Healthy Food Access for All Americans Act
- Bill Number
- S. 1176
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-03-27: Read twice and referred to the Committee on Finance.
- Last Updated
- 2025-12-05T21:47:14Z
AI-Generated Summary
Purpose
The Healthy Food Access for All Americans Act (S. 1176) aims to improve access to healthy, affordable food in underserved areas known as "food deserts"—low-income neighborhoods with limited proximity to grocery stores offering fresh produce, meats, dairy, and related items. It does this by creating financial incentives through tax credits for building or renovating grocery stores and grants for food banks and mobile food providers, encouraging investment in these communities.
Key Provisions
- Tax Credit for Grocery Stores (Section 45BB(a)):
- Provides a tax credit equal to the lesser of an allocated amount or 15% of the cost (basis) for new qualified grocery stores built in food deserts, including related depreciable property (e.g., equipment) where the original use starts with the taxpayer.
- For renovations of existing grocery stores in food deserts, the credit is 10% of renovation costs (capital expenses for improvements to depreciable property).
- Grocery stores must derive at least 35% of annual sales from "groceries" (fresh/frozen produce, meat, seafood, dairy, and deli items).
- Grant Program for Food Banks and Temporary Access Merchants (Section 45BB(b)):
- Grants are available for certified nonprofits or entities (no private profit benefit) operating permanent food banks (15% of construction costs) or temporary access merchants (10% of annual operating costs).
- Temporary access merchants include mobile markets, farmers markets, or mobile food banks that distribute food in food deserts for specified hours (e.g., at least 10 daylight hours weekly for farmers markets or 50 hours over 5 days for others).
- Grants are paid within 60 days of certification or project completion and are not taxable as income.
- Grants for temporary merchants can last up to 10 years annually.
- Certification Process (Section 45BB(c)):
- Applicants (e.g., for stores, food banks, or markets) apply to the Secretary of the Treasury, who consults with the Secretary of Agriculture and regional community development entities (nonprofits serving low-income areas or local governments if no entity exists nearby).
- Requirements include location in a food desert, compliance with existing USDA Healthy Food Financing Initiative criteria, and other standards to ensure healthy food access.
- Farmers markets are ineligible if receiving other USDA grants (except specific nutrition incentives).
- Allocations and Oversight (Sections 45BB(d)–(g)):
- Annual allocations of credits and grants by Treasury in coordination with USDA, ensuring proportional distribution to non-metropolitan (rural) areas.
- Recapture provisions: If a project fails certification requirements (e.g., closes or stops serving the area) within 5 years (for stores/food banks) or during the grant period (for merchants), the benefit is clawed back via tax increases.
- Basis of property is reduced by the credit or grant amount to avoid double benefits.
- Regulations to prevent abuse, require reporting, and promote fair access.
- Definitions (Section 45BB(h)):
- Food desert: A census tract (or equivalent) with at least 500 residents (or 33% of population) more than 1 mile (urban) or 10 miles (rural) from a grocery store, plus a poverty rate of 20% or median family income ≤80% of state/metropolitan median.
- Uses USDA's Food Access Research Atlas for determinations.
- Updates to Food Access Research Atlas (Section 3):
- Amends the Department of Agriculture Reorganization Act to require annual updates to the USDA's online tool tracking food deserts, incorporating new food retailers.
- Implementation:
- Credits apply to tax years after enactment; appropriations authorized as needed.
Significant Changes to Existing Law
- Adds a new Section 45BB to the Internal Revenue Code (under business tax credits), integrating it into the general business credit framework (amends Section 38(b)).
- Introduces the first federal tax credit specifically for grocery store development in food deserts, building on but distinct from the USDA's existing Healthy Food Financing Initiative (which provides loans/grants but not tax credits).
- Adds grant authority for food banks and mobile providers, coordinated between Treasury and USDA, with non-taxable treatment.
- Requires annual updates to the USDA's Food Access Research Atlas (previously updated less frequently), enhancing data accuracy for identifying food deserts.
- Includes recapture and basis reduction rules, similar to other investment credits (e.g., rehabilitation credits), to ensure long-term compliance.
Potential Impacts
- On Government Agencies: Increases coordination between Treasury (tax administration, certifications) and USDA (food access expertise, atlas updates), potentially raising administrative costs but funded via appropriations. May expand USDA's role in tracking retailers annually.
- On Citizens: Improves food access for low-income residents in food deserts (estimated 23.5 million Americans), reducing "food insecurity" (limited access to nutritious food) and supporting healthier diets, especially in urban and rural poor areas.
- On International Relations: Minimal direct impact, as it focuses on domestic food equity; could indirectly support U.S. agriculture by boosting demand for local produce/meats.
- Broader Effects: Stimulates economic development in underserved areas through private investment, potentially creating jobs in construction, retail, and food distribution, while addressing health disparities linked to poor nutrition.
Main Stakeholders Affected
- Beneficiaries: Developers/operators of grocery stores, food banks, mobile markets, and farmers markets certified in food deserts; low-income communities gaining better access to healthy foods.
- Government Entities: U.S. Department of the Treasury (certifications, tax credits, grants); U.S. Department of Agriculture (coordination, data updates); regional community development nonprofits or local governments (advisory roles).
- Others: Taxpayers (via forgone revenue from credits and grant funding); rural/non-metropolitan areas (ensured proportional benefits); existing USDA grant recipients (e.g., farmers markets may face eligibility limits).
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes clear certification and recapture mechanisms to ensure funds target genuine food deserts, reducing fraud risk; non-taxable grants avoid complicating nonprofit tax status. Relies on existing USDA criteria, promoting consistency without new regulatory burdens.
- Constitutional: No apparent issues; uses Congress's taxing and spending powers (Article I, Section 8) to promote general welfare through food equity. Geographic targeting (urban/rural) is standard in federal programs and unlikely to raise equal protection concerns.
- Political: Bipartisan sponsorship (e.g., Sens. Warner, Capito) signals broad support for addressing food insecurity, a nonpartisan issue tied to public health and poverty. Could influence future nutrition policy by incentivizing private-sector involvement, but tax expenditures may spark debates on federal spending priorities amid budget constraints.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Capito, Shelley Moore [R-WV], Sen. Van Hollen, Chris [D-MD], Sen. Moran, Jerry [R-KS]
Recent Actions
- 2025-03-27: Read twice and referred to the Committee on Finance.
- 2025-03-27: Introduced in Senate
Bill Versions
- Healthy Food Access for All Americans Act — issued 2025-03-27 — PDF (16 pages)