A few years back, Colorado created a program with the underlying intention of increasing communities’ access to healthy food, especially in areas it considers underserved.
It’s called the Community Food Access Program, and it supports that mission “by supporting small grocers, farm stands, farmers markets and farms” that supply its community with healthy food, according to a slideshow from the Colorado Department of Agriculture.
One way it’s supporting local grocers and farm stands under that program is through a refundable income tax credit.
Until 2030, there’s $10 million allocated for the tax credit program, and that money resets every year. That means, for the life of the program, there’s $70 million that’ll be awarded to small businesses statewide via refundable income tax credits.
And since that money is from the state and not the federal government, it’s not threatened by federal cutbacks.
“A follow-up question to that is usually, ‘What about state cuts as it tries to balance its budget?’” said Lauren Ames, the food security director at the Good Food Collection.
“As of right now, no, the program is not at stake or threatened,” said Ames.
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.
That money can curb income taxes or come back to a business in cash.
“All of Montezuma and Dolores counties are eligible,” said Ames.
The CDA’s website specifies exactly which businesses and equipment purchases are eligible for the reimbursable tax credit.
"Colorado-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's) 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,” Ames wrote in an email.
Places like Zuma Natural Foods in Mancos, the Dolores Food Market and possibly even Fireweed Café & Mercantile in Rico could all be eligible, said Ames.
As far as eligible equipment goes, the CDA has prioritized certain things over others.
“Cold storage is a top priority,” Ames said. “Priority is based on things that businesses have asked for and said have been barriers to increasing healthy food access. It connects back to need.”
After cold storage, things like display shelving and cases, certified scales, Point of Sales machines “directly related to implementing or improving SNAP, WIC, or other food incentive programs,” food preservation equipment and deli slicers are listed as eligible equipment, among other things.
And, of course, “businesses 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,” said Ames.
And since tax credits are available until 2030, “it gives businesses time to plan, and build this into their plans and think about long-term investments,” said Ames.
“It’s a great deal for businesses already planning on making a big equipment purchase,” she added.
A unique piece of state’s food access program is its commitment to local outreach.
They “recognized they don’t know all the local, small businesses and producers in the state that may be eligible,” said Ames.
She went on to say how, “a lot of times, statewide opportunities don’t make their way down to Southwest Colorado. It’s amazing they (CDA) incorporated the local outreach arm to bridge that gap.”
They bridged that gap by selecting seven nonprofits across the state to be the point of contact for local businesses and family farms that fall within a given region.
By doing this, the state ensured that the Community Food Access Program would actually reach the small, underserved communities they’re targeting.
The Good Food Collective, where Ames works and that, according to its website, “exists to strengthen our regional food system,” is one of those seven nonprofits the state selected.
It represents the region of Southwest Colorado, which includes La Plata, San Juan, Dolores, Ouray, Archuleta, Montezuma, Hinsdale and San Miguel counties.
Ames recommended that those interested in the tax credit review eligibility language carefully or reach out to her before purchasing equipment, as there can be minor differences between something that’s eligible and something that’s not.
Ames said she’s also willing to help folks through the rather extensive tax credit application; she compared its open-ended questions and rigor to a grant application.
Ames is reachable via email at foodsecurity@goodfoodcollective.org or by calling or texting (970) 317-2237.
