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Bill

HR 9378

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

119th Congress Introduced by Ryan Mackenzie

The bill creates a federal tax credit to encourage grocery stores in designated food deserts to invest in facilities, inventory, and wages, expanding access to affordable healthy f

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9378

Overview

HR 9378 (119th Congress) seeks to amend the Internal Revenue Code of 1986 to establish a new tax credit for grocery stores located in food deserts. The bill aims to incentivize grocery retailers to operate or expand in areas with limited access to affordable, nutritious food.

Purpose and Intent

  • Encourage grocery stores to locate in or expand into food deserts.
  • Improve access to healthy, affordable food for residents in underserved or low-access areas.
  • Use a targeted tax incentive to stimulate investment in grocery infrastructure and workforce in affected communities.

Key Provisions

  • Establishment of a tax credit for eligible grocery stores operating in designated food deserts.
  • Eligibility criteria likely to include:
    • Location: qualified census tracts or areas identified as food deserts.
    • Type of business: grocery stores or supermarkets (not explicit in the summary, but typically excludes convenience stores).
    • Compliance with program requirements (e.g., maintaining storefront operations, hours, number of employees) as defined by the bill.
  • Credit amount and structure:
    • The bill would specify the amount of the tax credit (e.g., a percentage of qualified investments, qualified wages, or a flat-dollar amount per year).
    • Duration of the credit (e.g., a multi-year window) and any phase-in or sunset provisions.
  • Allowable uses of credit:
    • Investments in building or renovating facilities.
    • Inventory or equipment purchases relevant to grocery operations.
    • Employee wages and benefits, if applicable under the credit calculation.
  • Coordination with existing credits:
    • Clarification on whether the new credit can be claimed in conjunction with other federal or state incentives.

Affected Parties

  • Grocery stores and supermarkets located in food deserts.
  • Property developers or owners who lease space to eligible grocery retailers.
  • Local economies in food deserts through potential job creation and improved food access.
  • Federal revenue and tax administration, given the credit’s impact on tax liability.

Procedural and Timeline Aspects

  • Introduction and referral:
    • Introduced in the House and referred to the House Committee on Ways and Means on June 18, 2026.
  • Legislative process:
    • As a tax incentive, the bill would move through committee review, potential markups, and floor consideration.
    • Stakeholders may include retailers, local governments, food access advocates, and budget committees analyzing fiscal impact.
  • Sunsetting or renewal:
    • The bill may include a sunset provision or review period to assess effectiveness, typical for targeted tax credits.

Potential Impacts and Considerations

  • Economic: potential for job creation, increased grocery access, and local investment in underserved communities.
  • Fiscal: cost to federal revenue, offset considerations, and sensitivity to program design (credit rate, eligible areas).
  • Equity and access: potential to reduce food deserts and improve diet quality if grocery access translates into healthier consumer choices.
  • Compliance and administration: administrative burden on retailers and tax agencies to verify eligibility, location status, and sustained operations.

If you’d like, I can tailor this summary to emphasize fiscal impact estimates, expected eligibility criteria (if the text of the bill becomes available), or compare it with similar existing credits.

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

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