Eligible food and beverage wholesale distributors would receive a tax credit to offset any uncollectable debt due to the pandemic under a bipartisan bill introduced on Tuesday by U.S. Rep. Darin LaHood (R-IL).
“Illinois’ food and beverage industry provides good-paying jobs for our residents and they have felt an incredible impact because of COVID-19,” Rep. LaHood said. “Through no fault of their own, many establishments were forced to close and now face significant capacity restrictions as states reopen.”
The congressman sponsored the Providing Liquidity for Uncollectible Sales (PLUS) Act, H.R. 7707, with lead cosponsor U.S. Rep. Jimmy Panetta (D-CA), which would authorize a 100 percent tax credit that food and beverage 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, according to a bill summary provided by Rep. LaHood’s office.
“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,” said Rep. LaHood.
Rep. Panetta noted that providing this tax credit would help “the food distributors keep their employees on payroll during this pandemic and preserve this crucial supply chain for the future.”
The bill recently received endorsements from Matt Ehrhart, owner of Kohl Wholesale in Quincy, Ill.; Mark Allen, president and chief executive officer of the International Foodservice Distributors Association; Tom Stenzel, president and CEO of the United Fresh Produce Association; and John Connelly, president of the National Fisheries Institute.