Colorado Department of Agriculture
Community Food Access Program
Costly equipment purchases may be eligible for a refundable tax credit!
What is the Community Food Access Program?
The Community Food Access Program was established in spring of 2022 in House Bill 1380 “to improve access to and lower prices for healthy foods in low-income and underserved areas of the state by supporting small food retailers."
The program will include a Community Food Consortium for small food retailers and Colorado-owned and Colorado-operated farms as well as the Small Food Business Recovery and Resilience grant program.
In 2023, the Community Food Access program was expanded to include refundable tax credits for small food retailers and small family farms who make costly equipment purchases or incur delivery or distribution fees to increase access to healthy food in low income and underserved areas of Colorado.
How to apply for tax credit:
Step 2: Find out if your purchase is eligible.
Costly equipment purchases that will increase access to or lower prices for healthy foods in low income, low access areas are eligible for the tax credit.
Step 3: Apply for the Tax Credit.
Contact us for assistance applying for the tax credit.
Step 1: Find out if your business is eligible.
Small Food Retailers and Small Family Farms are eligible for the CFA Tax Credit.
Step 4: Receive your Certificate and file your taxes.
If your business and expenses are eligible, and funds are available, CDA will issue a certificate to your business stating the value of your tax credit. This tax credit will be applied toward the taxes you owe to the State of Colorado.
Do you have questions or need help applying?
Contact us for technical assistance.
Please reach out to us for help assessing whether your operation and equipment purchase is eligible for this program.
Valley Food Partnership will help you submit your application.
Frequently Asked Questions
Who is eligible?
Small food retailers:
Independent, Colorado-owned, and Colorado-operated small food retail business, defined as a food retailer with less than ten thousand square feet of retail space that carries at least three categories of federally defined staple foods, and be located in or provide food to local, state, or federally defined low-income, low-access neighborhoods;
or
A farmer's market or farm-direct operation that is already OR demonstrates an intent to become SNAP and WIC -authorized where allowed.
Small family farms:
Colorado-owned and Colorado-operated and have an annual gross revenue below $350,000.
Find out more about eligibility in the CDA’s Tax Credit Frequently Asked Questions.
What does “Costly Equipment” Mean?
Many types of equipment are eligible for a tax credit. Applicants will need to demonstrate how the equipment is increasing access to or lowering prices for healthy food in LILA communities. For more information, visit the CDA’s Frequently Asked Questions page.
How much is the credit worth?
The tax credit amount will be 85% of the purchase price of your equipment in 2024. In subsequent years, the amount will change to 75% of the purchase price.