(a) In general

Section 47 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(e) Special rule for qualified small food retail businesses

(1) In general

In the case of a qualified rehabilitated building placed in service by a qualified small food retail business, subsection (a)(2) shall be applied by substituting 25 percent for 20 percent.

(2) Qualified small food retail business defined

(A) In general

For purposes of paragraph (1), the term qualified small food retail business means a business—

(i)

which is described in section 38(c)(5) (determined by applying $200,000,000 for $50,000,000 in such section),

(ii)

at least 70 percent of the annual average gross receipts of which are attributable to the retail sale of food or produce, and

(iii)

which is located in a low-competition area.

(B) Low-competition area

For purposes of subparagraph (A), the term low-competition area means a county with respect to which the Herfindahl-Hirschman Index for the retail food sector, as measured by the Economic Research Service of the United States Department of Agriculture, is at or above a level of 1,400.

(b) Effective date

The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.

(a) In general

Section 51(b)(3) of the Internal Revenue Code of 1986 is amended—

(b) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(a) In general

Section 168(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(10) Special rule for qualified small food retail businesses

(A) Increased applicable percentage for property placed in service by qualified small food retail businesses

In the case of property placed in service by a taxpayer that is a qualified small food retail business (as defined in section 47(e)(2)(A)), paragraph (6) shall be applied—

(i)

in subparagraph (A)—

(I)

by substituting 70 percent for 60 percent each place it appears,

(II)

by substituting 50 percent for 40 percent each place it appears, and

(III)

by substituting 30 percent for 20 percent each place it appears, and

(ii)

in subparagraph (B)—

(I)

by substituting 70 percent for 60 percent each place it appears,

(II)

by substituting 50 percent for 40 percent each place it appears, and

(III)

by substituting 30 percent for 20 percent each place it appears.

(B) Increased applicable percentage for plants bearing fruits and nuts planted or grafted by qualified small food retail businesses

In the case of plants bearing fruits and nuts planted or grafted by a taxpayer that is a qualified small food retail business (as defined in section 47(e)(2)(A)), paragraph (6)(C) shall be applied—

(i)

by substituting 70 percent for 60 percent each place it appears,

(ii)

by substituting 50 percent for 40 percent each place it appears, and

(iii)

by substituting 30 percent for 20 percent each place it appears.

(b) Effective date

The amendments made by this section shall apply to property placed in service, or plants planted or grafted, after the date of the enactment of this Act.

(a) In general

Section 199A of the Internal Revenue Code of 1986 is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:

(i) Special rule for qualified small food retail businesses

In the case of a qualified small food retail business (as defined in section 47(e)(2)(A)), subsection (a)(2) shall be applied by substituting 25 percent for 20 percent.

(b) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(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:

45BB. New food retail business credit

(a) In general

For purposes of section 38, in the case of a new small food retail business, the new food retail business credit under this section for the taxable year is an amount equal to 15 percent of qualified investment amounts paid or incurred during the taxable year.

(b) Definitions

For purposes of this section—

(1) New food retail business

The term new food retail business means a qualified small food retail business (as defined in section 47(e)(2)(A)) which began operations during the previous three taxable years.

(2) Qualified investment amounts

The term qualified investment amounts means amounts paid for capital investment in the property, facilities, or equipment of a business premises used for retail sales of the new food retail business.

(b) Credit part of general business credit

Section 38(b) of the Internal Revenue Code of 1986 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)

the new food retail business credit determined under section 45BB(a).

(c) Clerical amendment

The table of sections for 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 item:

(d) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.