A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE FOR AN INCOME TAX CREDIT FOR A GROCER WHO OPENS A NEW LOCATION IN A FOOD DESERT; AND BY AMENDING SECTION 12-36-2120, RELATING TO SALES TAX EXEMPTIONS, SO AS TO PROVIDE A SALES TAX EXEMPTION FOR CERTAIN PURCHASES MADE BY A GROCER WHO OPERATES A NEW STORE LOCATED IN A FOOD DESERT.
Summary
H3465 creates two tax incentives aimed at encouraging grocery stores to open in food deserts in South Carolina. First, it adds a new income tax credit for a grocer that opens a new location in a qualifying food desert. The credit equals 10% of the total costs of establishing the new store and is claimed in equal installments over three years after the store opens. To qualify, the grocer must apply to the Department of Revenue and submit a detailed plan for the proposed location, including its site, size, and product mix.
Second, the bill amends the state sales tax exemption statute to exempt certain purchases made to stock and operate a new grocery store in a food desert for two years. The bill defines a food desert as an area where at least 33% of the population lives more than one mile from a grocery store or supermarket, and defines a grocer as a retail establishment primarily selling basic food items such as fruits, vegetables, meats, dairy products, and whole grains. The act takes effect upon approval by the Governor.
Impact
If enacted, the bill would add a new income tax credit provision to Title 12 of the South Carolina Code and expand the state sales tax exemption list to cover qualifying purchases for new grocery stores in food deserts. It would affect grocers seeking to open new locations in underserved areas, while also requiring the Department of Revenue to review applications and determine eligibility. The measure would likely reduce state tax revenue in the short term in exchange for incentivizing grocery access in areas with limited food retail options.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill’s purpose and structure, the measure appears to be framed as a pro-business, anti-hunger, and community-access initiative intended to address food access gaps. The caption and text suggest a generally constructive policy approach focused on encouraging private investment in underserved neighborhoods.
Contention
The main potential points of contention are the cost to the state through foregone income and sales tax revenue, the administrative burden of reviewing applications, and whether the bill’s definition of a food desert is appropriately targeted. Some may question whether the incentives are sufficient to change store location decisions, while others may worry they could subsidize projects that would have happened anyway. There may also be debate over whether the benefits will reach the communities most in need or primarily assist larger grocery operators.