HOUSE BILL 24-1249
BY REPRESENTATIVE(S) Winter T. and Martinez, Amabile, Bird,
deGruy Kennedy, Duran, Joseph, Kipp, Lieder, Lukens, Lynch, Mauro,
McCormick, McLachlan, Titone, McCluskie;
also SENATOR(S) Pelton R. and Roberts, Bridges, Cutter, Fields, Gardner,
Kirkmeyer, Liston, Michaelson Jenet, Pelton B., Priola, Simpson,
Smallwood, Will, Fenberg.
C
ONCERNING A STATE INCOME TAX CREDIT FOR ACTIVE AGRICULTURAL
STEWARDSHIP PRACTICES
, AND, IN CONNECTION THEREWITH, MAKING
AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 39-22-561 as
follows:
39-22-561. Agricultural stewardship tax credit - tax preference
performance statement - legislative declaration - definitions - repeal.
(1) (a) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX
PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
LEGISLATIVE DECLARATION
, THE GENERAL ASSEMBLY DECLARES THAT THE
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. PURPOSE OF THE TAX CREDIT CREATED IN THIS SECTION IS TO INDUCE
CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS
, SPECIFICALLY TO
ENCOURAGE AN INDIVIDUAL TO ACTIVELY PRACTICE ONE OR MORE
QUALIFIED STEWARDSHIP PRACTI CES ON A FARM OR RANCH
, INCLUDING ANY
PRACTICE THAT INCREASES SOIL HEALTH
, IMPROVES WATER EFFICIENCY, OR
CREATES MORE DIVERSE AND BENEFICIAL ECOSYSTEMS WHILE MAINTAINING
THE PRODUCTIVITY OF THE FARM OR RANCH
.
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE
SPECIFIED IN SUBSECTION
(1)(a) OF THIS SECTION BASED ON THE
INFORMATION REQUIRED TO BE MAINTAINED BY AND REPORTED TO THE
STATE AUDITOR BY THE DEPARTMENT OF AGRICULTURE PURSUANT TO
SUBSECTION
(4)(b) OF THIS SECTION.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "C
REDIT CERTIFICATE" MEANS A CERTIFICATE ISSUED BY THE
DEPARTMENT OF AGRICULTURE CERTIFYING THAT A QUALIFIED TAXPAYER
QUALIFIES FOR AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION AND
SPECIFYING THE AMOUNT OF THE CREDIT ALLOWED AND THE INCOME TAX
YEAR FOR WHICH THE CREDIT MAY BE CLAIMED
.
(b) "Q
UALIFIED STEWARDSHIP PRACTICE " MEANS ANY
AGRICULTURAL PRACTICE
, AS SPECIFIED BY RULES ISSUED BY THE
COMMISSIONER OF THE DEPARTMENT OF AGRICULTURE
, THAT MAY INCLUDE
A GRAZING OR CROPPING PRACTICE THAT IMPROVES SOIL HEALTH
, IMPROVES
WATER RETENTION AND DROUGHT RESILIENCE
, OR CREATES MORE DIVERSE
AND BENEFICIAL ECOSYSTEMS WHILE MAINTAINING THE PRODUCTIVITY OF
THE FARM OR RANCH
, INCLUDING ROTATIONAL CROPS, REDUCED TILLAGE, NO
TILLAGE
, COVER CROPPING, INTEGRATING MANAGED LIVESTOCK GRAZING ON
CROPLAND
, RANGE IMPROVEMENTS , INTERSEEDING, OR COMPOST
APPLICATION
.
(c) "Q
UALIFIED TAXPAYER" MEANS A PERSON SUBJECT TO TAX
PURSUANT TO THIS ARTICLE
22 WHO ACTIVELY PRACTICES A QUALIFIED
STEWARDSHIP PRACTICE ON A FARM OR RANCH LOCATED IN THE STATE
DURING AN INCOME TAX YEAR
, WHETHER THE QUALIFIED STEWARDSHIP
PRACTICE IS NEWLY PRACTICED DURING THE INCOME TAX YEAR OR IS BEING
PAGE 2-HOUSE BILL 24-1249 CONTINUED FROM A PRIOR INCOME TAX YEAR .
