SAFE Retail 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 any eligible small retail business operator, the retail theft prevention credit determined under this section for any taxable year is an amount equal to 50 percent of so much of the eligible expenditures for the taxable year as exceeds $250 but does not exceed $5,000.

The credit determined under subsection (a) with respect to the taxpayer for any taxable year shall not exceed the excess (if any) of $2,500 over the aggregate credits allowed under this section with respect to the taxpayer for all prior taxable years.

For purposes of this section, the term eligible small retail business operator means a person that is—

(1) not an applicable large employer (as defined in section 4980H(c)), and

(2) engaged in the trade or business of selling tangible personal property at retail from an office, store, or any other physical location open to the public.

For purposes of this section, the term eligible expenditures means, with respect to any eligible small retail business operator for any taxable year, amounts paid or incurred by such operator during such taxable year for—

(A) conducting employee security training and background checks,

(B) limiting and preventing access to the personal property to be sold at retail in the possession of the operator,

(C) acquiring non-lethal devices used to deter, prevent, or mitigate against the theft of such personal property,

(D) protecting any facility in which the operator stores such personal property,

(E) installing security lighting, cameras, recording equipment, and intrusion detection sensors,

(F) conducting a security vulnerability assessment,

(G) implementing a site security plan, or

(H) taking such other measures for the prevention of theft of such personal property as the Secretary may by regulation prescribe.

Amounts described in paragraph (1) shall be taken into account only to the extent that such amounts are paid or incurred for the purpose of deterring, preventing, or mitigating against the loss of personal property to be sold by the eligible small retail business operator at retail.

All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person for purposes of this section.

The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to specify the non-lethal devices described in subsection (d)(1)(C).

This section shall not apply with respect to any amounts paid or incurred after December 31, 2029.

Section 280C of such Code is amended by adding at the end the following new subsection:

No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction taken into account in determining the amount of credit under section 45BB for the taxable year.

Section 38(b) of such Code is amended in paragraph (40) by striking plus, in paragraph (41) by striking the period and inserting, plus, and by adding at the end the following new paragraph:

(42) in the case of an eligible small retail business operator (as defined in section 45BB(c)), the retail theft prevention credit determined under section 45BB(a).

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 amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.