The House of Representatives introduces its own version of The Restaurant Revitalization Fund Tax Credit

Joanna Fantozzi

The U.S. House of Representatives has introduced a companion bill to the Restaurant Revitalization Tax Credit legislation the Senate announced last week. Like its companion bill, the House’s version — introduced by Reps. Earl Blumenauer (D-Ore.), Brian Fitzpatrick (R-Penn.), and Dean Phillips (D-Minn.)  — would create a tax credit in 2023 to offset payroll liabilities owed by restaurants that applied and were eligible, but did not receive, the original Restaurant Revitalization Fund.

"Restaurants and their employees were hit harder than any other industry during the COVID-19 pandemic,” Congressman Blumenauer said in a statement. “The federal government has provided some help to these institutions through the Restaurant Revitalization Fund, legislation based on my RESTAURANTS Act. But the program has fallen short, with only one-third of all applicants receiving funding. The Restaurant Revitalization Tax Credit will help fill these gaps and ensure all local restaurants get the support needed to keep their doors open, pay their staff, and protect the industry's trillion-dollar supply chain.”

Here's how it would work:

Related:Senators look to establish a tax credit for restaurants left out of the Restaurant Revitalization Fund

The only discernible difference between the two bills introduced to Congress is that the specifications on eligibility based on number of employees is slightly different, with the Senate legislation stating that the cap on refundability is reduced by $2,500 for each additional employee over 10.

Both bills have been endorsed by the Independent Restaurant Coalition and the National Restaurant Association.

“For the small business operators who hoped the Restaurant Revitalization Fund would help them stay afloat until the chaos of the pandemic settled, this tax credit will create another path to resilience while they deal with the uncertain economic climate,” Sean Kennedy, executive vice president of public affairs  for the National Restaurant Association said in a statement.

Related:The SBA is distributing another $83 million in Restaurant Revitalization Fund money

The bills will likely be heard and voted on when Congress is back in session in Jan. 2023.

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