First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0486.02 Pierce Lively x2059
HOUSE BILL 23-1008
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING TAX POLICIES RELATED TO THE ACCESSIBILITY OF FOOD ,101
AND, IN CONNECTION THEREWITH , REQUIRING ADDITIONS TO102
C
OLORADO TAXA BLE INCOME IN AMOUNTS EQUAL TO THE103
BUSINESS MEALS FEDERAL ITEMIZED DEDUCTION , PROVIDING104
FUNDING FOR THE SMALL BUSI NESS RECOVERY AND RESILIENCE105
GRANT PROGRAM , CREATING A TAX CREDIT FOR CERTAIN106
PURCHASES ELIGI BLE FOR THAT GRANT PROGRAM , AND107
PROVIDING FUNDING FOR HEALTHY EATING PROGRAM108
INCENTIVES.109
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
HOUSE SPONSORSHIP
Weissman,
SENATE SPONSORSHIP
Fields,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Section 2 of the bill requires the general assembly, for fiscal year
2023-24 through fiscal year 2030-31, to annually transfer $1 million to
the prevention services division (division) within the department of public
health and environment. The bill requires the division to use this money
to partner with a statewide nonprofit organization to provide healthy
eating program incentives among Colorado's low-income populations.
Section 3 requires individual taxpayers to add an amount of
federal taxable income equal to their federal deduction for business meals
to their state income tax liability for the 2024 through 2030 income tax
years. Section 4 requires the same of corporate taxpayers. Section 6
requires the general assembly to transfer the following amounts from the
general fund to the department of agriculture to implement the small
business recovery and resilience grant program (grant program):
! For fiscal years 2023-24 and 2030-31, $2.5 million; and
! For fiscal years 2024-25 through 2029-30, $5 million.
Section 6 also extends the repeal date of the grant program from
September 1, 2027 to September 1, 2031.
Section 5 creates a tax credit for small food retailers and small
family farms that purchase certain systems or equipment. The tax credit
is equal to 75% of the cost of those systems or equipment. Purchasers
may assign the tax credit to the seller who sells them the qualifying
systems or equipment. The tax credit is available for the 2024 through
2030 tax years.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) A recent survey found that one in three Coloradans are "food4
insecure", that is, lacking reliable access to nutritious food;5
(b) In addition, more than one in three adults living with children6
have reported regularly cutting back or skipping meals to allow their7
children to have enough to eat;8
(c) Childhood hunger can have lifetime impacts, such as9
interfering with developmental and educational progress;10
HB23-1008-2- (d) Certain communities, including communities of color, seniors,1
and lower-income Coloradans, are prone to higher-than-average rates of2
food insecurity;3
(e) Food security and housing security are closely related issues,4
because both are basic needs that a family must account for, and the two5
can become competing priorities on a limited budget. That is, a family's6
ability to pay for their food is directly related to their ability to pay for7
their housing, and improving one will necessarily improve the other. 8
(f) Improving the capacity of existing small, local retailers to store9
and sell nutritious food can improve access, lower prices, and reduce food10
insecurity, particularly for Colorado families most at risk of it, while11
keeping more of the proceeds of economic activity in the local12
community;13
(g) Expanding the number of retailers selling fresh produce may14
also create new market opportunities for Colorado agricultural producers;15
