---
title: HB 21. Healthy Food Access Tax Credit Act; enact
collection: bills
id: 2025-2026/hb21
cite_as: HB 21, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb21
md_url: https://georgiacommons.org/bills/2025-2026/hb21.md
text_url: https://georgiacommons.org/bills/2025-2026/hb21/text
source_url: https://www.legis.ga.gov/legislation/69301
date: 2025-01-15
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb21.md?full=1
bill_number: HB 21
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-13
last_action: House Second Readers
sponsors:
  - Sandra Scott
  - Viola Davis
  - Kim Schofield
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB21/2025
upstream_id: 1916654
summaries_model: claude-sonnet-5
topic_tags:
  - tax credits
  - food access
  - grocery stores
  - economic development
  - Georgia income tax
---

# HB 21. Healthy Food Access Tax Credit Act; enact

## Text

House Bill 21
By: Representatives Scott of the 76th, Davis of the 87th, and Schofield of the 63rd
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to imposition, rate, computation, exemption, and credits from income taxes, so as to
provide for a tax credit for the construction, renovation, purchase, or lease of a property for
taxpayers who place in service an eligible retailer that sells or offers for sale healthy foods
in a less developed area; to provide for definitions; to provide for terms and conditions; to
provide for rules and regulations; to provide a short title; to provide for related matters; to
repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Healthy Food Access Tax Credit Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemption, and credits from income taxes, is amended by
revising Code Section 48-7-40.33, which is reserved, as follows:
"48-7-40.33.
<ins>(a) As used in this Code section, the term:
(1) 'Convenience store' means a business that is engaged primarily in the retail sale or
offering for sale of convenience goods, or convenience goods and gasoline, and has less
than 10,000 square feet of retail floor space.
(2) 'Corner store' means a retail establishment that sells or offers for sale food and other
nonalcoholic items and has less than 5,000 square feet of selling area.
(3) 'Eligible retailer' means a convenience store, corner store, farmers' market, grocery
store, or small food retailer that sells or offers for sale healthy foods.
(4) 'Farmers' market' has the same meaning as in Code Section 2-10-52.
(5) 'Grocery store' means a retail establishment:
(A) Whose primary business is selling or offering for sale grocery products;
(B) That has at least 5,000 square feet of selling area that is used for a general line of
food and nonfood grocery products; and
(C) That meets the eligibility requirements for the federal Supplemental Nutrition
Assistance Program.
(6) 'Healthy foods' means fresh fruits and vegetables.
(7) 'Less developed area' means any area designated as such by the commissioner of
community affairs pursuant to Code Section 48-7-40.1.
(8) 'Small food retailer' means a small business that sells or offers for sale unprepared
food products and is not a grocery store.
(b) For taxable years beginning on and after January 1, 2026, a tax credit is allowed
against the tax imposed under this article to a taxpayer in the amount of 15 percent of the
expenses incurred for the construction, renovation, purchase, or lease of a property for the
purposes of placing in service an eligible retailer in a less developed area; provided,
however, that such tax credit shall be further subject to the following conditions and
limitations:
</ins>
<ins>(1) The tax credit allowed by this Code section shall only be claimed for the taxable year
in which the eligible retailer is placed in service;
(2) In no event shall the amount of the tax credit allowed by this Code section for a
taxable year exceed the taxpayer's liability for such taxes. Any unused credit amount
shall be allowed to be carried forward for five years from the close of the taxable year in
which the eligible retailer is placed in service. No such credit shall be allowed the
taxpayer against prior years' tax liability; and
(3) To claim a credit allowed by this Code section, the taxpayer shall provide any
information required by the department. Every taxpayer claiming a credit under this
Code section shall maintain and make available for inspection by the department any
records that either entity considers necessary to determine and verify the amount of the
credit to which the taxpayer is entitled. The burden of proving eligibility for a credit and
the amount of the credit rests upon the taxpayer, and no credit shall be allowed to a
taxpayer that fails to maintain adequate records or to make them available for inspection.
(c) The commissioner shall promulgate any rules and regulations necessary to implement
and administer this Code section.</ins> <del>Reserved."
</del> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

House Bill 21 would create a Georgia income tax credit for businesses that build, renovate, buy, or lease property to open stores selling fresh fruits and vegetables in less developed areas of the state.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Introduced (2025-01-13)
- Last action: House Second Readers (2025-01-15)
- Sponsors: Sandra Scott, Viola Davis, Kim Schofield
- Official page: https://www.legis.ga.gov/legislation/69301

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb21.md?full=1