1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45BB. RETAIL THEFT PREVENTION CREDIT FOR 
SMALL RETAIL BUSINESSES. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of any eligible small retail business operator, the 
retail theft prevention credit determined under this section 
for any taxable year is an amount equal to 50 percent 
of so much of the eligible expenditures for the taxable year 
as exceeds $250 but does not exceed $5,000. 
‘‘(b) LIMITATION.—The credit determined under sub-
section (a) with respect to the taxpayer for any taxable 
year shall not exceed the excess (if any) of $2,500 over 
the aggregate credits allowed under this section with re-
spect to the taxpayer for all prior taxable years. 
‘‘(c) ELIGIBLE SMALL RETAIL BUSINESS OPER-
ATOR.—For purposes of this section, the term ‘eligible 
small retail business operator’ means a person that is— 
‘‘(1) not an applicable large employer (as de-
fined in section 4980H(c)), and 
‘‘(2) engaged in the trade or business of selling 
tangible personal property at retail from an office, 
store, or any other physical location open to the pub-
lic. 
‘‘(d) ELIGIBLE EXPENDITURES.— 
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‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘eligible expenditures’ means, with re-
spect to any eligible small retail business operator 
for any taxable year, amounts paid or incurred by 
such operator during such taxable year for— 
‘‘(A) conducting employee security training 
and background checks, 
‘‘(B) limiting and preventing access to the 
personal property to be sold at retail in the pos-
session of the operator, 
‘‘(C) acquiring non-lethal devices used to 
deter, prevent, or mitigate against the theft of 
such personal property, 
‘‘(D) protecting any facility in which the 
operator stores such personal property, 
‘‘(E) installing security lighting, cameras, 
recording equipment, and intrusion detection 
sensors, 
‘‘(F) conducting a security vulnerability as-
sessment, 
‘‘(G) implementing a site security plan, or 
‘‘(H) taking such other measures for the 
prevention of theft of such personal property as 
the Secretary may by regulation prescribe. 
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‘‘(2) PURPOSE
REQUIREMENT.—Amounts de-
scribed in paragraph (1) shall be taken into account 
only to the extent that such amounts are paid or in-
curred for the purpose of deterring, preventing, or 
mitigating against the loss of personal property to 
be sold by the eligible small retail business operator 
at retail. 
‘‘(e) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (b), (c), (m), or (o) of 
section 414 shall be treated as one person for purposes 
of this section. 
‘‘(f) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including regula-
tions to specify the non-lethal devices described in sub-
section (d)(1)(C). 
‘‘(g) TERMINATION.—This section shall not apply 
with respect to any amounts paid or incurred after Decem-
ber 31, 2029.’’. 
(b) NO DOUBLE BENEFIT.—Section 280C of such 
Code is amended by adding at the end the following new 
subsection: 
‘‘(i) CREDIT FOR RETAIL THEFT PREVENTION FOR 
SMALL BUSINESSES.—No deduction shall be allowed for 
that portion of the expenses otherwise allowable as a de-
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duction taken into account in determining the amount of 
credit under section 45BB for the taxable year.’’. 
(c) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
in paragraph (40) by striking ‘‘plus’’, in paragraph (41) 
by striking the period and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(42) in the case of an eligible small retail busi-
ness operator (as defined in section 45BB(c)), the 
retail theft prevention credit determined under sec-
tion 45BB(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45BB. Retail theft prevention credit for small retail businesses.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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