Healthy Food Access for All Americans Act
This bill allows tax credits and grants for activities that provide access to healthy food in food deserts, which are communities that have limited or no access to grocery stores and meet income requirements.
For entities that are certified by the Department of the Treasury as special access food providers using specified criteria, the bill allows tax credits for operating a new grocery store or renovating an existing grocery store in a food desert. The bill also authorizes grants for a portion of (1) the construction costs of building a permanent food bank in a food desert, and (2) the annual operating costs of temporary access merchants (mobile markets, farmers markets, and food banks).
Treasury, in coordination with the Department of Agriculture (USDA), must annually allocate the tax credits and grants to special access food providers. Grants authorized by this bill are not considered gross income for tax purposes.
The bill also requires USDA to update the Food Access Research Atlas at least annually to account for food retailers that are placed in service during that year.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1313 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1313
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 HOUSE OF REPRESENTATIVES
February 24, 2021
Mr. Ryan (for himself and Mr. McEachin) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on Agriculture, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
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. 45U. 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 grants provided pursuant to the Food Insecurity
Nutrition Incentive under section 4405 of the Food,
Conservation, and Energy Act of 2008).
``(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 (36), by striking the period at the end of paragraph
(37) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(38) the special access food provider credit determined
under section 45U(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. 45U. 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.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Nutrition, Oversight, and Department Operations.
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