New Law Offers Tax Credits to Encourage Agricultural Stewardship in Colorado

(Denver, CO - May 29, 2024) - Assistant Minority Leader Winter announced that HB24-1249, "Tax Credit Agricultural Stewardship Practices," has become law. This bill establishes a refundable state income tax credit for active qualified stewardship practices on farms and ranches, starting in January 2026.

"This legislation supports our farmers and ranchers who are committed to implementing stewardship practices," said AML Winter. "By providing financial incentives, we offset some of the costs these individuals endure, encouraging innovative agriculture in Colorado."

The bill introduces a tiered tax credit system, rewarding farmers and ranchers for implementing one, two, or three qualified stewardship practices with maximum per acre credits of $75, $100, and $150, respectively. This tiered system ensures significant support for sustainable agriculture, with maximum credits ranging from $150,000 to $300,000 per year, depending on the tier and number of practices adopted.

The Colorado Department of Agriculture will oversee the application and issuance of tax credit certificates, with an annual cap of $3 million in credits and a waitlist system for excess applications. This measure promotes the adoption of environmentally sound practices while providing financial relief to the agricultural community.

“This bill provides a tax credit to the producers who are the lifeblood of Colorado’s economy while encouraging innovation in stewardship practices,” added Winter. “Farmers and ranchers have a unique understanding of how to maximize land, soil, and water health. This credit supports their efforts to do so.”