HB 16-1194 Summary

• Allows qualified taxpayers to deduct 20 percent of lease payments received from eligible beginning farmers or ranchers for tax years 2017-2019

• Deduction capped at $25,000 per year for a maximum of three tax years, with Colorado Agricultural Development Authority limited to issuing 100 certificates per year

• Requires eligible beginning farmers or ranchers to have less than $2 million net worth, provide majority labor/management, have less than 10 years farming experience, and complete financial management education approved by the authority

• Qualified leases must be approved by the Colorado Agricultural Development Authority and have a minimum three-year duration

• Program sunsets December 31, 2023 and applies to both individual and corporate income tax returns with a deduction certificate requirement