Frequently Asked Questions

A farm that is Colorado-owned and Colorado-operated and has an annual gross revenue below three hundred fifty thousand dollars ($350,000).

1. An independent, Colorado-owned, and Colorado-operated small food retail business, defined as a food retailer with less than ten thousand square feet of retail space that carries at least three categories of federally defined staple foods*, and be located in or provide food to local, state, or federally defined low-income, low-access neighborhoods; or
2. A farmer's market or farm-direct operation that is already or demonstrates an intent to become SNAP and WIC -authorized where allowed.
    

*Staple foods:

• Food in the following categories: meat, poultry, or fish; bread or cereals; vegetables or fruits; and dairy products. The meat, poultry, or fish category also includes up to three types of plant-based protein sources as well as varieties of plant-based meat analogues. The dairy category also includes varieties of plant-based dairy alternative staple food items such as, but not limited to, almond milk and soy yogurt.
• Hot foods do not qualify as staple foods. Commercially processed foods and prepared mixtures with multiple ingredients that do not represent a single staple food category shall only be counted in one staple food category.
• “Staple food” does not include accessory food items, such as coffee, tea, cocoa, carbonated and noncarbonated drinks, candy, condiments, and spices.

This program aims to increase access to healthy foods. Healthy foods include:

• Fresh, frozen, unprocessed or minimally processed produce;
• Locally grown or raised products;
• Other food items that may not be normally present in a particular location but that serve the culinary and health needs of a particular population;
• Nutrient dense proteins and grains;
• Other foods meeting a local definition of “healthy” and that provide nutritional value for human health.

"Healthy foods" does not include sugar sweetened beverages, candy, alcoholic beverages, tobacco, hot and ready to eat or prepared foods, or non-food products.

Retailers

Use the maps linked below to determine whether or not your retail business is located in a qualifying area. 

• Tribal areas are qualifying areas.
• USDA defined Low Income, Low Access areas are qualifying areas.
  • To view these on the HFFI map, select New Map > HFFI Eligibility > Supporting Information > USDA Low Income, Low Access Tracts.
• Limited Supermarket Access Areas are qualifying areas.
  • To identify these on the HFFI map, select New Map > HFFI Eligibility > Supporting Information > Limited Supermarket Access (LSA) Areas.

If your retail business is not in one of these areas, but is in an area marked "eligible" (dark purple) on the HFFI map, you'll be asked to explain how your retail business reaches low income customers.

If none of the above applies to your retail business, you'll be asked to provide data to support the argument that your retail business is located in OR serves a low income, low access population. 

Farmers

If you are applying as a Small Family Farm, you will be required to provide a letter of support from a small food retailer that you supply products to that meet the above criteria.

What if my organization doesn’t pay taxes because we are a non-profit?
 

Non-taxpaying entities are not eligible for a tax credit.

My business primarily makes prepared food. Can we apply for kitchen equipment?
 

No, this program is focused on expanding access to healthy groceries. Prepared foods (anything hot and ready to eat) is not part of the scope of this program. Ovens, dehydrators, and other food preparation equipment can be eligible, but must be used primarily for the purpose of processing foods that will be sold as groceries.
 

I’m a farmer who sells at a farmers market. Which application should I fill out?
 

Please fill out the Small Family Farm application, and be sure to include a letter of support from the market, which should outline the role your farm serves at the market. Your application should include information about your percentage of sales to customers paying with SNAP EBT, or other healthy food incentive program dollars. 
 

Eligible equipment, in order of priority

• Cold Storage: refrigeration and freezer units (consumer-facing or storage)
• New POS systems or upgrades to existing POS systems, including hardware, monitors,
  and printers that are directly related to implementing or improving SNAP, WIC, or other
  food incentive programs
• Display shelving and display cases, calibrated and certified produce scales, food
  preservation equipment needed to extend the availability of healthy food for customers
  beyond the local harvest or slaughter calendar; dry storage containers, deli slicers and
  meat grinders for fresh meat
• Power generators ensuring the proper temperature control of healthy food in areas that
  lose power for more than four hours at least once per year
• Refrigerated or commercial delivery vehicles and trailers*
• Equipment the Commissioner determines will contribute to the state’s effort to improve
  access to and lower prices for healthy foods in low-income and underserved areas of the
  state by supporting small food retailers and small family farms
• Tractors, tractor implements, greenhouses, tunnels, solar equipment, poultry housing,
  farmers market tents, storage equipment, produce washing equipment, costly irrigation
  equipment, product sorting equipment, produce processing equipment or harvesters

If your purchase is not explicitly listed here, please fill out a Letter of Eligibility Request Form (request form in Spanish) to determine if the costly equipment you plan to purchase is eligible. 

