119-s1176

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1176 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1176

 To amend the Internal Revenue Code of 1986 to establish a new tax 
credit and grant program to stimulate investment and healthy nutrition 
 options in food deserts, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 March 27, 2025

 Mr. Warner (for himself, Mrs. Capito, Mr. Van Hollen, and Mr. Moran) 
introduced the following bill; which was read twice and referred to the 
 Committee on Finance

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to establish a new tax 
credit and grant program to stimulate investment and healthy nutrition 
 options in food deserts, and for other purposes.

 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 ``Healthy Food Access for All 
Americans Act''.

SEC. 2. TAX CREDIT AND GRANT PROGRAM FOR SPECIAL ACCESS FOOD PROVIDERS.

    (a) In General.--

    (1) Allowance of credit.--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. SPECIAL ACCESS FOOD PROVIDER CREDIT AND GRANT PROGRAM.

 ``

    (a) Establishment of Credit for Grocery Stores.--
 ``

    (1) In general.--For purposes of 

section 38, the special 
 access food provider credit determined under this section for 
 any taxable year is an amount equal to the lesser of--
 ``
        (A) the amount of the allocation received by the 
 taxpayer under subsection
            (d) (1)
        (A) , or
 ``
        (B) the amount equal to--
 ``
            (i) in the case of a qualified grocery 
 store which is placed in service during such 
 taxable year by a taxpayer which has been 
 certified as a special access food provider, 15 
 percent of the basis of such grocery store, 
 including any property used in the operation of 
 such grocery store--
 ``
            (I) which is acquired by the 
 taxpayer if the original use of such 
 property commences with the taxpayer, 
 and
 ``
            (II) with respect to which 
 depreciation (or amortization in lieu 
 of depreciation) is allowable, or
 ``
            (ii) in the case of a qualified 
 renovation area which is placed in service 
 during such taxable year, 10 percent of the 
 renovation expenditures incurred by a taxpayer 
 which has been certified as a special access 
 food provider.
 ``

    (2) Renovation expenditures.--For purposes of paragraph

    (1)
        (B)
            (ii) , the term `renovation expenditures' means amounts 
 chargeable to capital account and incurred for property (or 
 additions or improvements to property) of a character subject 
 to the allowance for depreciation in connection with the 
 renovation or rehabilitation of a grocery store.
 ``

    (b) Grant Program for Food Banks and Temporary Access 
Merchants.--
 ``

    (1) In general.--The Secretary, in coordination with the 
 Secretary of Agriculture, shall, subject to the requirements of 
 this section, provide a grant to any entity which has been 
 certified as a special access food provider in an amount equal 
 to the lesser of--
 ``
        (A) the amount of the allocation received by the 
 entity under subsection
            (d) (1)
        (B) , or
 ``
        (B) the amount equal to--
 ``
            (i) in the case of a permanent food bank 
 which has been placed in service during the 
 taxable year by such provider, 15 percent of 
 any qualified construction expenses incurred by 
 such provider; and
 ``
            (ii) in the case of any provider which 
 qualifies as a temporary access merchant, 10 
 percent of any annual operational costs 
 incurred by such provider.
 ``

    (2) Time for payment of grant.--The Secretary shall make 
 payment of any grant under paragraph

    (1) during the 60-day 
 period beginning on the later of--
 ``
        (A) the date of the application for certification 
 as a special access food provider, or
 ``
        (B) the date--
 ``
            (i) in the case of a permanent food bank, 
 on which the food bank for which the grant is 
 being made is placed in service, or
 ``
            (ii) in the case of a temporary access 
 merchant, the end of the taxable year in which 
 the operational costs were incurred.
 ``

    (3) Grant not considered income for purposes of 
 taxation.--A grant under this subsection shall not be 
 considered as gross income for purposes of this chapter.
 ``
            (c) Certification as a Special Access Food Provider.--
 ``

    (1) Application.--Each applicant for certification as a 
 special access food provider shall submit, for each grocery 
 store, food bank, mobile market, or farmers market, an 
 application with the Secretary, at such time, in such manner, 
 and containing such information as the Secretary may reasonably 
 require.
 ``

    (2) Certification requirements.--For purposes of 
 certification as a special access food provider, the Secretary, 
 in consultation with the Secretary of Agriculture and the 
 applicable regional community development entity, shall 
 determine whether--
 ``
        (A) in the case of an applicant seeking to 
 construct, renovate, or rehabilitate a grocery store, 
 whether such store--
 ``
            (i) following completion of such 
 construction, renovation, or rehabilitation, 
 will qualify as a grocery store (as defined in 
 subsection

