H.R. 9378

[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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