HB 24-1249: Agricultural Stewardship Tax Credit

• Creates a state income tax credit for individuals actively practicing qualified stewardship practices on Colorado farms or ranches, including rotational crops, reduced/no tillage, cover cropping, managed livestock grazing, range improvements, interseeding, and compost application.

• Credit amounts range from $5-$75 per acre for one practice, $10-$100 per acre for two practices, and $15-$150 per acre for three or more practices, with annual maximums of $150,000, $200,000, and $300,000 respectively.

• Allows qualified taxpayers to receive tax credit certificates for three income tax years only, with a statewide cap of $3 million in certificates issued per calendar year, and excess claims placed on a wait list prioritizing returning applicants.

• Department of Agriculture administers the program, issues certificates through an application process, maintains a database to evaluate effectiveness, and must conduct a public stakeholder process before issuing rules.

• Appropriates $17,117 to the Department of Agriculture for implementation and automatically repeals the credit effective December 31, 2034.