Sponsors (4)
The bill expands grocery access in underserved areas and improves mapping and targeting through tax credits and grants, but it increases federal costs and creates compliance, eligibility, and administrative burdens that may limit who benefits.
Low-income and underserved communities gain greater access to groceries because the bill provides tax credits and grants for building/renovating grocery stores, funds nonprofit food banks, and supports mobile and temporary markets.
Small businesses and eligible developers can lower project costs and attract investment because the bill creates a general business tax credit for eligible grocery projects.
Local governments, nonprofits, and planners get more current information because the USDA Atlas will be updated at least annually, enabling better targeting of food access programs and investments.
All taxpayers bear higher federal costs because the new credits and grants will reduce federal revenue or increase federal spending.
Recipients (small businesses and nonprofits) risk recapture and additional taxes if they fail to meet certification criteria for up to five years, creating compliance risk and potential unexpected tax bills.
Some local retailers and markets are excluded from benefits because businesses that acquire existing stores may be ineligible for the credit, and farmers markets that receive most USDA grants are barred from certification.
Based on analysis of 3 sections of legislative text.
Creates a tax credit and grant program to support building, renovating, and operating grocery stores, food banks, and mobile/temporary markets in underserved areas and requires annual USDA atlas updates.
Creates a federal tax credit and grant program to encourage grocery stores, food banks, mobile markets, farmers markets, and temporary food merchants to open, renovate, or operate in underserved areas. It sets percentages for credits and grants, timing rules for payments, and excludes the grants from gross income. It also requires USDA to update its Food Access Research Atlas at least once a year to reflect newly opened retailers. The program targets certified "special access food providers," establishes eligibility rules and payment timing, and defines what counts as qualified construction, renovation, and operational costs. The measure changes the Internal Revenue Code to add the new credit and adds an annual data-update requirement for USDA.
Introduced March 27, 2025 by Mark R. Warner · Last progress March 27, 2025