TX HB1879

Creates a franchise tax credit equal to 5% of establishment costs for businesses that open a grocery store or healthy corner store in a designated food desert on or after January 1, 2026

Qualifying grocery stores must dedicate at least 66% of retail space to food products, 50% of food space to non-prepared foods, and 30% of food space to perishable items; healthy corner stores must be under 2,000 square feet and allocate at least 20% of space to fresh produce and perishables

Stores must be located in food deserts (areas with limited healthy food access in low-income or high-poverty areas), must be in low or moderate income areas, must accept WIC and SNAP benefits within 90 days of opening, and must operate year-round

Eligible expenses include land or building purchase/lease, construction or remodeling, and furnishing/equipping the store, but exclude inventory costs; the Texas Department of Housing and Community Affairs certifies eligibility

Credit is capped at 50% of franchise tax due after other credits, cannot be transferred except with substantially all business assets, and unused credits may be carried forward for up to five consecutive reports