0
Fresh Food Act
10/8/2024, 11:38 PM
Summary of Bill S 5120
The Fresh Food Act proposes several key initiatives to achieve this goal. One of the main provisions of the bill is to provide funding for the development and expansion of farmers markets, community gardens, and other local food initiatives. This would help to increase the availability of fresh produce in areas where access to healthy food options is limited.
Additionally, the bill aims to incentivize grocery stores and other retailers to carry a wider variety of fresh fruits and vegetables, particularly in areas designated as food deserts. Food deserts are areas where residents have limited access to affordable and nutritious food, often due to a lack of grocery stores or other food retailers in the area. The Fresh Food Act also includes provisions to support local farmers and producers, such as grants and loans to help them expand their operations and reach new markets. By supporting local agriculture, the bill aims to not only increase access to fresh food but also to boost local economies and create jobs in rural communities. Overall, the Fresh Food Act is a comprehensive piece of legislation that seeks to address the issue of food insecurity and improve access to healthy food options for all Americans. If passed, this bill has the potential to make a significant impact on public health and well-being across the country.
Congressional Summary of S 5120
Fresh Food Act
This bill provides a new business tax credit for 2025-2030 to grocery stores in underserved areas for a percentage of the cost of fresh fruit, vegetables, meat, and dairy sold. The bill also increases the work opportunity tax credit (WOTC) for 2025-2030 for grocery stores in underserved areas that hire eligible employees.
Under the bill, a grocery store in an underserved area may claim a tax credit of between 26% and 30% of the cost of fresh fruits, vegetables, meat, and dairy sold, depending on when the grocery store is placed in service and when the grocery store’s location is deemed to be in an underserved area. The percentage is increased by 5% for any fresh fruits, vegetables, meat, or dairy sourced from a location that is within the same state in which the store is located or within 100 miles of the store.
Under the bill, the grocery store must be in an underserved or rural area; have no more than 80,000 square feet of retail space; allocate at least 25% of the retail space for the sale of fresh fruit, vegetables, meat, and dairy; and have at least 25% of sales attributable to fresh fruit, vegetables, meat, and dairy.
Finally, the bill increases the WOTC for grocery stores in underserved areas by increasing the amount of qualifying wages paid to an eligible employee that may be used in the calculation of the tax credit. Under current law, the WOTC is calculated as a percentage of qualified wages paid to an eligible employee.
