1.Tax incentives for
establishment of supermarkets in certain underserved areas
(a)Subchapter Y of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new part:
IVTax
incentives for supermarkets in underserved areas
Sec. 1400V-1. Increased rehabilitation credit.
Sec. 1400V-2. Increased work opportunity tax
credit.
Sec. 1400V-3. Credit for sales of locally grown fresh fruits
and vegetables.
Sec. 1400V-4. Definitions.
1400V-1.Increased
rehabilitation credit
(a)In the case of a
qualified rehabilitated building (as defined in section 47) which is an
underserved area supermarket, subsection (a) of section 47 shall be
applied—
(1)by substituting
12 percent
for 10 percent
in paragraph (1),
and
(2)by substituting
24 percent
for 20 percent
in paragraph
(2).
(b)Underserved area
supermarketFor purposes of subsection (a), a qualified
rehabilitated building shall be treated as meeting the requirements of
subparagraphs (A), (B), (C), and (D) of section 1400V-4(a)(2) if it is
reasonable to believe that such building will meet such requirements as of the
close of the taxable year in which such building is placed in service.
(c)Subsection
(a) shall only apply to buildings placed in service after December 31, 2010,
and before January 1, 2013.
1400V-2.Increased
work opportunity tax credit
(a)In the case of an
individual employed in the trade or business of operating a new underserved
area supermarket, the limitation otherwise in effect under paragraph (3) of
section 51(b) with respect to such individual shall be increased by
$1,000.
(b)Subsection
(a) shall only apply to wages paid in taxable years beginning after December
31, 2010, and before January 1, 2016.
1400V-3.Credit for
sales of locally grown fresh fruits and vegetables
(a)For purposes of
section 38, the underserved area supermarket fruit and vegetable credit
determined under this section for the taxable year is 15 percent of the gross
receipts from the retail sale of locally grown fresh fruits and vegetables in
the trade or business of operating a new underserved area supermarket.
(b)Subsection
(a) shall only apply to taxable years beginning after December 31, 2011, and
before January 1, 2016.
1400V-4.For purposes of this part—
(1)Underserved area
supermarketThe term underserved area supermarket
means any supermarket located in an underserved area.
(2)New underserved
area supermarketThe term new underserved area
supermarket
means any underserved area supermarket which—
(A)is placed in
service after December 31, 2010, and
(B)was not a
supermarket at any time during the 3-year period ending on the date such
underserved area supermarket is placed in service.
(3)The
term supermarket
means any building if—
(A)not less than
12,000 square feet and not more than 80,000 square feet of such building is
used for selling items at retail,
(B)at least 7 percent
of the square feet of such building which is used for selling items at retail
is used for selling produce, meat, fish, deli, and dairy items,
(C)gross sales of
items sold at retail from such building exceed $2,000,000 annually, and
(D)at least 7 percent
of such gross sales are attributable to sales of produce, meat, fish, deli, and
dairy items.
(4)The term underserved area
means—
(A)any enterprise
community or empowerment zone with a designation in effect under section 1391,
and
(B)any renewal
community with a designation in effect under section
1400E.
.
(b)Credit To be
part of general business creditSubsection (b) of section 38 of
such Code (relating to general business credit) is amended by striking
plus
at the end of paragraph (34), by striking the period at the
end of paragraph (35) and inserting , plus
, and by adding at the
end the following new paragraph:
(36)the underserved
area supermarket fruit and vegetable credit determined under section
1400V-3.
.
(c)The table of parts for subchapter Y of chapter 1 of
such Code is amended by adding at the end the following new item:
Part IV. Tax incentives for supermarkets in
underserved
areas
.