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HB 304

Relating to a franchise tax credit for entities that establish a grocery store or healthy corner store in a food desert.

89th Legislature, 2nd Called Session (2025) Introduced by Lauren Simmons

Texas bill would offer franchise tax credits to retailers opening grocery or healthy corner stores in food desert areas to expand food access in underserved communities.

Filed
#business&commerce--smallbusiness&minoritybusiness(i0051) #comptrollerofpublicaccounts(v2608) #food(s0761) #housing&communityaffairs #texasdepartmentof(v0008) #health--otherdiseases&medicalconditions(i0383) #humanservices--foodprograms(i0910) #taxation--franchise(i0807)
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WeVote Research Nonpartisan
Bill Summary · HB 304

Legislative bill overview

HB 304 would establish a franchise tax credit for businesses that open grocery stores or healthy corner stores in designated food desert areas of Texas. The credit would incentivize private investment in underserved communities by reducing state tax obligations for qualifying retailers.

Why is this important

Food deserts—areas with limited access to affordable, nutritious food—are associated with higher rates of diet-related diseases and economic disinvestment in low-income communities. This bill attempts to address that gap through tax incentives rather than direct government spending, leveraging private market solutions to expand food retail access in underserved neighborhoods.

Potential points of contention

  • Definition and identification: The bill's effectiveness depends heavily on how "food desert" is defined and which areas qualify, potentially creating disputes over eligibility
  • Cost to state revenue: Tax credits reduce state franchise tax revenue; fiscal impact depends on how many businesses claim credits and the credit size
  • Sustainability concerns: Businesses may leave once the tax credit expires, leaving communities without improved food access if underlying economics don't support permanent operations
  • Equity of incentives: Questions about whether tax credits are the most effective way to help low-income communities compared to direct subsidies or other interventions

Compiled from official sources — confirm details with the bill’s official record.

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