Bill > HB1879

This bill creates a new franchise tax credit for businesses that establish grocery stores or healthy corner stores in food deserts, defined as areas with limited access to healthy food retailers in low-income or high-poverty regions. To qualify, a store must be located in a low or moderate-income area, begin accepting WIC (Women, Infants, and Children) and supplemental nutrition assistance program benefits within 90 days of opening, and operate year-round. The tax credit is equal to 5% of the entity's establishment costs during the first 12 months, including land or building purchase/lease, construction or remodeling, and furnishing and equipment (excluding inventory costs). Businesses must first obtain a certificate of eligibility from the Texas Department of Housing and Community Affairs and submit an audited cost report to the comptroller. The credit is limited to 50% of the franchise tax due and can be carried forward for up to five consecutive reporting periods. The bill defines specific requirements for what constitutes a grocery store (with detailed space allocation for food products) and a healthy corner store (with emphasis on fresh produce), and will take effect on January 1, 2026, aimed at improving food access in underserved communities.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1879