Title: Healthy Food Access for All Americans Act
Policy area: Taxation

Summary:
Healthy Food Access for All Americans Act
This bill allows tax credits and grants for activities that provide access to healthy food in food deserts, which are communities that have limited or no access to grocery stores and meet income requirements.
For entities that are certified by the Department of the Treasury as special access food providers using specified criteria, the bill allows tax credits for operating a new grocery store or renovating an existing grocery store in a food desert. The bill also authorizes grants for a portion of (1) the construction costs of building a permanent food bank in a food desert, and (2) the annual operating costs of temporary access merchants (mobile markets, farmers markets, and food banks).
Treasury, in coordination with the Department of Agriculture (USDA), must annually allocate the tax credits and grants to special access food providers. Grants authorized by this bill are not considered gross income for tax purposes.
The bill also requires USDA to update the Food Access Research Atlas at least annually to account for food retailers that are placed in service during that year.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 786 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 786

   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 SENATE OF THE UNITED STATES

                             March 13, 2019

    Mr. Warner (for himself, Mr. Moran, Mrs. Capito, and Mr. Casey) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   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.

    Be it enacted by the Senate and House of Representatives 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''.

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. 45T. 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--
                                    ``(I) which is acquired by the 
                                taxpayer if the original use of such 
                                property commences with the taxpayer, 
                                and
                                    ``(II) with respect to which 
                                depreciation (or amortization in lieu 
                                of depreciation) is allowable, or
                            ``(ii) in the case of a qualified 
                        renovation area which is placed in service 
                        during such taxable year, 10 percent of the 
                        renovation expenditures incurred by a taxpayer 
                        which has been certified as a special access 
                        food provider.
            ``(2) Renovation expenditures.--For purposes 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 Temporary Access 
Merchants.--
            ``(1) In general.--The Secretary, in coordination with the 
        Secretary of Agriculture, shall, subject to the requirements of 
        this section, provide a grant to any entity which has been 
        certified as a special access food provider in an amount equal 
        to the lesser 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 during the 
                        taxable year by such provider, 15 percent of 
                        any qualified construction expenses 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 Secretary shall make 
        payment of any grant under paragraph (1) during the 60-day 
        period beginning on the later of--
                    ``(A) the date of the application for certification 
                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 the grant is 
                        being made is placed in service, 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 subsection 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 certification 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 
        require.
            ``(2) Certification requirements.--For purposes of 
        certification as a special access food provider, the Secretary, 
        in consultation with the Secretary of Agriculture and the 
        applicable regional community development entity, shall 
        determine whether--
                    ``(A) in the case of an applicant seeking to 
                construct, renovate, or rehabilitate a grocery store, 
                whether such store--
                            ``(i) following completion of such 
                        construction, 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 Agriculture, 
                        or
                    ``(B) in the case of an applicant seeking to 
                operate a permanent food bank or as a temporary access 
                merchant, whether such applicant--
                            ``(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 access 
                        merchant--
                                    ``(aa) sells or provides food in 
                                any food desert for an average of--
                                            ``(AA) in the case of a 
                                        farmers market, not less than 
                                        10 hours (during daylight 
                                        hours) each week during the 
                                        calendar year, or
                                            ``(BB) in the case of a 
                                        temporary 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 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 farmers markets.--A 
        farmers market shall not be eligible for certification as a 
        special access food provider during any period in which such 
        farmers market receives 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 section 4405 of the Food, 
        Conservation, and Energy Act of 2008).
    ``(d) Allocation of Special Access Food Provider Credits and 
Grants.--
            ``(1) In general.--In each calendar year, the Secretary, in 
        coordination with the Secretary of Agriculture, 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 pursuant 
                to subparagraph (A) of subsection (c)(2), a special 
                access food provider credit for expenditures related to 
                a qualified grocery store or qualified renovation area, 
                and
                    ``(B) in the case of an entity certified pursuant 
                to subparagraph (B) of such subsection, grants for 
                qualified construction expenses or operational costs 
                incurred by such entity.
            ``(2) Duration of grants to temporary access merchants.--In 
        the case of a special access food provider which qualifies as a 
        temporary access merchant, the Secretary shall provide the 
        grant to such provider on an annual basis for a period of not 
        greater than 10 years.
    ``(e) Recapture.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        shall provide for recapturing the benefit of any credit 
        allowable or grant provided under this section with respect to 
        any qualified grocery store, qualified renovation area, or 
        permanent food bank which fails to satisfy the requirements 
        under subsection (c)(2) during the 5-year period following the 
        date on which such store, area, or food bank is placed in 
        service.
            ``(2) Temporary access merchant.--Subject to paragraph (3), 
        the Secretary shall provide for recapturing 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 period 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 increased by an amount equal to the appropriate 
        percentage of the credit or grant amount as is determined 
        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 regulations as may be 
appropriate to carry out this section, including regulations which--
            ``(1) prevent the abuse of the purposes of this section,
            ``(2) impose appropriate reporting requirements, 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, 
                        reside--
                                    ``(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 
                                located 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 
                        located within a metropolitan area, the median 
                        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 exceed 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 equivalent county divisions (as defined by 
                the Bureau of the Census) shall be used for purposes of 
                determinations of food deserts under this paragraph.
                    ``(C) Determination of food deserts.--For purposes 
                of determining whether a population census tract 
                qualifies as a food desert for purposes of this 
                section, the Secretary shall make such determinations 
                in coordination with the Secretary of Agriculture in 
                such manner as is determined appropriate, including use 
                of the Food Access Research Atlas established by the 
                Department of Agriculture.
            ``(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 `metropolitan 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 provider 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.
            ``(7) Qualified renovation area.--The term `qualified 
        renovation area' means any area of a grocery 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 entity.--
                    ``(A) In general.--The term `regional community 
                development entity' means any domestic 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 accountability 
                        to residents of low-income communities through 
                        their representation on any governing board of 
                        the entity or on any advisory board to the 
                        entity, and
                            ``(iii) the entity is certified by the 
                        Secretary 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 described in 
                subparagraph (A) within a 50-mile radius, the chief 
                executive officer (or the equivalent) of the local 
                jurisdiction in which the grocery store will be located 
                may serve as the regional community development entity 
                for purposes 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 
        Secretary, in coordination with the Secretary of Agriculture)--
                    ``(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 (31), by striking the period at the end of paragraph 
(32) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(33) the special access food provider credit determined 
        under section 45T(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 adding at the end the following new item:

``Sec. 45T. 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 Reorganization Act of 
1994 (7 U.S.C. 6953) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Food Access Research Atlas.--Not less frequently than once 
each year, the Secretary shall update the Food Access Research Atlas of 
the Secretary to account for food retailers that are placed in service 
during that year.''.
                                 <all>