Us Congress 2025-2026 Regular Session

Us Congress House Bill HB701 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 701
5	5	To amend the Internal Revenue Code of 1986 to provide tax incentives
6	6	for the establishment and operation of small food retail businesses in
7	7	areas with high food retail concentration and low levels of competition.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	JANUARY23, 2025
10	10	Ms. S
11	11	HERRILL(for herself and Mrs. HAYES) introduced the following bill;
12	12	which was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to provide
15	15	tax incentives for the establishment and operation of
16	16	small food retail businesses in areas with high food retail
17	17	concentration and low levels of competition.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Restoring Establish-4
22	22	ment Deductions and Uplifting Competition to Ease Food 5
23	23	Prices Act’’ or the ‘‘REDUCE Food Prices Act’’. 6
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26	26	•HR 701 IH
27	27	SEC. 2. INCREASED REHABILITATION TAX CREDIT FOR 1
28	28	QUALIFIED SMALL FOOD RETAIL BUSI-2
29	29	NESSES. 3
30	30	(a) I
31	31	NGENERAL.—Section 47 of the Internal Rev-4
32	32	enue Code of 1986 is amended by adding at the end the 5
33	33	following new subsection: 6
34	34	‘‘(e) S
35	35	PECIALRULE FORQUALIFIEDSMALLFOOD 7
36	36	R
37	37	ETAILBUSINESSES.— 8
38	38	‘‘(1) I
39	39	N GENERAL.—In the case of a qualified 9
40	40	rehabilitated building placed in service by a qualified 10
41	41	small food retail business, subsection (a)(2) shall be 11
42	42	applied by substituting ‘25 percent’ for ‘20 percent’. 12
43	43	‘‘(2) Q
44	44	UALIFIED SMALL FOOD RETAIL BUSI -13
45	45	NESS DEFINED.— 14
46	46	‘‘(A) I
47	47	N GENERAL.—For purposes of para-15
48	48	graph (1), the term ‘qualified small food retail 16
49	49	business’ means a business— 17
50	50	‘‘(i) which is described in section 18
51	51	38(c)(5) (determined by applying 19
52	52	‘$200,000,000’ for ‘$50,000,000’ in such 20
53	53	section), 21
54	54	‘‘(ii) at least 70 percent of the annual 22
55	55	average gross receipts of which are attrib-23
56	56	utable to the retail sale of food or produce, 24
57	57	and 25
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61	61	‘‘(iii) which is located in a low-com-1
62	62	petition area. 2
63	63	‘‘(B) L
64	64	OW-COMPETITION AREA.—For pur-3
65	65	poses of subparagraph (A), the term ‘low-com-4
66	66	petition area’ means a county with respect to 5
67	67	which the Herfindahl-Hirschman Index for the 6
68	68	retail food sector, as measured by the Economic 7
69	69	Research Service of the United States Depart-8
70	70	ment of Agriculture, is at or above a level of 9
71	71	1,400.’’. 10
72	72	(b) E
73	73	FFECTIVEDATE.—The amendment made by 11
74	74	this section shall apply to property placed in service after 12
75	75	the date of the enactment of this Act. 13
76	76	SEC. 3. INCREASED WORK OPPORTUNITY TAX CREDIT FOR 14
77	77	QUALIFIED SMALL FOOD RETAIL BUSI-15
78	78	NESSES. 16
79	79	(a) I
80	80	NGENERAL.—Section 51(b)(3) of the Internal 17
81	81	Revenue Code of 1986 is amended— 18
82	82	(1) by striking ‘‘The amount’’ and inserting 19
83	83	‘‘(A) I
84	84	N GENERAL.—The amount’’, and 20
85	85	(2) by adding at the end the following new sub-21
86	86	paragraph: 22
87	87	‘‘(B) I
88	88	NCREASED LIMITATION FOR QUALI -23
89	89	FIED SMALL FOOD RETAIL BUSINESSES .—In 24
90	90	the case of wages paid by an employer that is 25
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93	93	•HR 701 IH
94	94	a qualified small food retail business (as defined 1
95	95	in section 47(e)(2)(A)), subparagraph (A) shall 2
96	96	be applied— 3
97	97	‘‘(i) by substituting ‘$8,000’ for 4
98	98	‘$6,000’, 5
99	99	‘‘(ii) by substituting ‘$14,000’ for 6
100	100	‘$12,000’, 7
101	101	‘‘(iii) by substituting ‘$16,000’ for 8
102	102	‘$14,000’, and 9
103	103	‘‘(iv) by substituting ‘$26,000’ for 10
104	104	‘$24,000’.’’. 11
105	105	(b) E
106	106	FFECTIVEDATE.—The amendments made by 12
107	107	this section shall apply to taxable years beginning after 13
108	108	the date of the enactment of this Act. 14
109	109	SEC. 4. INCREASED BONUS DEPRECIATION FOR QUALIFIED 15
110	110	SMALL FOOD RETAIL BUSINESSES. 16
111	111	(a) I
112	112	NGENERAL.—Section 168(k) of the Internal 17
113	113	Revenue Code of 1986 is amended by adding at the end 18
114	114	the following new paragraph: 19
115	115	‘‘(10) S
116	116	PECIAL RULE FOR QUALIFIED SMALL 20
117	117	FOOD RETAIL BUSINESSES .— 21
118	118	‘‘(A) I
119	119	NCREASED APPLICABLE PERCENT -22
120	120	AGE FOR PROPERTY PLACED IN SERVICE BY 23
121	121	QUALIFIED SMALL FOOD RETAIL BUSI -24
122	122	NESSES.—In the case of property placed in 25
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125	125	•HR 701 IH
126	126	service by a taxpayer that is a qualified small 1
127	127	food retail business (as defined in section 2
128	128	47(e)(2)(A)), paragraph (6) shall be applied— 3
129	129	‘‘(i) in subparagraph (A)— 4
130	130	‘‘(I) by substituting ‘70 percent’ 5
131	131	for ‘60 percent’ each place it appears, 6
132	132	‘‘(II) by substituting ‘50 percent’ 7
133	133	for ‘40 percent’ each place it appears, 8
134	134	and 9
135	135	‘‘(III) by substituting ‘30 per-10
136	136	cent’ for ‘20 percent’ each place it ap-11
137	137	pears, and 12
138	138	‘‘(ii) in subparagraph (B)— 13
139	139	‘‘(I) by substituting ‘70 percent’ 14
140	140	for ‘60 percent’ each place it appears, 15
141	141	‘‘(II) by substituting ‘50 percent’ 16
142	142	for ‘40 percent’ each place it appears, 17
143	143	and 18
144	144	‘‘(III) by substituting ‘30 per-19
145	145	cent’ for ‘20 percent’ each place it ap-20
146	146	pears. 21
147	147	‘‘(B) I
148	148	NCREASED APPLICABLE PERCENT -22
149	149	AGE FOR PLANTS BEARING FRUITS AND NUTS 23
150	150	PLANTED OR GRAFTED BY QUALIFIED SMALL 24
151	151	FOOD RETAIL BUSINESSES .—In the case of 25
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154	154	•HR 701 IH
155	155	plants bearing fruits and nuts planted or graft-1
156	156	ed by a taxpayer that is a qualified small food 2
157	157	retail business (as defined in section 3
158	158	47(e)(2)(A)), paragraph (6)(C) shall be ap-4
159	159	plied— 5
160	160	‘‘(i) by substituting ‘70 percent’ for 6
161	161	‘60 percent’ each place it appears, 7
162	162	‘‘(ii) by substituting ‘50 percent’ for 8
163	163	‘40 percent’ each place it appears, and 9
164	164	‘‘(iii) by substituting ‘30 percent’ for 10
165	165	‘20 percent’ each place it appears.’’. 11
166	166	(b) E
167	167	FFECTIVEDATE.—The amendments made by 12
168	168	this section shall apply to property placed in service, or 13
169	169	plants planted or grafted, after the date of the enactment 14
170	170	of this Act. 15
171	171	SEC. 5. INCREASED QUALIFIED BUSINESS INCOME DEDUC-16
172	172	TION FOR QUALIFIED SMALL FOOD RETAIL 17
173	173	BUSINESSES. 18
174	174	(a) I
175	175	NGENERAL.—Section 199A of the Internal Rev-19
176	176	enue Code of 1986 is amended by redesignating subsection 20
177	177	(i) as subsection (j) and by inserting after subsection (h) 21
178	178	the following new subsection: 22
179	179	‘‘(i) S
180	180	PECIALRULE FORQUALIFIEDSMALLFOOD 23
181	181	R
182	182	ETAILBUSINESSES.—In the case of a qualified small 24
183	183	food retail business (as defined in section 47(e)(2)(A)), 25
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186	186	•HR 701 IH
187	187	subsection (a)(2) shall be applied by substituting ‘25 per-1
188	188	cent’ for ‘20 percent’.’’. 2
189	189	(b) E
190	190	FFECTIVEDATE.—The amendments made by 3
191	191	this section shall apply to taxable years beginning after 4
192	192	the date of the enactment of this Act. 5
193	193	SEC. 6. NEW FOOD RETAIL BUSINESS TAX CREDIT. 6
194	194	(a) I
195	195	NGENERAL.—Subpart D of part IV of sub-7
196	196	chapter A of chapter 1 of the Internal Revenue Code of 8
197	197	1986 is amended by adding at the end the following new 9
198	198	section: 10
199	199	‘‘SEC. 45BB. NEW FOOD RETAIL BUSINESS CREDIT. 11
200	200	‘‘(a) I
201	201	NGENERAL.—For purposes of section 38, in 12
202	202	the case of a new small food retail business, the new food 13
203	203	retail business credit under this section for the taxable 14
204	204	year is an amount equal to 15 percent of qualified invest-15
205	205	ment amounts paid or incurred during the taxable year. 16
206	206	‘‘(b) D
207	207	EFINITIONS.—For purposes of this section— 17
208	208	‘‘(1) N
209	209	EW FOOD RETAIL BUSINESS .—The term 18
210	210	‘new food retail business’ means a qualified small 19
211	211	food retail business (as defined in section 20
212	212	47(e)(2)(A)) which began operations during the pre-21
213	213	vious three taxable years. 22
214	214	‘‘(2) Q
215	215	UALIFIED INVESTMENT AMOUNTS .—The 23
216	216	term ‘qualified investment amounts’ means amounts 24
217	217	paid for capital investment in the property, facilities, 25
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221	221	or equipment of a business premises used for retail 1
222	222	sales of the new food retail business.’’. 2
223	223	(b) C
224	224	REDITPART OFGENERALBUSINESSCREDIT.— 3
225	225	Section 38(b) of the Internal Revenue Code of 1986 is 4
226	226	amended by striking ‘‘plus’’ at the end of paragraph (40), 5
227	227	by striking the period at the end of paragraph (41) and 6
228	228	inserting ‘‘, plus’’, and by adding at the end the following 7
229	229	new paragraph: 8
230	230	‘‘(42) the new food retail business credit deter-9
231	231	mined under section 45BB(a).’’. 10
232	232	(c) C
233	233	LERICALAMENDMENT.—The table of sections 11
234	234	for subpart D of part IV of subchapter A of chapter 1 12
235	235	of the Internal Revenue Code of 1986 is amended by add-13
236	236	ing at the end the following new item: 14
237	237	‘‘Sec. 45BB. New food retail business credit.’’.
238	238	(d) EFFECTIVEDATE.—The amendments made by 15
239	239	this section shall apply to taxable years beginning after 16
240	240	the date of the enactment of this Act. 17
241	241	Æ
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