Building Local Food Systems: Colorado is Helping Small Food Retailers Bring Healthy Food to the Neighborhoods That Need It

Independent food retailers are essential to Colorado’s food access ecosystem. From corner stores and community markets to small grocery cooperatives, these businesses often serve as the only consistent food source in neighborhoods where larger chains have pulled out—or never arrived in the first place. But for many of these retailers, stocking fresh, healthy food comes with logistical and financial hurdles. Colorado’s Community Food Access Program (CFAP) Tax Credit is designed to help change that.

The Retailer component of the CFAP Tax Credit offers refundable tax credits to small retailers who stock and sell nutrient-dense foods—like fruits, vegetables, dairy, and whole grains—in Low Income, Low Access (LILA) communities. The CFAP program provides refundable tax credits to small food retailers who invest in equipment that makes it easier to stock and sell fruits, vegetables, dairy, meats, and other healthy foods in LILA communities. Eligible purchases can include valuable pieces of equipment like refrigeration or freezer units, certified produce scales, and new POS systems that allow a retailer to accept SNAP, WIC, or other food incentive programs. The state will reimburse 75% of the cost of eligible equipment, making it much more affordable for retailers to improve their food offerings.

If a store installs equipment that improves access to healthy food in their community, they may be able to get most of that cost back through the tax credit. There’s no set limit on how much a store can receive, and the funding is available through at least 2030. To qualify, the store must be located in or serve customers from a designated LILA census tract.

Project Protect is working one-on-one with small retailers in Northeast Colorado to help them apply. We understand that many business owners don’t have time to navigate state programs on their own. That’s where we come in. Our team helps store owners check if they qualify, understand the list of eligible expenses, and gather the required documents. We can also help write clear, simple explanations of how their new equipment is helping more people in their community buy fresh, healthy food.

The CFAP Tax Credit is designed to be accessible to the small businesses already doing the work of serving their communities. To qualify, a retailer must regularly stock at least three of the four staple food categories:

• Fruits and vegetables
• Dairy products (or plant-based alternatives)
• Meat, poultry, or fish
• Bread or cereal

This includes many independent markets, neighborhood stores, and food co-ops that prioritize food access but lack the resources to expand or upgrade their equipment.

If you have questions about CFAP programs or you are interested in applying for the CFAP Tax Credit, please contact Hunter Knapp at hunter@projectprotectfoodsystems.org.