We are writing to ask you to support SB24-152, the Regenerative Agriculture Tax Credit, to incentivize Colorado food and beverage businesses to shift purchasing power towards local, regenerative food. The bill would provide a tax credit to on-premise food and beverage businesses equal to 25% of the amount paid for verified local, regeneratively produced agricultural products. The incentive would sunset after five years, by which time purchasing habits and relationships between local food producers and purchasers would be established.

Regenerative agriculture restores and maintains healthy soil through methods such as holistic planned grazing, cover crops, low-to-no till farming, reducing and eventually eliminating chemicals and synthetic fertilizers, and diversification. It promotes the health of our communities by producing more nutritious food, and protects the health of our environment by sequestering carbon, retaining and building water resources, and creating more healthy local water cycles. A tax incentive to stimulate demand for regenerative agriculture products from the food and beverage industry would help stabilize cash flow, increasing profitability and encouraging new agrarians to ensure the future vitality and growth of local agriculture.

For Colorado restaurateurs, this tax credit means they can feel good about providing delicious, nutritious, regenerative food to their customers, support their local farmers, and promote soil health, all without breaking the bank.

For Colorado farmers and ranchers, this tax credit means they can try out regenerative practices for the first time, or increase the amount of land dedicated to those practices with less risk, and those who are already all-in on regenerative farming and ranching can better compete in the marketplace.

For the Colorado economy, this tax credit means that communities will deepen their awareness and commitment around local food and that food producers and food purchasers will create strong business relationships, keeping more money in our home state.

We urge you to support Senate Bill 24-152 Regenerative Agriculture Tax Credit for food and beverage businesses, for farmers and ranchers, for our communities, and for our environment. It’s a good investment in the Colorado we love.