I 

118TH CONGRESS 

2D SESSION H. R. 9914 

To amend the Internal Revenue Code of 1986 to provide tax incentives 

for the establishment of grocery stores in certain underserved areas. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 4, 2024 

Mr. COHEN 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 provide 

tax incentives for the establishment of grocery stores 

in certain underserved areas. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fresh Food Act’’. 

5 SEC. 2. TAX INCENTIVES FOR ESTABLISHMENT OF GRO6 CERY STORES IN CERTAIN UNDERSERVED 

7 AREAS. 

8 (a) IN GENERAL.—Chapter 1 of the Internal Rev9 enue Code of 1986 is amended by inserting after sub10 chapter V the following new subchapter: 


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1 ‘‘Subchapter W—Tax Incentives for Grocery 

2 Stores in Underserved Areas 

‘‘Sec. 1400. Increased work opportunity tax credit. 

‘‘Sec. 1400A. Credit for sales of fresh fruits, vegetables, meat, and dairy. 

‘‘Sec. 1400B. Definitions. 

3 ‘‘SEC. 1400. INCREASED WORK OPPORTUNITY TAX CREDIT. 

4 ‘‘(a) IN GENERAL.—In the case of an individual em5 ployed in the trade or business of operating a new under6 served area grocery store (as certified by the designated 

7 local agency (as defined in section 51(d)(12)), the limita8 tion otherwise in effect under section 51(b)(3) with respect 

9 to such individual shall be increased by $1,000. 

10 ‘‘(b) ALTERNATIVE CERTIFICATION.—The Secretary 

11 may provide for alternative methods for certification of an 

12 individual described in subsection (a) in such manner as 

13 the Secretary (in coordination with the head of any rel14 evant Federal agency) determines appropriate. 

15 ‘‘(c) TERMINATION.—Subsection (a) shall only apply 

16 to wages paid in taxable years beginning after December 

17 31, 2024, and before January 1, 2031. 

18 ‘‘SEC. 1400A. CREDIT FOR SALES OF FRESH FRUITS, VEGE19 TABLES, MEAT, AND DAIRY. 

20 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

21 underserved area grocery store fruits, vegetables, meat, 

22 and dairy credit determined under this section for the tax23 able year is an amount equal to the applicable percentage 

24 of the cost of goods sold by the taxpayer with respect to 


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1 the retail sale of fresh fruits, vegetables, meat, and dairy 

2 in the trade or business of operating a new underserved 

3 area grocery store. 

4 ‘‘(b) COST OF GOODS SOLD.—For purposes of sub5 section (a), the cost of goods sold with respect to any tax6 able year is the total amount (as determined under the 

7 method of accounting of the taxpayer) of purchases made 

8 by the taxpayer for goods acquired for resale and sold dur9 ing such taxable year. 

10 ‘‘(c) APPLICABLE PERCENTAGE.— 

11 ‘‘(1) IN GENERAL.—For purposes of subsection 

12 (a), the applicable percentage shall be— 

13 ‘‘(A) in the case of any new underserved 

14 area grocery store which is placed in service 

15 during a taxable year which includes the date 

16 on which the Secretary determines (pursuant to 

17 section 1400B(4)(C)) that the area in which 

18 such grocery store is located qualifies as an un19 derserved area, or which is placed in service 

20 during a taxable year beginning after such 

21 date— 

22 ‘‘(i) with respect to the taxable year in 

23 which such grocery store is placed in serv24 ice, 30 percent, 


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1 ‘‘(ii) with respect to the taxable year 

2 subsequent to the taxable year described in 

3 clause (i), 30 percent, 

4 ‘‘(iii) with respect to the taxable year 

5 subsequent to the taxable year described in 

6 clause (ii), 28 percent, 

7 ‘‘(iv) with respect to the taxable year 

8 subsequent to the taxable year described in 

9 clause (iii), 26 percent, and 

10 ‘‘(v) with respect to any taxable year 

11 subsequent to the taxable year described in 

12 clause (iv), 0 percent, or 

13 ‘‘(B) in the case of any new underserved 

14 area grocery store which was placed in service 

15 during a taxable year which ended prior to the 

16 date on which the Secretary determines (pursu17 ant to section 1400B(4)(C)) that the area in 

18 which such grocery store is located qualifies as 

19 an underserved area— 

20 ‘‘(i) with respect to the taxable year 

21 which includes such date, 30 percent, 

22 ‘‘(ii) with respect to the taxable year 

23 subsequent to the taxable year described in 

24 clause (i), 28 percent, 


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1 ‘‘(iii) with respect to the taxable year 

2 subsequent to the taxable year described in 

3 clause (ii), 26 percent, and 

4 ‘‘(iv) with respect to any taxable year 

5 subsequent to the taxable year described in 

6 clause (iii), 0 percent. 

