Colorado's legislature has passed House Bill 26-1289, making several changes to the state's Community Food Access program, including expanded eligibility and revised tax credit limits.

The bill expands the definition of a small food retailer to include stores with up to five locations and 22,000 square feet. Eligible uses for farm equipment are also broadened to cover growing food for schools, charitable food programs, child care centers, or older adult facilities.

Additional changes extend the tax credit to Qualified Distributors and establish a $500 minimum equipment purchase amount eligible for a tax credit. The bill also creates a maximum tax credit amount per business per year, extends the time the Colorado Department of Agriculture has to review and issue tax credit certificates, and lowers the total amount available to award as tax credits from $10,000,000 per year to $5,000,000 per year.

The Colorado Department of Agriculture will proceed with rulemaking around these changes in the coming months. Public hearings for the new rules will be announced as they are scheduled.