The provisions of SB5120 include enhancements to the work opportunity tax credit for individuals employed in new grocery stores located in underserved areas. Furthermore, the tax credit is structured to reward stores based on their sales of fresh produce, with the aim of boosting local economies by increasing access to fresh food. The implementation of this bill is intended to stimulate economic development in communities that lack adequate grocery store options, thereby potentially reducing food insecurity and improving public health outcomes.
SB5120, known as the Fresh Food Act, aims to amend the Internal Revenue Code to provide tax incentives for the establishment of grocery stores in underserved areas. This legislation is designed to encourage the opening of new grocery stores in regions where access to fresh food is limited, thus promoting healthier eating habits and addressing food deserts. The bill outlines specific tax credits for grocery store operators, particularly focusing on sales of fresh fruits, vegetables, meat, and dairy products within these designated areas.
Notably, the bill defines 'underserved areas' based on specific criteria, including population density, poverty rates, and distance to the nearest grocery store. This definition has the potential to spark debate regarding which areas qualify, along with possible consequences for those communities that may feel overlooked or excluded. Critics may argue about the effectiveness of tax incentives as a solution to broader systemic issues related to food access and economic disparity, questioning whether these financial measures alone can achieve the desired outcomes.