This bill creates a new federal tax credit for small brick-and-mortar businesses with annual gross receipts up to $2 million. Eligible businesses that generate more than 50 percent of their revenue from in-person sales would receive a tax credit equal to 5 percent of their gross receipts up to $1 million annually, with the credit phasing out for businesses earning between $1 million and $2 million. For the first two years (2025-2026), the in-person sales requirement is waived as businesses transition back to normal operations. The bill also requires the Small Business Administration to conduct a public awareness campaign about the credit, with $500,000 in authorized funding, and the tax credit is set to expire after December 31, 2028. This legislation is intended to provide financial relief to traditional retail and service businesses that may have struggled during recent economic challenges.
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