[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5176 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5176
To amend the Internal Revenue Code of 1986 to adjust the applicable
percentage of the new markets tax credit, the application of such
credit to certain agricultural trades or businesses, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 3, 2021
Mr. Thompson of California introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to adjust the applicable
percentage of the new markets tax credit, the application of such
credit to certain agricultural trades or businesses, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Local Food Production Enhancement
Act of 2021''.
SEC. 2. INCREASE IN CREDIT PERCENTAGE OF NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(a)(2) of the Internal Revenue Code of
1986 is amended to read as follows:
``(2) Applicable percentage.--For purposes of paragraph
(1)--
``(A) In general.--In the case of any qualified
equity investment made after the date of the enactment
of Local Food Production Enhancement Act of 2021, the
applicable percentage is--
``(i) 6 percent with respect to the first 4
credit allowance dates, and
``(ii) 7 percent with respect to the
remainder of the credit allowance dates.
``(B) Certain older investments.--In the case of
any qualified equity investment made on or before the
date of the enactment of the Local Food Production
Enhancement Act of 2021, the applicable percentage is--
``(i) 5 percent with respect to the first 3
credit allowance dates, and
``(ii) 6 percent with respect to the
remainder of the credit allowance dates.''.
(b) Effective Date.--The amendments made by this section shall
apply to investments made after the date of the enactment of this Act.
SEC. 3. CERTAIN FARMING OPERATIONS MADE ELIGIBLE FOR INVESTMENT UNDER
THE NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(d)(3) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following new subparagraph:
``(C) a qualified farming business shall not fail
to be treated as a qualified business by reason of
paragraph (5)(B) thereof.''.
(b) Qualified Farming Business.--Section 45D(d) of such Code is
amended by adding at the end the following new paragraph:
``(4) Qualified farming business.--For purposes of this
subsection--
``(A) In general.--The term `qualified farming
business' means any trade or business of farming if--
``(i) all of such farming is conducted in a
qualified area or an area adjacent to a
qualified area, and
``(ii) such trade or business has in effect
a local distribution plan, a surplus stock
distribution plan, and a local workforce plan,
each of which is certified by the Secretary.
``(B) Qualified area.--
``(i) In general.--The term `qualified
area' means--
``(I) any low-income community if
at least 500 individuals (or at least
33 percent) of the population of such
community lives more than 0.5 miles (10
miles if such community is in a rural
area) from a large grocery store, and
``(II) any population census tract
adjacent to a low-income community
described in subclause (I).
``(ii) Large grocery store.--For purposes
of this subparagraph, the term `large grocery
store' means any means any single retail
grocery store location which includes all of
the major food departments and has annual sales
of at least $2,000,000.
``(C) Local distribution plan.--The term `local
distribution plan' means, with respect any trade or
business, having the following in effect with respect
to such trade or business:
``(i) A list of grocery retailers within 5
miles of the principal location of such trade
or business (20 miles if such principal
location is in a rural area).
``(ii) A documented offer to distribute
agricultural or horticultural products to at
least 80 percent of such grocery retailers.
``(iii) A documented agreement to provide
fresh produce year-round to grocery retailers
who agree to such offer.
``(D) Local workforce plan.--The term `local
workforce plan' means, with respect to any trade or
business, having the following in effect with respect
to such trade or business--
``(i) a documented commitment to hiring
locally including--
``(I) a list of local media such
trade or business will use to publicize
job openings,
``(II) a list of local job centers,
trade schools, and other workforce
development organizations, and
``(III) a written plan to carry out
agreements with entities listed under
subclause (II) to hire locally when
feasible, and
``(ii) a list of local youth science,
technology, engineering, and math programs
supported or operated by the trade or business.
``(E) Surplus stock distribution plan.--The term
`surplus stock distribution plan' means, with respect
to any trade or business, having in effect a plan for
distributing surplus agricultural or horticultural
products to food banks and other nonprofit food
providers located in qualified areas.
``(F) Farming.--The term `farming' means raising or
harvesting any agricultural or horticultural commodity,
not including the raising, shearing, feeding, caring
for, or management of animals.
``(G) Rural area.--The term `rural area' has the
meaning given such term by section 1393(a)(2).''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
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