LaHood, Panetta Introduce the PLUS
Act to Support the Food and Beverage Industry
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[September 08, 2020]
Congressmen Darin LaHood (R-IL) and Jimmy
Panetta (D-CA) today introduced the Providing Liquidity for
Uncollectible Sales (PLUS) Act, which will provide a tax credit to
food and beverage distributors to cover uncollectible debt for
products that were shipped to establishments prior to COVID-19
related shutdowns, but have not yet been paid for.
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Given the capacity restrictions that many
establishments are currently facing, they are unable to cover debts
on previously purchased products because of their inability to sell
it to customers due to forced closures.
The PLUS Act tax credit would be a 100% tax credit that food and
beverage distributors can take for uncollectible debt from food and
beverage establishments that were ordered to close for at least 30
days between March 25, 2020 and July 15, 2020.
The text of the legislation can be read here.
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“Illinois’ food and beverage industry provides good-paying jobs for
our residents and they have felt an incredible impact because of
COVID-19,” said Congressman LaHood. “Through no fault of their own,
many establishments were forced to close and now face significant
capacity restrictions as states reopen. 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 food distribution industry is a vital bridge between our
growers and restaurants on the central coast of California. With its
thousands of employees, our distributors help stock our restaurants
with food and, at times, do it on credit. The PLUS Act will provide
our foodservice distributors with tax credits to offset any
uncollectable debt," said Congressman Panetta. "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.” “Kohl
Wholesale greatly appreciates Rep. LaHood’s understanding of the
impact of the pandemic on the foodservice industry and the impact on
distribution. Rep. LaHood’s leadership in addressing uncollectable
debts as a result of the pandemic is very positive for foodservice
distributors and their employees across the country,” added Matt
Ehrhart, Owner of Kohl Wholesale in Quincy, Illinois.
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“Tax credits for this $12.2 billion in outstanding
debts will provide the liquidity distributors need to continue to
extend credit to their restaurant customers and help them get back
on their feet as the economy restarts,” said Mark S. Allen,
President & CEO of the International Foodservice Distributors
Association (IFDA). “I applaud Representatives LaHood (IL) and
Panetta (CA) commitment to the foodservice distribution industry, a
vital part of our economy.”
“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 & CEO of United Fresh Produce Association. “I
commend Representatives LaHood (IL) and Panetta (CA) 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.”
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“Family-owned seafood businesses support restaurants by providing
fish on credit, but now are stuck with billions in debt owed them by
these customers. 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, effecting everyone from boat owners to
restaurateurs,” added John Connelly, President, National Fisheries
Institute.
[Office of Congressman Darin Lahood] |