Amends the Internal Revenue Code of 1986 to introduce tax incentives for establishing grocery stores in underserved areas.
Creates a new subchapter (Subchapter W) specifically for tax incentives related to grocery stores in these areas.
Establishes an increased work opportunity tax credit of $1,000 for individuals employed at new underserved area grocery stores.
Allows for alternative certification methods for employees to qualify for the increased tax credit.
The increased work opportunity tax credit applies to wages paid from 2025 to 2030.
Introduces 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 26% in subsequent years, and 0% thereafter.
Provides a bonus of 5 percentage points for locally sourced fresh produce and dairy.
Defines “fresh fruits, vegetables, meat, and dairy” to exclude canned or frozen products.
Defines “new underserved area grocery store” with specific criteria regarding size, sales composition, and location.
Specifies criteria for determining “underserved areas,” including population density, poverty rate, and median family income.
Requires the Secretary to issue regulations or guidance within six months of enactment to implement the provisions.
The amendments take effect for taxable years beginning after December 31, 2024.