*Standard vehicles are not eligible. In addition to proof of purchase and proof of payment documentation, you will be asked to provide your VIN number, as well as evidence of refrigeration, and/ or commercial insurance policy. Farm vehicles are required to be registered as a Farm Vehicle and have Farm License Plates. You will also be asked questions about the vehicles’ usage, to ensure it is primarily used to advance the goals of the program. 

Not Eligible for a Tax Credit:

• Supplies: items with a useful life that doesn't last beyond a year and that don't represent a substantial cost 
• Standard vehicles
• Point of sale systems not compatible with healthy food incentive programs
• Storage or retail display equipment for alcoholic beverages, soft drinks, sports and energy drinks or cannabis products
• Vending machines that do not offer healthy foods
• Storage or equipment for creating or displaying prepared foods or hot foods
• Equipment that did not result in expanded access to or lowered prices for healthy food for LILA communities

All equipment must be primarily used towards the goals of the program in order to be eligible. 

The application will include questions related to the demonstrated impact of your purchase. Depending on the type of business you own, you may need to answer questions related to:

• Increased sales of healthy foods to LILA communities
• Increased sales to customers paying with SNAP, WIC or other healthy food incentive programs
• Increased hours of operation
• Increased opportunities for LILA communities to purchase healthy foods
• Decreased prices of healthy foods

Businesses will be required to submit the following documentation to prove their eligibility as a part of their application. 

Small Food Retailers (stores)

• Current Retail Food Permit 
• Documentation proving the square footage of your retail space. This can include lease agreements or deeds. Please highlight or circle the square footage. If you do not own documentation proving square footage, an attestation will be required. Email cda_cfa@state.co.us for a copy of this attestation.
• Documentation proving recent purchase of at least three types of staple foods. This can include purchase orders, invoices, or delivery receipts. Examples of foods from three different categories should be highlighted, circled, or noted in some way.

Small Food Retailers (farm direct operations and farmers’ markets)

• Documentation proving SNAP or WIC authorization, or copy of SNAP or WIC application. Please redact your FNS number.

Small Family Farms 

• Recent income statement, Profit and Loss statement or other financial document (Schedule F, Form 165) proving annual gross income is less than $350,000.
• Letter of Support from every retailer serving a LILA community you cite in your application, expressing:
  • The need for increased healthy foods by a LILA population
  • Your farm as a viable supplier of these products 
  • The length of this business relationship and the number of deliveries received from your farm each year
  • The way your purchased equipment has led to your expanded capacity to supply this retailer with product
  • If your business is a vendor at a farmers market, the letter of support should indicate the percentage of your sales that are to patrons shopping with SNAP, Double Up Food Bucks, WIC, or other food access currencies. 
     

As part of the application, businesses must submit documentation proving the costly equipment was purchased. Businesses should:

• Highlight or circle relevant figures and items. Include notes where necessary for clarification. 
• Redact (or otherwise black out) sensitive information, account numbers and routing numbers, or transactions not relevant to the equipment purchase. Do not redact business name and address.
• Ensure documents are legible and upright.

Proof of Purchase

Proof of purchase documentation shows the details of the transaction. This could be an invoice, receipt, or order confirmation. Sales quotes and estimates do not qualify as sufficient proof of purchase. 

Proof of purchase documentation must clearly state the vendor, the purchaser, the date, and the order total, as well as details about what was purchased.

Proof of Payment

Proof of payment documentation proves the expense was paid for. If the equipment was paid for with a credit card, a bank statement should be provided. Bank statements should show the name of the bank, the name of the account holder, the date, and demonstrate that the card was paid for the month the expense was incurred. The charge should be circled or highlighted, and other transactions may be redacted. 

If equipment was paid for with a check, front and back images of the check should be provided with routing and account numbers redacted. 

If equipment was financed, the financing agreement must be submitted, as well as proof of any payments made towards the agreement.

Please note that equipment purchased with cash is not eligible for a tax credit. Additionally, leased or rented equipment is not eligible for a tax credit.

Other documentation may be requested as needed to prove that your business purchased the equipment.