7 ‘‘(2) BONUS FOR LOCALLY SOURCED FRUITS, 

8 VEGETABLES, MEAT, AND DAIRY.—For purposes of 

9 subsection (a), in the case of any taxable year de10 scribed in paragraph (1) (with the exception of any 

11 taxable year described in subparagraph (A)(v) or 

12 (B)(iv) of such paragraph), the applicable percent13 age for such taxable year shall be increased by 5 

14 percentage points with respect to any fresh fruits, 

15 vegetables, meat, and dairy which are sourced— 

16 ‘‘(A) from any location within the same 

17 State in which the new underserved area gro18 cery store is located, or 

19 ‘‘(B) from any location which is within a 

20 100-mile radius of the new underserved area 

21 grocery store. 

22 ‘‘(d) TERMINATION.—Subsection (a) shall only apply 

23 to taxable years beginning after December 31, 2024, and 

24 before January 1, 2031. 


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1 ‘‘SEC. 1400B. DEFINITIONS. 

2 ‘‘For purposes of this subchapter— 

3 ‘‘(1) FRESH FRUITS, VEGETABLES, MEAT, AND

4 DAIRY.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B), the term ‘fresh fruits, vegetables, 

7 meat, and dairy’ means any product of agri8 culture (as defined in section 3 of the Fair 

9 Labor Standards Act of 1938 (29 U.S.C. 

10 203(f))) which is suitable for human consump11 tion. 

12 ‘‘(B) EXCLUSION OF CANNED OR FROZEN

13 FOODS.—The term ‘fresh fruits, vegetables, 

14 meat, and dairy’ shall not include any product 

15 described in subparagraph (A) which is canned 

16 or frozen. 

17 ‘‘(2) GROCERY STORE.— 

18 ‘‘(A) IN GENERAL.—The term ‘grocery 

19 store’ means any building if— 

20 ‘‘(i) not more than 80,000 square feet 

21 of such building is used for selling items at 

22 retail, 

23 ‘‘(ii) at least 25 percent of the square 

24 feet of such building which is used for sell25 ing items at retail is used for selling fresh 

26 fruits, vegetables, meat, and dairy, and 


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1 ‘‘(iii) at least 25 percent of the gross 

2 sales of items sold at retail from such 

3 building are attributable to sales of fresh 

4 fruits, vegetables, meat, and dairy. 

5 ‘‘(B) MALLS AND SHOPPING CENTERS.— 

6 ‘‘(i) IN GENERAL.—For purposes of 

7 subparagraph (A), the term ‘building’ in8 cludes any portion of a larger building or 

9 structure (such as a mall or shopping cen10 ter)— 

11 ‘‘(I) which is owned, leased, or 

12 occupied by the taxpayer, and 

13 ‘‘(II) in which the taxpayer, as 

14 part of its trade or business, makes 

15 retail sales of fresh fruits, vegetables, 

16 meat, and dairy. 

17 ‘‘(ii) APPLICATION OF REQUIRE18 MENTS.—In the case of any portion of a 

19 larger building or structure described in 

20 clause (i), the requirements under subpara21 graph (A) shall be applied solely with re22 spect to such portion and not with respect 

23 to the larger building or structure de24 scribed in such clause. 


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1 ‘‘(3) NEW UNDERSERVED AREA GROCERY

2 STORE.— 

3 ‘‘(A) IN GENERAL.—The term ‘new under4 served area grocery store’ means any grocery 

5 store of the taxpayer which is located in— 

6 ‘‘(i) an underserved area (as deter7 mined by the Secretary under paragraph 

8 (4)(C) after December 31, 2024), or 

9 ‘‘(ii) a rural area (as defined in sec10 tion 343(a)(13)(A) of the Consolidated 

11 Farm and Rural Development Act (7 

12 U.S.C. 1991(a)(13)(A)). 

13 ‘‘(B) DURATION OF STATUS.— 

14 ‘‘(i) UNDERSERVED AREA.—In the 

15 case of any grocery store which is in oper16 ation during a period in which the Sec17 retary has determined (pursuant to para18 graph (4)(C)) that the area in which such 

19 grocery store is located qualifies as an un20 derserved area, such grocery store shall not 

21 fail to satisfy the requirement described in 

22 subparagraph (A) solely by reason of the 

23 area in which such grocery store is located 

24 subsequently ceasing to be an underserved 

25 area. 


