I 

112TH CONGRESS 

1ST SESSION H. R. 1542 

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

for the establishment of supermarkets in certain underserved areas. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2011 

Mr. COHEN (for himself, Ms. FUDGE, Ms. RICHARDSON, Mr. JOHNSON of 

Georgia, Mr. CLARKE of Michigan, Ms. NORTON, Mr. BRADY of Pennsylvania, and Mr. BOSWELL) 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 supermarkets 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 ‘‘Supermarket Tax 

5 Credit for Underserved Areas Act’’. 


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1 SEC. 2. TAX INCENTIVES FOR ESTABLISHMENT OF SUPER2 MARKETS IN CERTAIN UNDERSERVED AREAS. 

3 (a) IN GENERAL.—Subchapter Y of chapter 1 of the 

4 Internal Revenue Code of 1986 is amended by adding at 

5 the end the following new part: 

6 ‘‘PART IV—TAX INCENTIVES FOR SUPERMARKETS 

7 IN UNDERSERVED AREAS 

‘‘Sec. 1400V–1. Increased rehabilitation credit. 

‘‘Sec. 1400V–2. Increased work opportunity tax credit. 

‘‘Sec. 1400V–3. Credit for sales of locally grown fresh fruits and vegetables. 

‘‘Sec. 1400V–4. Definitions. 

8 ‘‘SEC. 1400V–1. INCREASED REHABILITATION CREDIT. 

9 ‘‘(a) IN GENERAL.—In the case of a qualified reha10 bilitated building (as defined in section 47) which is an 

11 underserved area supermarket, subsection (a) of section 

12 47 shall be applied— 

13 ‘‘(1) by substituting ‘12 percent’ for ‘10 per14 cent’ in paragraph (1), and 

15 ‘‘(2) by substituting ‘24 percent’ for ‘20 per16 cent’ in paragraph (2). 

17 ‘‘(b) UNDERSERVED AREA SUPERMARKET.—For 

18 purposes of subsection (a), a qualified rehabilitated build19 ing shall be treated as meeting the requirements of sub20 paragraphs (A), (B), (C), and (D) of section 1400V– 

21 4(a)(2) if it is reasonable to believe that such building will 

22 meet such requirements as of the close of the taxable year 

23 in which such building is placed in service. 


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

2 to buildings placed in service after December 31, 2011, 

3 and before January 1, 2014. 

4 ‘‘SEC. 1400V–2. INCREASED WORK OPPORTUNITY TAX CRED5 IT. 

6 ‘‘(a) IN GENERAL.—In the case of an individual em7 ployed in the trade or business of operating a new under8 served area supermarket, the limitation otherwise in effect 

9 under paragraph (3) of section 51(b) with respect to such 

10 individual shall be increased by $1,000. 

11 ‘‘(b) TERMINATION.—Subsection (a) shall only apply 

12 to wages paid in taxable years beginning after December 

13 31, 2011, and before January 1, 2017. 

14 ‘‘SEC. 1400V–3. CREDIT FOR SALES OF LOCALLY GROWN 

15 FRESH FRUITS AND VEGETABLES. 

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

17 underserved area supermarket fruit and vegetable credit 

18 determined under this section for the taxable year is 15 

19 percent of the gross receipts from the retail sale of locally 

20 grown fresh fruits and vegetables in the trade or business 

21 of operating a new underserved area supermarket. 

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

23 to taxable years beginning after December 31, 2012, and 

24 before January 1, 2017. 


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1 ‘‘SEC. 1400V–4. DEFINITIONS. 

2 ‘‘For purposes of this part— 

3 ‘‘(1) UNDERSERVED AREA SUPERMARKET.— 

4 The term ‘underserved area supermarket’ means any 

5 supermarket located in an underserved area. 

6 ‘‘(2) NEW UNDERSERVED AREA SUPER7 MARKET.—The term ‘new underserved area super8 market’ means any underserved area supermarket 

9 which— 

10 ‘‘(A) is placed in service after December 

11 31, 2011, and 

12 ‘‘(B) was not a supermarket at any time 

13 during the 3-year period ending on the date 

14 such underserved area supermarket is placed in 

15 service. 

16 ‘‘(3) SUPERMARKET.—The term ‘supermarket’ 

17 means any building if— 

18 ‘‘(A) not less than 12,000 square feet and 

19 not more than 80,000 square feet of such build20 ing is used for selling items at retail, 

21 ‘‘(B) at least 7 percent of the square feet 

22 of such building which is used for selling items 

23 at retail is used for selling produce, meat, fish, 

24 deli, and dairy items, 


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1 ‘‘(C) gross sales of items sold at retail 

2 from such building exceed $2,000,000 annually, 

3 and 

4 ‘‘(D) at least 7 percent of such gross sales 

5 are attributable to sales of produce, meat, fish, 

6 deli, and dairy items. 

7 ‘‘(4) UNDERSERVED AREA.—The term ‘under8 served area’ means— 

9 ‘‘(A) any enterprise community or em10 powerment zone with a designation in effect 

11 under section 1391, and 

12 ‘‘(B) any renewal community with respect 

13 to which a designation was in effect under sec14 tion 1400E on December 31, 2009.’’. 

15 (b) CREDIT TO BE PART OF GENERAL BUSINESS

16 CREDIT.—Subsection (b) of section 38 of such Code (re17 lating to general business credit) is amended by striking 

18 ‘‘plus’’ at the end of paragraph (35), by striking the period 

19 at the end of paragraph (36) and inserting ‘‘, plus’’, and 

20 by adding at the end the following new paragraph: 

21 ‘‘(37) the underserved area supermarket fruit 

22 and vegetable credit determined under section 

23 1400V–3.’’. 


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1 (c) CLERICAL AMENDMENT.—The table of parts for 

2 subchapter Y of chapter 1 of such Code is amended by 

3 adding at the end the following new item: 

‘‘PART IV. TAX INCENTIVES FOR SUPERMARKETS IN UNDERSERVED AREAS’’. 

Æ 


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