REDUCE Food Prices Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 701Taxation

REDUCE Food Prices Act

INTRO JAN 23· LAST ACTION JAN 23

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WHAT THE BILL DOES

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Voters should care about this bill because it directly addresses issues of food access and affordability in communities across the country. Many areas, often referred to as 'food deserts,' lack convenient access to fresh and healthy food options, leading to higher prices or reliance on less healthy alternatives. By providing tax incentives, this bill aims to make it more financially attractive for small businesses to open or expand in these underserved locations.

If this bill becomes law, it could foster greater competition among food retailers, potentially driving down food prices and increasing the availability of diverse food choices for consumers. It also supports small businesses, which are often key drivers of local economies and job creation. If it doesn't pass, the financial barriers for small food retailers to operate in these challenging markets would remain, likely continuing the status quo of limited options and potentially higher costs for residents in 'low-competition areas.'

KEY PROVISIONS

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PROVISION 01

Increases the tax credit for renovating old buildings from 20% to 25% for qualified small food retail businesses.

This makes it more affordable for small food businesses to move into and revitalize existing structures in areas needing more food options.

PROVISION 02

Increases the Work Opportunity Tax Credit and Qualified Business Income deduction for qualified small food retail businesses.

These changes reduce the tax burden related to hiring specific employees and overall business profits, making operations more financially viable.

PROVISION 03

Increases bonus depreciation percentages, allowing qualified small food retail businesses to deduct the cost of new property and equipment faster.

This provides a significant upfront tax savings, encouraging businesses to invest in new assets like refrigeration, shelves, or delivery vehicles.

PROVISION 04

Creates a new 15% tax credit for 'new' small food retail businesses on their capital investments.

This direct credit helps new businesses offset the substantial initial costs of setting up a store, encouraging new entries into underserved markets.

PROVISION 05

Defines a 'qualified small food retail business' as having under $200 million in sales, 70%+ food/produce sales, and located in a low-competition area.

This definition ensures the tax incentives are targeted specifically at smaller businesses focused on food in areas identified as lacking competition.

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ACTION TIMELINE

2 EVENTS

JAN 23

Introduced in House

INTROREFERRAL

JAN 23

Referred to the House Committee on Ways and Means.

HOUSE · INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 701

Congress119th

StatusIn Committee

IntroducedJan 23, 2025

Last actionJan 23, 2025

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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 23, 2025