The Food Desert Opportunity Zone Act establishes a program aimed at creating food desert opportunity zones in Pennsylvania, targeting low-income census tracts where residents have limited access to healthy food retail outlets. The Department of Community and Economic Development is tasked with designating up to 12 zones based on specific criteria, including a population threshold of at least 33% or a minimum of 500 individuals with low access to healthy food. Qualified healthy food retail outlets within these zones can apply for a tax credit for a period not exceeding five years, starting from January 1, 2026. The act outlines the application process, review procedures, and the criteria for maintaining the designation of these zones.

Additionally, the act introduces a food desert opportunity tax credit, which allows qualified healthy food retail outlets to receive a tax credit against their tax liabilities, capped at $1,000,000 annually. The tax credit is calculated based on the number of full-time jobs created at the outlet, with specific conditions for compliance with state and local tax laws and zoning regulations. The act also includes provisions for recapturing tax credits if a retail outlet relocates outside the zone within five years, as well as penalties for non-compliance. Overall, the legislation aims to incentivize the establishment of healthy food retail outlets in underserved areas, thereby improving access to nutritious food for low-income residents.