a covered loan based on such reliance; and

"(B) the lender acting in good faith shall not be subject to any penalties relating to origination or forgiveness of a covered loan based on such reliance.".

(f) SELECTION OF COVERED PERIOD FOR FORGIVENESS. — Section 1106 of the CARES Act (15 U.S.C. 9005) is amended —

(1) by amending paragraph (4) of subsection (a), as so redesignated by subsection (d) of this section, to read as follows:

"(4) the term 'covered period' means the period —

"(A) beginning on the date of the origination of a covered loan; and

"(B) ending on a date selected by the eligible recipient of the covered loan that occurs during the period —

"(i) beginning on the date that is 8 weeks after such date of origination; and

"(ii) ending on December 31, 2020;"; and

(2) by striking subsection (l).

(g) SIMPLIFIED APPLICATION. — Section 1106 of the CARES Act (15 U.S.C. 9005), as amended by subsection (f) of this section, is amended —

(1) in subsection (e), in the matter preceding paragraph (1), by striking "An eligible" and inserting "Except as provided in subsection (l), an eligible";

(2) in subsection (f), by inserting "or the information required under subsection (l), as applicable" after "subsection (e)"; and

(3) by adding at the end the following:

"(l) SIMPLIFIED APPLICATION. —

"(1) COVERED LOANS UNDER $150,000. —

"(A) IN GENERAL. — Notwithstanding subsection (e), with respect to a covered loan made to an eligible recipient that is not more than $150,000, the covered loan amount shall be forgiven under this section if the eligible recipient —

"(i) signs and submits to the lender a one-page online or paper form, to be established by the Administrator not later than 7 days after the date of enactment of the Continuing the Paycheck Protection Program Act, that —

"(I) reports the amount of the covered loan amount spent by the eligible recipient —

"(aa) on payroll costs; and

"(bb) on the sum of —

"(AA) payments of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);

"(BB) payments on any covered rent obligation;

"(CC) covered utility payments;

"(DD) covered operations expenditures;

"(EE) covered property damage costs;

"(FF) covered supplier costs; and

"(GG) covered worker protection expenditures; and

"(II) attests that the eligible recipient made a good faith effort to comply with the requirements under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)); and

"(ii) retains records relevant to the form that prove compliance with those requirements —

"(I) with respect to employment records, for the 4-year period following submission of the form; and

"(II) with respect to other records, for the 3-year period following submission of the form.

"(B) DEMOGRAPHIC INFORMATION. — An eligible recipient of a covered loan described in subparagraph (A) may complete and submit any form related to borrower demographic information.

"(C) AUDIT. — The Administrator may —

"(i) review and audit covered loans described in subparagraph (A); and

"(ii) in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify —

"(I) the amount of a covered loan described in subparagraph (A); or

"(II) the loan forgiveness amount with respect to a covered loan described in subparagraph (A).

"(2) COVERED LOANS BETWEEN $150,000 AND $2,000,000. —

"(A) IN GENERAL. — Notwithstanding subsection (e), with respect to a covered loan made to an eligible recipient that is more than $150,000 and not more than $2,000,000 —

"(i) the eligible recipient seeking loan forgiveness under this section —

"(I) is not required to submit the supporting documentation described in paragraph (1) or (2) of subsection (e) or the certification described in subsection (e)(3)(A);

"(II) shall retain —

"(aa) all employment records relevant to the application for loan forgiveness for the 4-year period following submission of the application; and

"(bb) all other supporting documentation relevant to the application for loan forgiveness for the 3-year period following submission of the application; and

"(III) may complete and submit any form related to borrower demographic information;

"(ii) review by the lender of an application submitted by the eligible recipient for loan forgiveness under this section shall be limited to whether the lender received a complete application, with all fields completed, initialed, or signed, as applicable; and

"(iii) the lender shall —

"(I) accept the application submitted by the eligible recipient for loan forgiveness under this section; and

"(II) submit the application to the Administrator.

"(B) AUDIT. — The Administrator may —

"(i) review and audit covered loans described in subparagraph (A); and

"(ii) in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify —

"(I) the amount of a covered loan described in subparagraph (A); or

"(II) the loan forgiveness amount with respect to a covered loan described in subparagraph (A).

"(3) AUDIT PLAN. —

"(A) IN GENERAL. — Not later than 30 days after the date of enactment of the Continuing the Paycheck Protection Program Act, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an audit plan that details —

"(i) the policies and procedures of the Administrator for conducting reviews and audits of covered loans; and

"(ii) the metrics that the Administrator shall use to determine which covered loans will be audited for each category of covered loans described in paragraphs (1) and (2).

"(B) REPORTS. — Not later than 30 days after the date on which the Administrator submits the audit plan required under subparagraph (A), and each month thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the review and audit activities of the Administrator under this subsection, which shall include —

"(i) the number of active reviews and audits;

"(ii) the number of reviews and audits that have been ongoing for more than 60 days; and

"(iii) any substantial changes made to the audit plan submitted under subparagraph (A).".

(h) GROUP INSURANCE PAYMENTS AS PAYROLL COSTS. — Section 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Business Act (15 U.S.C. 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by inserting "and other group insurance" before "benefits".

(i) PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS. — Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:

"(37) PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS. —

"(A) DEFINITIONS. — In this paragraph —

"(i) the terms 'community financial institutions', 'credit union', 'eligible self-employed individual', 'insured depository institution', 'nonprofit organization', 'payroll costs', 'seasonal employer', and 'veterans organization' have the meanings given those terms in paragraph (36), except that 'eligible entity' shall be substituted for 'eligible recipient' each place it appears in the definitions of those terms;

"(ii) the term 'covered loan' means a loan made under this paragraph;

"(iii) the terms 'covered mortgage obligation', 'covered operating expenditure', 'covered property damage cost', 'covered rent obligation', 'covered supplier cost', 'covered utility payment', and 'covered worker protection expenditure' have the meanings given those terms in section 1106(a) of the CARES Act (15 U.S.C. 9005(a));

"(iv) the term 'covered period' means the period beginning on the date of the origination of a covered loan and ending on December 31, 2020;

"(v) the term 'eligible entity' —

"(I) means any business concern, nonprofit organization, veterans organization, Tribal business concern, eligible self-employed individual, sole proprietor, independent contractor, or small agricultural cooperative that —

"(aa)(AA) with respect to a business concern, would qualify as a small business concern by the annual receipts size standard (if applicable) established by section 121.201 of title 13, Code of Federal Regulations, or any successor regulation; or

"(BB) if the entity does not qualify as a small business concern, meets the alternative size standard established under section 3(a)(5);

"(bb) employs not more than 300 employees; and

"(cc)(AA) except as provided in subitems (BB), (CC), and (DD), had gross receipts during the first or second quarter in 2020 that are not less than 35 percent less than the gross receipts of the entity during the same quarter in 2019;

"(BB) if the entity was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarter of 2019, had gross receipts during the first or second quarter of 2020 that are less than 35 percent of the amount of the gross receipts of the entity during the third or fourth quarter of 2019;

"(CC) if the entity was not in business during the first, second, or third quarter of 2019, but was in business during the fourth quarter of 2019, had gross receipts during the first or second quarter of 2020 that are less than 35 percent of the amount of the gross receipts of the entity during the fourth quarter of 2019; or

"(DD) if the entity was not in business during 2019, but was in operation on February 15, 2020, had gross receipts during the second quarter of 2020 that are less than 35 percent of the amount of the gross receipts of the entity during the first quarter of 2020;

