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.” “

In The News

Health

Voting

Congress

House Passes $1.9 Trillion COVID Relief Package
Congress
House Passes $1.9 Trillion COVID Relief Package
February 27, 2021
by Dan McCue

WASHINGTON – The House passed a $1.9 trillion coronavirus relief package in the wee hours of Saturday morning, helping President Joe Biden clear the first hurdle in passing an economic stimulus bill that includes $1,400 in direct payments to U.S. households, an extension of federal supplements... Read More

Rep. Himes Says ‘The Threat is Real’
Political News
Rep. Himes Says ‘The Threat is Real’
February 26, 2021
by Tom Ramstack

WASHINGTON -- A congressional panel wants to cut off funding for the kind of White supremacists who raided the U.S. Capitol building Jan. 6. They described the attack as the first of many against government targets unless they act promptly to stop them. “This threat is... Read More

Mandates Needed to Keep Big Tech in Check
Antitrust
Mandates Needed to Keep Big Tech in Check
February 26, 2021
by Victoria Turner

Congress needs to create mandates to curb the abusive power exerted by a handful of online platforms, according to all six witnesses at a Capitol Hill hearing on Thursday. During the hearing, members of a House Judiciary subcommittee grappled with solutions to address the ability of... Read More

Filibuster, Cloture to Play Out in Biden Agenda
Congress
Filibuster, Cloture to Play Out in Biden Agenda
February 26, 2021
by Reece Nations

WASHINGTON — The Senate cloture rule might be the biggest Legislative obstacle in front of President Joe Biden’s policy agenda.  Simply put, the cloture rule is a debate-limiting procedure that requires 60 Senators to agree before moving on to a vote. This rule is the only... Read More

House to Vote on Virus Bill; Arbiter Says Wage Hike a No-Go
U.S. Senate
House to Vote on Virus Bill; Arbiter Says Wage Hike a No-Go

WASHINGTON (AP) — Democrats are ready to shove a $1.9 trillion COVID-19 relief package through the House on Friday, despite a setback that means a minimum wage boost is unlikely to be in the final version that reaches President Joe Biden.A near party-line vote seemed certain... Read More

House Votes to Expand Legal Safeguards for LGBTQ People
Civil Rights
House Votes to Expand Legal Safeguards for LGBTQ People

WASHINGTON (AP) — The Democratic-led House passed a bill Thursday that would enshrine LGBTQ protections in the nation's labor and civil rights laws, a top priority of President Joe Biden, though the legislation faces an uphill battle in the Senate.The bill passed by a vote of... Read More

News From The Well
scroll top