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

Hoyer, Durbin Aides Named to Biden Legislative Affairs Team
Political News
Hoyer, Durbin Aides Named to Biden Legislative Affairs Team
November 23, 2020
by Dan McCue

WILMINGTON, Del. - President-elect Joe Biden has selected top aides to House Majority Leader Steny Hoyer and Senate Democratic Whip Richard Durbin to serve in key roles on his White House legislative affairs team. Shuwanza Goff, who has been serving as Majority Leader Hoyer's floor director... Read More

The Christmas Season Has Officially Arrived on Capitol Hill
In The News
The Christmas Season Has Officially Arrived on Capitol Hill
November 23, 2020
by Dan McCue

WASHINGTON - Bathed in chill sunlight and standing just yards from where work crews continue to build the platform for the inauguration of President-elect Joe Biden, the Capitol Christmas tree was already a destination in its own right Monday as a handful ofl families gravitated to... Read More

Defense Analysts Caution Against U.S. Troop Withdrawal in Afghanistan
Geopolitics
Defense Analysts Caution Against U.S. Troop Withdrawal in Afghanistan
November 20, 2020
by Tom Ramstack

WASHINGTON -- Defense analysts warned Congress Friday against the U.S. troop withdrawal in Afghanistan announced this week amid indications that radical Islamists could resume terrorist attacks. They said further proof is needed that Taliban fighters would not try to seize control of Afghanistan before the Trump... Read More

Running to Lead the New Dems, DelBene Reflects on the Coalition’s Past, Promising Future
Congress
Running to Lead the New Dems, DelBene Reflects on the Coalition’s Past, Promising Future
November 20, 2020
by Dan McCue

WASHINGTON - During a week when newly elected members of Congress were all over Capitol Hill for their formal orientation, Rep. Suzan DelBene, D-Wash., remembered how vastly different her experience was in 2012. Jay Inslee, the previous representative of Washington State's 1st Congressional District, had decided... Read More

Looking Ahead to Biden Era, Officials Eye Investments in Rail Infrastructure
Congress
Looking Ahead to Biden Era, Officials Eye Investments in Rail Infrastructure
November 20, 2020
by Reece Nations

WASHINGTON – The House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Material conducted a hearing Wednesday exploring the Surface Transportation Board’s part in developments to the country’s passenger rail system.  During the hearing, executive officials from Metra, Amtrak and the STB gave expert testimony... Read More

Front-Line Workers in Capitol Keep Getting COVID-19
Health
Front-Line Workers in Capitol Keep Getting COVID-19

WASHINGTON — Front-line workers on Capitol Hill are continuing to contract COVID-19. Since the beginning of the coronavirus pandemic, 153 legislative branch employees have tested positive or are presumed positive for COVID-19, according to a Democratic aide for the House Administration Committee. This cumulative total, as of Nov. 18, includes 59... Read More

News From The Well
scroll top