[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4687 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4687
To amend the Internal Revenue Code of 1986 to provide tax incentives
for the establishment of supermarkets in certain underserved areas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2021
Mr. Cohen (for himself and Mr. Buck) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for the establishment of supermarkets in certain underserved areas.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supermarket Tax Credit for
Underserved Areas Act''.
SEC. 2. TAX INCENTIVES FOR ESTABLISHMENT OF SUPERMARKETS IN CERTAIN
UNDERSERVED AREAS.
(a) In General.--Subchapter Y of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new part:
``PART IV--TAX INCENTIVES FOR SUPERMARKETS IN UNDERSERVED AREAS
``Sec. 1400V-1. Increased rehabilitation credit.
``Sec. 1400V-2. Increased work opportunity tax credit.
``Sec. 1400V-3. Credit for sales of fresh fruits and vegetables.
``Sec. 1400V-4. Definitions.
``SEC. 1400V-1. INCREASED REHABILITATION CREDIT.
``(a) In General.--In the case of a qualified rehabilitated
building (as defined in section 47) which is an underserved area
supermarket, subsection (a) of section 47 shall be applied--
``(1) by substituting `12 percent' for `10 percent' in
paragraph (1), and
``(2) by substituting `24 percent' for `20 percent' in
paragraph (2).
``(b) Underserved Area Supermarket.--For purposes of subsection
(a), a qualified rehabilitated building shall be treated as meeting the
requirements of subparagraphs (A), (B), (C), and (D) of section 1400V-
4(a)(4) if it is reasonable to believe that such building will meet
such requirements as of the close of the taxable year in which such
building is placed in service.
``(c) Termination.--Subsection (a) shall only apply to buildings
placed in service after December 31, 2021, and before January 1, 2025.
``SEC. 1400V-2. INCREASED WORK OPPORTUNITY TAX CREDIT.
``(a) In General.--In the case of an individual employed in the
trade or business of operating a new underserved area supermarket, the
limitation otherwise in effect under paragraph (3) of section 51(b)
with respect to such individual shall be increased by $1,000.
``(b) Termination.--Subsection (a) shall only apply to wages paid
in taxable years beginning after December 31, 2021, and before January
1, 2027.
``SEC. 1400V-3. CREDIT FOR SALES OF FRESH FRUITS AND VEGETABLES.
``(a) In General.--For purposes of section 38, the underserved area
supermarket fruit and vegetable credit determined under this section
for the taxable year is an amount equal to 15 percent of the gross
receipts of the taxpayer from the retail sale of fresh fruits and
vegetables in the trade or business of operating a new underserved area
supermarket.
``(b) Termination.--Subsection (a) shall only apply to taxable
years beginning after December 31, 2022, and before January 1, 2027.
``SEC. 1400V-4. DEFINITIONS.
``For purposes of this part--
``(1) Underserved area supermarket.--The term `underserved
area supermarket' means any supermarket of the taxpayer located
in an underserved area.
``(2) New underserved area supermarket.--The term `new
underserved area supermarket' means any underserved area
supermarket which--
``(A) is placed in service after December 31, 2021,
and
``(B) was not a supermarket at any time during the
3-year period ending on the date such underserved area
supermarket is placed in service.
``(3) Duration of status.--A supermarket shall not fail to
be treated as an underserved area supermarket solely by reason
of the area in which such supermarket is located ceasing to be
an underserved area--
``(A) after December 31, 2021, or
``(B) in the case of a new underserved area
supermarket, on or after the date such supermarket is
placed in service.
``(4) Supermarket.--The term `supermarket' means any
building if--
``(A) not less than 12,000 square feet and not more
than 80,000 square feet of such building is used for
selling items at retail,
``(B) at least 25 percent of the square feet of
such building which is used for selling items at retail
is used for selling produce, meat, fish, deli, and
dairy items,
``(C) gross sales of items sold at retail from such
building exceed $2,000,000 annually, and
``(D) at least 25 percent of such gross sales are
attributable to sales of produce, meat, fish, deli, and
dairy items.
``(5) Underserved area.--
``(A) In general.--The term `underserved area'
means any population census tract in which--
``(i) not less than 500 people, or 33
percent of the population of such tract,
reside--
``(I) in the case of a tract
located within a metropolitan area,
more than 1 mile from a supermarket, or
``(II) in the case of a tract not
located within a metropolitan area,
more than 10 miles from a supermarket,
``(ii) the poverty rate for such tract is
at least 20 percent, or
``(iii)(I) in the case of a tract not
located within a metropolitan area, the median
family income for such tract does not exceed 80
percent of statewide median family income, or
``(II) in the case of a tract located
within a metropolitan area, the median family
income for such tract does not exceed 80
percent of the greater of statewide median
family income or the metropolitan area median
family income.
``(B) Areas not within census tracts.--In the case
of an area which is not tracted for population census
tracts, the equivalent county divisions (as defined by
the Bureau of the Census) shall be used for purposes of
determinations of underserved areas under this
paragraph.
``(C) Determination of underserved area.--For
purposes of determining whether a population census
tract qualifies as an underserved area for purposes of
this section, the Secretary shall make such
determinations in coordination with the Secretary of
Agriculture in such manner as is determined
appropriate, including use of the Food Access Research
Atlas established by the Department of Agriculture.
``(D) Metropolitan area.--The term `metropolitan
area' has the same meaning given the term `metropolitan
statistical area' under section 143(k)(2)(B).''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (32),
by striking the period at the end of paragraph (33) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(34) the underserved area supermarket fruit and vegetable
credit determined under section 1400V-3.''.
(c) Clerical Amendment.--The table of parts for subchapter Y of
chapter 1 of such Code is amended by adding at the end the following
new item:
``Part IV. Tax Incentives for Supermarkets in Underserved Areas''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
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