Sponsors (3)
The bill aims to expand food access in underserved and rural areas by subsidizing new and improved food retail and improving food‑access data, but it creates new federal spending, administrative requirements, and tax risks for recipients that could produce unexpected costs or uneven program implementation.
Low-income residents in food deserts gain greater access to grocery stores, food banks, and mobile markets because the bill provides credits and grants to open or expand food retail and distribution.
Rural and non-metropolitan communities receive targeted funding allocations, increasing investment in local food access infrastructure outside major metros.
Developers and store operators (including small businesses) receive a federal tax credit for new stores and renovations, lowering upfront project costs and encouraging private investment in food retail.
Small-business owners and nonprofits that fail to meet program requirements can face recapture of credits/grants and increased tax liabilities within five years, creating a risk of unexpected tax bills.
Property owners who take credits or grants will have their tax basis reduced by the amount received, which can increase taxable gain on a future sale and raise long-term tax costs for those owners.
Applicants and administering agencies face greater administrative and compliance burdens (certifications, reporting, regional coordination), increasing time and cost to apply and operate under the program.
Based on analysis of 3 sections of legislative text.
Creates tax credits and grants for certified providers to open/renovate grocery stores and requires USDA to update the Food Access Research Atlas annually.
Official title: To amend the Internal Revenue Code of 1986 to establish a new tax credit and grant program to stimulate investment and healthy nutrition options in food deserts, and for other purposes.
Introduced March 27, 2025 by Emilia Strong Sykes · Last progress March 27, 2025
Creates a federal tax credit and matching grant program to support certified "special access food providers" that open new qualified grocery stores or complete eligible store renovations, and requires the USDA to update its Food Access Research Atlas at least once a year to include retailers placed in service during the year. The tax credit provides a percentage-based credit (15% for new stores, 10% for renovations) against tax liability; the grant program (coordinated with USDA) pays up to comparable percentage-based amounts for permanent food banks and temporary access merchants, with payments required within 60 days of certain certification or service dates.