South Carolina lawmakers propose tax incentives for grocers in food deserts

In a move aimed at combating food deserts across South Carolina, the state legislature has introduced Senate Bill 273, which proposes significant tax incentives for grocers willing to establish new locations in underserved areas. Introduced on January 28, 2025, the bill seeks to address the pressing issue of food accessibility, particularly in regions where residents lack convenient access to grocery stores.

The bill outlines two primary provisions: first, it offers a ten percent income tax credit for grocers that open new stores in designated food deserts, defined as areas where at least one-third of the population lives more than a mile from a grocery store. This tax credit can be claimed over three years, allowing businesses to recoup some of their establishment costs. Second, it proposes a sales tax exemption for purchases made by these grocers for a two-year period, further easing the financial burden of setting up shop in these communities.

Supporters of the bill argue that it could significantly improve food access for many South Carolinians, particularly in rural and low-income urban areas. By incentivizing grocers to enter these markets, the legislation aims to enhance the availability of fresh produce and other essential food items, which can lead to better health outcomes for residents.

However, the bill has not been without its critics. Some lawmakers express concerns about the potential for misuse of the tax credits and question whether the incentives will be enough to attract grocers to persist in these challenging markets. Additionally, there are discussions about the long-term sustainability of such businesses once the tax incentives expire.

The implications of Senate Bill 273 extend beyond just grocery access; they touch on broader economic and social issues, including public health, local employment opportunities, and community development. Experts suggest that if successful, the bill could serve as a model for other states grappling with similar food access challenges.

As the bill moves through the legislative process, its fate will depend on ongoing discussions and potential amendments. If passed, it could mark a significant step toward alleviating food insecurity in South Carolina, fostering healthier communities, and stimulating local economies.