"(II) includes an organization described in subparagraph (D)(vii) of paragraph (36) that is eligible to receive a loan under that paragraph and that meets the requirements described in items (aa) and (cc) of subclause (I); and

"(III) does not include —

"(aa) an issuer, the securities of which are listed on an exchange registered a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f);

"(bb) any entity that —

"(AA) is a type of business concern described in subsection (b), (c), (d), (e), (f), (h), (l) (m), (p), (q), (r), or (s) of section 120.110 of title 13, Code of Federal Regulations, or any successor regulation;

"(BB) is a type of business concern described in section 120.110(g) of title 13, Code of Federal Regulations, or any successor regulation, except as otherwise provided in the interim final rule of the Administration entitled 'Business Loan Program Temporary Changes; Paycheck Protection Program — Additional Eligibility Criteria and Requirements for Certain Pledges of Loans' (85 Fed. Reg. 21747 (April 20, 2020));

"(CC) is a type of business concern described in section 120.110(i) of title 13, Code of Federal Regulations, or any successor regulation, except if the business concern is an organization described in paragraph (36)(D)(vii);

"(DD) is a type of business concern described in section 120.110(j) of title 13, Code of Federal Regulations, or any successor regulation, except as otherwise provided in the interim final rules of the Administration entitled 'Business Loan Program Temporary Changes; Paycheck Protection Program — Eligibility of Certain Electric Cooperatives' (85 Fed. Reg. 29847 (May 19, 2020)) and 'Business Loan Program Temporary Changes; Paycheck Protection Program — Eligibility of Certain Telephone Cooperatives' (85 Fed. Reg. 35550 (June 11, 2020)) or any other guidance or rule issued or that may be issued by the Administrator;

"(EE) is a type of business concern described insection 120.110(n) of title 13, Code of Federal Regulations, or any successor regulation, except as otherwise provided in the interim final rule of the Administration entitled 'Business Loan Program Temporary Changes; Paycheck Protection Program — Additional Eligibility Revisions to First Interim Final Rule' (85 Fed. Reg. 38301 (June 26, 2020)) or any other guidance or rule issued or that may be issued by the Administrator;

"(FF) is a type of business concern described in section 120.110(o) of title 13, Code of Federal Regulations, or any successor regulation, except as otherwise provided in any guidance or rule issued or that may be issued by the Administrator; or

"(GG) is an entity that would be described in the subsections listed in subitems (AA) through (FF) if the entity were a business concern; or

"(HH) is assigned, or was approved for a loan under paragraph (36) with, a North American Industry Classification System code beginning with 52;

"(cc) any business concern or entity primarily engaged in political or lobbying activities, which shall include any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents; or

"(dd) any business concern or entity —

"(AA) for which an entity created in or organizedunder the laws of the People's Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People's Republic of China or the Special Administrative Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or

"(BB) that retains, as a member of the board of directors of the business concern, a person who is a resident of the People's Republic of China;

"(vi) the terms 'exchange', 'issuer', and 'security' have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)); and

"(vii) the term 'Tribal business concern' means a Tribal business concern described in section 31(b)(2)(C).

"(B) LOANS. — Except as otherwise provided in this paragraph, the Administrator may guarantee covered loans to eligible entities under the same terms, conditions, and processes as a loan made under paragraph (36).

"(C) MAXIMUM LOAN AMOUNT. —

"(i) IN GENERAL. — Except as otherwise provided in this subparagraph, the maximum amount of a covered loan made to an eligible entity is the lesser of —

"(I) the product obtained by multiplying —

"(aa) at the election of the eligible entity, the average total monthly payment for payroll costs incurred or paid by the eligible entity during —

"(AA) the 1-year period before the date on which the loan is made; or

"(BB) calendar year 2019; by

"(bb) 2.5; or

"(II) $2,000,000.

"(ii) SEASONAL EMPLOYERS. — The maximum amount of a covered loan made to an eligible entity that is a seasonal employer is the lesser of —

"(I) the product obtained by multiplying —

"(aa) at the election of the eligible entity, the average total monthly payments for payroll costs incurred or paid by the eligible entity —

"(AA) for a 12-week period beginning February 15, 2019 or March 1, 2019 and ending June 30, 2019; or

"(BB) for a consecutive 12-week period between May 1, 2019 and September 15, 2019; by

"(bb) 2.5; or

"(II) $2,000,000.

"(iii) NEW ENTITIES. — The maximum amount of a covered loan made to an eligible entity that did not exist during the 1-year period preceding February 15, 2020 is the lesser of —

"(I) the product obtained by multiplying —

"(aa) the quotient obtained by dividing —

"(AA) the sum of the total monthly payments by the eligible entity for payroll costs paid or incurred by the eligible entity as of the date on which the eligible entity applies for the covered loan; by

"(BB) the number of months in which those pay-roll costs were paid or incurred; by

"(bb) 2.5; or

"(II) $2,000,000.

"(iv) LIMIT FOR MULTIPLE LOCATIONS. — With respect to an eligible entity with more than 1 physical location, the total amount of all covered loans shall be not more than $2,000,000.

"(v) LOAN NUMBER LIMITATION. — An eligible entity may only receive 1 covered loan.

"(vi) 90 DAY RULE FOR MAXIMUM LOAN AMOUNT. — The maximum aggregate loan amount of loans guaranteed under this subsection that are approved for an eligible entity (including any affiliates) within 90 days of approval of another loan under this subsection for the eligible entity (including any affiliates) shall not exceed $10,000,000.

"(D) EXCEPTION FROM CERTAIN CERTIFICATION REQUIREMENTS. — An eligible entity applying for a covered loan shall not be required to make the certification described in subclause (III) or (IV) of paragraph (36)(G)(i).

"(E) FEE WAIVER. — With respect to a covered loan —

"(i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator shall collect no fee; and

"(ii) in lieu of the fee otherwise applicable under paragraph (18)(A), the Administrator shall collect no fee.

"(F) ELIGIBLE CHURCHES AND RELIGIOUS ORGANIZATIONS. —

"(i) SENSE OF CONGRESS. — It is the sense of Congress that the interim final rule of the Administration entitled 'Business Loan Program Temporary Changes; Paycheck Protection Program' (85 Fed. Reg. 20817 (April 15, 2020)) properly clarified the eligibility of churches and religious organizations for loans made under paragraph (36).

"(ii) APPLICABILITY OF PROHIBITION. — The prohibition on eligibility established by section 120.110(k) of title 13, Code of Federal Regulations, or any successor regulation, shall not apply to a covered loan.

"(G) GROSS RECEIPTS FOR NONPROFIT AND VETERANS ORGANIZATIONS. — For purposes of calculating gross receipts under subparagraph (A)(v)(I)(cc) for an eligible entity that is a nonprofit organization, a veterans organization, or an organization described in subparagraph (A)(v)(II), gross receipts —

"(i) shall include proceeds from fundraising events, federated campaigns, gifts, donor-advised funds, and funds from similar sources; and

"(ii) shall not include —

"(I) Federal grants (excluding any loan forgiveness on loans received under paragraph (36) or this paragraph);

"(II) revenues from a supporting organization;

"(III) grants from private foundations that are disbursed over the course of more than 1 calendar year; or

"(IV) any contribution of property other than money, stocks, bonds, and other securities, provided that the non-cash contribution is not sold by the organization in a transaction unrelated to the tax-exempt purpose of the organization.

"(H) LOAN FORGIVENESS. —

"(i) IN GENERAL. — Except as otherwise provided in this subparagraph, an eligible entity shall be eligible for forgiveness of indebtedness on a covered loan in the same manner as an eligible recipient with respect to a loan made under paragraph (36), as described in section 1106 of the CARES Act (15 U.S.C. 9005).

