TX SB2294

Entities that open a grocery store or healthy corner store in a designated food desert on or after January 1, 2026 may claim a franchise tax credit equal to 5% of establishment costs (land, building, construction, remodeling, furnishing, and equipment) incurred during the first 12 months

Qualifying stores must be located in a food desert and low/moderate income area as determined by HUD, accept WIC and SNAP benefits within 90 days of opening, and operate year-round

Grocery stores must dedicate at least 66% of retail space to food products, with 50% for non-prepared foods and 30% for perishable items; healthy corner stores (under 2,000 sq ft) must allocate at least 20% of space to fresh produce and perishables

The Texas Department of Housing and Community Affairs will certify eligibility and designate food desert areas, while the comptroller administers the credit

Credits are capped at 50% of franchise tax due per report, cannot be transferred except with substantially all business assets, and unused amounts may be carried forward for up to 5 consecutive reports