The bill, H.B. No. 304, proposes the establishment of a franchise tax credit for entities that open grocery stores or healthy corner stores in designated food deserts in Texas. It introduces a new subchapter to Chapter 171 of the Tax Code, defining key terms such as "food desert," "grocery store," and "healthy corner store." The bill outlines the qualifications for entities to receive the tax credit, which include opening a store in a food desert, accepting benefits from the WIC program and the Supplemental Nutrition Assistance Program (SNAP) within 90 days of opening, and maintaining year-round operations.

Additionally, the bill specifies the process for certification of eligibility, the amount of credit available (5% of qualifying expenditures), and limitations on the total credit that can be claimed. It also allows for the carryforward of unused credits for up to five consecutive reports. The provisions of this act will take effect on January 1, 2026, and apply to reports due on or after that date.

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