# Plain Language Summary: Brick and Mortar Small Business Tax Credit Act of 2024

This bill creates a new tax credit designed to help small businesses that operate physical storefronts. Specifically, it gives eligible small businesses a 5 percent tax credit on their first $1 million in annual sales. So if a small business makes $1 million in revenue, they could get a $50,000 tax credit to reduce what they owe in federal taxes. The credit gradually phases out for businesses earning between $1 million and $2 million, meaning businesses right at that $2 million threshold get no credit at all.

To qualify for this credit, a business must meet two main requirements. First, it can't make more than $2 million in total annual revenue. Second, and this is the key part, more than half of its sales must come from in-person transactions at a physical location—think a retail store, restaurant, salon, or repair shop. However, for the first two years (2025 and 2026), the bill relaxes this requirement so that any amount of in-person sales qualifies. This means the credit is specifically aimed at helping brick-and-mortar businesses compete, particularly against online retailers that don't have the same overhead costs of maintaining physical locations.

The credit is temporary and only applies to tax years from 2025 through 2028, after which it expires. The bill also requires the Small Business Administration to launch a public awareness campaign to make sure small business owners actually know about this credit and can take advantage of it. The government is allocated $500,000 to spread the word about the program so eligible businesses don't miss out on potential tax savings.