Bipartisan Bill Will Provide Tax Credit to Food and Beverage Distributors

July 21, 2020 by Dan McCue
The bar on the Columbia Firehouse restaurant, Alexandria, Va. (Photo by Dan McCue)

WASHINGTON – Reps. Darin LaHood, R-Ill., and Jimmy Panetta, D-Calif., introduced a bill Tuesday providing a tax credit to food and beverage distributors to cover debt incurred for products shipped, but not yet paid for, due the coronavirus outbreak.

The legislation is intended to help those in the food and beverage supply chain who shipped products in good faith only to see the recipient restaurants and bars shut down due to the pandemic.

LaHood and Panetta’s Providing Liquidity for Uncollectible Sales (PLUS) Act tax credit would be a 100% 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.

“Through no fault of their own, many establishments were forced to close and now face significant capacity restrictions as states reopen,” LaHood said in a statement. “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.”

“The PLUS Act will provide our foodservice distributors with tax credits to offset any uncollectible debt,” Panetta said in the same 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.”

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

“Produce foodservice distributors absorbed a devastating blow with the spring shutdown of the restaurant and hotel industry. The impact of lost inventory and unpaid bills is not recoverable,” said Tom Stenzel, president and CEO of United Fresh Produce Association.

“I commend Representatives LaHood and Panetta for introducing the Providing Liquidity for Uncollectible Sales (PLUS) Act, a helpful solution to an insurmountable challenge for produce foodservice distributors and the companies on both ends of their business agreements,” Stenzel said.

John Connelly, president of the National Fisheries Institute agreed.“Family-owned seafood businesses support restaurants by providing fish on credit, but now are stuck with billions in debt owed them by these customers,” Connelly agreed. “This legislation will significantly help revive a complex system that brings seafood from water to table. If we don’t have functioning distributors bringing seafood to market, fish will simply rot on the dock, affecting everyone from boat owners to restaurateurs.” “

Congress

Members Request Investigation of Multibillion Dollar Pentagon Contract
Congress
Members Request Investigation of Multibillion Dollar Pentagon Contract
August 5, 2020
by Reece Nations

WASHINGTON – Two members of Congress have penned letters requesting a probe into the Pentagon’s decision to grant a multibillion dollar moving contract to American Roll-On Roll-Off Carrier Group Inc. The three-year, $7.2 billion contract would privately outsource the management of service members’ household goods, according... Read More

Carolyn Maloney Prevails in Primary After Weeks of Vote Counting
Elections
Carolyn Maloney Prevails in Primary After Weeks of Vote Counting

WASHINGTON — New York Democratic Rep. Carolyn B. Maloney has won her primary after six weeks of vote counting in the 12th District. New York City Board of Elections spokeswoman Valerie Vazquez confirmed Tuesday night that the board certified Maloney as the primary winner. The board... Read More

Senators Look to Break Deadlock With Small-Business Proposals
Business
Senators Look to Break Deadlock With Small-Business Proposals

WASHINGTON — Sens. Marco Rubio and Susan Collins have introduced legislation to extend a popular small-business relief program past its Aug. 8 expiration date as talks between Republicans and Democrats on a larger relief package appear deadlocked. Florida’s Rubio and Maine’s Collins introduced two proposals that... Read More

McConnell to Support White House-Democrats Deal, If One Can be Struck
Political News
McConnell to Support White House-Democrats Deal, If One Can be Struck

WASHINGTON — Senate Majority Leader Mitch McConnell said Tuesday he’d support whatever agreement the Trump administration and congressional Democrats reach on a coronavirus relief package, even if he has “some problems with certain parts of it.” The Kentucky Republican, who is up for reelection in November,... Read More

Confusing Georgia Law at Heart of Debate Over Lewis’ Successor
Law
Confusing Georgia Law at Heart of Debate Over Lewis’ Successor

ATLANTA — Shortly after U.S. Rep. John Lewis died, grieving Democrats were faced with two difficult choices: tap a replacement for the late civil rights icon on the ballot within days or slow the process and risk a legal challenge. Democratic insiders decided to hold a... Read More

Senators Say After Pandemic, Extending Broadband to Underserved Areas a Must
Technology
Senators Say After Pandemic, Extending Broadband to Underserved Areas a Must
August 4, 2020
by Dan McCue

WASHINGTON - A bipartisan trio of senators urged their colleagues Tuesday to create a $10 billion fund to extend broadband cable access into underserved rural communities. The Governors' Broadband Development Fund bill was introduced by Sen. Tim Scott, R-S.C., and his co-sponsors, Sens. Lindsey Graham, R-S.C.,... Read More

News From The Well
scroll top