Bipartisan bill introduced to provide tax credit to food and beverage distributors

Bipartisan bill introduced to provide tax credit to food and beverage distributors
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Reps. Darin LaHoodDarin McKay LaHoodAmerica can't afford to ignore the food service distribution industry On The Money: McConnell previews GOP coronavirus bill | Senate panel advances Trump Fed nominee who recently supported gold standard | Economists warn about scaled-back unemployment benefits Bipartisan bill introduced to provide tax credit to food and beverage distributors MORE (R-Ill.) and Jimmy PanettaJames Varni PanettaOn The Money: McConnell previews GOP coronavirus bill | Senate panel advances Trump Fed nominee who recently supported gold standard | Economists warn about scaled-back unemployment benefits Bipartisan bill introduced to provide tax credit to food and beverage distributors Overnight Defense: US formally rejects Beijing's South China Sea claims | House set to consider defense policy bill next week | 57 injured as firefighters battle warship blaze MORE (D-Calif.) introduced a bill Tuesday that would provide a tax credit to food and beverage distributors to cover debt for products that were shipped off prior to the coronavirus pandemic.

The legislation deals with debt from products that have not yet been paid for but were sent to establishments prior to shutdowns of restaurants, bars, and other businesses due to the coronavirus.

The Providing Liquidity for Uncollectible Sales (PLUS) Act tax credit would be a 100 percent tax credit that these distributors could take for uncollectible debt from food and beverage establishments that were ordered to close for at least 30 days between March 25 and July 15. 

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“Through no fault of their own, many establishments were forced to close and now face significant capacity restrictions as states reopen. The bipartisan PLUS Act will allow distributors to continue supporting their customers during this difficult time while covering previous purchases that food and beverage establishments will be unlikely to cover due to forced closures,” LaHood said in a statement.

The legislation received support from the United Fresh Produce Association and the National Fisheries Institute on Tuesday, which both commended the bill for helping foodservice distributors.

“The PLUS Act will provide our foodservice distributors with tax credits to offset any uncollectible debt,” Panetta said in a statement. “By providing them with this tax credit, we are helping the food distributors keep their employees on payroll during this pandemic and preserving this crucial supply chain for the future.”