‘‘SEC. 1400B. DEFINITIONS. 
‘‘For purposes of this subchapter— 
‘‘(1) FRESH FRUITS, VEGETABLES, MEAT, AND 
DAIRY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘fresh fruits, vegetables, 
meat, and dairy’ means any product of agri-
culture (as defined in section 3 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
203(f))) which is suitable for human consump-
tion. 
‘‘(B) EXCLUSION OF CANNED OR FROZEN 
FOODS.—The term ‘fresh fruits, vegetables, 
meat, and dairy’ shall not include any product 
described in subparagraph (A) which is canned 
or frozen. 
‘‘(2) GROCERY STORE.— 
‘‘(A) IN
GENERAL.—The term ‘grocery 
store’ means any building if— 
‘‘(i) not more than 80,000 square feet 
of such building is used for selling items at 
retail, 
‘‘(ii) at least 25 percent of the square 
feet of such building which is used for sell-
ing items at retail is used for selling fresh 
fruits, vegetables, meat, and dairy, and 
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‘‘(iii) at least 25 percent of the gross 
sales of items sold at retail from such 
building are attributable to sales of fresh 
fruits, vegetables, meat, and dairy. 
‘‘(B) MALLS AND SHOPPING CENTERS.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘building’ in-
cludes any portion of a larger building or 
structure (such as a mall or shopping cen-
ter)— 
‘‘(I) which is owned, leased, or 
occupied by the taxpayer, and 
‘‘(II) in which the taxpayer, as 
part of its trade or business, makes 
retail sales of fresh fruits, vegetables, 
meat, and dairy. 
‘‘(ii) 
APPLICATION
OF
REQUIRE-
MENTS.—In the case of any portion of a 
larger building or structure described in 
clause (i), the requirements under subpara-
graph (A) shall be applied solely with re-
spect to such portion and not with respect 
to the larger building or structure de-
scribed in such clause. 
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‘‘(3) NEW
UNDERSERVED
AREA
GROCERY 
STORE.— 
‘‘(A) IN GENERAL.—The term ‘new under-
served area grocery store’ means any grocery 
store of the taxpayer which is located in— 
‘‘(i) an underserved area (as deter-
mined by the Secretary under paragraph 
(4)(C) after December 31, 2024), or 
‘‘(ii) a rural area (as defined in sec-
tion 343(a)(13)(A) of the Consolidated 
Farm and Rural Development Act (7 
U.S.C. 1991(a)(13)(A)). 
‘‘(B) DURATION OF STATUS.— 
‘‘(i) UNDERSERVED
AREA.—In the 
case of any grocery store which is in oper-
ation during a period in which the Sec-
retary has determined (pursuant to para-
graph (4)(C)) that the area in which such 
grocery store is located qualifies as an un-
derserved area, such grocery store shall not 
fail to satisfy the requirement described in 
subparagraph (A) solely by reason of the 
area in which such grocery store is located 
subsequently ceasing to be an underserved 
area. 
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‘‘(ii) RURAL
AREA.—In the case of 
any grocery store which is in operation 
during a period in which a determination 
is made after December 31, 2024, that the 
area in which such grocery store is located 
qualifies as a rural area, such grocery 
store shall not fail to satisfy the require-
ment described in subparagraph (A) solely 
by reason of the area in which such gro-
cery store is located subsequently ceasing 
to be a rural area. 
‘‘(4) UNDERSERVED AREA.— 
‘‘(A) IN
GENERAL.—The term ‘under-
served area’ 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, 
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‘‘(ii) the poverty rate for such tract is 
at least 20 percent, and 
‘‘(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 
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 underserved areas under this 
paragraph. 
‘‘(C) DETERMINATION OF UNDERSERVED 
AREA.—For purposes of determining whether a 
population census tract qualifies as an under-
served area for purposes of this paragraph, the 
Secretary shall make such determinations in co-
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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. 
‘‘(D) METROPOLITAN
AREA.—The term 
‘metropolitan area’ has the same meaning given 
the term ‘metropolitan statistical area’ under 
section 143(k)(2)(B).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.— 
(1) IN GENERAL.—Section 38(b) of the Internal 
Revenue Code of 1986 is amended by striking 
‘‘plus’’ at the end of paragraph (40), by striking the 
period at the end of paragraph (41) and inserting ‘‘, 
plus’’, and by adding at the end the following new 
paragraph: 
‘‘(42) the underserved area grocery store fruits, 
vegetables, meat, and dairy credit determined under 
section 1400A.’’. 
(2) SPECIFIED CREDITS.—Section 38(c)(4)(B) 
of such Code is amended— 
(A) in clause (xi), by striking ‘‘and’’ at the 
end, 
(B) in clause (xii), by striking the period 
at the end and inserting ‘‘, and’’, and 
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(C) by adding at the end the following: 
‘‘(xiii) the credit determined under 
section 1400A.’’. 
(c) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 
subchapter V the following new item: 
‘‘SUBCHAPTER W. TAX INCENTIVES FOR GROCERY STORES IN UNDERSERVED 
AREAS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
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