REDUCE Food Prices Act

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—

(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.

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.

Section 51(b)(3) of the Internal Revenue Code of 1986 is amended—

(1) by striking The amount and inserting

The amount

(1) , and

(2) 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—

(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.

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

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—

(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.

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—

(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.

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.

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.

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:

(42) 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.