Colorado HB 24 – 1249 proposes to provide a state income tax credit to agricultural producers who actively participate in stewardship practices on their farms or ranches. This credit will be implemented from January 2026 onwards.

Rulemaking

The Department of Agriculture will define the stewardship practices and determine the amount of credit to be awarded for each practice through a rulemaking process. A public stakeholder process will also be established to advise the Commissioner of Agriculture on the requirements.

Qualify and Claim

To qualify for the tax credit, a taxpayer will need to implement one, two, or three stewardship practices. The Department of Agriculture will issue tax credit certificates to qualified taxpayers upon application.

To claim the tax credit, a taxpayer must apply to the Department of Agriculture. Once the application is reviewed and approved, a tax credit certificate will be issued. The taxpayer needs to attach the certificate to their income tax return and submit it to the Department of Revenue.

Limited Terms

This tax credit proposal has a limited term of three years and is available only for qualified taxpayers who have not received any other tax credit, tax deduction, or grant for agricultural land health in the income tax year for which the credit is sought. Additionally, only one tax credit certificate may be issued to a qualified taxpayer per calendar year.

Colorado HB24 – 1249 Passed Colorado House and Senate

Colorado HB 24 – 1249 is sponsored by Representative Matthew Martinez, Colorado House District 62; Representative Ty Winter, Colorado House District 47; Senator Rod Pelton, Colorado Senate District 35; and Senator Dylan Roberts, Colorado Senate District 8.

Colorado HB 24 – 1249 passed the House on April 29th with no amendments and passed the Senate on May 8th with no amendments.

Link to more information about HB24-1249 HERE

Link to Colorado HB1249 Bill Text HERE