(3) (a) S
UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION
(3)(b) OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2026, BUT BEFORE JANUARY 1, 2031, A QUALIFIED TAXPAYER
IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS
ARTICLE
22 IN AN AMOUNT EQUAL TO:
(I) A
MINIMUM OF FIVE DOLLARS AND A MAXIMUM OF SEVENTY -FIVE
DOLLARS PER ACRE OF LAND SUBJECT TO ONE QUALIFIED STEWARDSHIP
PRACTICE
, AS SPECIFIED BY RULE ISSUED BY THE COMMISSIONER OF THE
DEPARTMENT OF AGRICULTURE
, LIMITED TO A MAXIMUM CREDIT AMOUNT OF
ONE HUNDRED FIFTY THOUSAND DOLLARS PER INCOME TAX YEAR
;
(II) A
MINIMUM OF TEN DOLLARS AND A MAXIMUM OF ONE HUNDRED
DOLLARS PER ACRE OF LAND SUBJECT TO TWO QUALIFIED STEWARDSHIP
PRACTICES
, AS SPECIFIED BY RULE ISSUED BY THE COMMISSIONER OF THE
DEPARTMENT OF AGRICULTURE
, LIMITED TO A MAXIMUM CREDIT AMOUNT OF
TWO HUNDRED THOUSAND DOLLARS PER INCOME TAX YEAR
; AND
(III) A MINIMUM OF FIFTEEN DOLLARS AND A MAXIMUM OF ONE
HUNDRED FIFTY DOLLARS PER ACRE OF LAND SUBJECT TO THREE OR MORE
QUALIFIED STEWARDSHIP PRACTICES
, AS SPECIFIED BY RULE ISSUED BY THE
COMMISSIONER OF THE DEPARTMENT OF AGRICULTURE
, LIMITED TO A
MAXIMUM CREDIT AMOUNT OF THREE HUNDRED THOUSAND DOLLARS PER
INCOME TAX YEAR
.
(b) T
HE DEPARTMENT OF AGRICULTURE MAY ONLY ISSUE TAX CREDIT
CERTIFICATES TO A QUALIFIED TAXPAYER
:
(I) F
OR THREE INCOME TAX YEARS; AND
(II) IF THE QUALIFIED TAXPAYER HAS NOT RECEIVED A TAX CREDIT ,
TAX DEDUCTION, OR GRANT RELATED TO THE AGRICULTURAL LAND AND THE
QUALIFYING STEWARDSHIP PRACTICE DURING AN INCOME TAX YEAR FOR
WHICH A TAX CREDIT IS CLAIMED PURSUANT TO THIS SECTION FROM ANY
OTHER SOURCE
.
(4) (a) A
QUALIFIED TAXPAYER SHALL SUBMIT AN APPLICATION TO
THE DEPARTMENT OF AGRICULTURE FOR A TAX CREDIT CERTIFICATE TO
PAGE 3-HOUSE BILL 24-1249 CLAIM THE CREDIT ALLOWED BY THIS SECTION ON A FORM AND IN A MANNER
PRESCRIBED BY THE DEPARTMENT OF AGRICULTURE
. THE APPLICATION MUST
INCLUDE A MEANS FOR THE TAXPAYER TO NOTE WHETHER THE TAXPAYER
FILES INCOME TAXES ON A CALENDAR YEAR OR FISCAL YEAR BASIS AND
INFORMATION TO ALLOW THE DEPARTMENT OF AGRICULTURE TO MAKE A
DETERMINATION THAT THE STEWARDSHIP PRACTICE IS A QUALIFIED
STEWARDSHIP PRACTICE
, THAT THE QUALIFIED TAXPAYER IS ACTIVELY
PRACTICING THE QUALIFIED STEWARDSHIP PRACTICE
, AND TO VERIFY THE
AMOUNT FOR WHICH THE TAX CREDIT CERTIFICATE IS APPLIED
. A QUALIFIED
TAXPAYER MAY RECEIVE ONLY ONE TAX CREDIT CERTIFICATE PER INCOME
TAX YEAR
.
(b) (I) T
HE DEPARTMENT OF AGRICULTURE SHALL MAINTAIN A
DATABASE OF ANY INFORMATION DETERMINED NECESSARY BY THE
DEPARTMENT OF AGRICULTURE TO EVALUATE THE EFFECTIVENESS OF THE
INCOME TAX CREDIT ALLOWED IN THIS SECTION IN MEETING THE PURPOSE
SET FORTH IN SUBSECTION
(1) OF THIS SECTION AND SHALL PROVIDE SUCH
INFORMATION
, AND ANY OTHER INFORMATION THAT MAY BE NEEDED , IF
AVAILABLE
, TO THE STATE AUDITOR AS PART OF THE STATE AUDITOR 'S
EVALUATION OF THIS TAX EXPENDITURE REQUIRED BY SECTION
39-21-305.
(II) T
HE DEPARTMENT OF AGRICULTURE SHALL , IN A SUFFICIENTLY
TIMELY MANNER TO ALLOW THE DEPARTMENT OF REVENUE TO PROCESS
RETURNS CLAIMING THE INCOME TAX CREDIT ALLOWED IN THIS SECTION
,
PROVIDE THE DEPARTMENT OF REVENUE WITH AN ELECTRONIC REPORT FOR
THE PRECEDING TAX YEAR THAT LISTS EACH QUALIFIED TAXPAYER TO WHICH
THE DEPARTMENT OF AGRICULTURE ISSUED A TAX CREDIT CERTIFICATE AND
INCLUDES THE FOLLOWING INFORMATION
:
(A) T
HE QUALIFIED TAXPAYER'S NAME;
(B) T
HE AMOUNT OF THE INCOME TAX CREDIT THAT THE CERTIFICATE
INDICATES THE QUALIFIED TAXPAYER IS ELIGIBLE TO CLAIM
; AND
(C) THE QUALIFIED TAXPAYER'S SOCIAL SECURITY NUMBER OR THE
QUALIFIED TAXPAYER
'S COLORADO ACCOUNT NUMBER AND FEDERAL
EMPLOYER IDENTIFICATION NUMBER
.
