Subdivision 5M. Healthy Food Priority Area Tax Credit
Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.
Subdivision 5M. Healthy Food Priority Area Tax Credit
Prince George's County, Md., Code § 10-235.26 (2026)
Sec. 10-235.26. Healthy Food Priority Area Tax Credit ProgramLinkCopy Citation
(a)
In this Section, the following words shall have the following meanings:
(1)
Eligible construction means new construction of a grocery store or substantial renovation of an existing grocery store. "New construction of a grocery store" means either (i) the construction of any new building for a grocery store, whether as a stand-alone building or an addition to an existing building, or (ii) the adaptive reuse of an existing non-grocery store building (a building not previously used for a grocery store) into a grocery store. "Substantial renovation of an existing grocery store" means a complete rehabilitation of at least fifty percent (50%) of the building gross square footage of an existing grocery store (or a vacant space previously occupied by a grocery store). Eligible construction shall comply with Subsection (b)(1)(C) of this Section for the subject grocery store to be eligible to receive a tax credit authorized by this Section.
(2)
Grocery store means a store that
(A)
has all major food departments, including produce (fruits and vegetables), meat, seafood, dairy, and canned and packaged goods,
(B)
has more than 50% of total sales derived from food sales,
(C)
has more than 50% of total floor space dedicated to food sales, and both has
(i)
at least 500 square feet dedicated to the sale of produce (fruits and vegetables), and
(ii)
at least 500 square feet dedicated to the sale of other perishable goods, including meat, seafood, and dairy products.
The grocery store shall also comply with Subsection (b) of this Section to be eligible to receive a tax credit authorized by this Section.
(3)
Healthy Food Priority Area means either of the following:
(A)
An area designated by Council resolution with concurrence of the County Executive as a healthy food priority area due to a combination of the following factors:
(i)
Limited availability of fresh fruit, vegetables, and other healthy food options in the designated area;
(ii)
A presence of a significant number or share of low-income residents in the designated area;
(iii)
Limited transportation options or access for local residents, including limited access to public transit, in the designated area;
(iv)
Comments from municipal governments, if applicable; and
(v)
Any other factors that the County Council and the County Executive determine are relevant; or
(B)
An area designated by Council resolution with concurrence of the County Executive as a healthy food priority area due to a vacancy created by a departed grocery store.
(4)
Healthy Food Priority Area Tax Credit means the tax credit prescribed and awarded in accordance with this Section. The Healthy Food Priority Area Tax Credit is authorized by Section 9-318 of the Tax-Property Article, Annotated Code of Maryland.
(b)
Healthy Food Priority Area Tax Credit. The County shall award an one hundred percent (100%) annual tax credit against the county personal property taxes for a newly constructed or substantially renovated grocery store located, at the time of tax credit award, in a healthy food priority area for the first ten (10) taxable years after both (i) completion of eligible construction of the newly constructed or substantially renovated grocery store and (ii) expenditure on new personal property for the newly constructed or substantially renovated grocery store, provided that the grocery store complies with the following:
(1)
The grocery store meets or exceeds the following eligibility requirements:
(A)
For a newly constructed store, the owner or developer of the grocery store shall have expended on new personal property an amount equal to or greater than $150,000 or $25 per square foot;
(B)
For a substantially renovated store, the owner or developer of the grocery store shall have expended on new personal property an amount based on total floor space of the grocery store as follows:
(i)
For a grocery store that is 20,000 square feet or less, have expended at least $5 per square foot;
(ii)
For a grocery store that is more than 20,000 square feet up to an including 45,000 square feet, have expended at least $8 per square foot; and
(iii)
For a grocery store that is more than 45,000 square feet, have expended at least $10 per square foot; and
(C)
At least 35% of the total costs of the actual construction of the newly constructed or substantially renovated grocery store shall be spent with County-based small businesses or County-based minority business enterprises, or combination thereof, as verified in writing by the County MBE Compliance Manager and the Supplier Development and Diversity Division, with notice within seven (7) days of verification to the Director of Finance, prior to the remittance of any tax credit proceeds authorized by this Section; and
(2)
For each of the 10 years that the grocery store receives the Healthy Food Priority Area Tax Credit, the grocery store meets or exceeds the following annual requirements:
(A)
At least 50% of the annual work hours at the grocery store shall be worked by residents domiciled in Prince George's County, Maryland; and
(B)
The grocery store shall have a minimum wage for its workers of the greater of
(i)
$15.00 per hour or
(ii)
the Maryland Minimum Wage as set forth in the Annotated Code of Maryland.
(c)
The County MBE Compliance Manager and the Supplier Development and Diversity Division shall certify compliance with Subsection (a) and Paragraphs (b)(1) and (b)(2) of this Section in writing to the Director of Finance prior to the remittance of any tax credit proceeds authorized by this Section. Failure to comply with the annual requirements of Paragraph (b)(2), above, shall result in the Director of Finance withholding the remittance of tax credit proceeds applicable to the year for which noncompliance has occurred and may result in a total cancellation of the award of the Healthy Food Priority Area Tax Credit, as determined by the County Executive or the County Executive's designee, with concurrence of the County Council. Failure of a grocery store to satisfy Subsection (a) and Paragraph (b)(1), above, shall result in ineligibility to receive the Healthy Food Priority Area Tax Credit.
(d)
The Director of Finance, in consultation with the County MBE Compliance Manager, the Supplier Development and Diversity Division, and the Supervisor of Assessments, shall establish any necessary procedures to implement this Section, including any procedures regarding Healthy Food Priority Area Tax Credit application, award, remittance, reporting, and compliance.