Colorado 2024 Regular Session

Colorado House Bill HB1249

Introduced
2/12/24  
Introduced
2/12/24  
Report Pass
3/11/24  
Refer
2/12/24  
Report Pass
3/11/24  
Refer
3/11/24  
Report Pass
3/25/24  
Report Pass
3/25/24  
Report Pass
4/25/24  
Refer
3/25/24  
Report Pass
4/25/24  
Engrossed
4/29/24  
Refer
4/25/24  
Engrossed
4/29/24  
Report Pass
5/2/24  
Refer
4/29/24  
Report Pass
5/2/24  
Report Pass
5/4/24  
Refer
5/2/24  
Report Pass
5/4/24  
Engrossed
5/9/24  
Refer
5/4/24  
Engrossed
5/9/24  
Engrossed
5/9/24  
Passed
5/24/24  
Enrolled
5/9/24  

Caption

Tax Credit Agricultural Stewardship Practices

Impact

If enacted, HB 1249 will positively impact Colorado's agricultural framework by providing financial benefits to farmers who adopt environmentally friendly practices. By potentially reducing income taxes by up to $300,000 depending on the acreage and type of stewardship methods used, the bill encourages more landowners to participate in these sustainable practices. The Department of Agriculture will play a significant role in administering the tax credit, issuing certificates that validate the taxpayer's eligibility.

Summary

House Bill 1249 is designed to establish a state income tax credit aimed at promoting active agricultural stewardship practices among farmers and ranchers in Colorado. The bill outlines specific stewardship practices that enhance soil health, improve water retention, and foster diverse ecosystems, thereby supporting sustainable agricultural practices. The tax credit incentivizes landowners to engage in practices that not only maintain their agricultural productivity but also contribute to broader environmental goals. The proposed credit varies based on the number of stewardship practices implemented, with higher credits allocated for greater engagement in these practices.

Sentiment

The sentiment around HB 1249 appears to be largely positive among supporters who view it as a crucial step towards enhancing environmental responsibility in agriculture. Advocates argue that it addresses critical issues such as soil degradation and water scarcity while empowering farmers financially. Nonetheless, some concerns have been raised regarding the effectiveness of the bill in achieving its desired outcomes and whether the benefits would reach the intended recipients without undue bureaucracy or inefficiencies in the administration of the tax credits.

Contention

Notable points of contention include the availability of tax credits capped at $3 million per calendar year, which could lead to a prioritization system that may disadvantage some qualified taxpayers. The bill provides that claims exceeding this cap be placed on a waitlist, raising concerns among potential beneficiaries about the reliability and accessibility of the benefits. Moreover, there is an underlying tension regarding the proper balance between incentivizing farming practices and ensuring that such incentives do not distort market conditions or lead to excessive focus away from other important agricultural practices.

Companion Bills

No companion bills found.

Previously Filed As

CO HF2733

A bill for an act relating to water quality, including a water quality monitoring network and the water quality initiative, an agricultural best management practices tax credit, an Iowa clean water farm program and property tax credit, and water quality practices loans, making appropriations, and including applicability provisions.

CO SB466

Modifies provisions relating to agricultural tax credits

CO HSB588

A bill for an act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products; the regulation of the transportation of agricultural commodities; the use of agricultural land; and taxation, including property taxes, excise and sales taxes, and income taxes; making penalties applicable; and including effective date and applicability provisions.(See HF 2340, HF 2748.)

CO HF2748

A bill for an act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products; the regulation of the transportation of agricultural commodities; the use of agricultural land; and taxation, including property taxes, excise and sales taxes, and income taxes; making penalties applicable; and including effective date and applicability provisions. (Formerly HF 2340, HSB 588.)

CO HF2340

A bill for an act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products; the regulation of the transportation of agricultural commodities; the use of agricultural land; and taxation, including property taxes, excise and sales taxes, and income taxes; making penalties applicable; and including effective date and applicability provisions.(Formerly HSB 588; See HF 2748.)

CO HB1317

Modifies provisions relating to agricultural tax credits

CO SB113

Agricultural Biomass Tax Credit Amounts

CO HF2732

A bill for an act providing for water quality practices, including an edge-of-field practice tax credit and cover crop practice tax credit.

CO SF2465

A bill for an act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products, the regulation of the transportation of agricultural items, the use of agricultural land, sales and use taxes, and veterinary practice and income taxes, making penalties applicable, and including effective date and applicability provisions. (Formerly SF 2420, SSB 3123.) Effective date: 06/01/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2027.

CO HF1522

Property taxes; definition of agricultural land modified for agricultural property classification.

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