Media Releases, Legislative News, Agricultural Updates
Denver>>In a positive step forward for rural Colorado, the House Appropriations Committee approved the Value-Added Agriculture Capitalization Act, HB 1086. Rocky Mountain Farmers Union commends the three Republicans who joined the committee’s Democrats to vote to send the bill to the House floor on an 8-4 vote.
“The importance of this bill was recognized by both parties as a way to stimulate and support local business,” said Dave Carter, president, Rocky Mountain Farmers Union (RMFU). “Agriculture, in particular, will be benefactors, which, in the end, benefits the entire state.”
This legislation, sponsored by Rep. Kay Alexander, R-Montrose, creates a tax credit mechanism through which up to $4 million in funds can be allocated to “value-added” enterprise development projects each year. Producers investing in Colorado-based value-added co-ops will be eligible to receive a tax credit equal to 50 percent of their investment, up to a total credit of $15,000. The tax credit authorization only applies in years in which the state enjoys a budget surplus in excess of $4 million. At least 10 percent of the tax credits each year must be targeted to assist projects with capital costs of more than $1 million. And 10 percent of the funds granted must be awarded to grant requests of $50,000 or less.
“In order for the independent ag producer to compete with multi-billion dollar corporations, cooperatives are essential,” said Bob Mailander, the RMFU Cooperative Center director. “This bill will provide an incentive to raise capital required to support the creation of these value-added cooperative projects in Colorado.”
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