    (h)

    (3) ),
 ``
            (ii) is located in a food desert on the 
 date on which construction, renovation, or 
 rehabilitation begins,
 ``
            (iii) satisfies the eligibility criteria 
 established for projects under the Healthy Food 
 Financing Initiative established under 

section 243 of the Department of Agriculture 
 Reorganization Act of 1994 (7 U.S.C. 6953), and
 ``
            (iv) satisfies such other criteria as is 
 determined appropriate by the Secretary, in 
 consultation with the Secretary of Agriculture, 
 or
 ``
        (B) in the case of an applicant seeking to 
 operate a permanent food bank or as a temporary access 
 merchant, whether such applicant--
 ``
            (i) is an entity for which no part of the 
 net earnings of such entity inures to the 
 benefit of any private shareholder or 
 individual,
 ``
            (ii) 
            (I) in the case of a permanent food 
 bank, is located in a food desert on the date 
 on which construction of such food bank begins, 
 or
 ``
            (II) in the case of a temporary access 
 merchant--
 ``

    (aa) sells or provides food in 
 any food desert for an average of--
 ``

    (AA) in the case of a 
 farmers market, not less than 
 10 hours (during daylight 
 hours) each week during the 
 calendar year, or
 ``

    (BB) in the case of a 
 temporary access merchant which 
 is not a farmers market, not 
 less than 5 days and 50 hours 
 each week during the calendar 
 year, or
 ``

    (bb) satisfies such requirements 
 as are established by the Secretary of 
 Agriculture to ensure an adequate level 
 of food distribution within food 
 deserts,
 ``
            (iii) satisfies the eligibility criteria 
 described in subparagraph
        (A)
            (iii) , and
 ``
            (iv) satisfies such other criteria as is 
 determined appropriate by the Secretary.
 ``

    (3) No additional usda grants for farmers markets.--A 
 farmers market shall not be eligible for certification as a 
 special access food provider during any period in which such 
 farmers market receives funding pursuant to any other grant 
 program administered by the Department of Agriculture (with the 
 exception of food insecurity nutrition incentive grants 
 provided under 

section 4405

    (b) of the Food, Conservation, and 
 Energy Act of 2008 (7 U.S.C. 7517

    (b) )).
 ``
            (d) Allocation of Special Access Food Provider Credits and 
Grants.--
 ``

    (1) In general.--In each calendar year, the Secretary, in 
 coordination with the Secretary of Agriculture, shall provide 
 allocations to entities which have been certified as special 
 access food providers under subsection
            (c) to receive--
 ``
        (A) in the case of an entity certified pursuant 
 to subparagraph
        (A) of subsection
            (c) (2) , a special 
 access food provider credit for expenditures related to 
 a qualified grocery store or qualified renovation area, 
 and
 ``
        (B) in the case of an entity certified pursuant 
 to subparagraph
        (B) of such subsection, grants for 
 qualified construction expenses or operational costs 
 incurred by such entity.
 ``

    (2) Duration of grants to temporary access merchants.--In 
 the case of a special access food provider which qualifies as a 
 temporary access merchant, the Secretary shall provide the 
 grant to such provider on an annual basis for a period of not 
 greater than 10 years.
 ``

    (e) Recapture.--
 ``

    (1) In general.--Subject to paragraph

    (3) , the Secretary 
 shall provide for recapturing the benefit of any credit 
 allowable or grant provided under this section with respect to 
 any qualified grocery store, qualified renovation area, or 
 permanent food bank which fails to satisfy the requirements 
 under subsection
            (c) (2) during the 5-year period following the 
 date on which such store, area, or food bank is placed in 
 service.
 ``

    (2) Temporary access merchant.--Subject to paragraph

    (3) , 
 the Secretary shall provide for recapturing the benefit of any 
 grant provided under this section with respect to any temporary 
 access merchant which fails to satisfy the requirements under 
 subsection
            (c) (2) for any year during the period described in 
 subsection
            (d) (2) .
 ``

    (3) Application.--If, during any taxable year, a special 
 access food provider fails to satisfy the requirements under 
 subsection
            (c) (2) , the tax under this chapter for such taxable 
 year shall be increased by an amount equal to the appropriate 
 percentage of the credit or grant amount as is determined 
 appropriate by the Secretary.
 ``

