Sponsors (4)
The bill increases access to grocery retailers in underserved areas and supports small operators through targeted credits, grants, faster payments, and better mapping, but does so at increased federal cost and with tax-compliance, basis-reduction, eligibility, and administrative burdens that could deter some providers or complicate implementation.
Low-income and underserved urban and rural residents will have increased access to grocery stores, food banks, and mobile markets because the bill provides targeted tax credits and grants to open or renovate food retail in food deserts.
Small grocery operators, temporary/mobile market operators, and nonprofits gain direct financial support that improves business viability and helps them start or sustain operations in underserved areas.
Grants provided under the program are excluded from recipients' gross income, increasing the net benefit to operators and simplifying financing for community food projects.
All taxpayers ultimately fund the program through appropriations, raising federal spending without a specified net cost or offset.
Recipients face recapture rules and the possibility of increased tax liabilities for up to five years if certification criteria are not maintained, creating financial risk that could deter participation.
Claiming the credit or grant reduces the tax basis in property by the credit/grant amount, which lowers future depreciation deductions or can increase taxable gain on sale, reducing long-term tax benefits for owners.
Based on analysis of 3 sections of legislative text.
Creates a tax credit and Treasury-administered grant program to finance new grocery stores, renovations, permanent food banks, and temporary food-access merchants in underserved areas; requires USDA atlas updates.
Official title: 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 Mark R. Warner · Last progress March 27, 2025
Creates a federal tax credit and grant program to encourage grocery store development, store renovations, permanent food bank construction, and short-term/temporary food access merchants in underserved areas. It adds a new business tax credit for certified “special access food providers,” establishes Treasury-administered grants (coordinated with USDA) for permanent food banks and temporary access merchants, requires USDA to update its Food Access Research Atlas annually, and includes certification, recapture, basis-reduction, and program administration rules. The credit phases (15% of basis for new stores, 10% for renovations), grants cover a share of construction or operating costs (15% for permanent food banks, 10% for temporary merchants), grants are excluded from gross income, and the law becomes effective for taxable years beginning after enactment.