HB21: HB21 Healthy Food Access Tax Credit Act; enact

Some parts of Georgia lack easy access to stores selling fresh fruits and vegetables. House Bill 21, called the Healthy Food Access Tax Credit Act, addresses this by amending Georgia's income tax code (O.C.G.A. § 48-7-40.33) to create a new tax credit for businesses that invest in bringing healthy food retailers to these areas. Starting with tax years on or after January 1, 2026, a taxpayer could claim a credit equal to 15 percent of the money spent constructing, renovating, buying, or leasing property to open an eligible retailer, such as a grocery store, corner store, farmers market, convenience store, or small food retailer that sells fresh fruits and vegetables, in a less developed area designated by the commissioner of community affairs. The credit can only be claimed the year the retailer opens, cannot exceed the taxpayer's tax liability for that year, but unused amounts can carry forward for five years. Taxpayers must keep records to prove they qualify.

• Creates a new state income tax credit worth 15 percent of costs to build, renovate, buy, or lease property for a healthy food retailer in a less developed area.
• Defines which businesses count as eligible retailers, including convenience stores, corner stores, farmers markets, grocery stores, and small food retailers that sell fresh fruits and vegetables.
• Limits the credit to the tax year the retailer opens (is placed in service) and caps it at the taxpayer's tax liability for that year.
• Allows unused credit amounts to be carried forward for up to five years but not applied to past tax years.
• Requires taxpayers claiming the credit to keep and provide records proving they qualify, with the burden of proof on the taxpayer.
• Directs the state revenue commissioner to write rules to implement and administer the credit.

The credit would apply to taxpayers, likely business owners and developers, who invest in opening grocery stores, corner stores, convenience stores, farmers markets, or small food retailers in Georgia areas designated as less developed by the commissioner of community affairs.

By offsetting some of the cost of opening a store in areas with limited grocery access, the bill could make it more financially attractive for businesses to bring fresh fruits and vegetables to communities that currently have fewer options, potentially changing what food is available nearby for residents.

• Section 1 names the act the 'Healthy Food Access Tax Credit Act.'
• Section 2 amends O.C.G.A. § 48-7-40.33 to define key terms including 'eligible retailer,' 'healthy foods' (limited to fresh fruits and vegetables), and 'less developed area.'
• Section 2(b) sets the credit at 15 percent of qualifying expenses for taxable years beginning on or after January 1, 2026.
• Section 2(b)(1) restricts the credit to the year the retailer is placed in service.
• Section 2(b)(2) caps the credit at the taxpayer's tax liability and allows a five-year carryforward of unused amounts, with no retroactive application to prior years.
• Section 2(b)(3) requires taxpayers to provide documentation and maintain records to substantiate the credit claim.
• Section 2(c) directs the commissioner to issue rules and regulations to administer the credit.
• Section 3 repeals conflicting laws.

1. 2025-01-15House Second Readers (House)
2. 2025-01-14House First Readers (House)
3. 2025-01-13House Hopper (House)

• Sandra Scott (D, HD-076)Primary sponsor
• Viola Davis (D, HD-087)
• Kim Schofield (D, HD-063)

• tax credits
• food access
• grocery stores
• economic development
• income tax