    (f) Basis Reduction.--The basis of any qualified grocery store, 
any grocery store which includes a qualified renovation area, or any 
food bank, mobile market, or farmers market shall be reduced by the 
amount of any credit or grant determined under this section with 
respect to such property.
 ``

    (g) Regulations.--The Secretary, in coordination with the 
Secretary of Agriculture, shall prescribe such regulations as may be 
appropriate to carry out this section, including regulations which--
 ``

    (1) prevent the abuse of the purposes of this section,
 ``

    (2) impose appropriate reporting requirements, and
 ``

    (3) ensure that non-metropolitan areas receive a 
 proportional amount of allocations provided under subsection
            (d) .
 ``

    (h) 

=== Definitions. ===
-For purposes of this section:
 ``

    (1) Food desert.--
 ``
        (A) In general.--The term `food desert' means any 
 population census tract in which--
 ``
            (i) not less than 500 people, or 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,
 ``
            (ii) the poverty rate for such tract is 
 at least 20 percent, or
 ``
            (iii) 
            (I) 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 statewide median family income, or
 ``
            (II) 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 statewide median 
 family income or the metropolitan area 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 coordination with the Secretary of Agriculture in 
 such manner as is determined appropriate, including use 
 of the Food Access Research Atlas established by the 
 Department of Agriculture.
 ``

    (2) Groceries.--The term `groceries' means--
 ``
        (A) fresh and frozen produce,
 ``
        (B) fresh and frozen meat and seafood,
 ``
            (C) dairy products, and
 ``
            (D) deli products, including sliced meats, 
 cheeses, and salads.
 ``

    (3) Grocery store.--The term `grocery store' means a 
 retail store for which forecasted sales of groceries account 
 for not less than 35 percent of its total annual sales.
 ``

    (4) Metropolitan area.--The term `metropolitan area' has 
 the same meaning given the term `metropolitan statistical area' 
 under 

section 143

    (k)

    (2)
        (B) .
 ``

    (5) Qualified construction expenses.--The term `qualified 
 construction expenses' means any costs incurred by the special 
 access food provider before the date on which a permanent food 
 bank is placed in service relating to the planning, design, and 
 construction of such food bank.
 ``

    (6) Qualified grocery store.--The term `qualified grocery 
 store' means a grocery store which, on the date on which 
 construction of such store begins, is located in a food desert.
 ``

    (7) 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 on which renovation of such area begins, is located in a 
 food desert.
 ``

    (8) Regional community development entity.--
 ``
        (A) In general.--The term `regional community 
 development entity' means any domestic corporation or 
 partnership if--
 ``
            (i) the primary mission of the entity is 
 serving, or providing investment capital for, 
 low-income communities or low-income persons,
 ``
            (ii) the entity maintains accountability 
 to residents of low-income communities through 
 their representation on any governing board of 
 the entity or on any advisory board to the 
 entity, and
 ``
            (iii) the entity is certified by the 
 Secretary for purposes of this section as being 
 a regional community development entity.
 ``
        (B) Local government.--In the case of a grocery 
 store for which there is no entity described in 
 subparagraph
        (A) within a 50-mile radius, the chief 
 executive officer (or the equivalent) of the local 
 jurisdiction in which the grocery store will be located 
 may serve as the regional community development entity 
 for purposes of subsection
            (c) (2) .
 ``

    (9) Secretary of agriculture.--The term `Secretary of 
 Agriculture' means the Secretary of Agriculture or the 
 Secretary's delegate.
 ``

    (10) Temporary access merchant.--The term `temporary 
 access merchant' means a mobile market, a farmers market, or a 
 temporary or mobile food bank (as such terms are defined by the 
 Secretary, in coordination with the Secretary of Agriculture)--
 ``
        (A) which is operated by a special access food 
 provider; and
 ``
        (B) for which the primary purpose is food 
 distribution within food deserts.''.

    (b) Credit Part of General Business Credit.--

Section 38

    (b) of the 
Internal Revenue Code of 1986 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 special access food provider 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 the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``

Sec. 45BB. Special access food provider credit and grant program.''.
            (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.

    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. UPDATES TO FOOD ACCESS RESEARCH ATLAS.

 

Section 243 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6953) is amended--

    (1) by redesignating subsection
            (d) as subsection

    (e) ; and

    (2) by inserting after subsection
            (c) the following:
 ``
            (d) Food Access Research Atlas.--Not less frequently than once 
each year, the Secretary shall update the Food Access Research Atlas of 
the Secretary to account for food retailers that are placed in service 
during that year.''.
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