Cleveland City Council proposes tax credits for grocery stores

Cleveland City Council has passed Ordinance 1230-2026 to establish a voluntary Good Food Retailer Certification through the Health Department. The program aims to combat food deserts by providing job-retention tax credits of up to 100% of the municipal income tax withheld from employees' paychecks to qualifying grocers.

To receive the credits, stores must demonstrate financial need and meet specific requirements for selling fresh and nutritious food. City officials noted that urban grocers are facing a crisis, exacerbated by recent changes to federal SNAP requirements that have impacted sales for many retailers. The initiative is designed to prevent further closures of essential food providers in neighborhoods such as Glenville and the city's southeast side.

City estimates suggest the program will cost between $500,000 and $1 million annually. While officials clarified that the credits are not intended to lower food prices, the goal is to stabilize the presence of grocery stores to ensure residents have access to fresh produce and to maintain local employment.