(h) Therefore, the general assembly determines that enacting this16
legislation to further support existing nutrition access efforts will improve17
access to nutritious food for Coloradans, assist small businesses, and18
foster Colorado's agricultural industry.19
SECTION 2. In Colorado Revised Statutes, 25-20.5-104, add20
(2.5) as follows:21
25-20.5-104. Functions of division. (2.5) (a) F
OR STATE FISCAL22
YEARS 2024-25 THROUGH 2029-30, THE GENERAL ASSEMBLY SHALL23
ANNUALLY APPROPRIATE ONE MILLION DOLLARS TO THE DIVISION FOR THE24
DIVISION TO PARTNER WITH A STATEWIDE NONPROFIT ORGANIZATION TO25
PROVIDE HEALTHY EATING PROGRAM INCENTIVES AMONG COLORADO'S26
LOW-INCOME POPULATIONS. THESE PROGRAM INCENTIVES MUST ATTEMPT27
HB23-1008
-3- TO IMPROVE ACCESS TO FRESH COLORADO GROWN FRUITS AND1
VEGETABLES AMONG COLORADO'S LOW-INCOME POPULATIONS.2
(b) T
HE STATEWIDE NONPROFIT ORGANIZATION SELECTED BY THE3
DIVISION FOR THE PARTNERSHIP DESCRIBED IN THIS SUBSECTION (2.5)4
MUST HAVE EXPERIENCE IN SUPPORTING HEALTHY EATING INCENTIVE5
PROGRAMS, SUCH AS PROGRAMS AT LOCAL FARMERS MARKETS , AND6
EXPERIENCE WITH COORDINATING HEALTHY EATING PROGRAMS AND7
FUNDING BETWEEN LOCAL , STATE, AND FEDERAL PROGRAMS.8
(c) I
N PROVIDING THE PROGRAM INCENTIVES DESCRIBED IN THIS9
SUBSECTION (2.5), BOTH THE DIVISION AND THE NONPROFIT SHALL10
MINIMIZE THEIR ADMINISTRATIVE EXPENSES. THE DIVISION SHALL NOT USE11
MORE THAN TEN THOUSAND DOLLARS AND THE NONPROFIT SHALL NOT USE12
MORE THAN FIVE PERCENT OF THE AMOUNT TRANSFERRED PURSUANT TO13
SUBSECTION (2.5)(a) OF THIS SECTION FOR THEIR ADMINISTRATIVE14
EXPENSES.15
(d) T
HIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE SEPTEMBER 1,16
2031.17
SECTION 3. In Colorado Revised Statutes, 39-22-104, add (3)(s)18
as follows:19
39-22-104. Income tax imposed on individuals, estates, and20
trusts - single rate - report - legislative declaration - definitions -21
repeal. (3) There shall be added to the federal taxable income:22
(s) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER23
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2031, AN AMOUNT EQUAL TO24
A FEDERAL DEDUCTION CLAIMED FOR A BUSINESS MEAL PURSUANT TO25
SECTION 274 (k) OF THE INTERNAL REVENUE CODE .26
(II) T
HIS SUBSECTION (3)(s) IS REPEALED, EFFECTIVE DECEMBER27
HB23-1008
-4- 31, 2035.1
SECTION 4. In Colorado Revised Statutes, 39-22-304, add2
(2)(k) as follows:3
39-22-304. Net income of corporation - legislative declaration4
- definitions - repeal. (2) There shall be added to federal taxable income:5
(k) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER6
J
ANUARY 1, 2024, BUT BEFORE JANUARY 1, 2031, AN AMOUNT EQUAL TO7
A FEDERAL DEDUCTION CLAIMED FOR A BUSINESS MEAL PURSUANT TO8
SECTION 274 (k) OF THE INTERNAL REVENUE CODE.9
(II) T
HIS SUBSECTION (2)(k) IS REPEALED, EFFECTIVE DECEMBER10
31,
2035.11
SECTION 5. In Colorado Revised Statutes, add 39-22-549 as12
follows:13
39-22-549. Credit against tax - small food business recovery14
and resilience grant program equipment - tax preference15
performance statement - legislative declaration - definitions - repeal.16
(1) (a) T
HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT , IN17
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL18
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE19
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE20
DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES21
THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN SUBSECTION22
(3)
OF THIS SECTION ARE TO:23
(I) I
NDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,24
SPECIFICALLY THE PURCHASE AND USE OF SMALL FOOD BUSINESS25
RECOVERY AND RESILIENCE GRANT PROGRAM EQUIPMENT ; AND26
(II) C
ONTRIBUTE TO THE STATE'S EFFORT TO IMPROVE ACCESS TO27
