What This Bill Does
This bill would amend the Internal Revenue Code to create a tax credit for grocery stores located in food deserts. The goal is to encourage supermarkets and other full-service grocers to open or stay open in neighborhoods where residents have limited access to affordable, healthy food. The credit would primarily benefit grocery operators, landlords and developers in underserved areas, and consumers who currently have to travel farther for basic food shopping.
- Creates a federal tax credit for grocery stores in food deserts.
- Uses the Internal Revenue Code of 1986 as the mechanism for the incentive.
- Targets areas with limited access to full-service grocery options.
- Applies to grocery-store operators that locate in eligible underserved neighborhoods.
Who This Bill Affects
If you live in a food desert or shop in one, this bill could make it more likely that a full-service grocery store opens or stays open nearby, improving access to fresh food and potentially lowering travel time and transportation costs. If you are not in an underserved area, the direct effect on you is likely limited, aside from the broader federal revenue cost of the tax credit.
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- Residents of low-access neighborhoods They would gain closer access to fresh groceries and basic staples. Supporters argue the credit could bring healthy food options into communities that have been overlooked by the market.
- Grocery store operators and food retailers A tax credit can offset the higher costs and lower margins of opening in underserved areas. Supporters say it reduces financial risk and can make it possible to serve communities that are otherwise hard to reach.
- Public health and anti-hunger advocates Better grocery access can improve diet quality and reduce reliance on expensive or less nutritious alternatives. They see the bill as a practical tool to address food insecurity and health disparities.
- Federal budget watchdogs A new tax credit reduces federal revenue and can add complexity to the tax code. They may argue the policy should be narrowly targeted or paired with stricter accountability to prove it works.
- Small retailers outside the credit area Stores that do not qualify may see the policy as creating an uneven playing field. They may also worry that incentives favor certain locations while leaving broader problems like demand and security unresolved.
- Lawmakers focused on direct aid programs They may prefer investments in transit, nutrition assistance, or community development over tax incentives. Their concern is that a credit may help stores more than it helps households unless it is carefully designed.
Key Implications
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““establish a tax credit for grocery stores located in food deserts””
This is the core incentive. It means eligible grocery stores could reduce their federal tax liability if they operate in designated low-access areas, which is intended to change where stores choose to open or remain open.
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““located in food deserts””
Eligibility would hinge on geography and access conditions, not just on whether a business sells groceries. That makes the definition of a food desert important because it determines which neighborhoods and stores can benefit.
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““amend the Internal Revenue Code of 1986””
The bill uses the tax code rather than a grant program or direct federal spending. In practice, that means the policy would operate through tax filing and compliance rules for qualifying businesses.
Latest Status
June 18, 2026
Referred to the House Committee on Ways and Means.
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Ask AI about this billData sourced from api.congress.gov.