Local Food Production Enhancement Act of 2021

“(2) Applicable percentage—For purposes of paragraph (1)—

“(A) In general—In the case of any qualified equity investment made after the date of the enactment of Local Food Production Enhancement Act of 2021, the applicable percentage is—

“(i) 6 percent with respect to the first 4 credit allowance dates, and

“(ii) 7 percent with respect to the remainder of the credit allowance dates.

“(B) Certain older investments—In the case of any qualified equity investment made on or before the date of the enactment of the Local Food Production Enhancement Act of 2021, the applicable percentage is—

“(i) 5 percent with respect to the first 3 credit allowance dates, and

“(ii) 6 percent with respect to the remainder of the credit allowance dates.”

“(C) a qualified farming business shall not fail to be treated as a qualified business by reason of paragraph (5)(B) thereof.”

“(4) Qualified farming business—For purposes of this subsection—

“(A) In general—The term “qualified farming business” means any trade or business of farming if—

“(i) all of such farming is conducted in a qualified area or an area adjacent to a qualified area, and

“(ii) such trade or business has in effect a local distribution plan, a surplus stock distribution plan, and a local workforce plan, each of which is certified by the Secretary.

“(B) Qualified area

“(i) In general—The term “qualified area” means—

“(I) any low-income community if at least 500 individuals (or at least 33 percent) of the population of such community lives more than 0.5 miles (10 miles if such community is in a rural area) from a large grocery store, and

“(II) any population census tract adjacent to a low-income community described in subclause (I).

“(ii) Large grocery store—For purposes of this subparagraph, the term “large grocery store” means any means any single retail grocery store location which includes all of the major food departments and has annual sales of at least $2,000,000.

“(C) Local distribution plan—The term “local distribution plan” means, with respect any trade or business, having the following in effect with respect to such trade or business:

“(i) A list of grocery retailers within 5 miles of the principal location of such trade or business (20 miles if such principal location is in a rural area).

“(ii) A documented offer to distribute agricultural or horticultural products to at least 80 percent of such grocery retailers.

“(iii) A documented agreement to provide fresh produce year-round to grocery retailers who agree to such offer.

“(D) Local workforce plan—The term “local workforce plan” means, with respect to any trade or business, having the following in effect with respect to such trade or business—

“(i) a documented commitment to hiring locally including—

“(I) a list of local media such trade or business will use to publicize job openings,

“(II) a list of local job centers, trade schools, and other workforce development organizations, and

“(III) a written plan to carry out agreements with entities listed under subclause (II) to hire locally when feasible, and

“(ii) a list of local youth science, technology, engineering, and math programs supported or operated by the trade or business.

“(E) Surplus stock distribution plan—The term “surplus stock distribution plan” means, with respect to any trade or business, having in effect a plan for distributing surplus agricultural or horticultural products to food banks and other nonprofit food providers located in qualified areas.

“(F) Farming—The term “farming” means raising or harvesting any agricultural or horticultural commodity, not including the raising, shearing, feeding, caring for, or management of animals.

“(G) Rural area—The term “rural area” has the meaning given such term by section 1393(a)(2).”