{"id":22752,"date":"2025-04-10T23:15:33","date_gmt":"2025-04-11T05:15:33","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/small-farms-and-food-retailers-in-sw-colorado-could-be-eligible-for-a-tax-credit\/"},"modified":"2026-03-30T22:16:49","modified_gmt":"2026-03-31T04:16:49","slug":"small-farms-and-food-retailers-in-sw-colorado-could-be-eligible-for-a-tax-credit","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/small-farms-and-food-retailers-in-sw-colorado-could-be-eligible-for-a-tax-credit\/","title":{"rendered":"Small farms and food retailers in SW Colorado could be eligible for a tax credit"},"content":{"rendered":"

\"Mike
Mike Jensen, co-owner of Homegrown Farm, and employee Brooke Frazer help a customer at the Durango Farmer\u2019s Market on Saturday.<\/span>Jonathan Romeo\/Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>\n

A few years back, Colorado created a program with the underlying intention of increasing communities\u2019 access to healthy food, especially in areas it considers underserved.<\/p>\n

It\u2019s called the Community Food Access Program<\/a>, and it supports that mission \u201cby supporting small grocers, farm stands, farmers markets and farms\u201d that supply its community with healthy food, according to a slideshow <\/a>from the Colorado Department of Agriculture.<\/p>\n

One way it\u2019s supporting local grocers and farm stands under that program is through a refundable income tax credit.<\/p>\n

Until 2030, there\u2019s $10 million allocated for the tax credit program, and that money resets every year. That means, for the life of the program, there\u2019s $70 million that\u2019ll be awarded to small businesses statewide via refundable income tax credits.<\/p>\n

And since that money is from the state and not the federal government, it\u2019s not threatened by federal cutbacks.<\/p>\n

\u201cA follow-up question to that is usually, \u2018What about state cuts as it tries to balance its budget?\u2019\u201d said Lauren Ames, the food security director at the Good Food Collection.<\/p>\n

\u201cAs of right now, no, the program is not at stake or threatened,\u201d said Ames.<\/p>\n

Small family farms and food retailers are encouraged to see if they are eligible for the 75% reimbursement on equipment that helps them offer its community healthy, culturally relevant food at lower costs.<\/p>\n

That money can curb income taxes or come back to a business in cash.<\/p>\n

\u201cAll of Montezuma and Dolores counties are eligible,\u201d said Ames.<\/p>\n

The CDA\u2019s website<\/a> specifies exactly which businesses and equipment purchases are eligible for the reimbursable tax credit.<\/p>\n

\u201cColorado-owned small grocery stores that operate in less than 10,000 square feet of retail space; farmers markets or farm direct retailers (like farm stands or CSA\u2019s) that are already or intend to become SNAP or WIC-authorized; and farmers with an annual gross revenue below $350,000 who sell wholesale to Colorado owned small grocery stores could be eligible,\u201d Ames wrote in an email.<\/p>\n

Places like Zuma Natural Foods in Mancos, the Dolores Food Market and possibly even Fireweed Caf\u00e9 & Mercantile in Rico could all be eligible, said Ames.<\/p>\n

As far as eligible equipment goes, the CDA has prioritized certain things over others.<\/p>\n

\u201cCold storage is a top priority,\u201d Ames said. \u201cPriority is based on things that businesses have asked for and said have been barriers to increasing healthy food access. It connects back to need.\u201d<\/p>\n

After cold storage, things like display shelving and cases, certified scales, Point of Sales machines \u201cdirectly related to implementing or improving SNAP, WIC, or other food incentive programs,\u201d food preservation equipment and deli slicers are listed as eligible equipment, among other things.<\/p>\n

And, of course, \u201cbusinesses are prioritized (for the tax credit) based on who can make a case that it will increase healthy, culturally relevant food access to underserved areas,\u201d said Ames.<\/p>\n

And since tax credits are available until 2030, \u201cit gives businesses time to plan, and build this into their plans and think about long-term investments,\u201d said Ames.<\/p>\n

\u201cIt\u2019s a great deal for businesses already planning on making a big equipment purchase,\u201d she added.<\/p>\n