I 
115TH CONGRESS 
1ST SESSION H. R. 2289 
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 
MAY 2, 2017 
Mr. COHEN (for himself, Ms. NORTON, Ms. CLARKE of New York, Mr. GRI-
JALVA, Mr. RASKIN, Ms. LEE, and Ms. MOORE) 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. 
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 ‘‘Supermarket Tax 
Credit for Underserved Areas Act’’. 
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SEC. 2. TAX INCENTIVES FOR ESTABLISHMENT OF SUPER-
MARKETS IN CERTAIN UNDERSERVED AREAS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART IV—TAX INCENTIVES FOR SUPERMARKETS 
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. 
‘‘SEC. 1400V–1. INCREASED REHABILITATION CREDIT. 
‘‘(a) IN GENERAL.—In the case of a qualified reha-
bilitated building (as defined in section 47) which is an 
underserved area supermarket, subsection (a) of section 
47 shall be applied— 
‘‘(1) by substituting ‘12 percent’ for ‘10 per-
cent’ in paragraph (1), and 
‘‘(2) by substituting ‘24 percent’ for ‘20 per-
cent’ in paragraph (2). 
‘‘(b) UNDERSERVED
AREA
SUPERMARKET.—For 
purposes of subsection (a), a qualified rehabilitated build-
ing shall be treated as meeting the requirements of sub-
paragraphs (A), (B), (C), and (D) of section 1400V– 
4(a)(2) if it is reasonable to believe that such building will 
meet such requirements as of the close of the taxable year 
in which such building is placed in service. 
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‘‘(c) TERMINATION.—Subsection (a) shall only apply 
to buildings placed in service after December 31, 2017, 
and before January 1, 2020. 
‘‘SEC. 1400V–2. INCREASED WORK OPPORTUNITY TAX CRED-
IT. 
‘‘(a) IN GENERAL.—In the case of an individual em-
ployed in the trade or business of operating a new under-
served area supermarket, the limitation otherwise in effect 
under paragraph (3) of section 51(b) with respect to such 
individual shall be increased by $1,000. 
‘‘(b) TERMINATION.—Subsection (a) shall only apply 
to wages paid in taxable years beginning after December 
31, 2017, and before January 1, 2023. 
‘‘SEC. 1400V–3. CREDIT FOR SALES OF LOCALLY GROWN 
FRESH FRUITS AND VEGETABLES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
underserved area supermarket fruit and vegetable credit 
determined under this section for the taxable year is 15 
percent of the gross receipts from the retail sale of locally 
grown fresh fruits and vegetables in the trade or business 
of operating a new underserved area supermarket. 
‘‘(b) TERMINATION.—Subsection (a) shall only apply 
to taxable years beginning after December 31, 2018, and 
before January 1, 2023. 
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‘‘SEC. 1400V–4. DEFINITIONS. 
‘‘For purposes of this part— 
‘‘(1) UNDERSERVED
AREA
SUPERMARKET.— 
The term ‘underserved area supermarket’ means any 
supermarket located in an underserved area. 
‘‘(2) 
NEW
UNDERSERVED
AREA
SUPER-
MARKET.—The term ‘new underserved area super-
market’ means any underserved area supermarket 
which— 
‘‘(A) is placed in service after December 
31, 2017, and 
‘‘(B) was not a supermarket at any time 
during the 3-year period ending on the date 
such underserved area supermarket is placed in 
service. 
‘‘(3) SUPERMARKET.—The term ‘supermarket’ 
means any building if— 
‘‘(A) not less than 12,000 square feet and 
not more than 80,000 square feet of such build-
ing is used for selling items at retail, 
‘‘(B) at least 7 percent of the square feet 
of such building which is used for selling items 
at retail is used for selling produce, meat, fish, 
deli, and dairy items, 
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‘‘(C) gross sales of items sold at retail 
from such building exceed $2,000,000 annually, 
and 
‘‘(D) at least 7 percent of such gross sales 
are attributable to sales of produce, meat, fish, 
deli, and dairy items. 
‘‘(4) UNDERSERVED AREA.—The term ‘under-
served area’ means— 
‘‘(A) any enterprise community or em-
powerment zone with respect to which a des-
ignation was in effect under section 1391 on 
December 31, 2014, and 
‘‘(B) any renewal community with respect 
to which a designation was in effect under sec-
tion 1400E on December 31, 2009.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking 
‘‘plus’’ at the end of paragraph (35), by striking the period 
at the end of paragraph (36) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(37) the underserved area supermarket fruit 
and vegetable credit determined under section 
1400V–3.’’. 
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