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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fresh Food Act’’. 
SEC. 2. TAX INCENTIVES FOR ESTABLISHMENT OF GRO-
CERY STORES IN CERTAIN UNDERSERVED 
AREAS. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter V the following new subchapter: 
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‘‘Subchapter W—Tax Incentives for Grocery 
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. 
‘‘SEC. 1400. INCREASED WORK OPPORTUNITY TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual em-
ployed in the trade or business of operating a new under-
served area grocery store (as certified by the designated 
local agency (as defined in section 51(d)(12)), the limita-
tion otherwise in effect under section 51(b)(3) with respect 
to such individual shall be increased by $1,000. 
‘‘(b) ALTERNATIVE CERTIFICATION.—The Secretary 
may provide for alternative methods for certification of an 
individual described in subsection (a) in such manner as 
the Secretary (in coordination with the head of any rel-
evant Federal agency) determines appropriate. 
‘‘(c) TERMINATION.—Subsection (a) shall only apply 
to wages paid in taxable years beginning after December 
31, 2024, and before January 1, 2031. 
‘‘SEC. 1400A. CREDIT FOR SALES OF FRESH FRUITS, VEGE-
TABLES, MEAT, AND DAIRY. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
underserved area grocery store fruits, vegetables, meat, 
and dairy credit determined under this section for the tax-
able year is an amount equal to the applicable percentage 
of the cost of goods sold by the taxpayer with respect to 
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the retail sale of fresh fruits, vegetables, meat, and dairy 
in the trade or business of operating a new underserved 
area grocery store. 
‘‘(b) COST OF GOODS SOLD.—For purposes of sub-
section (a), the cost of goods sold with respect to any tax-
able year is the total amount (as determined under the 
method of accounting of the taxpayer) of purchases made 
by the taxpayer for goods acquired for resale and sold dur-
ing such taxable year. 
‘‘(c) APPLICABLE PERCENTAGE.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the applicable percentage shall be— 
‘‘(A) in the case of any new underserved 
area grocery store which is placed in service 
during a taxable year which includes the date 
on which the Secretary determines (pursuant to 
section 1400B(4)(C)) that the area in which 
such grocery store is located qualifies as an un-
derserved area, or which is placed in service 
during a taxable year beginning after such 
date— 
‘‘(i) with respect to the taxable year in 
which such grocery store is placed in serv-
ice, 30 percent, 
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‘‘(ii) with respect to the taxable year 
subsequent to the taxable year described in 
clause (i), 30 percent, 
‘‘(iii) with respect to the taxable year 
subsequent to the taxable year described in 
clause (ii), 28 percent, 
‘‘(iv) with respect to the taxable year 
subsequent to the taxable year described in 
clause (iii), 26 percent, and 
‘‘(v) with respect to any taxable year 
subsequent to the taxable year described in 
clause (iv), 0 percent, or 
‘‘(B) in the case of any new underserved 
area grocery store which was placed in service 
during a taxable year which ended prior to the 
date on which the Secretary determines (pursu-
ant to section 1400B(4)(C)) that the area in 
which such grocery store is located qualifies as 
an underserved area— 
‘‘(i) with respect to the taxable year 
which includes such date, 30 percent, 
‘‘(ii) with respect to the taxable year 
subsequent to the taxable year described in 
clause (i), 28 percent, 
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‘‘(iii) with respect to the taxable year 
subsequent to the taxable year described in 
clause (ii), 26 percent, and 
‘‘(iv) with respect to any taxable year 
subsequent to the taxable year described in 
clause (iii), 0 percent. 
‘‘(2) BONUS FOR LOCALLY SOURCED FRUITS, 
VEGETABLES, MEAT, AND DAIRY.—For purposes of 
subsection (a), in the case of any taxable year de-
scribed in paragraph (1) (with the exception of any 
taxable year described in subparagraph (A)(v) or 
(B)(iv) of such paragraph), the applicable percent-
age for such taxable year shall be increased by 5 
percentage points with respect to any fresh fruits, 
vegetables, meat, and dairy which are sourced— 
‘‘(A) from any location within the same 
State in which the new underserved area gro-
cery store is located, or 
‘‘(B) from any location which is within a 
100-mile radius of the new underserved area 
grocery store. 
‘‘(d) TERMINATION.—Subsection (a) shall only apply 
to taxable years beginning after December 31, 2024, and 
before January 1, 2031. 
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