Grocery Affordability Act
- Bill Number
- H.R. 9378
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-18: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-07T16:57:57Z
AI-Generated Summary
Summary of H.R. 9378 – Grocery Affordability Act
Purpose
This legislation amends the Internal Revenue Code of 1986 to create a new tax credit aimed at encouraging the construction and renovation of grocery stores in areas with limited access to fresh food, known as food deserts.
Key Provisions
- Establishes a food desert grocery store credit equal to 30 percent of the cost basis for new qualified grocery stores placed in service or 30 percent of qualified renovation expenditures for existing stores.
- Caps the credit at $500,000 per taxpayer per taxable year.
- Requires a reduction in the property's tax basis by the amount of the credit claimed.
- Defines a grocery store as a retail outlet where at least 35 percent of forecasted annual sales come from groceries (including fresh/frozen produce, meat, seafood, dairy, deli items, and baked goods).
- Defines a food desert as a census tract where at least 500 people or 33 percent of residents live more than 1 mile (in metropolitan areas) or 10 miles (in non-metropolitan areas) from a grocery store, combined with either a poverty rate of at least 20 percent or median family income at or below 80 percent of relevant area medians.
- Adds the credit to the general business credit under section 38 and applies it to taxable years beginning after December 31, 2026.
- Requires the Secretary of the Treasury, in consultation with the Secretary of Agriculture, to issue regulations and use the Department of Agriculture's Food Access Research Atlas for determinations.
Significant Changes to Existing Law
This bill introduces a new section 45BB into the Internal Revenue Code, creating an incentive not previously available for grocery-related investments. It modifies section 38 to include the new credit within the general business credit framework and updates the table of sections accordingly. No existing credits or deductions are repealed or altered.
Potential Impacts
- Government agencies: The Internal Revenue Service would administer the credit through tax filings, while the Department of Agriculture would assist in identifying eligible food desert areas.
- Citizens: Residents in qualifying low-income or low-access areas may gain improved local grocery options if the credit spurs new stores or upgrades.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Grocery store owners and operators seeking to build or renovate in designated areas.
- Individuals and families living in food deserts.
- The Internal Revenue Service (tax administration).
- The Department of Agriculture (food desert mapping).
- The House Committee on Ways and Means (legislative oversight).
Notable Legal, Constitutional, or Political Implications
The bill operates within Congress's established authority to enact tax incentives under the Internal Revenue Code. It raises no apparent constitutional issues related to spending or regulation. The credit structure follows standard tax credit mechanics, with basis adjustments to prevent double benefits.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Vindman, Eugene Simon [D-VA-7]
Cosponsors (1)
Recent Actions
- 2026-06-18: Referred to the House Committee on Ways and Means.
- 2026-06-18: Introduced in House
- 2026-06-18: Introduced in House
Bill Versions
- Grocery Affordability Act — issued 2026-06-18 — PDF (7 pages)