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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9993 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9993

 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

                            October 15, 2024

  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>
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