"(ii) FORGIVENESS AMOUNT. — An eligible entity shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to the sum of the following costs incurred or expenditures made during the covered period:

"(I) Payroll costs.

"(II) Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation).

"(III) Any covered operations expenditure.

"(IV) Any covered property damage cost.

"(V) Any payment on any covered rent obligation.

"(VI) Any covered utility payment.

"(VII) Any covered supplier cost.

"(VIII) Any covered worker protection expenditure.

"(iii) LIMITATION ON FORGIVENESS FOR ALL ELIGIBLE ENTITIES. — The forgiveness amount under this subparagraph shall be equal to the lesser of —

"(I) the amount described in clause (ii); and

"(II) the amount equal to the quotient obtained by dividing —

"(aa) the amount of the covered loan used for payroll costs during the covered period; and

"(bb) 0.60.

"(I) LENDER ELIGIBILITY. — Except as otherwise provided in this paragraph, a lender approved to make loans under paragraph (36) may make covered loans under the same terms and conditions as in paragraph (36).

"(J) REIMBURSEMENT FOR LOAN PROCESSING AND SERVICING. — The Administrator shall reimburse a lender authorized to make a covered loan in an amount that is —

"(i) 3 percent of the principal amount of the financing of the covered loan up to $350,000; and

"(ii) 1 percent of the principal amount of the financing of the covered loan above $350,000, if applicable.

"(K) SET ASIDE FOR SMALL ENTITIES. —

Not less than $25,000,000,000 of the total amount of covered loans guaranteed by the Administrator shall be made to eligible entities with not more than 10 employees as of February 15, 2020.

"(L) SET ASIDE FOR COMMUNITY FINANCIAL INSTITUTIONS, SMALL INSURED DEPOSITORY INSTITUTIONS, CREDIT UNIONS, AND FARM CREDIT SYSTEM INSTITUTIONS. — Not less than $10,000,000,000 of the total amount of covered loans guaranteed by the Administrator shall be made by —

"(i) community financial institutions;

"(ii) insured depository institutions with consolidated assets of less than $10,000,000,000;

"(iii) credit unions with consolidated assets of less than $10,000,000,000; and

"(iv) institutions of the Farm Credit System chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) with consolidated assets of less than $10,000,000,000 (not including the Federal Agricultural Mortgage Corporation).

"(M) PUBLICATION OF GUIDANCE. — Not later than 10 days after the date of enactment of this paragraph, the Administrator shall issue guidance addressing barriers to accessing capital for minority, underserved, veteran, and women-owned business concerns for the purpose of ensuring equitable access to covered loans.

"(N) STANDARD OPERATING PROCEDURE. — The Administrator shall, to the maximum extent practicable, allow a lender approved to make covered loans to use existing program guidance and standard operating procedures for loans made under this subsection.

"(O) PROHIBITION ON USE OF PROCEEDS FOR LOBBYING ACTIVITIES. — None of the proceeds of a covered loan may be used for —

"(i) lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602);

"(ii) lobbying expenditures related to a State or local election; or

"(iii) expenditures designed to influence the enactment of legislation, appropriations, regulation, administrative action, or Executive order proposed or pending before Congress or any State government, State legislature, or local legislature or legislative body.".

(j) CONTINUED ACCESS TO THE PAYCHECK PROTECTION PROGRAM. —

(1) IN GENERAL. — Section 7(a)(36)(E)(ii) of the Small Business Act (15 U.S.C. 636(a)(36)(E)(ii)) is amended by striking "$10,000,000" and inserting "$2,000,000".

(2) APPLICABILITY OF MAXIMUM LOAN AMOUNT CALCULATION. —

(A) DEFINITIONS. — In this paragraph, the terms "covered loan" and "eligible recipient" have the meanings given those terms in section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).

(B) APPLICABILITY. — The amendment made by paragraph (1) shall apply only with respect to a covered loan applied for by an eligible recipient on or after the date of enactment of this Act.

(k) INCREASED ABILITY FOR PAYCHECK PROTECTION PROGRAM BORROWERS TO REQUEST AN INCREASE IN LOAN AMOUNT DUE TO UPDATED REGULATIONS. —

(1) DEFINITIONS. — In this subsection, the terms "covered loan" and "eligible recipient" have the meanings given those terms in section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).

(2) INCREASED AMOUNT. — Notwithstanding the interim final rule issued by the Administration entitled "Business Loan Program Temporary Changes; Paycheck Protection Program — Loan Increases" (85 Fed. Reg. 29842 (May 19, 2020)), an eligible recipient of a covered loan that is eligible for an increased covered loan amount as a result of any interim final rule that allows for covered loan increases may submit a request for an increase in the covered loan amount even if —

(A) the initial covered loan amount has been fully disbursed; or

(B) the lender of the initial covered loan has submitted to the Administration a Form 1502 report related to the covered loan.

(l) CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS UNDER THE PAYCHECK PROTECTION PROGRAM. —

(1) IN GENERAL. — Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), as amended by subsection (j) of this section, is amended —

(A) in subparagraph (E), in the matter preceding clause (i), by striking "During" and inserting "Except as provided in subparagraph (T), during"; and

(B) by adding at the end the following:

"(T) CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS. —

"(i) DEFINITION. — In this subparagraph, the term 'covered recipient' means an eligible recipient that —

"(I) operates as a sole proprietorship or as an independent contractor, or is an eligible self-employed individual;

"(II) reports farm income or expenses on a Schedule F (or any equivalent successor schedule); and

"(III) was in business during the period beginning on February 15, 2019 and ending on June 30, 2019.

"(ii) NO EMPLOYEES. — With respect to covered recipient without employees, the maximum covered loan amount shall be the lesser of —

"(I) the sum of —

"(aa) the product obtained by multiplying —

"(AA) the gross income of the covered recipient in 2019, as reported on a Schedule F (or any equivalent successor schedule), that is not more than $100,000, divided by 12; and

"(BB) 2.5; and

"(bb) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on April 3, 2020 that the borrower intends to refinance under the covered loan, not including any amount of any advance under the loan that is not required to be repaid; or

"(II) $2,000,000.

"(iii) WITH EMPLOYEES. — With respect to a covered recipient with employees, the maximum covered loan amount shall be calculated using the formula described in subparagraph (E), except that the gross income of the covered recipient described in clause (ii)(I)(aa)(AA) of this subparagraph, as divided by 12, shall be added to the sum calculated under subparagraph (E)(i)(I).

"(iv) RECALCULATION. — A lender that made a covered loan to a covered recipient before the date of enactment of this subparagraph may, at the request of the covered recipient —

"(I) recalculate the maximum loan amount applicable to that covered loan based on the formula described in clause (ii) or (iii), as applicable, if doing so would result in a larger covered loan amount; and

"(II) provide the covered recipient with additional covered loan amounts based on that recalculation.".

(m) FARM CREDIT SYSTEM INSTITUTIONS. —

(1) DEFINITION OF FARM CREDIT SYSTEM INSTITUTION. — In this subsection, the term "Farm Credit System institution" —

(A) means an institution of the Farm Credit System chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); and

(B) does not include the Federal Agricultural Mortgage Corporation.

