HB 21: Healthy Food Access Tax Credit Act; enact

Georgia currently has no dedicated tax credit for retailers that bring fresh produce into underserved areas. House Bill 21, called the Healthy Food Access Tax Credit Act, would fill in a currently reserved section of state tax law (O.C.G.A. § 48-7-40.33) with a new credit program. Starting with tax years beginning on or after January 1, 2026, a taxpayer could claim a credit equal to 15 percent of the costs of constructing, renovating, buying, or leasing property to open an eligible retailer, such as a grocery store, corner store, convenience store, farmers market, or small food retailer, that sells fresh fruits and vegetables in a 'less developed area' as designated by the commissioner of community affairs. The credit can only be claimed the year the store opens, cannot exceed the taxpayer's tax bill for that year, and unused amounts can carry forward for five years. Taxpayers must keep records proving eligibility.

• Creates a 15 percent income tax credit for the cost of building, renovating, buying, or leasing property to open a store selling fresh fruits and vegetables in a less developed area.
• Defines which businesses qualify as 'eligible retailers,' including convenience stores, corner stores, grocery stores, farmers markets, and small food retailers.
• Limits the credit to the tax year the store 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 to keep and provide records proving they qualify for the credit, with the burden of proof on the taxpayer.
• Directs the state revenue commissioner to write rules for administering the credit.

Owners and developers of grocery stores, corner stores, convenience stores, farmers markets, and small food retailers who build or lease space in less developed areas; residents of those areas who may gain access to fresh produce; and the Georgia Department of Revenue, which would administer the credit.

Businesses that invest in opening food retailers in underserved parts of Georgia could reduce their state tax bills by 15 percent of their property costs, potentially making it more financially attractive to open stores in areas that currently lack easy access to fresh fruits and vegetables.

• Section 1 names the bill the 'Healthy Food Access Tax Credit Act.'
• Section 2 rewrites the previously reserved O.C.G.A. § 48-7-40.33 to define terms like 'eligible retailer,' 'healthy foods,' and 'less developed area.'
• Section 2(b) sets the credit at 15 percent of construction, renovation, purchase, or lease expenses for taxable years starting on or after January 1, 2026.
• Section 2(b)(1)-(2) limits the credit to the year the retailer opens, caps it at the taxpayer's tax liability, and allows a five-year carryforward of unused amounts.
• Section 2(b)(3) places the burden on taxpayers to maintain records proving their eligibility for the credit.
• Section 2(c) directs the commissioner to issue rules and regulations to implement the credit.
• Section 3 repeals any 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
• Georgia income tax