119-hr701

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 701 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 701

 To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the establishment and operation of small food retail businesses in 
 areas with high food retail concentration and low levels of 
 competition.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 23, 2025

 Ms. Sherrill (for herself and Mrs. Hayes) introduced the following 
 bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the establishment and operation of small food retail businesses in 
 areas with high food retail concentration and low levels of 
 competition.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Restoring Establishment Deductions 
and Uplifting Competition to Ease Food Prices Act'' or the ``REDUCE 
Food Prices Act''.

SEC. 2. INCREASED REHABILITATION TAX CREDIT FOR QUALIFIED SMALL FOOD 
 RETAIL BUSINESSES.

    (a) In General.--

Section 47 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
 ``

    (e) Special Rule for Qualified Small Food Retail Businesses.--
 ``

    (1) In general.--In the case of a qualified rehabilitated 
 building placed in service by a qualified small food retail 
 business, subsection

    (a)

    (2) shall be applied by substituting 
 `25 percent' for `20 percent'.
 ``

    (2) Qualified small food retail business defined.--
 ``
        (A) In general.--For purposes of paragraph

    (1) , 
 the term `qualified small food retail business' means a 
 business--
 ``
            (i) which is described in 

section 38
            (c) (5) (determined by applying `$200,000,000' 
 for `$50,000,000' in such section),
 ``
            (ii) at least 70 percent of the annual 
 average gross receipts of which are 
 attributable to the retail sale of food or 
 produce, and
 ``
            (iii) which is located in a low-
 competition area.
 ``
        (B) Low-competition area.--For purposes of 
 subparagraph
        (A) , the term `low-competition area' means 
 a county with respect to which the Herfindahl-Hirschman 
 Index for the retail food sector, as measured by the 
 Economic Research Service of the United States 
 Department of Agriculture, is at or above a level of 
 1,400.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 3. INCREASED WORK OPPORTUNITY TAX CREDIT FOR QUALIFIED SMALL FOOD 
 RETAIL BUSINESSES.

    (a) In General.--

Section 51

    (b)

    (3) of the Internal Revenue Code of 
1986 is amended--

    (1) by striking ``The amount'' and inserting
 ``
        (A) In general.--The amount'', and

    (2) by adding at the end the following new subparagraph:
 ``
        (B) Increased limitation for qualified small food 
 retail businesses.--In the case of wages paid by an 
 employer that is a qualified small food retail business 
 (as defined in 

section 47

    (e)

    (2)
        (A) ), subparagraph
        (A) shall be applied--
 ``
            (i) by substituting `$8,000' for 
 `$6,000',
 ``
            (ii) by substituting `$14,000' for 
 `$12,000',
 ``
            (iii) by substituting `$16,000' for 
 `$14,000', and
 ``
            (iv) by substituting `$26,000' for 
 `$24,000'.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. INCREASED BONUS DEPRECIATION FOR QUALIFIED SMALL FOOD RETAIL 
 BUSINESSES.

    (a) In General.--

Section 168

    (k) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
 ``

    (10) Special rule for qualified small food retail 
 businesses.--
 ``
        (A) Increased applicable percentage for property 
 placed in service by qualified small food retail 
 businesses.--In the case of property placed in service 
 by a taxpayer that is a qualified small food retail 
 business (as defined in 

section 47

    (e)

    (2)
        (A) ), paragraph

    (6) shall be applied--
 ``
            (i) in subparagraph
        (A) --
 ``
            (I) by substituting `70 percent' 
 for `60 percent' each place it appears,
 ``
            (II) by substituting `50 percent' 
 for `40 percent' each place it appears, 
 and
 ``
            (III) by substituting `30 
 percent' for `20 percent' each place it 
 appears, and
 ``
            (ii) in subparagraph
        (B) --
 ``
            (I) by substituting `70 percent' 
 for `60 percent' each place it appears,
 ``
            (II) by substituting `50 percent' 
 for `40 percent' each place it appears, 
 and
 ``
            (III) by substituting `30 
 percent' for `20 percent' each place it 
 appears.
 ``
        (B) Increased applicable percentage for plants 
 bearing fruits and nuts planted or grafted by qualified 
 small food retail businesses.--In the case of plants 
 bearing fruits and nuts planted or grafted by a 
 taxpayer that is a qualified small food retail business 
 (as defined in 

section 47

    (e)

    (2)
        (A) ), paragraph

    (6)
            (C) shall be applied--
 ``
            (i) by substituting `70 percent' for `60 
 percent' each place it appears,
 ``
            (ii) by substituting `50 percent' for `40 
 percent' each place it appears, and
 ``
            (iii) by substituting `30 percent' for 
 `20 percent' each place it appears.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service, or plants planted or grafted, 
after the date of the enactment of this Act.

SEC. 5. INCREASED QUALIFIED BUSINESS INCOME DEDUCTION FOR QUALIFIED 
 SMALL FOOD RETAIL BUSINESSES.

    (a) In General.--

Section 199A of the Internal Revenue Code of 1986 
is amended by redesignating subsection
            (i) as subsection

    (j) and by 
inserting after subsection

    (h) the following new subsection:
 ``
            (i) Special Rule for Qualified Small Food Retail Businesses.--In 
the case of a qualified small food retail business (as defined in 

section 47

    (e)

    (2)
        (A) ), subsection

    (a)

    (2) shall be applied by 
substituting `25 percent' for `20 percent'.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. NEW FOOD RETAIL BUSINESS TAX CREDIT.

    (a) In General.--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. 45BB. NEW FOOD RETAIL BUSINESS CREDIT.

 ``

    (a) In General.--For purposes of 

section 38, in the case of a new 
small food retail business, the new food retail business credit under 
this section for the taxable year is an amount equal to 15 percent of 
qualified investment amounts paid or incurred during the taxable year.
 ``

    (b) 

=== Definitions. ===
-For purposes of this section--
 ``

    (1) New food retail business.--The term `new food retail 
 business' means a qualified small food retail business (as 
 defined in 

section 47

    (e)

    (2)
        (A) ) which began operations during 
 the previous three taxable years.
 ``

    (2) Qualified investment amounts.--The term `qualified 
 investment amounts' means amounts paid for capital investment 
 in the property, facilities, or equipment of a business 
 premises used for retail sales of the new food retail 
 business.''.

    (b) Credit Part of General Business Credit.--

Section 38

    (b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph

    (40) , by striking the period at the end of paragraph

    (41) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
 ``

    (42) the new food retail business credit determined under 
 

section 45BB

    (a) .''.
            (c) Clerical Amendment.--The table of sections for 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 item:

``

Sec. 45BB. New food retail business credit.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
 <all>