Brick and Mortar Small Business Tax Credit Act of 2024

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 an eligible small business, the State and local general sales tax credit determined under this section for the taxable year is an amount equal to 5 percent of so much of the business gross receipts of the taxpayer for the taxable year as do not exceed $1,000,000 (regardless of whether such receipts are subject to a State or local general sales tax).

If the business gross receipts of the taxpayer for the taxable year exceed $1,000,000, the credit otherwise determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of such credit (determined without regard to this subsection) as—

(1) such excess, bears to

(2) $1,000,000.

For purposes of this section—

The term eligible small business means any taxpayer for any taxable year if—

(I) the business gross receipts of such taxpayer for such taxable year do not exceed $2,000,000, and

(II) more than 50 percent of such business gross receipts of such taxpayer for such taxable year were generated by in-person sales.

In the case of any taxable year beginning in or with calendar year 2025 or 2026, clause (i)(II) shall be applied by substituting any percentage of for more than 50 percent.

The term business gross receipts means gross receipts received in the course of any trade or business (other than the trade or business of being an employee).

The term in-person sales means a sales transaction in which a customer pays for a good or service at a physical location of an eligible small business.

The term State means each of the several States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, the Virgin Islands of the United States, and any other territory of the United States.

All persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (n) or (o) of section 414, shall be treated as one person.

Subsection (a) shall not apply with respect to any taxable year beginning after December 31, 2028.

Subsection (b) of section 38 of such Code 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:

(42) in the case of an eligible small business (as defined in section 45BB), the State and local general sales tax credit determined under section 45BB.

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 following new item:

The Administrator of the Small Business Administration, in consultation with the Internal Revenue Service, shall conduct a public awareness campaign to inform relevant small business concerns of the tax credit under section 45BB of the Internal Revenue Code of 1986, as added by subsection (a).

Not later than 180 days after the date of the enactment of this Act, the Administrator shall submit to Congress a plan to implement the public awareness campaign under paragraph (1), including—

(A) a description of the objectives and goals for the campaign; and

(B) a description of how the Administrator will work with other departments and agencies of the Federal Government and with nongovernmental entities to inform relevant small business concerns of the tax credit described in paragraph (1).

There is authorized to be appropriated to the Administrator $500,000 for fiscal year 2024 to carry out the public awareness campaign under paragraph (1).

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.