I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Restoring Establish5 ment Deductions and Uplifting Competition to Ease Food 

6 Prices Act’’ or the ‘‘REDUCE Food Prices Act’’. 


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1 SEC. 2. INCREASED REHABILITATION TAX CREDIT FOR 

2 QUALIFIED SMALL FOOD RETAIL BUSI3 NESSES. 

4 (a) IN GENERAL.—Section 47 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(e) SPECIAL RULE FOR QUALIFIED SMALL FOOD

8 RETAIL BUSINESSES.— 

9 ‘‘(1) IN GENERAL.—In the case of a qualified 

10 rehabilitated building placed in service by a qualified 

11 small food retail business, subsection (a)(2) shall be 

12 applied by substituting ‘25 percent’ for ‘20 percent’. 

13 ‘‘(2) QUALIFIED SMALL FOOD RETAIL BUSI14 NESS DEFINED.— 

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1), the term ‘qualified small food retail 

17 business’ means a business— 

18 ‘‘(i) which is described in section 

19 38(c)(5) (determined by applying 

20 ‘$200,000,000’ for ‘$50,000,000’ in such 

21 section), 

22 ‘‘(ii) at least 70 percent of the annual 

23 average gross receipts of which are attrib24 utable to the retail sale of food or produce, 

25 and 


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1 ‘‘(iii) which is located in a low-com2 petition area. 

3 ‘‘(B) LOW-COMPETITION AREA.—For pur4 poses of subparagraph (A), the term ‘low-com5 petition area’ means a county with respect to 

6 which the Herfindahl-Hirschman Index for the 

7 retail food sector, as measured by the Economic 

8 Research Service of the United States Depart9 ment of Agriculture, is at or above a level of 

10 1,400.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to property placed in service after 

13 the date of the enactment of this Act. 

14 SEC. 3. INCREASED WORK OPPORTUNITY TAX CREDIT FOR 

15 QUALIFIED SMALL FOOD RETAIL BUSI16 NESSES. 

17 (a) IN GENERAL.—Section 51(b)(3) of the Internal 

18 Revenue Code of 1986 is amended— 

19 (1) by striking ‘‘The amount’’ and inserting 

20 ‘‘(A) IN GENERAL.—The amount’’, and 

21 (2) by adding at the end the following new sub22 paragraph: 

23 ‘‘(B) INCREASED LIMITATION FOR QUALI24 FIED SMALL FOOD RETAIL BUSINESSES.—In 

25 the case of wages paid by an employer that is 


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1 a qualified small food retail business (as defined 

2 in section 47(e)(2)(A)), subparagraph (A) shall 

3 be applied— 

4 ‘‘(i) by substituting ‘$8,000’ for 

5 ‘$6,000’, 

6 ‘‘(ii) by substituting ‘$14,000’ for 

7 ‘$12,000’, 

8 ‘‘(iii) by substituting ‘$16,000’ for 

9 ‘$14,000’, and 

10 ‘‘(iv) by substituting ‘$26,000’ for 

11 ‘$24,000’.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 SEC. 4. INCREASED BONUS DEPRECIATION FOR QUALIFIED 

16 SMALL FOOD RETAIL BUSINESSES. 

17 (a) IN GENERAL.—Section 168(k) of the Internal 

18 Revenue Code of 1986 is amended by adding at the end 

19 the following new paragraph: 

20 ‘‘(10) SPECIAL RULE FOR QUALIFIED SMALL

21 FOOD RETAIL BUSINESSES.— 

22 ‘‘(A) INCREASED APPLICABLE PERCENT23 AGE FOR PROPERTY PLACED IN SERVICE BY

24 QUALIFIED SMALL FOOD RETAIL BUSI25 NESSES.—In the case of property placed in 


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1 service by a taxpayer that is a qualified small 

2 food retail business (as defined in section 

3 47(e)(2)(A)), paragraph (6) shall be applied— 

4 ‘‘(i) in subparagraph (A)— 

5 ‘‘(I) by substituting ‘70 percent’ 

6 for ‘60 percent’ each place it appears, 

7 ‘‘(II) by substituting ‘50 percent’ 

8 for ‘40 percent’ each place it appears, 

9 and 

10 ‘‘(III) by substituting ‘30 per11 cent’ for ‘20 percent’ each place it ap12 pears, and 

13 ‘‘(ii) in subparagraph (B)— 

14 ‘‘(I) by substituting ‘70 percent’ 

15 for ‘60 percent’ each place it appears, 

16 ‘‘(II) by substituting ‘50 percent’ 

17 for ‘40 percent’ each place it appears, 

18 and 

19 ‘‘(III) by substituting ‘30 per20 cent’ for ‘20 percent’ each place it ap21 pears. 

22 ‘‘(B) INCREASED APPLICABLE PERCENT23 AGE FOR PLANTS BEARING FRUITS AND NUTS

24 PLANTED OR GRAFTED BY QUALIFIED SMALL

25 FOOD RETAIL BUSINESSES.—In the case of 


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1 plants bearing fruits and nuts planted or graft2 ed by a taxpayer that is a qualified small food 

3 retail business (as defined in section 

4 47(e)(2)(A)), paragraph (6)(C) shall be ap5 plied— 

6 ‘‘(i) by substituting ‘70 percent’ for 

7 ‘60 percent’ each place it appears, 

8 ‘‘(ii) by substituting ‘50 percent’ for 

9 ‘40 percent’ each place it appears, and 

10 ‘‘(iii) by substituting ‘30 percent’ for 

11 ‘20 percent’ each place it appears.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to property placed in service, or 

14 plants planted or grafted, after the date of the enactment 

15 of this Act. 

16 SEC. 5. INCREASED QUALIFIED BUSINESS INCOME DEDUC17 TION FOR QUALIFIED SMALL FOOD RETAIL 

18 BUSINESSES. 

19 (a) IN GENERAL.—Section 199A of the Internal Rev20 enue Code of 1986 is amended by redesignating subsection 

21 (i) as subsection (j) and by inserting after subsection (h) 

22 the following new subsection: 

23 ‘‘(i) SPECIAL RULE FOR QUALIFIED SMALL FOOD

24 RETAIL BUSINESSES.—In the case of a qualified small 

25 food retail business (as defined in section 47(e)(2)(A)), 


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1 subsection (a)(2) shall be applied by substituting ‘25 per2 cent’ for ‘20 percent’.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 6. NEW FOOD RETAIL BUSINESS TAX CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 

11 ‘‘SEC. 45BB. NEW FOOD RETAIL BUSINESS CREDIT. 

12 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

13 the case of a new small food retail business, the new food 

14 retail business credit under this section for the taxable 

15 year is an amount equal to 15 percent of qualified invest16 ment amounts paid or incurred during the taxable year. 

17 ‘‘(b) DEFINITIONS.—For purposes of this section— 

18 ‘‘(1) NEW FOOD RETAIL BUSINESS.—The term 

19 ‘new food retail business’ means a qualified small 

20 food retail business (as defined in section 

21 47(e)(2)(A)) which began operations during the pre22 vious three taxable years. 

23 ‘‘(2) QUALIFIED INVESTMENT AMOUNTS.—The 

24 term ‘qualified investment amounts’ means amounts 

25 paid for capital investment in the property, facilities, 


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1 or equipment of a business premises used for retail 

2 sales of the new food retail business.’’. 

3 (b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 

4 Section 38(b) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘plus’’ at the end of paragraph (40), 

6 by striking the period at the end of paragraph (41) and 

7 inserting ‘‘, plus’’, and by adding at the end the following 

8 new paragraph: 

9 ‘‘(42) the new food retail business credit deter10 mined under section 45BB(a).’’. 

11 (c) CLERICAL AMENDMENT.—The table of sections 

12 for subpart D of part IV of subchapter A of chapter 1 

13 of the Internal Revenue Code of 1986 is amended by add14 ing at the end the following new item: 

‘‘Sec. 45BB. New food retail business credit.’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

Æ 


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