Texas House Bill HB209

Texas 2021 - 87th Regular

Caption

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

Impact

If enacted, this bill is expected to positively impact state laws concerning economic development and public health. By encouraging the establishment of grocery outlets in food deserts, HB209 has the potential to enhance the nutritional options available to low-income populations, thereby contributing to improved community health outcomes. Additionally, the tax credit could stimulate local economies by supporting new business development in areas that are often overlooked by retailers.

Summary

House Bill 209 aims to incentivize the establishment of grocery stores and healthy corner stores in food deserts by providing a franchise tax credit to entities that open such stores. This bill seeks to address the issue of limited access to healthy food options in low-income and high-poverty areas of Texas. Under the provisions of HB209, taxable entities opening these qualifying stores would receive a credit equal to five percent of their expenditures related to establishing the store, thus promoting better food accessibility in underserved communities.

Contention

While the bill has garnered support for addressing food access issues, there may be concerns about its implementation and the specific criteria for what constitutes a 'food desert.' Stakeholders may discuss the efficacy of tax credits in truly addressing food access versus alternative approaches such as direct investment in community health initiatives. Moreover, the bill places particular emphasis on ensuring that the stores accept benefits from programs like WIC and SNAP, which may also be points of discussion among legislators about how effectively these provisions will be enforced and monitored.