HB23-1008
-5- AND LOWER PRICES FOR HEALTHY FOODS IN LOW -INCOME AND1
UNDERSERVED AREAS OF THE STATE BY SUPPORTING SMALL FOOD2
RETAILERS.3
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL4
MEASURE THE EFFECTIVENESS OF THE TAX CREDITS IN ACHIEVING THE5
PURPOSES SPECIFIED IN SUBSECTION (1)(a)(I) OF THIS SECTION BASED ON6
THE NUMBER OF THE TAX CREDITS CREATED IN THIS SECTION THAT7
TAXPAYERS CLAIM. THE DEPARTMENT OF AGRICULTURE AND THE8
DEPARTMENT OF REVENUE SHALL PROVIDE THE STATE AUDITOR WITH ANY9
AVAILABLE INFORMATION THAT WOULD ASSIST THE STATE AUDITOR IN10
THIS MEASUREMENT.11
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE12
REQUIRES:13
(a) "P
URCHASE PRICE" MEANS THE AMOUNT ACTUALLY PAID BY14
THE PURCHASER FOR THE SMALL FOOD BUSINESS RECOVERY AND15
RESILIENCE GRANT PROGRAM EQUIPMENT , INCLUDING CHARGES FOR SALES16
TAX AND FREIGHT, BUT NOT INCLUDING ANY CHARGES FOR ASSEMBLY ,17
INSTALLATION, OTHER CONSTRUCTION SERVICES , OR PERMIT FEES.18
(b) "P
URCHASER" MEANS A SMALL FOOD RETAILER OR SMALL19
FAMILY FARM THAT PURCHASES SMALL FOOD BUSINESS RECOVERY AND20
RESILIENCE GRANT PROGRAM EQUIPMENT .21
(c) "S
ELLER" MEANS THE ENTITY THAT SELLS SMALL FOOD22
BUSINESS RECOVERY AND RESILIENCE GRANT PROGRAM EQUIPMENT TO A23
PURCHASER.24
(d) "S
MALL FAMILY FARM" HAS THE SAME MEANING AS SET FORTH25
IN SECTION 35-1-117 (8)(d).26
(e) "S
MALL FOOD BUSINESS RECOVERY AND RESILIENCE GRANT27
HB23-1008
-6- PROGRAM EQUIPMENT " MEANS THE ITEMS LISTED IN SECTION 35-1-1171
(3)(a)(II)
AND (3)(a)(IV).2
(f) "S
MALL FOOD RETAILER" HAS THE SAME MEANING AS SET3
FORTH IN SECTION 35-1-117 (8)(e).4
(3) (a) (I) S
UBJECT TO THE PROVISIONS OF SUBSECTION (4) OF THIS5
SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY6
1,
2024, BUT BEFORE JANUARY 1, 2031, ANY PURCHASER OF SMALL FOOD7
BUSINESS RECOVERY AND RESILIENCE GRANT PROGRAM EQUIPMENT IS8
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE 22 IN AN9
AMOUNT EQUAL TO SEVENTY -FIVE PERCENT OF THE PURCHASE PRICE OF10
THE RELEVANT SMALL FOOD BUSINESS RECOVERY AND RESILIENCE GRANT11
PROGRAM EQUIPMENT MINUS THE AMOUNT OF ANY GRANT AWARDED12
UNDER THE SMALL FOOD BUSINESS RECOVERY AND RESILIENCE GRANT13
PROGRAM FOR THE PURCHASE OF THE SAME SMALL FOOD BUSINESS14
RECOVERY AND RESILIENCE GRANT PROGRAM EQUIPMENT .15
(II) I
N A GIVEN INCOME TAX YEAR, THE DEPARTMENT OF REVENUE16
SHALL NOT AWARD TAX CREDITS PURSUANT TO THIS SUBSECTION (3) THAT17
EXCEED SIX MILLION FIVE HUNDRED THOUSAND DOLLARS .18
(b) T
HE CREDIT ALLOWED PURSUANT TO THIS SECTION IS FOR THE19
INCOME TAX YEAR IN WHICH A PURCHASER PURCHASES THE RELEVANT20
SMALL FOOD BUSINESS RECOVERY AND RESILIENCE GRANT PROGRAM21
EQUIPMENT.22
(4) (a) T
O BE ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS23
SECTION, THE PURCHASER MUST CERTIFY , IN A FORM AND MANNER24
DETERMINED BY THE DEPARTMENT OF AGRICULTURE , THAT THE25
PURCHASER IS A SMALL FOOD RETAILER OR SMALL FAMILY FARM THAT26
PURCHASED THE SMALL FOOD BUSINESS RECOVERY AND RESILIENCE27
HB23-1008
-7- GRANT PROGRAM EQUIPMENT .1
(b) T
HE PURCHASER MUST PROVIDE THE CERTIFICATION TO THE2
SELLER FOR THE PURPOSES OF SUBSECTION (5) OF THIS SECTION, IF3
APPLICABLE.4
(5) (a) A
PURCHASER MAY ASSIGN THE TAX CREDIT ALLOWED IN5
THIS SECTION TO THE SELLER. IN ORDER FOR THE PURCHASER TO PROPERLY6
MAKE THIS ASSIGNMENT:7
(I) T
HE PURCHASER MUST COMPLETE THE ASSIGNMENT WHEN THE8
PURCHASER PURCHASES THE SMALL FOOD BUSINESS RECOVERY AND9
RESILIENCE GRANT PROGRAM EQUIPMENT BY ENTERING INTO A WRITTEN10
AGREEMENT WITH THE SELLER, OR AN AGENT OR DESIGNEE OF THE SELLER,11
THAT:12
(A) I
NCLUDES A COPY OF THE CERTIFICATE DESCRIBED IN13
SUBSECTION (4)(a) OF THIS SECTION; AND14
(B) A
FFIRMS THAT THE REQUIREMENTS IN THIS SUBSECTION (5)(a)15
ARE MET;16
(II) T
