S. 1176: Healthy Food Access for All Americans Act

This bill, titled the Healthy Food Access for All Americans Act, aims to improve access to nutritious food in areas known as food deserts—places where people have limited access to affordable and healthy food options. The legislation mainly establishes a new tax credit and grant program to encourage grocery stores and food providers to serve these communities.

Key Provisions of the Bill

Tax Credit Program

The bill introduces a tax credit for grocery stores and food providers that qualify as "special access food providers." These providers can receive tax credits based on their construction or renovation costs:

• For newly established grocery stores, the credit is 15% of the costs of establishing the store.
• For renovations of existing stores, the credit is 10% of the renovation costs.

Grant Program for Food Banks and Temporary Mercants

A grant program will be set up to support food banks and temporary food providers, such as mobile markets or farmers markets, that operate in food deserts. Grants will be issued based on:

• 15% of their qualified construction expenses for permanent food banks.
• 10% of their annual operational costs for temporary access merchants.

Certification Requirements

To qualify for these credits and grants, food providers must apply for certification as a special access food provider. This certification will require that:

• The site is located in a designated food desert.
• They meet certain construction and operational standards as defined by the Secretary of Agriculture.

Allocation of Credits and Grants

The bill outlines that in each calendar year, federal authorities will provide allocations to those certified providers for grants and tax credits, ensuring a consistent flow of support for these underserved areas.

Reporting and Limitations

The Secretary of Agriculture will regulate the program, including setting standards to prevent misuse of funds and ensuring that food deserts receive adequate resources. Additionally, if a provider does not adhere to the terms of their certification within five years, the tax benefits may need to be recaptured.

Definition of Food Desert

For the purposes of this act, a food desert is defined as a census tract where:

• A significant portion of the population lives more than one mile (in metropolitan areas) or over ten miles (in rural areas) from a grocery store, and
• The poverty rate in that tract is at least 20% or the median family income is significantly below state averages.

Updates and Reporting

The act also requires updates to the Food Access Research Atlas, which tracks food retailers, ensuring that data reflects changes annually. This ensures that assessments of food accessibility remain current and accurate.

Effective Date

The provisions of this bill would take effect for taxable years starting after it is enacted into law.

Relevant Companies

• WMK - Weis Markets, Inc.: As a grocery retailer, the company may benefit from tax credits for establishing or renovating locations in eligible areas.
• SFM - Sprouts Farmers Market, Inc.: This grocery chain could potentially receive tax incentives for expanding or upgrading stores in food deserts.
• ACI - Albertsons Companies, Inc.: With the possibility of new store openings and renovations, Albertsons could utilize grants and tax credits under this program.