(5) I
N ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION ,
A QUALIFIED TAXPAYER SHALL FILE THE TAX CREDIT CERTIFICATE WITH THE
PAGE 4-HOUSE BILL 24-1249 QUALIFIED TAXPAYER'S STATE INCOME TAX RETURN. THE AMOUNT OF THE
CREDIT THAT THE QUALIFIED TAXPAYER MAY CLAIM PURSUANT TO THIS
SECTION IS THE AMOUNT STATED ON THE TAX CREDIT CERTIFICATE
.
(6) T
HE DEPARTMENT OF AGRICULTURE SHALL ISSUE CERTIFICATES
FOR CREDIT CLAIMS RECEIVED IN THE ORDER SUBMITTED
, BUT SHALL NOT
ISSUE CREDIT CERTIFICATES THAT EXCEED THREE MILLION DOLLARS IN A
CALENDAR YEAR
. AFTER CERTIFICATES HAVE BEEN ISSUED FOR CREDITS IN
AN AGGREGATE AMOUNT OF THREE MILLION DOLLARS FOR ALL QUALIFIED
TAXPAYERS DURING A CALENDAR YEAR
, ANY ADDITIONAL CLAIMS MUST BE
PLACED ON A WAIT LIST
, WITH PRIORITY FIRST GIVEN TO A QUALIFIED
TAXPAYER WHO HAS BEEN ISSUED A TAX CERTIFICATE IN THE CALENDAR
YEAR PRECEDING THE CALENDAR YEAR IN WHICH THE QUALIFIED TAXPAYER
IS PLACED ON THE WAIT LIST AND SECOND TO A QUALIFIED TAXPAYER WHO
APPLIED FOR THE TAX CREDIT AUTHORIZED IN THIS SECTION BUT WAS
PLACED ON THE WAIT LIST
, AND A CERTIFICATE MUST BE ISSUED FOR USE OF
THE CREDIT IN THE NEXT CALENDAR YEAR
; EXCEPT THAT NO MORE THAN
TWO MILLION DOLLARS IN CLAIMS SHALL BE PLACED ON THE WAIT LIST IN
ANY GIVEN CALENDAR YEAR
. NO CLAIM FOR A CREDIT IS ALLOWED FOR ANY
INCOME TAX YEAR UNLESS A CERTIFICATE HAS BEEN ISSUED BY THE
DIVISION
. IF ALL OTHER REQUIREMENTS OF THIS SECTION ARE MET , THE
RIGHT TO CLAIM THE CREDIT IS VESTED IN A QUALIFIED TAXPAYER AT THE
TIME A CREDIT CERTIFICATE IS ISSUED
.
(7) I
F AN INCOME TAX CREDIT AUTHORIZED IN THIS SECTION EXCEEDS
THE INCOME TAX DUE ON THE INCOME OF THE QUALIFIED TAXPAYER FOR THE
TAXABLE YEAR
, THE EXCESS CREDIT MAY NOT BE CARRIED FORWARD AND
MUST BE REFUNDED TO THE QUALIFIED TAXPAYER
.
(8) T
HE COMMISSIONER OF THE DEPARTMENT OF AGRICULTURE MAY
ISSUE RULES TO ADMINISTER THIS SECTION
, INCLUDING SPECIFYING
REQUIREMENTS FOR IMPLEMENTING AND DEMONSTRATING QUALIFIED
STEWARDSHIP PRACTICES
, AND MAY ISSUE TAX CREDIT CERTIFICATES
PURSUANT TO THIS SECTION
. BEFORE PROMULGATING ANY RULES , THE
COMMISSIONER SHALL INITIATE A PUBLIC STAKEHOLDER PROCESS TO ADVISE
THE COMMISSIONER ABOUT THE REQUIREMENTS FOR IMPLEMENTING AND
DEMONSTRATING QUALIFIED STEWARDSHIP PRACTICES
.
(9) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2034.
PAGE 5-HOUSE BILL 24-1249 SECTION 2. Appropriation. For the 2024-25 state fiscal year,
$17,117 is appropriated to the department of agriculture for use by the
agricultural services division. This appropriation is from the general fund
and is based on an assumption that the division will require an additional
0.1 FTE. To implement this act, the division may use this appropriation for
the conservation services division.
SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 6-HOUSE BILL 24-1249 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 7-HOUSE BILL 24-1249