SPRINGFIELD, Ill. (WAND) – A new bill in Springfield could help eliminate pharmacy and grocery deserts statewide. Lawmakers and business leaders hope to encourage investment and help sustain access to essential goods and services.
This plan could create a new tax credit to incentivize small businesses to establish, expand, or retain stores in communities considered to be pharmacy or grocery deserts. The idea has support from the Illinois Retail Merchants Association and the Illinois Department of Commerce & Economic Opportunity.
“While more must be done to support retailers of all shapes and sizes across Illinois, including rejecting proposals that continue to add on costs, this is an important step forward that will help some of our state’s most vulnerable retail businesses,” said IRMA President and CEO Rob Karr.
Eligible businesses would need to be independently owned, with no more than four stores, and plan to make a qualifying capital investment of at least $500,000. Grocery stores with more than 15 employees would be required to invest at least $1 million. Participating grocers would also need to accept SNAP and WIC benefits.
“In some communities, these businesses are much more than a convenient place to shop,” said DCEO Chief Economic Policy Advisor Matt Stonecipher. “They may be one of the few places that residents can even access fresh food or essential medications without having to travel miles out of their way.”
Stores located in grocery or pharmacy deserts could receive a credit of up to 100% of payroll withholding for new employees and 50% for retained workers. Eligible businesses would also be automatically enrolled in the enterprise zone high impact business program, which could provide a sales tax exemption on qualifying building materials.
“Oftentimes, the communities that do have access to a pharmacy, it’s a big national chain,” said Rep. Will Guzzardi (D-Chicago). “This is not to speak ill of those companies, but they have more resources to weather the rising and falling tides of the economy. Our small independent businesses really need our state’s support to grow and thrive.”
Sen. Doris Turner (D-Springfield) is the lead sponsor of this legislation in the Senate. Sponsors hope to see the plan move during veto session.
“When we invest in small businesses, we are investing in the people who live here,” Turner said. “Creating a streamlined package of tax incentives for these small businesses would streamline operations, allowing them to retain and hire workers while serving the community.”