(2) FACILITATION OF PARTICIPATION IN PPP AND SECOND DRAW LOANS. —

(A) APPLICABLE RULES. — Solely with respect to loans under paragraphs (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), Farm Credit Administration regulations and guidance issued as of July 14, 2020, and compliance with such regulations and guidance, shall be deemed functionally equivalent to requirements referenced in section 3(a)(iii)(II) of the interim final rule of the Administration entitled "Business Loan Program Temporary Changes; Paycheck Protection Program" (85 Fed. Reg. 20811 (April 15, 2020)) or any similar requirement referenced in that interim final rule in implementing such paragraph (37).

(B) APPLICABILITY OF CERTAIN LOAN REQUIREMENTS. — For purposes of making loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgiving those loans in accordance with section 1106 of the CARES Act (15 U.S.C. 9005) and subparagraph (H) of such paragraph (37), sections 4.13, 4.14, and 4.14A of the Farm Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) (including regulations issued under those sections) shall not apply.

(C) RISK WEIGHT. —

(i) IN GENERAL. — With respect to the application of Farm Credit Administration capital requirements, a loan described in clause (ii) —

(I) shall receive a risk weight of zero percent; and

(II) shall not be included in the calculation of any applicable leverage ratio or other applicable capital ratio or calculation.

(ii) LOANS DESCRIBED. — A loan referred to in clause (i) is —

(I) a loan made by a Farm Credit Bank described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) to a Federal Land Bank Association, a Production Credit Association, or an agricultural credit association described in that section to make loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgive those loans in accordance with section 1106 of the CARES Act (15 U.S.C. 9005) and subparagraph (H) of such paragraph (37); or

(II) a loan made by a Federal Land Bank Association, a Production Credit Association, an agricultural credit association, or the bank for cooperatives described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

(D) RESERVATION OF LOAN GUARANTEES. — Section 7(a)(36)(S) of the Small Business Act (15 U.S.C. 636(a)(36)(S)) is amended —

(i) in clause (i) —

(I) in subclause (I), by striking "and" at the end;

(II) in subclause (II), by striking the period at the end and inserting "; and"; and

(III) by adding at the end the following:

"(III) institutions of the Farm Credit System chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000."; and

(ii) in clause (ii) —

(I) in subclause (II), by striking "and" at the end;

(II) in subclause (III), by striking the period at the end and inserting "; and"; and

(III) by adding at the end the following:

"(IV) institutions of the Farm Credit System chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) with consolidated assets of less than $10,000,000,000.".

(n) DEFINITION OF SEASONAL EMPLOYER. —

(1) PPP LOANS. — Section 7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)) is amended —

(A) in clause (xi), by striking "and" at the end;

(B) in clause (xii), by striking the period at the end and inserting "; and"; and

(C) by adding at the end the following:

"(xiii) the term 'seasonal employer' means an eligible recipient that —

"(I) does not operate for more than 7 months in any calendar year; or

"(II) during the preceding calendar year, had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts of the employer for the other 6 months of that year.".

(2) LOAN FORGIVENESS. — Paragraph (12) of section 1106(a) of the CARES Act (15 U.S.C. 9005(a)), as so redesignated by subsection (d)(2) of this section, is amended to read as follows:

"(12) the terms 'payroll costs' and 'seasonal employer' have the meanings given those terms in section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).".

(o) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS FOR LOANS UNDER THE PAYCHECK PROTECTION PROGRAM. — Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 636(a)(36)(D)) is amended —

(1) in clause (v), by inserting "or whether an organization described in clause (vii) employs not more than 150 employees," after "clause (i)(I),";

(2) in clause (vi), by inserting ", an organization described in clause (vii)," after "nonprofit organization"; and

(3) by adding at the end the following:

"(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) ORGANIZATIONS. —

"(I) IN GENERAL. — Except as provided in subclause (II), any organization that is described in section 501(c)(6) of the Internal Revenue Code and that is exempt from taxation under section 501(a) of such Code (excluding professional sports leagues and organizations with the purpose of promoting or participating in a political campaign or other activity) shall be eligible to receive a covered loan if —

"(aa) the organization does not receive more than 10 percent of its receipts from lobbying activities;

"(bb) the lobbying activities of the organization do not comprise more than 10 percent of the total activities of the organization; and

"(cc) the organization employs not more than 150 employees.

"(II) DESTINATION MARKETING ORGANIZATIONS. — Notwithstanding subclause (I), during the covered period, any destination marketing organization shall be eligible to receive a covered loan if —

"(aa) the destination marketing organization does not receive more than 10 percent of its receipts from lobbying activities;

"(bb) the lobbying activities of the destination marketing organization do not comprise more than 10 percent of the total activities of the organization;

"(cc) the destination marketing organization employs not more than 150 employees; and

"(dd) the destination marketing organization —

"(AA) is described in section 501(c) of the Internal Revenue Code and is exempt from taxation under section 501(a) of such Code; or

"(BB) is a quasi-governmental entity or is a political subdivision of a State or local government, including any instrumentality of those entities.".

(p) PROHIBITION ON USE OF LOAN PROCEEDS FOR LOBBYING ACTIVITIES. — Section 7(a)(36)(F) of the Small Business Act (15 U.S.C. 636(a)(36)(F)) is amended by adding at the end the following:

"(vi) PROHIBITION. — None of the proceeds of a covered loan may be used for —

"(I) lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602);

"(II) lobbying expenditures related to a State or local election; or

"(III) expenditures designed to influence the enactment of legislation, appropriations, regulation, administrative action, or Executive order proposed or pending before Congress or any State government, State legislature, or local legislature or legislative body.".

(q) EFFECTIVE DATE; APPLICABILITY. — The amendments made to paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and title I of the CARES Act (Public Law 116–136) under this section shall be effective as if included in the CARES Act and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).

(r) BANKRUPTCY PROVISIONS. —

(1) IN GENERAL. — Section 364 of title 11, United States Code, is amended by adding at the end the following:

"(g)(1) The court, after notice and a hearing, may authorize a debtor in possession or a trustee that is authorized to operate the business of the debtor under section 1183, 1184, 1203, 1204, or 1304 of this title to obtain a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), and such loan shall be treated as a debt to the extent the loan is not forgiven in accordance with section 1106 of the CARES Act (15 U.S.C. 9005) or subparagraph (H) of such paragraph (37), as applicable, with priority equal to a claim of the kind specified in subsection (c)(1) of this section.

"(2) The trustee may incur debt described in paragraph (1) notwithstanding any provision in a contract, prior order authorizing the trustee to incur debt under this section, prior order authorizing the trustee to use cash collateral under section 363, or applicable law that prohibits the debtor from incurring additional debt.

"(3) The court shall hold a hearing within 7 days after the filing and service of the motion to obtain a loan described in paragraph (1). Notwithstanding the Federal Rules of Bankruptcy Procedure, at such hearing, the court may grant relief on a final basis.".

(2) ALLOWANCE OF ADMINISTRATIVE EXPENSES. — Section 503(b) of title 11, United States Code, is amended —

(A) in paragraph (8)(B), by striking "and" at the end;

(B) in paragraph (9), by striking the period at the end and inserting "; and"; and

(C) by adding at the end the following:

"(10) any debt incurred under section 364(g)(1) of this title.".

(3) CONFIRMATION OF PLAN FOR REORGANIZATION. — Section 1191 of title 11, United States Code, is amended by adding at the end the following:

"(f) SPECIAL PROVISION RELATED TO COVID–19 PANDEMIC. — Notwithstanding section 1129(a)(9)(A) of this title and subsection (e) of this section, a plan that provides for payment of a claim of a kind specified in section 503(b)(10) of this title may be confirmed under subsection (b) of this section if the plan proposes to make payments on account of such claim when due under the terms of the loan giving rise to such claim.".

