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SB 2294

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

89th Legislature (2025) Introduced by Borris Miles

Texas bill creates franchise tax credits for businesses opening grocery/healthy stores in food deserts to improve food access in underserved communities.

Referred to Finance
#business&commerce--smallbusiness&minoritybusiness(i0051) #comptrollerofpublicaccounts(v2608) #food(s0761) #housing&communityaffairs #texasdepartmentof(v0008) #health--otherdiseases&medicalconditions(i0383) #taxation--franchise(i0807)
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Bill Summary · SB 2294

Legislative bill overview

SB 2294 would establish a franchise tax credit in Texas for businesses that open grocery stores or healthy corner stores in designated food deserts. The credit would serve as a financial incentive to encourage private investment in underserved communities lacking adequate access to fresh food. This is a targeted economic development tool using tax policy to address food access disparities.

Why is this important

Food deserts—areas where residents lack convenient access to affordable, nutritious food—contribute to health disparities, obesity, and chronic disease in low-income communities. Texas has significant food desert areas, particularly in rural regions and urban neighborhoods. Tax credits can lower the operational burden for retailers, making it economically feasible to serve less profitable markets that might otherwise be skipped by commercial chains.

Potential points of contention

  • Defining "food desert" and verification: Disagreement over which areas qualify, how they're measured, and preventing misuse of the credit through definitional manipulation
  • Tax revenue cost vs. benefit: Concerns about foregone state tax revenue versus uncertain outcomes; unclear metrics for measuring success or requiring businesses to maintain operations long-term
  • Market distortion: Questions about whether subsidizing private businesses is the most efficient use of public resources compared to direct intervention, cooperative models, or other policy solutions

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

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