summary
Introduced
03/18/2020
03/18/2020
In Committee
03/18/2020
03/18/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
A bill to restrict the authority of the Secretary of the Treasury to purchase or guarantee assets in response to the coronavirus disease (COVID-19) outbreak. This bill sets forth requirements for the purchase or guarantee of a company's assets by the Department of the Treasury in response to the COVID-19 (i.e., coronavirus disease 2019) pandemic. Specifically, as a condition of such a transaction, companies must provide a warrant (i.e., the right to purchase company stock in the future at a specified exercise price) or a senior debt instrument to Treasury. The exercise price for a warrant must be set by Treasury for the primary benefit of taxpayers. Treasury is generally prohibited from purchasing or guaranteeing assets from an inverted domestic corporation (i.e., a domestic corporation that has been restructured to incorporate in a foreign jurisdiction for tax purposes) in response to COVID-19. An entity receiving specified assistance in response to COVID-19 may not claim the trade or business expenses tax deduction for the amount an individual employee is compensated above $500,000.
AI Summary
This bill sets forth requirements for the Department of the Treasury to purchase or guarantee assets of companies in response to the COVID-19 pandemic. As a condition of such a transaction, companies must provide a warrant (the right to purchase company stock in the future at a specified price) or a senior debt instrument to the Treasury. The exercise price for a warrant must be set by the Treasury to primarily benefit taxpayers. The bill generally prohibits the Treasury from purchasing or guaranteeing assets from an "inverted domestic corporation" (a domestic corporation that has been restructured to incorporate in a foreign jurisdiction for tax purposes) in response to COVID-19. Additionally, the bill disallows a tax deduction for the amount an employee is compensated above $500,000 for entities receiving specified COVID-19 assistance.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Read twice and referred to the Committee on Finance. (on 03/18/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/senate-bill/3526/all-info |
| BillText | https://www.congress.gov/116/bills/s3526/BILLS-116s3526is.pdf |
| Bill | https://www.congress.gov/116/bills/s3526/BILLS-116s3526is.pdf.pdf |
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