The person to whom premiums are payable for continuation coverage under of the American Rescue Plan Act of 2021 shall be allowed as a credit against the tax imposed by , or so much of the taxes imposed under as are attributable to the rate in effect under , for each calendar quarter an amount equal to the premiums not paid by assistance eligible individuals for such coverage by reason of such with respect to such calendar quarter.
(1) in the case of any group health plan which is a multiemployer plan (as defined in of the Employee Retirement Income Security Act of 1974), the plan,
(2) in the case of any group health plan not described in paragraph (1)—
in the case of any group health plan not described in paragraph (1)—
(A) which is subject to the COBRA continuation provisions contained in—
which is subject to the COBRA continuation provisions contained in—
(i) the Internal Revenue Code of 1986,
(ii) the Employee Retirement Income Security Act of 1974, or
(iii) the Public Health Service Act, or
(B) under which some or all of the coverage is not provided by insurance,
the employer maintaining the plan, and
(3) in the case of any group health plan not described in paragraph (1) or (2), the insurer providing the coverage under the group health plan.
(1) Credit limited to certain employment taxes
The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the tax imposed by , or so much of the taxes imposed under as are attributable to the rate in effect under , for such calendar quarter (reduced by any credits allowed against such taxes under sections 3131, 3132, and 3134) on the wages paid with respect to the employment of all employees of the employer.
(2) Refundability of excess credit
(A) Credit is refundable
If the amount of the credit under subsection (a) exceeds the limitation of paragraph (1) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b).
(B) Credit may be advanced
In anticipation of the credit, including the refundable portion under subparagraph (A), the credit may be advanced, according to forms and instructions provided by the Secretary, up to an amount calculated under subsection (a) through the end of the most recent payroll period in the quarter.
(C) Treatment of deposits
The Secretary shall waive any penalty under section 6656 for any failure to make a deposit of the tax imposed by , or so much of the taxes imposed under as are attributable to the rate in effect under , if the Secretary determines that such failure was due to the anticipation of the credit allowed under this section.
(D) Treatment of payments
For purposes of
(3) Overstatements
Any overstatement of the credit to which a person is entitled under this section (and any amount paid by the Secretary as a result of such overstatement) shall be treated as an underpayment by such person of the taxes described in paragraph (1) and may be assessed and collected by the Secretary in the same manner as such taxes.
For purposes of this section, the term “person” includes the government of any State or political subdivision thereof, any Indian tribal government (as defined in ), any agency or instrumentality of any of the foregoing, and any agency or instrumentality of the Government of the United States that is described in and exempt from taxation under .
For purposes of chapter 1, the gross income of any person allowed a credit under this section shall be increased for the taxable year which includes the last day of any calendar quarter with respect to which such credit is allowed by the amount of such credit. No credit shall be allowed under this section with respect to any amount which is taken into account as qualified wages under section 2301 of the CARES Act or
(1) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, or
(2) the date on which such return is treated as filed under .
(1) the requirement to report information or the establishment of other methods for verifying the correct amounts of reimbursements under this section,
(2) the application of this section to group health plans that are multiemployer plans (as defined in of the Employee Retirement Income Security Act of 1974),
(3) to allow the advance payment of the credit determined under subsection (a), subject to the limitations provided in this section, based on such information as the Secretary shall require,
(4) to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year, and
(5) allowing the credit to third party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504).