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May 24, 2024

Signed! Bipartisan Bill to Support Farmers and Ranchers Becomes Law

ALAMOSA, CO - Governor Jared Polis today signed into law bipartisan legislation sponsored by Representative Matthew Martinez and Senator Dylan Roberts that creates a refundable state income tax credit for a farm or ranch that uses certain stewardship practices that benefit the environment, such as improving soil health and water efficiency.

“With the help of this law,  we are ensuring that our farmers and ranchers are recognized and benefit from the work that they do to keep our lands thriving and conserving water as they utilize practices that improve soil health,” said Rep. Matthew Martinez, D-Monte Vista. “This tax credit will benefit our agriculture producers who invest in stewardship practices on their lands, saving them money while they produce and support agricultural systems for our state.”

“As Colorado continues to face drought, we must ensure we’re balancing the needs of our agricultural industry with stewardship practices that benefit the environment,” said Senator Dylan Roberts, D-Frisco. “This new law creates tax credits that will help improve soil health and water efficiency while supporting Colorado’s family farms and ranches. I’m proud to see this bipartisan policy – one of many we passed this year to support rural Colorado and our agriculture industry – signed into law today.”

HB24-1249, also sponsored by Assistant Minority Leader Ty Winter, R-Trinidad, and Senator Rod Pelton, R-Cheyenne Wells, creates a new refundable income tax credit from 2026 through 2030 for farms and ranches that engage in agricultural stewardship practices. These stewardship practices can include rotational grazing, reductions in tilling soil, compost application and other practices that increase soil health, improve water efficiency, or create more diverse and thriving ecosystems while maintaining the productivity of the farm or ranch.

Under this law, farmers and ranchers are eligible for a refundable income tax credit determined by the number of stewardship practices that the farm or ranch uses. The tax credit amounts are:

  • Up to $75 per acre for one stewardship practice, with a maximum yearly credit of $150,000,

  • Up to $100 per acre for two stewardship practices, with a maximum yearly credit of $200,000, and

  • Up to $150 per acre for three or more stewardship practices, with a maximum yearly credit of $300,000.

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