Colorado Charitable Crop Donation Act

 

Local producers can receive a 25-percent tax credit for the wholesale value of the food that they produce and donate to Colorado food banks and pantries, beginning in 2015.

Producers now can donate to a hunger-relief organization, such as a food pantry or food bank. For those nonprofit hunger-relief organizations (HRO) accepting donations: If a producer wants to donate directly to your agency, please contact the food bank so they can issue the donation receipt. View this brochure for more information from Feeding Colorado.

 


Background on Tax Credit:

The Colorado Charitable Crop Donation Act supports the state’s agriculture communities, food banks, food pantries and Coloradans who are impacted by hunger. The Act not only boosts local, fresh-food donations but also provides struggling Colorado families with additional access to fresh fruit, vegetables, dairy products and meat products. 

Gov. John Hickenlooper signed House Bill 14-1119 (Tax Credit for Donating Food to Charitable Organizations), known as the Colorado Charitable Crop Donation Act, in a signing ceremony on May 30, 2014, at Adobe House Farm in Durango. Read more about the bill signing ceremony, and view photos from the event in Durango.

The bill received widespread support under the dome and in Colorado communities. It was sponsored by former Rep. McLachlan (D-Durango), Sen. Hodge (D-Brighton) and Sen. Roberts (R-Durango), and co-sponsored by Rep. Dore (R-Elizabeth).

Hunger Free Colorado and Feeding Colorado—Care and Share Food Bank for Southern Colorado, Community Food Share, Food Bank for Larimer County, Food Bank of the Rockies and Weld Food Bank—served as lead supporters for this legislation, along with support from the Colorado Farm Bureau, Colorado Nonprofit Association, LiveWell Colorado and Rocky Mountain Farmers Union.


Helping Colorado’s Food Banks & Families in Need:
Colorado’s food banks and pantries have experienced historic demand over the past few years, and much of this demand has come from families and individuals who have been forced to use this safety net for the first time. Emergency food providers across Colorado have experienced challenges keeping their shelves filled and have often not been able to even provide the basic necessities to those in need. In many neighboring states, similar tax credits have helped food banks procure more diverse produce donations, which is often a rare offering to the families that they serve.

Helping Colorado Growers:
Colorado food producers want to do their part in helping Coloradans in need and helping them gain additional access to fresh, healthy food. Many of the state’s food producers have indicated that a modest tax credit would make it easier for them to donate more of their fresh food products and incentivize more producers to make the financial and labor investment to harvest the food and donate it to emergency food providers.

Smart Investment:
Colorado’s food banks distribute food to nearly 2,000 nonprofit agencies statewide, that in turn provide meals and services to people in need. The diversity of agencies include food pantries, daycare centers, battered women’s shelters, soup kitchens, residential treatment centers, and senior and youth programs; serving all ages and segments of our community. The food provided to those living in poverty often means the difference between feeding their families or going hungry, and too often the food provided does not include fresh fruit and vegetables, dairy products and meat. HB-1119 also establishes strict guidelines that require all food donations to be accepted by certified food banks or emergency food service providers and establishes a per grower cap of $5,000.00.

Example: $2,500 Tax Credit for Donated Produce
Tax Credit Amount: $2,500
Wholesale Value: $10,000
Retail Food Value (Estimated): $13,500

 
Supported by Many Groups:

Hunger Free Colorado
Food Bank of the Rockies
Care and Share Food Bank for Southern Colorado
Community Food Share
Food Bank for Larimer County
Weld Food Bank
Colorado Farm Bureau
Rocky Mountain Farmers Union
LiveWell Colorado
Colorado Nonprofit Association

 

For More Information:
View the Colorado Charitable Crop Donation Act bill fact sheet.
Read the bill language.

Contact us by email to learn more.