[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10429 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10429
To amend the Internal Revenue Code of 1986 to establish a State and
local general sales tax credit for small businesses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 16, 2024
Mr. Khanna 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 establish a State and
local general sales tax credit for small businesses.
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 ``Brick and Mortar Small Business Tax
Credit Act of 2024''.
SEC. 2. STATE AND LOCAL GENERAL SALES TAX CREDIT FOR SMALL BUSINESSES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. STATE AND LOCAL GENERAL SALES TAX CREDIT FOR SMALL
BUSINESSES.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible small business, the State and local general sales tax
credit determined under this section for the taxable year is an amount
equal to 5 percent of so much of the business gross receipts of the
taxpayer for the taxable year as do not exceed $1,000,000 (regardless
of whether such receipts are subject to a State or local general sales
tax).
``(b) Phaseout of Credit.--If the business gross receipts of the
taxpayer for the taxable year exceed $1,000,000, the credit otherwise
determined under subsection (a) shall be reduced by an amount which
bears the same ratio to the amount of such credit (determined without
regard to this subsection) as--
``(1) such excess, bears to
``(2) $1,000,000.
``(c) Definitions and Special Rules.--
``(1) Definitions.--For purposes of this section--
``(A) Eligible small business.--
``(i) In general.--The term `eligible small
business' means any taxpayer for any taxable
year if--
``(I) the business gross receipts
of such taxpayer for such taxable year
do not exceed $2,000,000, and
``(II) more than 50 percent of such
business gross receipts of such
taxpayer for such taxable year were
generated by in-person sales.
``(ii) Special rule for 2025 and 2026.--In
the case of any taxable year beginning in or
with calendar year 2025 or 2026, clause (i)(II)
shall be applied by substituting `any
percentage of' for `more than 50 percent'.
``(B) Business gross receipts.--The term `business
gross receipts' means gross receipts received in the
course of any trade or business (other than the trade
or business of being an employee).
``(C) In-person sales.--The term `in-person sales'
means a sales transaction in which a customer pays for
a good or service at a physical location of an eligible
small business.
``(D) State.--The term `State' means each of the
several States, the District of Columbia, American
Samoa, Guam, the Commonwealth of the Northern Mariana
Islands, Puerto Rico, the Virgin Islands of the United
States, and any other territory of the United States.
``(2) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52, or
subsection (n) or (o) of section 414, shall be treated as one
person.
``(d) Termination.--Subsection (a) shall not apply with respect to
any taxable year beginning after December 31, 2028.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) in the case of an eligible small business (as
defined in section 45BB), the State and local general sales tax
credit determined under section 45BB.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. State and local general sales tax credit for small
businesses.''.
(d) Public Awareness Campaign.--
(1) Requirement.--The Administrator of the Small Business
Administration, in consultation with the Internal Revenue
Service, shall conduct a public awareness campaign to inform
relevant small business concerns of the tax credit under
section 45BB of the Internal Revenue Code of 1986, as added by
subsection (a).
(2) Plan.--Not later than 180 days after the date of the
enactment of this Act, the Administrator shall submit to
Congress a plan to implement the public awareness campaign
under paragraph (1), including--
(A) a description of the objectives and goals for
the campaign; and
(B) a description of how the Administrator will
work with other departments and agencies of the Federal
Government and with nongovernmental entities to inform
relevant small business concerns of the tax credit
described in paragraph (1).
(3) Authorization of appropriations.--There is authorized
to be appropriated to the Administrator $500,000 for fiscal
year 2024 to carry out the public awareness campaign under
paragraph (1).
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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