Bill > HB304

This bill introduces a franchise tax credit to incentivize businesses that establish grocery stores or healthy corner stores in food deserts, which are areas with limited access to nutritious food. The bill defines specific criteria for qualifying stores, including having a minimum percentage of retail space dedicated to food products, particularly fresh and perishable items. To be eligible, a store must be located in a food desert or low-income area, accept WIC and supplemental nutrition assistance program benefits within 90 days of opening, and operate year-round. Businesses can claim a tax credit equal to 5% of their establishment costs (including land purchase, construction, remodeling, and equipment) during the first 12 months of operation. The tax credit is subject to limitations, with a maximum of 50% of the franchise tax due, and unused credits can be carried forward for up to five consecutive reporting periods. To claim the credit, businesses must obtain a certification of eligibility from the Texas Department of Housing and Community Affairs and submit an audited cost report to the comptroller. The bill will take effect on January 1, 2026, and aims to improve food access in underserved communities by providing a financial incentive for businesses to invest in these areas.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB304