Section 1 Short title
This Act may be cited as the “Farmers Markets for Food Deserts Act of 2016”.
Farmers Markets for Food Deserts Act of 2016
A BILL
To amend the Internal Revenue Code of 1986 to encourage the sale of locally and regionally produced agricultural products in underserved communities.
Sec. 2 Agricultural product sales in underserved communities
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:
“139G. Agricultural product sales in underserved communities
“(a) In general—Gross income does not include amounts received by the taxpayer which are derived from qualified agricultural food product sales.
“(b) Qualified agricultural food product sales—For purposes of this section, the term “qualified agricultural food product sale” means the sale of locally and regionally produced agricultural products (as such term is used in section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005), as in effect on the date of the enactment of this section) by the taxpayer to members of the general public at a fixed location (other than a retail store) located in a community described in subsection (e)(1) of such section, as in effect on such date of enactment.”
Clerical amendment— The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140:
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2016.
Sec. 3 Clarification of use of grant funds under Farmers’ Market and Local Food Promotion Program
Section 6(f) of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005(f)) is amended—
in the subsection heading, by striking “Funds requirements for” and inserting “Use of funds by”;
in paragraph (1), in the paragraph heading, by inserting “requirement” after “funds”; and
by adding at the end the following new paragraph:
“(3) Farmers’ market permit fees—An eligible entity may use a grant or other assistance provided under this section for purposes of paying any fees associated with obtaining a permit to sell locally and regionally produced agricultural products at a farmers’ market located in an area described in subsection (e)(1).”