I 
115TH CONGRESS 
1ST SESSION H. R. 4260 
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 
NOVEMBER 6, 2017 
Mr. RYAN of Ohio (for himself, Mr. COSTELLO of Pennsylvania, Mr. EVANS, 
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 Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction 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 invest-
ment and healthy nutrition options in food deserts, and 
for other purposes. 
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 ‘‘Healthy Food Access 
for All Americans Act’’. 
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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. 45S. 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— 
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‘‘(I) which is acquired by the tax-
payer if the original use of such prop-
erty commences with the taxpayer, 
and 
‘‘(II) with respect to which de-
preciation (or amortization in lieu of 
depreciation) is allowable, or 
‘‘(ii) in the case of a qualified renova-
tion area which is placed in service during 
such taxable year, 10 percent of the ren-
ovation expenditures incurred by a tax-
payer which has been certified as a special 
access food provider. 
‘‘(2) RENOVATION
EXPENDITURES.—For pur-
poses 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 TEM-
PORARY ACCESS MERCHANTS.— 
‘‘(1) IN GENERAL.—The Secretary, in coordina-
tion with the Secretary of Agriculture, shall, subject 
to the requirements of this section, provide a grant 
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to any entity which has been certified as a special 
access food provider in an amount equal to the less-
er 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 dur-
ing the taxable year by such provider, 15 
percent of any qualified construction ex-
penses 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 Sec-
retary shall make payment of any grant under para-
graph (1) during the 60-day period beginning on the 
later of— 
‘‘(A) the date of the application for certifi-
cation 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 
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the grant is being made is placed in serv-
ice, 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 sub-
section 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 certifi-
cation 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 re-
quire. 
‘‘(2) 
CERTIFICATION
REQUIREMENTS.—For 
purposes of certification as a special access food pro-
vider, the Secretary, in consultation with the Sec-
retary of Agriculture and the applicable regional 
community development entity, shall determine 
whether— 
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‘‘(A) in the case of an applicant seeking to 
construct, renovate, or rehabilitate a grocery 
store, whether such store— 
‘‘(i) following completion of such con-
struction, 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 Agri-
culture, or 
‘‘(B) in the case of an applicant seeking to 
operate a permanent food bank or as a tem-
porary access merchant, whether such appli-
cant— 
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‘‘(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 ac-
cess merchant— 
‘‘(aa) sells or provides food in 
any food desert for an average of— 
‘‘(AA) in the case of a farm-
ers market, not less than 10 
hours (during daylight hours) 
each week during the calendar 
year, or 
‘‘(BB) in the case of a tem-
porary 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 
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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 FARM-
ERS MARKETS.—A farmers market shall not be eligi-
ble for certification as a special access food provider 
during any period in which such farmers market re-
ceives 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 sec-
tion 4405 of the Food, Conservation, and Energy 
Act of 2008). 
‘‘(d) ALLOCATION OF SPECIAL ACCESS FOOD PRO-
VIDER CREDITS AND GRANTS.— 
‘‘(1) IN GENERAL.—In each calendar year, the 
Secretary, in coordination with the Secretary of Ag-
riculture, 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 pur-
suant to subparagraph (A) of subsection (c)(2), 
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capturing 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 pe-
riod 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 in-
creased by an amount equal to the appropriate per-
centage of the credit or grant amount as is deter-
mined 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 reg-
ulations as may be appropriate to carry out this section, 
including regulations which— 
‘‘(1) prevent the abuse of the purposes of this 
section, 
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‘‘(2) impose appropriate reporting require-
ments, 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, re-
side— 
‘‘(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 lo-
cated 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 lo-
cated within a metropolitan area, the me-
dian family income for such tract does not 
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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 ex-
ceed 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 equiva-
lent county divisions (as defined by the Bureau 
of the Census) shall be used for purposes of de-
terminations of food deserts under this para-
graph. 
‘‘(C) 
DETERMINATION
OF
FOOD 
DESERTS.—For purposes of determining wheth-
er a population census tract qualifies as a food 
desert for purposes of this section, the Sec-
retary shall make such determinations in co-
ordination with the Secretary of Agriculture in 
such manner as is determined appropriate, in-
cluding use of the Food Access Research Atlas 
established by the Department of Agriculture. 
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‘‘(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 ‘metro-
politan 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 pro-
vider 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. 
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‘‘(7) QUALIFIED RENOVATION AREA.—The term 
‘qualified renovation area’ means any area of a gro-
cery 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 EN-
TITY.— 
‘‘(A) IN
GENERAL.—The term ‘regional 
community development entity’ means any do-
mestic 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 account-
ability to residents of low-income commu-
nities through their representation on any 
governing board of the entity or on any ad-
visory board to the entity, and 
‘‘(iii) the entity is certified by the Sec-
retary 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 de-
scribed in subparagraph (A) within a 50-mile 
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radius, the chief executive officer (or the equiv-
alent) of the local jurisdiction in which the gro-
cery store will be located may serve as the re-
gional community development entity for pur-
poses 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 Sec-
retary, in coordination with the Secretary of Agri-
culture)— 
‘‘(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 (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
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‘‘(37) the special access food provider credit de-
termined under section 45S(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 add-
ing at the end the following new item: 
‘‘Sec. 45S. 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 Reor-
ganization Act of 1994 (7 U.S.C. 6953) is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) FOOD ACCESS RESEARCH ATLAS.—Not less fre-
quently than once each year, the Secretary shall update 
the Food Access Research Atlas of the Secretary to ac-
count for food retailers that are placed in service during 
that year.’’. 
Æ 
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