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1 ‘‘(ii) RURAL AREA.—In the case of 

2 any grocery store which is in operation 

3 during a period in which a determination 

4 is made after December 31, 2024, that the 

5 area in which such grocery store is located 

6 qualifies as a rural area, such grocery 

7 store shall not fail to satisfy the require8 ment described in subparagraph (A) solely 

9 by reason of the area in which such gro10 cery store is located subsequently ceasing 

11 to be a rural area. 

12 ‘‘(4) UNDERSERVED AREA.— 

13 ‘‘(A) IN GENERAL.—The term ‘under14 served area’ means any population census tract 

15 in which— 

16 ‘‘(i) not less than 500 people, or 33 

17 percent of the population of such tract, re18 side— 

19 ‘‘(I) in the case of a tract located 

20 within a metropolitan area, more than 

21 1 mile from a grocery store, or 

22 ‘‘(II) in the case of a tract not lo23 cated within a metropolitan area, 

24 more than 10 miles from a grocery 

25 store, 


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1 ‘‘(ii) the poverty rate for such tract is 

2 at least 20 percent, and 

3 ‘‘(iii)(I) in the case of a tract not lo4 cated within a metropolitan area, the me5 dian family income for such tract does not 

6 exceed 80 percent of statewide median 

7 family income, or 

8 ‘‘(II) in the case of a tract located 

9 within a metropolitan area, the median 

10 family income for such tract does not ex11 ceed 80 percent of the greater of statewide 

12 median family income or the metropolitan 

13 area median family income. 

14 ‘‘(B) AREAS NOT WITHIN CENSUS

15 TRACTS.—In the case of an area which is not 

16 tracted for population census tracts, the equiva17 lent county divisions (as defined by the Bureau 

18 of the Census) shall be used for purposes of de19 terminations of underserved areas under this 

20 paragraph. 

21 ‘‘(C) DETERMINATION OF UNDERSERVED

22 AREA.—For purposes of determining whether a 

23 population census tract qualifies as an under24 served area for purposes of this paragraph, the 

25 Secretary shall make such determinations in coVerDate Sep 11 2014 03:06 Oct 22, 2024 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H9914.IH H9914

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1 ordination with the Secretary of Agriculture in 

2 such manner as is determined appropriate, in3 cluding use of the Food Access Research Atlas 

4 established by the Department of Agriculture. 

5 ‘‘(D) METROPOLITAN AREA.—The term 

6 ‘metropolitan area’ has the same meaning given 

7 the term ‘metropolitan statistical area’ under 

8 section 143(k)(2)(B).’’. 

9 (b) CREDIT TO BE PART OF GENERAL BUSINESS

10 CREDIT.— 

11 (1) IN GENERAL.—Section 38(b) of the Internal 

12 Revenue Code of 1986 is amended by striking 

13 ‘‘plus’’ at the end of paragraph (40), by striking the 

14 period at the end of paragraph (41) and inserting ‘‘, 

15 plus’’, and by adding at the end the following new 

16 paragraph: 

17 ‘‘(42) the underserved area grocery store fruits, 

18 vegetables, meat, and dairy credit determined under 

19 section 1400A.’’. 

20 (2) SPECIFIED CREDITS.—Section 38(c)(4)(B) 

21 of such Code is amended— 

22 (A) in clause (xi), by striking ‘‘and’’ at the 

23 end, 

24 (B) in clause (xii), by striking the period 

25 at the end and inserting ‘‘, and’’, and 


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1 (C) by adding at the end the following: 

2 ‘‘(xiii) the credit determined under 

3 section 1400A.’’. 

4 (c) CLERICAL AMENDMENT.—The table of sub5 chapters for chapter 1 of the Internal Revenue Code of 

6 1986 is amended by inserting after the item relating to 

7 subchapter V the following new item: 

‘‘SUBCHAPTER W. TAX INCENTIVES FOR GROCERY STORES IN UNDERSERVED

AREAS’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2024. 

Æ 


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