CO HB1138

Establishes a state income tax credit for sales or leases of agricultural assets (land, crops, livestock, equipment, irrigation systems, water) to beginning or socially disadvantaged farmers/ranchers for tax years 2026-2030

Creates three credit options: 5% of sale price up to $32,000 for qualified sales; 10% of gross rental income up to $7,000 annually for 3-year leases; and 2% of gross rental income up to $2,000 annually for leases of 20+ years

Requires qualified taxpayers to obtain a credit certificate from the Colorado agricultural value-added development board before claiming the credit on their tax return

Limits total credits issued to $2 million per calendar year, with excess applications placed on a wait list for the following year; no more than $2 million in claims may be placed on wait list in any year

Makes the credit refundable (excess over tax liability is refunded), non-transferable, and sunsets the provision on December 31, 2034