REDUCE Food Prices Act
Sponsored By: Representative Sherrill
Introduced
Summary
Boosts tax incentives for small food retailers in low-competition counties. The bill would expand several tax breaks to encourage new and renovated grocery and produce stores in concentrated markets and aim to lower local food prices.
Show full summary
- Families and shoppers: Could expand local access to groceries in counties with limited competition and may help push down prices by encouraging more stores.
- Small food retailers and investors: Would raise the rehabilitation tax credit to 25% and create a new 15% investment credit for recently opened food retail businesses, while also expanding bonus depreciation and the qualified business income deduction for qualifying stores.
- Workers and hiring: Would increase the Work Opportunity Tax Credit wage-credit caps, making hires at qualifying small food retailers more attractive to employers (for example, one cap rises from $6,000 to $8,000).
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Bigger business deduction for retailers
This bill would increase the qualified business income deduction to 25% for qualifying small food retail businesses. The change would apply for taxable years beginning after enactment and only to taxpayers that meet the qualifying small food retail business definition.
Higher bonus depreciation rates
This bill would raise first-year bonus depreciation for qualifying small food retailers. The rates would change to 70%, 50%, and 30% in the referenced tiers instead of 60%, 40%, and 20%. The higher rates would apply to property placed in service and to fruit-and-nut plants planted or grafted after enactment, and only for businesses that meet the qualifying small food retail business test.
Higher rehabilitation credit for retailers
This bill would raise the rehab tax credit to 25% for qualifying small food retail businesses. To qualify, the business would need at least 70% of average annual sales from retail food or produce, meet a size test tied to a $200 million threshold, and be located in a county with a retail food HHI of 1,400 or more as measured by USDA ERS. The increased credit would apply to rehabilitated buildings placed in service after enactment.
Higher WOTC wage caps for retailers
This bill would raise the wage limits used to compute the Work Opportunity Tax Credit for qualifying small food retail employers. The bill would substitute $8,000, $14,000, $16,000, and $26,000 for the prior dollar caps. The change would apply to wages paid in taxable years beginning after enactment and only to employers that meet the qualifying small food retail business definition.
New investment credit for new stores
This bill would create a new credit equal to 15% of qualified capital investments for 'new food retail businesses.' A new food retail business would be a qualifying small food retail business that began operations within the prior three taxable years. The credit would be part of the general business credit and apply for taxable years beginning after enactment.
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Sponsors & CoSponsors
Sponsor
Sherrill
NJ • D
Cosponsors
Rep. Hayes, Jahana [D-CT-5]
CT • D
Sponsored 1/23/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 11/12/2025
Roll Call Votes
No roll call votes available for this bill.
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