HE PURCHASER MUST ASSIGN THE TAX CREDIT TO THE SELLER17
AND FORFEIT THE RIGHT TO CLAIM THE TAX CREDIT ON THE PURCHASER 'S18
TAX RETURN IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION ;19
AND20
(III) T
HE SELLER MUST COMPENSATE THE PURCHASER FOR THE21
FULL NOMINAL VALUE OF THE TAX CREDIT .22
(b) I
F A PURCHASER ASSIGNS THE TAX CREDIT TO A SELLER23
PURSUANT TO THIS SUBSECTION (5):24
(I) N
OTWITHSTANDING SECTION 39-21-108 (3), THE SELLER25
RECEIVES THE FULL AMOUNT OF THE TAX CREDIT THAT THE PURCHASER IS26
ALLOWED IN THIS SECTION. ANY UNPAID BALANCE OR UNPAID DEBT OF THE27
HB23-1008
-8- PURCHASER MAY NOT BE CREDITED FROM THE AMOUNT OF THE TAX1
CREDIT ALLOWED IN THIS SECTION.2
(II) W
ITHIN THIRTY DAYS OF THE PURCHASE OF THE SMALL FOOD3
BUSINESS RECOVERY AND RESILIENCE GRANT PROGRAM EQUIPMENT , THE4
SELLER MUST ELECTRONICALLY SUBMIT A REPORT CONTAINING THE5
INFORMATION IN THE AGREEMENT DESCRIBED IN SUBSECTION (5)(a)(I) OF6
THIS SECTION TO THE DEPARTMENT OF REVENUE IN A FORM AND MANNER7
TO BE DETERMINED BY THE DEPARTMENT ; AND8
(III) T
HE SELLER MUST FILE THE AGREEMENT DESCRIBED IN9
SUBSECTION (5)(a)(I) OF THIS SECTION WITH THE SELLER'S ORIGINAL TAX10
RETURN FOR THE TAXABLE YEAR IN WHICH THE SELLER SOLD THE11
RELEVANT SMALL FOOD BUSINESS RECOVERY AND RESILIENCE GRANT12
PROGRAM EQUIPMENT.13
(c) N
O LATER THAN DECEMBER 1, 2023, THE DEPARTMENT OF14
REVENUE, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE ,15
SHALL DEVELOP A MODEL AGREEMENT FOR PURPOSES OF SUBSECTION16
(5)(a)(I)
OF THIS SECTION AND A MODEL REPORT FOR PURPOSES OF17
SUBSECTION (5)(b)(II) OF THIS SECTION.18
(6) I
F A CREDIT AUTHORIZED IN THIS SECTION EXCEEDS THE19
INCOME TAX DUE ON THE INCOME OF THE SELLER OR PURCHASER FOR THE20
TAXABLE YEAR, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD AND21
IS REFUNDABLE TO THE SELLER OR PURCHASER .22
(7) M
AKING A PURCHASER AWARE OF THE INCOME TAX CREDIT23
ALLOWED IN THIS SECTION OR HELPING A PURCHASER ASSIGN THE INCOME24
TAX CREDIT TO A SELLER AS ALLOWED IN THIS SECTION DOES NOT RISE TO25
THE LEVEL OF PROVIDING THE PURCHASER WITH UNAUTHORIZED TAX26
ADVICE.27
HB23-1008
-9- (8) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2035.1
SECTION 6. In Colorado Revised Statutes, 35-1-117, amend (9);2
repeal (2)(b)(V); and add (3.5) as follows:3
35-1-117. Community food access program - creation -4
purpose - duties and responsibilities - grant program - funding -5
reporting - rules - definitions - repeal. (2) (b) (V) This subsection (2)6
is repealed, effective September 1, 2027.7
(3.5) (a) F
OR STATE FISCAL YEARS 2024-25 THROUGH 2029-30,8
THE GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE FIVE MILLION9
DOLLARS TO THE DEPARTMENT OF AGRICULTURE FOR THE PURPOSES OF10
IMPLEMENTING SUBSECTIONS (2) AND (3) OF THIS SECTION.11
(b) F
OR STATE FISCAL YEARS 2023-24 AND 2030-31, THE GENERAL12
ASSEMBLY SHALL ANNUALLY APPROPRIATE TWO MILLION FIVE HUNDRED13
THOUSAND DOLLARS TO THE DEPARTMENT OF AGRICULTURE FOR THE14
PURPOSES OF IMPLEMENTING SUBSECTIONS (2) AND (3) OF THIS SECTION.15
(9) This section is repealed, effective September 1, 2027
16
S
EPTEMBER 1, 2031.17
SECTION 7. Act subject to petition - effective date. This act18
takes effect at 12:01 a.m. on the day following the expiration of the19
ninety-day period after final adjournment of the general assembly; except20
that, if a referendum petition is filed pursuant to section 1 (3) of article V21
of the state constitution against this act or an item, section, or part of this22
act within such period, then the act, item, section, or part will not take23
effect unless approved by the people at the general election to be held in24
November 2024 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
HB23-1008
-10-