Amends the Internal Revenue Code of 1986 to introduce tax incentives for grocery stores in underserved areas.
Establishes a new subchapter titled “Tax Incentives for Grocery Stores in Underserved Areas.”
Introduces an increased work opportunity tax credit for individuals employed at new grocery stores in underserved areas, increasing the credit limit by $1,000.
Allows for alternative certification methods for employees under the increased work opportunity tax credit.
The increased work opportunity tax credit applies to wages paid from taxable years beginning after December 31, 2024, and before January 1, 2031.
Provides a credit for sales of fresh fruits, vegetables, meat, and dairy, based on the cost of goods sold by the grocery store.
The applicable percentage for the sales credit is set at 30% for the first two years, decreasing to 28% and then 26% in subsequent years, with a termination at 0% thereafter.
Offers a bonus of 5 percentage points for locally sourced fresh produce and dairy.
Defines “fresh fruits, vegetables, meat, and dairy” and excludes canned or frozen products.
Defines “grocery store” with specific criteria regarding size and sales composition.
Defines “new underserved area grocery store” and outlines the criteria for qualifying areas based on population density, distance from existing grocery stores, poverty rates, and median family income.
Specifies that the Secretary of Agriculture will assist in determining underserved areas.
The amendments will take effect for taxable years beginning after December 31, 2024.