(4) CONFIRMATION OF PLAN FOR FAMILY FARMERS AND FISHERMEN. — Section 1225 of title 11, United States Code, is amended by adding at the end the following:

"(d) Notwithstanding section 1222(a)(2) of this title and subsection (b)(1) of this section, a plan that provides for payment of a claim of a kind specified in section 503(b)(10) of this title may be confirmed if the plan proposes to make payments on account of such claim when due under the terms of the loan giving rise to such claim.".

(5) CONFIRMATION OF PLAN FOR INDIVIDUALS. — Section 1325 of title 11, United States Code, is amended by adding at the end the following:

"(d) Notwithstanding section 1322(a)(2) of this title and subsection (b)(1) of this section, a plan that provides for payment of a claim of a kind specified in section 503(b)(10) of this title may be confirmed if the plan proposes to make payments on account of such claim when due under the terms of the loan giving rise to such claim.".

(6) EFFECTIVE DATE; SUNSET. —

(A) EFFECTIVE DATE. — The amendments made by paragraphs (1) through (5) shall —

(i) take effect on the date on which the Administrator submits to the Director of the Executive Office for United States Trustees a written determination that, subject to satisfying any other eligibility requirements, any debtor in possession or trustee that is authorized to operate the business of the debtor under section 1183, 1184, 1203, 1204, or 1304 of title 11, United States Code, would be eligible for a loan under paragraphs (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)); and

(ii) apply to any case pending on or commenced on or after the date described in clause (i).

(B) SUNSET. —

(i) IN GENERAL. — If the amendments made by this subsection take effect under subparagraph (A), effective on the date that is 2 years after the date of enactment of this Act —

(I) section 364 of title 11, United States Code, is amended by striking subsection (g);

(II) section 503(b) of title 11, United States Code, is amended —

(aa) in paragraph (8)(B), by adding "and" at the end;

(bb) in paragraph (9), by striking "; and" at the end and inserting a period; and

(cc) by striking paragraph (10);

(III) section 1191 of title 11, United States Code, is amended by striking subsection (f);

(IV) section 1225 of title 11, United States Code, is amended by striking subsection (d); and

(V) section 1325 of title 11, United States Code, is amended by striking subsection (d).

(ii) APPLICABILITY. — Notwithstanding the amendments made by clause (i) of this subparagraph, if the amendments made by paragraphs (1), (2), (3), (4), and (5) take effect under subparagraph (A) of this paragraph, such amendments shall apply to any case under title 11, United States Code, commenced before the date that is 2 years after the date of enactment of this Act.

(s) OVERSIGHT. —

(1) COMPLIANCE WITH OVERSIGHT REQUIREMENTS. —

(A) IN GENERAL. — Except as provided in subparagraph (B), on and after the date of enactment of this Act, the Administrator shall comply with any data or information requests or inquiries made by the Comptroller General of the United States not later than 30 days (or such later date as the Comptroller General may specify) after receiving the request or inquiry.

(B) EXCEPTION. — If the Administrator is unable to comply with a request or inquiry described in subparagraph (A) within the 30-day period or, if applicable, later period described in that clause, the Administrator shall, during that 30-day (or later) period, submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a notification that includes a detailed justification for the inability of the Administrator to comply with the request or inquiry.

(2) TESTIMONY. — Not later than the date that is 30 days after the date of enactment of this Act, and every quarter thereafter until the date that is 2 years after the date of enactment of this Act, the Administrator and the Secretary of the Treasury shall testify before the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding implementation of this section and the amendments made by this section.

(t) CONFLICTS OF INTEREST. —

(1) DEFINITIONS. — In this subsection:

(A) CONTROLLING INTEREST. — The term "controlling interest" means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.

(B) COVERED ENTITY. —

(i) DEFINITION. — The term "covered entity" means an entity in which a covered individual directly or indirectly holds a controlling interest.

(ii) TREATMENT OF SECURITIES. —

For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in subparagraph (C)(ii) shall be aggregated.

(C) COVERED INDIVIDUAL. — The term "covered individual" means —

(i) the President, the Vice President, the head of an Executive department, or a Member of Congress; and

(ii) the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual de scribed in clause (i).

(D) EXECUTIVE DEPARTMENT. — The term "Executive department" has the meaning given the term in section 101 of title 5, United States Code.

(E) MEMBER OF CONGRESS. — The term "Member of Congress" means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.

(F) EQUITY INTEREST. — The term "equity interest" means —

(i) a share in an entity, without regard to whether the share is —

(I) transferable; or

(II) classified as stock or anything similar;

(ii) a capital or profit interest in a limited liability company or partnership; or

(iii) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in clause (i) or (ii), respectively.

(2) REQUIREMENT. — The principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to enter a transaction made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added and amended by this section, shall, before that transaction is approved, disclose to the Administrator whether the entity is a covered entity.

(3) APPLICABILITY. — The requirement under paragraph (2) —

(A) shall apply with respect to any transaction made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added and amended by this section, on or after the date of enactment of this Act; and

(B) shall not apply with respect to —

(i) any transaction described in subparagraph (A) that was made before the date of enactment of this Act; or

(ii) forgiveness under section 1106 of the CARES Act (15 U.S.C. 9005) or any other provision of law of any loan associated with any transaction described in subparagraph (A) that was made before the date of enactment of this Act.

(u) COMMITMENT AUTHORITY AND APPROPRIATIONS. —

(1) COMMITMENT AUTHORITY. — Section 1102(b) of the CARES Act (Public Law 116–136) is amended —

(A) in paragraph (1) —

(i) in the paragraph heading, by inserting "AND SECOND DRAW" after "PPP";

(ii) by striking "August 8, 2020" and inserting "December 31, 2020";

(iii) by striking "paragraph (36)" and inserting "paragraphs (36) and (37)"; and

(iv) by striking "$659,000,000,000" and inserting "$816,640,000,000"; and

(B) by amending paragraph (2) to read as follows:

"(2) OTHER 7(A) LOANS. — During fiscal year 2020, the amount authorized for commitments for section 7(a) of the Small Business Act (15 U.S.C. 636(a)) under the heading 'Small Business Administration — Business Loans Program Account' in the Financial Services and General Government Appropriations Act, 2020 (division C of Public Law 116–193) shall apply with respect to any commitments under such section 7(a) other than under paragraphs (36) and (37) of such section 7(a).".

(2) DIRECT APPROPRIATIONS. —

(A) NEW DIRECT APPROPRIATIONS FOR PPP LOANS, SECOND DRAW LOANS, AND THE MBDA. —

(i) PPP AND SECOND DRAW LOANS. — There is appropriated, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020, to remain available until September 30, 2021, for additional amounts —

(I) $257,640,000,000 under the heading "Small Business Administration — Business Loans Program Account, CARES Act" for the cost of guaranteed loans as authorized under paragraph (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended and added by this Act;

(II) $10,000,000 under the heading "Department of Commerce — Minority Business Development Agency" for minority business centers of the Minority Business Development Agency to provide technical assistance to small business concerns; and (III) $50,000,000 under the heading "Small Business Administration — Salaries and Expenses" for the cost of carrying out reviews and audits of loans under subsection (l) of section 1106 of the CARES Act (15 U.S.C. 9005), as amended by this Act.

(B) AVAILABILITY OF AMOUNTS APPROPRIATED FOR THE OFFICE OF INSPECTOR GENERAL. — Section 1107(a)(3) of the CARES Act (15 U.S.C. 9006(a)(3)) is amended by striking "September 20, 2024" and inserting "expended".

