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Referenced Laws
Section 47
Section 51(b)(3)
Section 168(k)
Section 199A
chapter 1
Section 38(b)
Section 1
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.
Section 2
2. Increased rehabilitation tax credit for qualified small food retail businesses Section 47 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: 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. For purposes of paragraph (1), the term qualified small food retail business means a business— which is described in section 38(c)(5) (determined by applying $200,000,000 for $50,000,000 in such section), at least 70 percent of the annual average gross receipts of which are attributable to the retail sale of food or produce, and which is located in a 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. The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act. (e)Special rule for qualified small food retail businesses(1)In generalIn 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 generalFor 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 areaFor 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..
Section 3
3. Increased work opportunity tax credit for qualified small food retail businesses Section 51(b)(3) of the Internal Revenue Code of 1986 is amended— by striking The amount and inserting The amount by adding at the end the following new subparagraph: 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— by substituting $8,000 for $6,000, by substituting $14,000 for $12,000, by substituting $16,000 for $14,000, and by substituting $26,000 for $24,000. The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (A)In generalThe amount, and (B)Increased limitation for qualified small food retail businessesIn 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..
Section 4
4. Increased bonus depreciation for qualified small food retail businesses Section 168(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: 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— in subparagraph (A)— by substituting 70 percent for 60 percent each place it appears, by substituting 50 percent for 40 percent each place it appears, and by substituting 30 percent for 20 percent each place it appears, and in subparagraph (B)— by substituting 70 percent for 60 percent each place it appears, by substituting 50 percent for 40 percent each place it appears, and by substituting 30 percent for 20 percent each place it appears. 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— by substituting 70 percent for 60 percent each place it appears, by substituting 50 percent for 40 percent each place it appears, and by substituting 30 percent for 20 percent each place it appears. 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. (10)Special rule for qualified small food retail businesses(A)Increased applicable percentage for property placed in service by qualified small food retail businessesIn 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 businessesIn 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..
Section 5
5. Increased qualified business income deduction for qualified small food retail businesses 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: 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. The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (i)Special rule for qualified small food retail businessesIn 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. .
Section 6
6. New food retail business tax credit 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: 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. For purposes of this section— 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. 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. 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: the new food retail business credit determined under section 45BB(a). 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: The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 45BB.New food retail business credit(a)In generalFor 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)DefinitionsFor purposes of this section—(1)New food retail businessThe 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 amountsThe 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.. (42)the new food retail business credit determined under section 45BB(a).. Sec. 45BB. New food retail business credit..
Section 7
45BB. New food retail business credit 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. For purposes of this section— 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. 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.