I 
117TH CONGRESS 
1ST SESSION H. R. 4687 
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 
JULY 26, 2021 
Mr. COHEN (for himself and Mr. BUCK) 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’’. 
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: 
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‘‘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 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)(4) 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. 
‘‘(c) TERMINATION.—Subsection (a) shall only apply 
to buildings placed in service after December 31, 2021, 
and before January 1, 2025. 
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‘‘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, 2021, and before January 1, 2027. 
‘‘SEC. 1400V–3. CREDIT FOR SALES OF 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 an 
amount equal to 15 percent of the gross receipts of the 
taxpayer from the retail sale of 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, 2022, and 
before January 1, 2027. 
‘‘SEC. 1400V–4. DEFINITIONS. 
‘‘For purposes of this part— 
‘‘(1) UNDERSERVED
AREA
SUPERMARKET.— 
The term ‘underserved area supermarket’ means any 
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supermarket of the taxpayer located in an under-
served 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, 2021, 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) DURATION
OF
STATUS.—A supermarket 
shall not fail to be treated as an underserved area 
supermarket solely by reason of the area in which 
such supermarket is located ceasing to be an under-
served area— 
‘‘(A) after December 31, 2021, or 
‘‘(B) in the case of a new underserved area 
supermarket, on or after the date such super-
market is placed in service. 
‘‘(4) SUPERMARKET.—The term ‘supermarket’ 
means any building if— 
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‘‘(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 25 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, 
‘‘(C) gross sales of items sold at retail 
from such building exceed $2,000,000 annually, 
and 
‘‘(D) at least 25 percent of such gross 
sales are attributable to sales of produce, meat, 
fish, deli, and dairy items. 
‘‘(5) 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 supermarket, or 
‘‘(II) in the case of a tract not lo-
cated within a metropolitan area, 
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more than 10 miles from a super-
market, 
‘‘(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 
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-
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served area for purposes of this section, the 
Secretary 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. 
‘‘(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.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (32), by striking the 
period at the end of paragraph (33) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(34) the underserved area supermarket fruit 
and vegetable credit determined under section 
1400V–3.’’. 
(c) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART IV. TAX INCENTIVES FOR SUPERMARKETS IN UNDERSERVED AREAS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
Æ 
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