REDUCE Food Prices Act

The bill establishes a new tax credit (as part of the general business tax credit) in the amount of 15% of certain capital investments by a qualified small food retail business in the first three years of operation.

The bill defines a qualified small food retail business as a private or closely-held company, a partnership, or a sole proprietorship (1) with annual average gross receipts of $200 million or less for the three tax years preceding the current tax year, (2) with at least 70% of its annual average gross receipts attributable to the retail sale of food or produce, and (3) located in a low-competition area.

The bill also increases

bonus depreciation percentages for certain property placed into service by a qualified small food retail business,

the QBI tax deduction for qualified small food retail business,

the rehabilitation tax credit for qualified rehabilitation expenses incurred by a qualified small food retail business, and

the WOTC for wages paid by a qualified small food retail business to eligible workers.