Grocery Affordability Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9378 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9378

 To amend the Internal Revenue Code of 1986 to establish a tax credit
              for grocery stores located in food deserts.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 2026

 Mr. Vindman (for himself and Mr. Mackenzie) introduced the following
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to establish a tax credit
              for grocery stores located in food deserts.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grocery Affordability Act''.

SEC. 2. ESTABLISHMENT OF FOOD DESERT GROCERY STORE CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

``SEC. 45BB. FOOD DESERT GROCERY STORE CREDIT.

    ``(a) In General.--For purposes of section 38, the food desert
grocery store credit determined under this section for any taxable year
is an amount equal to--
            ``(1) in the case of a qualified grocery store which is
        placed in service during such taxable year by a taxpayer, 30
        percent of the basis of such grocery store, including any
        property used in the operation of such grocery store--
                    ``(A) which is acquired by such taxpayer if the
                original use of such property commences with such
                taxpayer, and
                    ``(B) with respect to which depreciation (or
                amortization in lieu of depreciation) is allowable, and
            ``(2) in the case of a qualified renovation area which is
        placed in service during such taxable year by a taxpayer, 30
        percent of the qualified renovation expenditures paid or
        incurred by such taxpayer.
    ``(b) Limitation.--The credit allowed under subsection (a) with
respect to any taxpayer for any taxable year shall not exceed $500,000.
    ``(c) Basis Reduction.--The basis of any qualified grocery store,
or any grocery store which includes a qualified renovation area, for
which a credit is allowable under subsection (a) shall be reduced by
the amount of such credit so allowed.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified grocery store.--The term `qualified grocery
        store' means a grocery store which, on the date with respect to
        which construction of such grocery store begins, is located in
        a food desert.
            ``(2) Qualified renovation area.--The term `qualified
        renovation area' means any area of a grocery store in which
        groceries are sold, provided that such grocery store, on the
        date with respect to which renovation or rehabilitation of such
        area begins, is located in a food desert.
            ``(3) Qualified renovation expenditures.--The term
        `qualified renovation expenditures' means amounts chargeable to
        capital account and incurred for property (or additions or
        improvements to property) of a character subject to an
        allowance for depreciation in connection with the renovation or
        rehabilitation of a grocery store.
            ``(4) Grocery store.--The term `grocery store' means a
        retail store for which forecasted sales of groceries account
        for at least 35 percent of its total annual sales.
            ``(5) Groceries.--The term `groceries' means--
                    ``(A) fresh and frozen produce,
                    ``(B) fresh and frozen meat and seafood,
                    ``(C) dairy products,
                    ``(D) deli products, including sliced meats,
                cheeses, and salads, and
                    ``(E) baked goods.
            ``(6) Food desert.--
                    ``(A) In general.--The term `food desert' means any
                population census tract in which--
                            ``(i) at least 500 people, or at least 33
                        percent of the population of such tract,
                        reside--
                                    ``(I) in the case of a tract
                                located within a metropolitan area,
                                more than 1 mile from a grocery store,
                                or
                                    ``(II) in the case of a tract not
                                located within a metropolitan area,
                                more than 10 miles from a grocery
                                store, and
                            ``(ii) either--
                                    ``(I) the poverty rate for such
                                tract is at least 20 percent, or
                                    ``(II)(aa) in the case of a tract
                                located within a metropolitan area, the
                                median family income for such tract
                                does not exceed 80 percent of the
                                greater of the statewide median family
                                income or the metropolitan area median
                                family income, or
                                    ``(bb) in the case of a tract not
                                located within a metropolitan area, the
                                median family income for such tract
                                does not exceed 80 percent of the
                                statewide median family income.
                    ``(B) Areas not within census tracts.--In the case
                of an area which is not tracted for population census
                tracts, the equivalent county divisions (as defined by
                the Bureau of the Census) shall be used for purposes of
                determinations of food deserts under this paragraph.
                    ``(C) Determination of food deserts.--For purposes
                of determining whether a population census tract
                qualifies as a food desert for purposes of this
                section, the Secretary shall make such determinations,
                in consultation with the Secretary of Agriculture, in
                such manner as is deemed appropriate, including through
                the use of the Food Access Research Atlas established
                by the Department of Agriculture.
                    ``(D) Metropolitan area.--The term `metropolitan
                area' has the same meaning given the term `metropolitan
                statistical area' under section 143(k)(2)(B).
    ``(e) Regulations.--The Secretary, in consultation with the
Secretary of Agriculture, shall prescribe such regulations or other
guidance as may be necessary or appropriate to carry out the purposes
of this section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
            ``(42) the food desert grocery store credit determined
        under section 45BB(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
after the item relating to section 45AA the following new item:

``Sec. 45BB. Food desert grocery store credit.''.
    (d) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2026.
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