* * *

TITLE VI — EDUCATIONAL SUPPORT AND CHILD CARE

Subtitle A — Emergency Education Freedom Grants; Tax Credits for Contributions to Eligible Scholarship-granting Organizations

SEC. 6001. EMERGENCY EDUCATION FREEDOM GRANTS.

(a) DEFINITIONS. — In this section:

(1) ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATION. — The term "eligible scholarship-granting organization" means —

(A) an organization that —

(i) is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code;

(ii) provides qualifying scholarships to individual elementary and secondary students who —

(I) reside in the State in which the eligible scholarship-granting organization is recognized; or

(II) in the case of funds provided to the Secretary of the Interior, attending elementary schools or secondary schools operated or funded by the Bureau of Indian Education;

(iii) allocates at least 90 percent of qualified contributions to qualifying scholarships on an annual basis; and

(iv) provides qualifying scholarships to —

(I) more than 1 eligible student;

(II) more than 1 eligible family; and

(III) different eligible students attending more than 1 education provider;

(B) an organization that —

(i) is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and

(ii) pursuant to State law, was able, as of January 1, 2021, to receive contributions that are eligible for a State tax credit if such contributions are used by the organization to provide scholarships to individual elementary and secondary students, including scholarships for attending private schools; or

(C) an organization identified by a Governor of a State to receive a subgrant from the State under subsection (d).

(2) EMERGENCY EDUCATION FREEDOM GRANT FUNDS. — The term "emergency education freedom grant funds" means the amount of funds available under subsection (b)(1) for this section that are not reserved under subsection (c)(1).

(3) QUALIFIED CONTRIBUTION. — The term "qualified contribution" means a contribution of cash to any eligible scholarship-granting organization.

(4) QUALIFIED EXPENSE. — The term "qualified expense" means any educational expense that is —

(A) for an individual student's elementary or secondary education, as recognized by the State; or

(B) for the secondary education component of an individual elementary or secondary student's career and technical education, as defined by section 3(5) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(5)).

(5) QUALIFYING SCHOLARSHIP. — The term "qualifying scholarship" means a scholarship granted by an eligible scholarship-granting organization to an individual elementary or secondary student for a qualified expense.

(6) SECRETARY. — The term "Secretary" means the Secretary of Education.

(7) STATE. — The term "State" means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

(b) GRANTS. —

(1) PROGRAM AUTHORIZED. — From the funds appropriated to carry out this section, the Secretary shall carry out subsection (c) and award emergency education freedom grants to States with approved applications, in order to enable the States to award subgrants to eligible scholarship-granting organizations under subsection (d).

(2) TIMING. — The Secretary shall make the allotments required under this subsection by not later than 30 days after the date of enactment of this Act.

(c) RESERVATION AND ALLOTMENTS. —

(1) IN GENERAL. — From the amounts made available under subsection (b)(1), the Secretary shall —

(A) reserve —

(i) one-half of 1 percent for allotments for the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, to be distributed among those outlying areas on the basis of their relative need, as determined by the Secretary, in accordance with the purpose of this section; and

(ii) one-half of 1 percent of such amounts for the Secretary of the Interior, acting through the Bureau of Indian Education, to be used to provide subgrants described in subsection (d) to eligible scholarship-granting organizations that serve students attending elementary schools or secondary schools operated or funded by the Bureau of Indian Education; and

(B) subject to paragraph (2), allot each State that submits an approved application under this section the sum of —

(i) the amount that bears the same relation to 20 percent of the emergency education freedom grant funds as the number of individuals aged 5 through 17 in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals, as so determined, in all such States that submitted approved applications; and (ii) an amount that bears the same relationship to 80 percent of the emergency education freedom grant funds as the number of individuals aged 5 through 17 from families with incomes below the poverty line in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals, as so determined, in all such States that submitted approved applications.

(2) MINIMUM ALLOTMENT. — No State shall receive an allotment under this subsection for a fiscal year that is less than one-half of 1 percent of the amount of emergency education freedom grant funds available for such fiscal year.

(d) SUBGRANTS TO ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATIONS. —

(1) IN GENERAL. — A State that receives an allotment under this section shall use the allotment to award subgrants, on a basis determined appropriate by the State, to eligible scholarship-granting organizations in the State.

(2) INITIAL TIMING. —

(A) STATES WITH EXISTING TAX CREDIT SCHOLARSHIP PROGRAM. — By not later than 30 days after receiving an allotment under subsection (c)(1)(B), a State with an existing, as of the date of application for an allotment under this section, tax credit scholarship program shall use not less than 50 percent of the allotment to award subgrants to eligible scholarship-granting organizations under subsection (a)(1)(B) in the State in proportion to the contributions received in calendar year 2019 that were eligible for a State tax credit if such contributions are used by the organization to provide scholarships to individual elementary and secondary students, including scholarships for attending private schools.

(B) STATES WITHOUT TAX CREDIT SCHOLARSHIP PROGRAMS. — By not later than 60 days after receiving an allotment under subsection (c)(1)(B), a State without a tax credit scholarship program shall use not less than 50 percent of the allotment to award subgrants to eligible scholarship-granting organizations in the State.

(3) USES OF FUNDS. — An eligible scholarship-granting organization that receives a subgrant under this subsection —

(A) may reserve not more than 5 percent of the subgrant funds for public outreach, student and family support activities, and administrative expenses related to the subgrant; and

(B) shall use not less than 95 percent of the subgrant funds to provide qualifying scholarships for qualified expenses only to individual elementary school and secondary school students who reside in the State in which the eligible scholarship-granting organization is recognized.

(e) REALLOCATION. — A State shall return to the Secretary any amounts of the allotment received under this section that the State does not award as subgrants under subsection (d) by March 30, 2021, and the Secretary shall reallocate such funds to the remaining eligible States in accordance with subsection (c)(1)(B).

(f) RULES OF CONSTRUCTION. —

(1) IN GENERAL. — A qualifying scholarship awarded to a student from funds provided under this section shall not be considered assistance to the school or other educational provider that enrolls, or provides educational services to, the student or the student's parents.

(2) EXCLUSION FROM INCOME. —

(A) INCOME TAXES. — For purposes of the Internal Revenue Code of 1986, gross income shall not include any amount received by an individual as a qualifying scholarship.

(B) FEDERALLY FUNDED PROGRAMS. —

Any amount received by an individual as a qualifying scholarship shall not be taken into account as income or resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of such benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

(3) PROHIBITION OF CONTROL OVER NONPUBLIC EDUCATION PROVIDERS. —

(A)(i) Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home education provider, whether or not a home education provider is treated as a private school or home school under State law.

(ii) This section shall not be construed to exclude private, religious, or home education providers from participation in programs or services under this section.

(B) Nothing in this section shall be construed to permit, allow, encourage, or authorize a State to mandate, direct, or control any aspect of a private or home education provider, regardless of whether or not a home education provider is treated as a private school under State law.

(C) No participating State shall exclude, discriminate against, or otherwise disadvantage any education provider with respect to programs or services under this section based in whole or in part on the provider's religious character or affiliation, including religiously based or mission-based policies or practices.

(4) PARENTAL RIGHTS TO USE SCHOLARSHIPS. — No participating State shall disfavor or discourage the use of qualifying scholarships for the purchase of elementary and secondary education services, including those services provided by private or nonprofit entities, such as faith-based providers.

(5) STATE AND LOCAL AUTHORITY. — Nothing in this section shall be construed to modify a State or local government's authority and responsibility to fund education.

