Bill > HR701

This bill, called the "REDUCE Food Prices Act," aims to provide tax incentives for small food retail businesses in areas with low competition. The bill makes several key changes to the Internal Revenue Code: First, it increases the rehabilitation tax credit for qualified small food retail businesses from 20% to 25%, with qualification based on having annual gross receipts under $200 million, deriving at least 70% of revenue from food sales, and being located in a low-competition area (defined by a high Herfindahl-Hirschman Index). Second, it expands the Work Opportunity Tax Credit by increasing the wage limitation for qualifying businesses. Third, it enhances bonus depreciation rates for qualified small food retail businesses, allowing them to deduct a higher percentage of investment in property and equipment. Fourth, it increases the qualified business income deduction from 20% to 25% for these businesses. Finally, the bill creates a new tax credit for new small food retail businesses, offering a 15% credit on qualified investment amounts for businesses that have been operating for up to three years. These provisions are designed to support small food retailers in areas with limited market competition, potentially improving food access and local economic development.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/701/all-info