BILL SUMMARY for HB09-1105
SENATE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Refer House Bill 09-1105 to the Committee on Appro||PASS|
04:45 PM -- House Bill 09-1105
Senator Scheffel, prime sponsor, presented House Bill 09-1105 which allows certain investors to receive an income tax credit for investments made in tax year 2010 in businesses involved in research and development or manufacturing of new technologies, products, or services. He said the bill would help to provide capital to companies doing research and development. He explained that investors would provide funding for these efforts and then receive an investment credit on their taxes. Senator Scheffel stated that the bill is aimed at small businesses and economic development.
The following persons testified:
04:48 PM -- Mr. Doug Johnson, representing Univercity, testified in support of the bill. He stated that there is a lack of available capital in the current marketplace. Private investors, he explained, have capital to invest when other sources are lacking, and the challenge is to bring these private investors and entrepreneurs together. Mr. Johnson stated that start-up companies create jobs immediately because they begin hiring professionals to get the companies off the ground. Mr. Johnson responded to questions from the committee about whether the credit would be available to new businesses. The committee further discussed new business investments.
The committee discussed the tax incentives in the bill. Senator Scheffel shared his additional thoughts about the bill.
The following persons also testified:
04:56 PM -- Mr. Stephen Miller, representing Clean Spark, the Colorado Business Incubation Association, and the Colorado Software and Business Association, testified in support of the bill. He provided information about a Stapleton incubator that encourages new business development. He also discussed venture capital investment and provided the committee with background about new companies that have been created in the state. Mr. Miller provided his thoughts about the market and angel investments, stating that angel investments help to retain a highly educated workforce. He discussed a new idea for a company regarding compostable diapers.
05:02 PM -- Ms. Sandra Hagen Solin, representing the Northern Colorado Legislative Alliance, testified in support of the bill. She stated that capital is frozen in the current marketplace and that the bill would encourage investment in Colorado's economy.
Senator Sandoval closed public testimony.
Senator Scheffel responded to questions about the "affiliate" language in the bill on page 3 line 10. Committee discussion ensued about this language. The committee also discussed page 6, line 26 of the reengrossed bill regarding "five business days."
|TIME: || 05:09:52 PM|
|MOTION:||Refer House Bill 09-1105 to the Committee on Appropriations. The motion passed 6-0, with one excused. |
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS