What does Preamble of HR 701 do?

This bill aims to amend the Internal Revenue Code of 1986. The proposed amendment intends to provide tax incentives. These incentives are targeted towards small food retail businesses. The focus is on areas characterized by high food retail concentration and low competition.

What does SHORT TITLE. of HR 701 do?

This bill is formally titled the Restoring Establishment Deductions and Uplifting Competition to Ease Food Prices Act, also known as the REDUCE Food Prices Act.

What does INCREASED REHABILITATION TAX CREDIT FOR QUALIFIED SMALL FOOD of HR 701 do?

This section amends Section 47 of the Internal Revenue Code of 1986 to create a special rule for qualified small food retail businesses. The amendment increases the rehabilitation tax credit percentage from 20% to 25% for qualified rehabilitated buildings used by these businesses. A 'qualified small food retail business' is defined as a business meeting specific criteria including revenue thresholds and location in a 'low-competition area'. To be considered a 'low-competition area', a county's Herfindahl-Hirschman Index for the retail food sector must be at or above a level of 1,400. The amendment applies to property placed in service after the date of enactment of this Act.

What does INCREASED WORK OPPORTUNITY TAX CREDIT FOR QUALIFIED SMALL FOOD of HR 701 do?

This section amends Section 51(b)(3) of the Internal Revenue Code of 1986. It establishes an increased limitation for qualified small food retail businesses. The amount for wages paid by such businesses is adjusted to $8,000, $14,000, $16,000, and $26,000, replacing previous amounts of $6,000, $12,000, $14,000, and $24,000, respectively. These amendments apply to taxable years beginning after the date of enactment of this Act.

What does INCREASED BONUS DEPRECIATION FOR QUALIFIED SMALL FOOD RETAIL of HR 701 do?

This section amends Section 168(k) of the Internal Revenue Code of 1986. It establishes a special rule for qualified small food retail businesses. The rule increases the applicable percentage for property placed in service by these businesses. Specifically, it substitutes '70 percent' for '60 percent', '50 percent' for '40 percent', and '30 percent' for '20 percent' in various subparagraphs of Section 168(k)(6). The same percentage increases apply to plants bearing fruits and nuts planted or grafted by qualified small food retail businesses. The amendments apply to property placed in service, or plants planted or grafted, after the date of enactment of this Act.

What does INCREASED QUALIFIED BUSINESS INCOME DEDUCTION FOR QUALIFIED of HR 701 do?

This section amends Section 199A of the Internal Revenue Code of 1986. It introduces a special rule for qualified small food retail businesses. For these businesses, the 20 percent figure in subsection (a)(2) is replaced with 25 percent. The changes apply to taxable years beginning after the enactment of this Act.

What does NEW FOOD RETAIL BUSINESS TAX CREDIT. of HR 701 do?

This section establishes a new tax credit, the 'New Food Retail Business Credit,' under Section 45BB of the Internal Revenue Code. The credit is equal to 15 percent of 'qualified investment amounts' paid or incurred during a taxable year. A 'new food retail business' is defined as a 'qualified small food retail business' that began operations within the previous three taxable years. Qualified investment amounts include payments for capital investment in property, facilities, or equipment used for retail sales. The new food retail business credit is added as part of the general business credit under Section 38. The amendments apply to taxable years beginning after the date of enactment of this Act.

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REDUCE Food Prices Act — HR. 701

Last updated: 1/23/2025 · Introduced: 1/23/2025

Author: Mikie Sherrill (D-NJ)

TL;DR (AI)

This bill provides tax incentives to small food retail businesses operating in areas with limited competition, as determined by a specific market concentration index.
It increases the rehabilitation tax credit percentage for qualified small food retail businesses from 20% to 25% for eligible building renovations.
The bill expands the Work Opportunity Tax Credit and increases bonus depreciation allowances for these businesses, and establishes a new tax credit for new food retail businesses making capital investments.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 5 more.

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