ST. CHARLES, IL – The Michigan Department of Agriculture (MDA) and Treasury Department announced last week that Michigan's Commercial Rehabilitation Act (CRA) could generate more than 3,000 additional jobs in Michigan and generate up to $852 million in sales, Michigan Farmer reports.
The CRA includes a tool that supports grocery store development in underserved areas, allowing food establishments that expand, improve, or open in those areas to avoid tax liabilities for up to 10 years. The underserved areas can be in both urban and rural communities and are defined by low to moderate incomes, a below-average density of grocery stores, and travel limitations to grocery stores.
The CRA was passed in recognition of the operating challenges that drive up operating costs in underserved areas. The tax incentives were designed to ease overhead costs and improve a business's cash flow.
"This program provides another incentive to encourage businesses to grow here in Michigan," said State Treasurer Robert Kleine. "The program serves the dual purpose of creating jobs and broadening access to healthy food items families need."
"MDA is excited to be helping provide Michigan's underserved citizens with increased accessibility to healthy fresh food choices," said Don Koivisto, MDA director. "Not only is this an economic development tool, it also offers the means to provide fresh food options for those whose previous grocery experiences were limited to convenience stores."
An analysis by MDA and the USDA indicated that roughly 54 percent of all census tracts in Michigan meet the criteria for an “underserved area.”
"Grocery store development in underserved areas has the potential to create a positive ripple effect in Michigan, including jobs and community economic development, while combating one potential factor in the diet-related disease rates we see today," said Kirsten Simmons, executive director of the Michigan Food Policy Council.