REDUCE Food Prices Act

The REDUCE Food Prices Act (HR 9993) provides tax incentives for small food retail businesses in low-competition areas to reduce their operating costs. Key provisions include raising the rehabilitation tax credit from 20% to 25%, increasing work opportunity tax credit limits, boosting bonus depreciation rates (up to 70% for new property), and raising the qualified business income deduction from 20% to 25%. To qualify, businesses must have at least 70% of revenue from food sales, operate in a USDA-defined low-competition area (county with a retail food sector index ≥1,400), and meet size thresholds. The bill also creates a new 15% tax credit for new small food retail businesses on qualifying investments, effective for tax years after enactment.