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

Republicans Vow to Keep Raising Jan. 6 Questions, Despite Committee Quarrels
Political News
Republicans Vow to Keep Raising Jan. 6 Questions, Despite Committee Quarrels
July 23, 2021
by Dan McCue

WASHINGTON - As a select committee prepares to open its investigation Tuesday into the events leading up to and during the Jan. 6 insurrection on Capitol Hill, a trio of House Republican wonder what might have been. Everyone expected some controversy when House Minority Leader Kevin... Read More

Pelosi Says 'Deadly Serious' Jan. 6 Probe to Go Without GOP
Congress
Pelosi Says 'Deadly Serious' Jan. 6 Probe to Go Without GOP

WASHINGTON (AP) — Unfazed by Republican threats of a boycott, House Speaker Nancy Pelosi declared that a congressional committee investigating the Jan. 6 Capitol insurrection will take on its "deadly serious" work whether Republicans participate or not.  The Republicans' House leader, Kevin McCarthy, called the committee... Read More

Greenhouse Gases Heat Up Lawmakers’ Health Concerns
Climate
Greenhouse Gases Heat Up Lawmakers’ Health Concerns
July 21, 2021
by Tom Ramstack

WASHINGTON -- The million acres of forest that burned in western states in the past week were a lesser concern for a congressional panel that discussed the hazards of high heat caused by climate change Wednesday. “It’s becoming a routine part of life on the West... Read More

House Democrats Urge Biden to Permanently Close Digital Divide
Congress
House Democrats Urge Biden to Permanently Close Digital Divide
July 21, 2021
by Dan McCue

WASHINGTON - House Democrats are urging President Joe Biden to permanently close the nation’s digital divide by targeting federal investments in broadband to the hardest to reach areas, while also providing a permanent, federally-funded broadband benefit program to financially vulnerable families. The effort is being spearheaded... Read More

Sexual Assault in the Military Subject of Congressional Hearing
Congress
Sexual Assault in the Military Subject of Congressional Hearing
July 21, 2021
by Alexa Hornbeck

The Subcommittee on Military Personnel held a hearing recently to discuss a new set of recommendations to better address sexual assault in the military. “The toll that sexual assault and sexual harassment has taken on our military is devastating and incalculable. We know the numbers, but... Read More

DC Circuit Strikes Down GOP Challenge to Proxy Voting
Congress
DC Circuit Strikes Down GOP Challenge to Proxy Voting
July 20, 2021
by Dan McCue

WASHINGTON  - A Republican-led challenge to a House resolution allowing members to vote remotely during the COVID-19 pandemic ended abruptly Tuesday after the D.C. Circuit held it had no authority to review a “core” legislative act of Congress. House Resolution 965 was adopted in May 2020... Read More

News From The Well
scroll top