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Redesignates existing subsection (d) as subsection (e) and inserts a new subsection (d) requiring annual updates to the Food Access Research Atlas to account for food retailers placed in service during the year.
Adds a new section 45BB to Subpart D of Part IV of Subchapter A (chapter 1) of the Internal Revenue Code establishing the 'Special Access Food Provider Credit and Grant Program', including: allowance of a credit for qualified grocery stores and renovation areas (15% and 10% rules), a grant program for permanent food banks and temporary access merchants, certification requirements, allocation rules, recapture provisions, basis reduction, regulatory authority, and definitions (food desert, grocery store, qualified construction expenses, qualified grocery store, qualified renovation area, regional community development entity, Secretary of Agriculture, temporary access merchant).
Amends section 38(b) (the list of components of the general business credit) by adding a new paragraph (42) to include the special access food provider credit under section 45BB(a); also adjusts punctuation at the end of existing paragraphs (40) and (41) to add the new paragraph.
Creates a Special Access Food Provider program that offers tax credits for building or renovating grocery stores and grants for certified food banks, mobile markets, and farmers markets located in food deserts. It assigns joint program administration to Treasury-related and Agriculture officials, sets limits, payment and recapture rules, and defines eligible places and providers. It also requires the USDA Food Access Research Atlas to be updated at least annually to record food retailers placed in service that year.
Adds a new Internal Revenue Code section (section 45BB) establishing the "Special Access Food Provider Credit and Grant Program." This creates a tax credit for qualified grocery stores and a grant program for food banks and temporary access merchants.
Tax credit amount for qualified grocery stores: the credit equals the lesser of the allocation received under subsection (d)(1)(A) or (A) 15% of the basis of a qualified grocery store placed in service during the taxable year (including depreciable property acquired for the store) or (B) 10% of renovation expenditures for a qualified renovation area placed in service during the taxable year.
Grant program for food banks and temporary access merchants: grants equal the lesser of the allocation under subsection (d)(1)(B) or (A) for a permanent food bank placed in service during the taxable year, 15% of qualified construction expenses, and (B) for a temporary access merchant, 10% of annual operational costs.
Time for payment of grants: the Secretary must make grant payments within the 60-day period beginning on the later of the date of the certification application or (A) for a permanent food bank, the date the food bank is placed in service, or (B) for a temporary access merchant, the end of the taxable year in which operational costs were incurred.
A grant under this subsection is not treated as gross income for purposes of the Internal Revenue Code chapter governing gross income.
Primary beneficiaries will be residents of food deserts who gain better access to supermarkets, farmers markets, and mobile food services. Grocery developers and small food retailers may receive tax credits that lower the cost of construction or renovation, making projects financially feasible in underserved areas. Certified food banks and nonprofit distributors may receive direct grant support to expand services. Mobile market and temporary vendor operators can get short-term grants to establish or extend services but will face limits on grant duration. The Treasury-related office and USDA will need to create certification, allocation, and compliance processes and will incur administrative workload to manage applications, payments, and recapture enforcement. Requiring annual updates to the Food Access Research Atlas improves data accuracy and timeliness for planning and targeting but requires USDA resources to track and incorporate newly placed retail sites. Budgetary impact depends on credit utilization and whether Congress appropriates funds for the grant component; absent appropriations language, grant awards may be limited by available funds. Compliance and recapture rules create ongoing reporting obligations for recipients and enforcement responsibilities for administering agencies. Overall, the legislation is likely to increase food access in targeted areas, support local jobs and small food businesses, and improve data used for federal and local planning, while introducing fiscal costs and new administrative duties.
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Read twice and referred to the Committee on Finance.
Introduced March 27, 2025 by Mark R. Warner · Last progress March 27, 2025
Read twice and referred to the Committee on Finance.
Introduced in Senate