(g) AUTHORIZATION OF APPROPRIATIONS. — There are authorized to be appropriated to carry out this section such sums as may be necessary.

SEC. 6002. TAX CREDITS FOR CONTRIBUTIONS TO ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATIONS.

(a) CREDIT FOR INDIVIDUALS. — Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding after section 25D the following new section:

"SEC. 25E. CONTRIBUTIONS TO ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATIONS.

"(a) ALLOWANCE OF CREDIT. — Subject to section 6003(c) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act, in the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of any qualified contributions made by the taxpayer during the taxable year.

"(b) AMOUNT OF CREDIT. — The credit allowed under subsection (a) for any taxable year shall not exceed 10 percent of the taxpayer's adjusted gross income for the taxable year.

"(c) DEFINITIONS. — For purposes of this section —

"(1) ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATION. — The term 'eligible scholarship-granting organization' means —

"(A) an organization that —

"(i) is described in section 501(c)(3) and exempt from taxation under section 501(a),

"(ii) provides qualifying scholarships to individual elementary and secondary students who —

"(I) reside in the State in which the eligible scholarship-granting organization is recognized, or

"(II) in the case of the Bureau of Indian Education, are members of a federally recognized tribe,

"(iii) a State identifies to the Secretary as an eligible scholarship-granting organization under section 6003(c)(5)(B) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act,

"(iv) allocates at least 90 percent of qualified contributions to qualifying scholarships on an annual basis, and

"(v) provides qualifying scholarships to —

"(I) more than 1 eligible student,

"(II) more than 1 eligible family, and

"(III) different eligible students attending more than 1 education provider, or

"(B) an organization that —

"(i) is described in section 501(c)(3) and exempt from taxation under section 501(a), and

"(ii) pursuant to State law, was able, as of January 1, 2021, to receive contributions that are eligible for a State tax credit if such contributions are used by the organization to provide scholarships to individual elementary and secondary students, including scholarships for attending private schools.

"(2) QUALIFIED CONTRIBUTION. — The term 'qualified contribution' means a contribution of cash to any eligible scholarship-granting organization.

"(3) QUALIFIED EXPENSE. — The term 'qualified expense' means any educational expense that is —

"(A) for an individual student's elementary or secondary education, as recognized by the State, or

"(B) for the secondary education component of an individual elementary or secondary student's career and technical education, as defined by section 3(5) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(5)).

"(4) QUALIFYING SCHOLARSHIP. — The term 'qualifying scholarship' means a scholarship granted by an eligible scholarship-granting organization to an individual elementary or secondary student for a qualified expense.

"(5) STATE. — The term 'State' means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the outlying areas (as defined in section 1121(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331(c)), and the Department of the Interior (acting through the Bureau of Indian Education).

"(d) RULES OF CONSTRUCTION. —

"(1) IN GENERAL. — A qualifying scholarship awarded to a student from the proceeds of a qualified contribution under this section shall not be considered assistance to the school or other educational provider that enrolls, or provides educational services to, the student or the student's parents.

"(2) EXCLUSION FROM INCOME. — Gross income shall not include any amount received by an individual as a qualifying scholarship and such amount shall not be taken into account as income or resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of such benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

"(3) PROHIBITION OF CONTROL OVER NONPUBLIC EDUCATION PROVIDERS. —

"(A)(i) Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home education provider, whether or not a home education provider is treated as a private school or home school under State law.

"(ii) This section shall not be construed to exclude private, religious, or home education providers from participation in programs or services under this section.

"(B) Nothing in this section shall be construed to permit, allow, encourage, or authorize an entity submitting a list of eligible scholarship-granting organizations on behalf of a State pursuant to section 6003(c)(5) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act to mandate, direct, or control any aspect of a private or home education provider, regardless of whether or not a home education provider is treated as a private school under State law.

"(C) No participating State or entity acting on behalf of a State pursuant to section 6003(c)(5) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act shall exclude, discriminate against, or otherwise disadvantage any education provider with respect to programs or services under this section based in whole or in part on the provider's religious character or affiliation, including religiously-based or mission-based policies or practices.

"(4) PARENTAL RIGHTS TO USE SCHOLARSHIPS. — No participating State or entity acting on behalf of a State pursuant to section 6003(c)(5) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act shall disfavor or discourage the use of qualifying scholarships for the purchase of elementary and secondary education services, including those services provided by private or nonprofit entities, such as faith-based providers.

"(5) STATE AND LOCAL AUTHORITY. — Nothing in this section shall be construed to modify a State or local government's authority and responsibility to fund education.

"(e) DENIAL OF DOUBLE BENEFIT. — The Secretary shall prescribe such regulations or other guidance to ensure that the sum of the tax benefits provided by Federal, State, or local law for a qualified contribution receiving a Federal tax credit in any taxable year does not exceed the sum of the qualified contributions made by the taxpayer for the taxable year.

"(f) CARRYFORWARD OF CREDIT. — If a tax credit allowed under this section is not fully used within the applicable taxable year because of insufficient tax liability on the part of the taxpayer, the unused amount may be carried forward for a period not to exceed 5 years.

"(g) ELECTION. — This section shall apply to a taxpayer for a taxable year only if the taxpayer elects to have this section apply for such taxable year.

"(h) ALTERNATIVE MINIMUM TAX. — For purposes of calculating the alternative minimum tax under section 55, a taxpayer may use any credit received for a qualified contribution under this section.

"(i) TERMINATION. — This section shall not apply to any contributions made in taxable years beginning after December 31, 2022.".

(b) CLERICAL AMENDMENT. — The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25D the following new item:

"Sec. 25E. Contributions to eligible scholarship-granting organizations.".

(c) CREDIT FOR CORPORATIONS. — Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

"SEC. 45U. CONTRIBUTIONS TO ELIGIBLE SCHOLARSHIP-GRANTING ORGANIZATIONS.

"(a) ALLOWANCE OF CREDIT. — Subject to section 6003(c) of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act, for purposes of section 38, in the case of a domestic corporation, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of any qualified contributions (as defined in section 25E(c)(2)) made by such corporation during the taxable year.

"(b) AMOUNT OF CREDIT. — The credit allowed under subsection (a) for any taxable year shall not exceed 5 percent of the taxable income (as defined in section 170(b)(2)(D)) of the domestic corporation for such taxable year.

"(c) ADDITIONAL PROVISIONS. — For purposes of this section, any qualified contributions made by a domestic corporation shall be subject to the provisions of section 25E (including subsection (d) of such section), to the extent applicable.

"(d) ELECTION. — This section shall apply to a taxpayer for a taxable year only if the taxpayer elects to have this section apply for such taxable year.

"(e) TERMINATION. — This section shall not apply to any contributions made in taxable years beginning after December 31, 2022.".

(d) CREDIT PART OF GENERAL BUSINESS CREDIT. — Section 38(b) is amended —

(1) by striking "plus" at the end of paragraph (32);

(2) by striking the period at the end of paragraph (33) and inserting ", plus"; and

(3) by adding at the end the following new paragraph:

"(34) the credit for qualified contributions determined under section 45U(a).".

(e) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:

"Sec. 45U. Contributions to eligible scholarship-granting organizations.".

(f) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2020.

SEC. 6003. EDUCATION FREEDOM SCHOLARSHIPS WEB PORTAL AND ADMINISTRATION.

