LANSING, Mich. — The state of Michigan is offering tax incentives to companies that develop or expand grocery stores in underserved areas.

Public Act 231, which amends the state's Commercial Rehabilitation Act, has the potential to generate economic growth that could lead to approximately $852 million in sales and 3,020 additional jobs in Michigan, the state's departments of agriculture and treasury said last week.

“Not only is this an economic development tool, but it also offers the means to provide fresh food options for those whose previous grocery experiences were limited to convenience stores,” said Don Koivisto, director of the Michigan Department of Agriculture.

The two departments said their studies indicate approximately 54% of all census tracts in the state meet the criteria for “underserved areas,” encompassing areas with low and moderate incomes, below-average grocery store density and travel limitations to grocery stores.

“Retail food establishments in underserved areas, especially in urban and rural settings, face unique operating challenges that can drive up operating costs," the state said in a news release. “Tax incentives can reduce overhead costs, which can improve a business’ cash flow and overall operation.”

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