IL HB5300

Municipalities and counties can apply to have areas certified as "food desert opportunity zones" through the Department of Commerce and Economic Opportunity if the area is contiguous, no more than 20 square miles, and qualifies as a food desert.

Zone designations remain in effect for 10 years unless decertified earlier by the Department.

Grocery stores opening in certified food desert opportunity zones receive a full Illinois income tax credit equal to taxes owed from their first taxable year of operation in the zone.

Qualifying grocery stores also receive a reduced use tax rate of 1.25% (down from 6.25%) on tangible personal property purchases for the store during their first 12 months of operation.

Eligible grocery stores must sell fresh produce, derive no more than 30% of revenue from tobacco and alcohol, accept SNAP and WIC benefits, and be classified under NAICS code 445110 (supermarkets/grocery retailers).