RELEASE: KHANNA INTRODUCES LEGISLATION TO HELP SMALL BUSINESSES

Washington, DC- January 19, 2022 - Today, Representative Ro Khanna (CA-17) introduced a bill to help small business compete with powerful retailers that are increasingly shutting out competition. The "Brick and Mortar" Small Business Tax Credit bill would provide a tax credit to help level the playing field for these small brick-and-mortar based businesses.

"The health of a community relies heavily on having a vibrant Main Street and cultural center with small stores and restaurants," said Rep. Ro Khanna. "Corporate consolidation means higher prices for consumers, and fewer employment options and lower wages for workers, hurting surrounding communities. This bill is a way to do something constructive to lower costs for small businesses, create jobs, and stimulate the economy."

"Brick and Mortar" small businesses are defined as stores who make 50% or more of their sales at physical locations and earn $2 million or less a year in revenue. These businesses employ close to half of American workersand are essential to the success of our country's economy. However, competition from large corporations combined with the COVID-19 pandemic has forced many to close their doors.

To ensure fair competition against giant online companies that can largely avoid sales taxes, the legislation would provide small businesses with a 5% tax credit to offset a portion of state and local sales taxes. Additionally, it would direct the Small Business Administration to work the IRS to develop a public awareness campaign and leverage agency resources to inform eligible businesses of the tax credit.

The full text of the legislation can be viewed here.

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