Grocery Store

The Grocery Store Tax Credit encourages the development and expansion of full-service grocery stores in designated Healthy Food Priority Areas within Prince George's County.

The credit helps improve access to healthy food by reducing real and personal property taxes for qualifying grocery stores that invest in underserved communities.

Credit Amount

Eligible grocery stores may receive:

Note: The credit expires if the grocery store ceases operations or no longer meets the program requirements.

Eligibility Requirements

To qualify for the Grocery Store Tax Credit, the grocery store must:

• Be located within a designated Healthy Food Priority Area (Grocery Store Focus Area).
• Operate as a full-service grocery store.
• Maintain all major food departments, including:
  • Produce
  • Meat
  • Seafood
  • Dairy
  • Packaged foods
• Dedicate at least 500 square feet of floor space to fresh fruits and vegetables.
• Derive:
  • More than 50% of total gross sales from food sales; and
  • At least 20% of total gross sales from fresh produce, meat, and dairy products.
• Ensure that at least 50% of annual employee work hours are performed by Prince George's County residents.

Eligible Projects

The credit may be available for:

• Construction of a new grocery store.
• Substantial renovation or expansion of an existing grocery store.
• Adaptive reuse of vacant commercial space to establish a grocery store.

Personal Property Investment Requirements

To qualify for the personal property tax credit, the grocery store must meet the following minimum investment requirements:

Newly Constructed Stores

• Invest at least $150,000, or
• Invest at least $25 per square foot in qualifying personal property.

Substantially Renovated Stores

Minimum investment requirements are based on the store's floor area:

Qualifying personal property may include equipment such as refrigeration units, shelving, checkout systems, and other business assets.

Application Requirements

Applicants must:

• Submit a completed application to the Office of Finance.
• File the application no later than October 1 of the first tax year for which the credit is requested.
• Provide documentation demonstrating compliance with all program requirements.

Required Documentation

Applications should include:

• Documentation verifying the property's location within a designated Healthy Food Priority Area.
• Documentation supporting eligible construction or renovation costs.
• Documentation verifying required sales percentages and inventory requirements.
• Documentation supporting local hiring requirements.
• Documentation verifying qualifying personal property investments, if applicable.
• Any additional information requested by the Director of Finance.

Important Information

• The credit applies only to qualifying grocery stores operating within designated Healthy Food Priority Areas.
• Real property tax credits apply only to the increase in assessed value resulting from eligible improvements.
• Personal property tax credits apply only to qualifying business assets meeting the minimum investment thresholds.
• Businesses must continue to meet the program requirements throughout the credit period to remain eligible.

Questions?

For additional information, please email the Office of Finance, Treasury Division at prop_tax_credits@co.pg.md.us

Authority

• County Bill CB-018-2014
• County Bill CB-082-2023
• Maryland Tax-Property Article, §§ 9-254 and 9-318(h)
• Prince George's County Code, Sections 10-310, 10-311, and 10-235.26

Apply for Property Tax Credit - Grocery Store (PDF)

Apply for Property Tax Credit - Grocery Store (PDF) - Español