(a) IN GENERAL. — The Secretary of the Treasury shall, in coordination with the Secretary of Education, establish, host, and maintain a web portal that —

(1) lists all eligible scholarship-granting organizations;

(2) enables a taxpayer to make a qualifying contribution to one or more eligible scholarship-granting organizations and to immediately obtain both a pre-approval of a tax credit for that contribution and a receipt for tax filings;

(3) provides information about the tax benefits under sections 25E and 45U of the Internal Revenue Code of 1986; and

(4) enables a State to submit and update information about its programs and its eligible scholarship-granting organizations for informational purposes only, including information on —

(A) student eligibility;

(B) allowable educational expenses;

(C) the types of allowable education providers;

(D) the percentage of funds an organization may use for program administration; and

(E) the percentage of total contributions the organization awards in a calendar year.

(b) NONPORTAL CONTRIBUTIONS. — A taxpayer may opt to make a contribution directly to an eligible scholarship-granting organization, instead of through the web portal described in subsection (a), provided that the taxpayer, or the eligible scholarship-granting organization on behalf of the taxpayer, applies for, and receives pre-approval for a tax credit from the Secretary of the Treasury in coordination with the Secretary of Education.

(c) NATIONAL AND STATE LIMITATIONS ON CREDITS. —

(1) NATIONAL LIMITATION. — For each fiscal year, the total amount of qualifying contributions for which a credit is allowed under sections 25E and 45U of the Internal Revenue Code of 1986 shall not exceed $5,000,000,000.

(2) ALLOCATION OF LIMITATION. —

(A) INITIAL ALLOCATIONS. — For each calendar year, with respect to the limitation under paragraph (1), the Secretary of the Treasury, in consultation with the Secretary of Education, shall —

(i) allocate to each State an amount equal to the sum of the qualifying contributions made in the State in the previous year; and

(ii) from any amounts remaining following allocations made under clause (i), allocate to each participating State an amount equal to the sum of —

(I) an amount that bears the same relationship to 20 percent of such remaining amount as the number of individuals aged 5 through 17 in the State, as determined by the Secretary of Education on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined; and

(II) an amount that bears the same relationship to 80 percent of such remaining amount as the number of individuals aged 5 through 17 from families with incomes below the poverty line in the State, as determined by the Secretary of Education, on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined.

(B) MINIMUM ALLOCATION. — Notwithstanding subparagraph (A), no State receiving an allocation under this section may receive less than 1⁄2 of 1 percent of the amount allocated for a fiscal year.

(3) ALLOWABLE PARTNERSHIPS. — A State may choose to administer the allocation it receives under paragraph (2) in partnership with one or more States, provided that the eligible scholarship-granting organizations in each partner State serve students who reside in all States in the partnership.

(4) TOTAL ALLOCATION. — A State's allocation, for any fiscal year, is the sum of the amount determined for such State under subparagraphs (A) and (B) of paragraph (2).

(5) ALLOCATION AND ADJUSTMENTS. —

(A) INITIAL ALLOCATION TO STATES. — Not later than November 1 of the year preceding a year for which there is a national limitation on credits under paragraph (1) (referred to in this section as the "applicable year"), or as early as practicable with respect to the first year, the Secretary of the Treasury shall announce the State allocations under paragraph (2) for the applicable year.

(B) LIST OF ELIGIBLE SCHOLARSHIPGRANTING ORGANIZATIONS. —

(i) IN GENERAL. — Not later than January 1 of each applicable year, or as early as practicable with respect to the first year, each State shall provide the Secretary of the Treasury a list of eligible scholarship-granting organizations, including a certification that the entity submitting the list on behalf of the State has the authority to perform this function.

(ii) RULE OF CONSTRUCTION. — Neither this section nor any other Federal law shall be construed as limiting the entities that may submit the list on behalf of a State.

(C) REALLOCATION OF UNCLAIMED CREDITS. — The Secretary of the Treasury shall reallocate a State's allocation to other States, in accordance with paragraph (2), if the State —

(i) chooses not to identify scholarship-granting organizations under subparagraph

(B) in any applicable year; or

(ii) does not have an existing eligible scholarship-granting organization.

(D) REALLOCATION. — On or after April 1 of any applicable year, the Secretary of the Treasury may reallocate, to one or more other States that have eligible scholarship-granting organizations in the States, without regard to paragraph (2), the allocation of a State for which the State's allocation has not been claimed.

(d) DEFINITIONS. — Any term used in this section which is also used in section 25E of the Internal Revenue Code of 1986 shall have the same meaning as when used in such section.

SEC. 6004. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY AND SECONDARY EXPENSES.

(a) IN GENERAL. — Section 529(c)(7) of the Internal Revenue Code of 1986 is amended —

(1) by striking "Any reference" and inserting

"(A) IN GENERAL. — Any reference", and

(2) by adding at the end the following new subparagraphs:

"(B) ADDITIONAL EXPENSES. — In the case of any distribution made after the date of the enactment of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act and before January 1, 2023, any reference in this section to the term 'qualified higher education expense' shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school:

"(i) Curriculum and curricular materials.

"(ii) Books or other instructional materials.

"(iii) Online educational materials.

"(iv) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and —

"(I) is licensed as a teacher in any State,

"(II) has taught at an eligible educational institution, or

"(III) is a subject matter expert in the relevant subject.

"(v) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.

"(vi) Fees for dual enrollment in an institution of higher education.

"(vii) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.

"(C) TREATMENT OF HOMESCHOOL EXPENSES. — In the case of any distribution made after the date of the enactment of the Delivering Immediate Relief to America's Families, Schools and Small Businesses Act and before January 1, 2023, the term 'qualified higher education expense' shall include expenses for the purposes described in subparagraphs (A) and (B) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law).".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.

* * *

TITLE IX — CHARITABLE GIVING

SEC. 9001. INCREASE IN LIMITATION ON PARTIAL ABOVE THE LINE DEDUCTION FOR CHARITABLE CONTRIBUTIONS.

(a) INCREASE. —

(1) IN GENERAL. — Paragraph (22) of section 62(a) of the Internal Revenue Code of 1986 is amended to read as follows:

"(22) CHARITABLE CONTRIBUTIONS. — In the case of a taxable year beginning in 2020 of an individual to whom section 63(b) applies for such taxable year, the deduction under section 170(a) (determined without regard to section 170(b)) for qualified charitable contributions (not in excess of the applicable amount).".

(2) APPLICABLE AMOUNT. — Paragraph (1) of section 62(f) of the Internal Revenue Code of 1986 is amended to read as follows:

"(1) APPLICABLE AMOUNT. — The term 'applicable amount' means $600 (twice such amount in the case of a joint return).".

(3) CONFORMING AMENDMENT. — Section 62(f)(2)(B) of such Code is amended by striking "(determined without regard to subsection (b) thereof)".

(b) PENALTY FOR UNDERPAYMENTS ATTRIBUTABLE TO OVERSTATED DEDUCTION. —

(1) IN GENERAL. — Section 6662(b) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (8) the following:

"(9) Any overstatement of qualified charitable contributions (as defined in section 62(f)).".

(2) INCREASED PENALTY. — Section 6662 of such Code is amended by adding at the end the following new subsection:

"(l) INCREASE IN PENALTY IN CASE OF OVERSTATEMENT OF QUALIFIED CHARITABLE CONTRIBUTIONS. — In the case of any portion of an underpayment which is attributable to one or more overstatements of a qualified charitable contribution (as defined in section 62(f)), subsection (a) shall be applied with respect to such portion by substituting '50 percent' for '20 percent'.".

(3) EXCEPTION TO APPROVAL OF ASSESSMENT. — Section 6751(b)(2)(A) is amended by striking "or 6655" and inserting "6655, or 6662 (but only with respect to an addition to tax by reason of subsection (b)(9) thereof)".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.