Fresh Food Act

The Fresh Food Act provides tax credits to new grocery stores operating in underserved areas, defined as census tracts with high poverty rates, limited grocery access (more than 1 mile in urban areas or 10 miles in rural areas), and low median income. It creates two main incentives: a $1,000 increase in the work opportunity tax credit for employees of these stores and a credit equal to 30% (decreasing over time) of the cost of goods sold for fresh fruits, vegetables, meat, and dairy, with an additional 5% bonus for locally sourced items within 100 miles or the same state. These credits apply only to stores meeting specific criteria - such as dedicating at least 25% of retail space to fresh items and generating 25% of sales from them - and are available for taxable years 2025 through 2030.