Texas House Bill HB605

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

The impact of HB605 on state laws includes an amendment to the Tax Code with the addition of a new subchapter dedicated to tax credits for opening stores in food deserts. It sets forth specific criteria for eligibility, including the store's size, the necessity to accept benefits from supplemental nutrition programs, and the requirement that stores operate year-round. By incentivizing businesses to cater to underserved areas, the bill seeks to stimulate both local economies and the public health of communities.

Summary

House Bill 605 provides incentives to encourage the establishment of grocery stores and healthy corner stores in designated food deserts across Texas. The bill introduces a franchise tax credit for entities that open these stores, targeting areas lacking access to healthy food options. This initiative aims to improve food accessibility for residents in low-income neighborhoods, aiding efforts to combat food insecurity and promote healthier eating habits.

Contention

Although HB605 presents potential benefits, there may be contention regarding how effectively it will address the complexities of food deserts. Critics might argue that while tax credits could incentivize businesses to open in these areas, they do not guarantee long-term sustainability or investment. Furthermore, concerns could arise over the definitions of 'food deserts' and whether the bill adequately addresses the diverse needs of various communities. The impact of such a measure will need careful evaluation to ensure that it meets its intended goals without unintended negative consequences.