Texas Senate Bill SB574

Texas 2019 - 86th Regular

Caption

Relating to a franchise tax credit for entities that establish a grocery store or healthy corner store in a food desert.

Impact

By providing a tax incentive, SB574 seeks to encourage the establishment of grocery stores and healthy corner stores in areas that suffer from food insecurity. Supporters argue that this initiative will not only improve access to nutritious food but also stimulate economic development in underprivileged areas. The bill is seen as a direct response to health disparities faced by residents in food deserts and is aligned with broader public health goals.

Summary

Senate Bill 574 aims to establish a franchise tax credit for businesses that open grocery stores or healthy corner stores in designated food deserts in Texas. The bill defines a food desert as areas with limited access to healthy food retailers, specifically targeting low-income or high-poverty neighborhoods. To qualify for the tax credit, these stores must reserve a significant portion of their retail space for food products, with specific criteria also outlined for healthy corner stores, which need to prioritize fresh produce.

Contention

Notable points of contention surrounding SB574 involve concerns about the adequacy of the defined 'food deserts' and whether the tax credit will effectively incentivize the desired changes. Critics may argue that tax incentives alone may not be sufficient to attract stores in these areas without addressing other underlying economic factors. Additionally, there is concern over potential misuse of the tax credits or whether the benefits will be adequately monitored to ensure they reach the intended communities.