A new tax credit is available to food retailers and family farms to increase access to healthy groceries.

Eligible businesses that purchase equipment to expand access to food can apply for the refundable income tax credit. Starting this year, up to $10 million per year is available to help small businesses that fit the criteria. The Community Food Access Tax Credit will continue through 2030.

“Both rural and urban communities across Colorado experience lack of access to freshly harvested or grown food. This refundable tax credit program will help small food retailers and small farms bring healthy food to communities with low access to fresh, nutritious food,” said Kate Greenberg, Colorado commissioner of agriculture. “Small businesses will be able to get back 75 percent or more of the cost of expensive equipment necessary to provide fresh produce, meat and dairy products to communities across Colorado.”

Funded through state legislation enacted in 2023, the tax credit will build on community food access grants created by state legislation enacted in 2022.
The grants help stores, farm stands, farmers markets and farms purchase equipment or cover operating expenses that would allow them to increase the availability of healthy food. To date, a total of 117 grants worth a collective $5 million  have been awarded in 42 Colorado counties.

“The success of this grant program can really be attributed to the great number of stakeholders who engaged with its development and conception,” said Amanda Laban, director of the markets division of the Colorado Department of Agriculture.

Examples of  businesses eligible for the new tax credits include grocery, corner and convenience stores; carnicerías, bodegas or mercantiles; farmers markets, farm stands and community supported agriculture operations; and small farms, ranches and dairies.

Businesses can receive tax credits for such items as cold storage, food preservation equipment, shelving and displays, delivery vehicles and more.
Non-eligible expenses include things such as office supplies, food and product costs, installation costs or salaries.

More information about the Community Food Access Program and the  tax credits are available online through the website at  https://ag.colorado.gov/markets/markets-funding/community-food-access-program