CO HB1234

Creates a temporary income tax deduction for qualified taxpayers who lease agricultural assets to eligible beginning farmers or ranchers for tax years beginning January 1, 2016 through December 31, 2018.

Deduction equals 20% of lease payments received, capped at $25,000 per income tax year for a maximum of 3 tax years, with deduction certificates issued by the Colorado Agricultural Development Authority.

Eligible beginning farmers or ranchers must be Colorado residents with net worth under $2 million, less than 10 years farming/ranching experience, full-time farming/ranching plans, and completion of an approved financial management educational program.

Colorado Agricultural Development Authority limited to issuing no more than 100 deduction certificates per income tax year and must report qualified taxpayers to the Department of Revenue.

Provision expires December 31, 2022, and applies to both individual income taxes (section 39-22-104) and corporation income taxes (section 39-22-304).