Sponsors (2)
The bill uses a sizable tax credit to encourage grocery development in designated food deserts—likely improving local food access and making projects more financially viable—but it reduces federal revenue, may primarily benefit developers rather than residents, and includes eligibility and tax-basis rules that create distributional and administrative risks.
Low-income residents in designated food deserts (urban and rural) gain nearby access to groceries when new stores open or renovate, increasing availability of fresh produce and perishable foods and potentially improving diet-related health outcomes.
Small-business owners and developers receive a 30% tax credit (up to $500,000) to offset costs of building or renovating grocery space, improving project financials and making supermarket or grocery projects more feasible.
The program is administered through existing tax credit infrastructure (general business credit under IRC section 38), simplifying the claim process for businesses familiar with current systems and lowering administrative complexity for filers.
All taxpayers bear the cost indirectly because the credit reduces federal revenue, which could increase the deficit or force cuts/repurposing of other federal spending.
Low-income residents may not gain the intended benefit if the credit primarily increases returns to investors or developers or if projects target higher-profit areas or fail to stock affordable healthy foods.
Limiting which tracts qualify by specific distance and poverty thresholds may exclude some needy areas and create administrative disputes or delays over eligible designations.
Based on analysis of 2 sections of legislative text.
Creates a 30% tax credit (up to $500,000/year) for building or renovating grocery stores located in federally defined food deserts, effective after 2026.
Creates a federal tax credit equal to 30% of the cost to place a qualified grocery store or a defined renovation area into service in a census-defined food desert, with an annual per-taxpayer cap of $500,000. The credit reduces the tax basis of the property and is added to the general business credit; Treasury will identify food deserts in consultation with USDA and may use the Food Access Research Atlas. The credit applies to depreciable property originally placed in service by the taxpayer and to qualified renovation expenditures; the change takes effect for taxable years beginning after December 31, 2026.
Official title: To amend the Internal Revenue Code of 1986 to establish a tax credit for grocery stores located in food deserts.
Introduced June 18, 2026 by Eugene Simon Vindman · Last progress June 18, 2026