Date: 04/07/2010
Final
BILL SUMMARY for HB10-1396
HOUSE COMMITTEE ON FINANCE
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04:04 PM -- House Bill 10-1396 - Concerning the Elimination of the Tax Incentives of the Enterprise Zone Program
The committee reconvened.
Representative Judd, prime sponsor, explained that House Bill 10-1396 eliminates all state income tax credits and one sales and use tax exemption available to qualified taxpayers through the Urban and Rural Enterprise Zone Act. He continued by saying that there is no economic benefit tied to economic incentives under the program. He noted that there are nonprofit organizations that benefit from the program but that the bill could be amended to maintain this assistance. The committee discussed the state tax structure in relation to the bill. Representative Judd discussed the factors that support House Bill 10-1396 and the need to shift state money to the infrastructure.
The following persons testified.
04:24 PM -- Mr. Peter Minahan, representing Black Hills Energy, testified in opposition to the bill. Mr. Minahan discussed the construction of the Pueblo Power Plant that is located in a enterprise zone and noted that the tax incentives under the program were important to the area's economic development. He closed by urging the committee to oppose the bill.
04:32 PM -- Mr. Greg Fulton, representing the Colorado Motor Carriers Association, testified in opposition to the bill. Mr. Fulton discussed the challenges that the trucking industry faces in Colorado that have driven trucking companies to locate in states other than Colorado. Over the past 15 years, not one trucking company has relocated to Colorado, he said. Mr. Fulton closed by discussing the jobs that could be lost in Colorado as a result of the bill and said that tax policy makes a difference.
04:40 PM -- Mr. Ernest House, representing the Colorado Springs Chamber of Commerce, testified in opposition toward the bill. He closed by saying that the bill is anti-business and will result in many companies closing their doors.
04:42 PM -- Mr. Tom Clark, representing the Metro Denver Economic Development Corporation, testified in opposition of the bill. Mr. Clark talked about a successful enterprise zone, namely lower downtown Denver (LODO). Mr. Clark noted that tax incentives were important to the economic development of downtown Denver. Mr. Clark closed by discussing the challenges that rural businesses in Colorado face during an economic downturn and said that the tax incentives targeted in the bill are important economic development tools for the state.
04:51 PM -- Mr. Mizraim Cordero, representing the City of Commerce City, testified in opposition toward the bill. He noted that this bill eliminates a major tool for economic development. Mr. Cordero closed by saying that tax incentives under the program help bring jobs to depressed areas of the state.
04:54 PM -- Mr. Preston Gibson, representing the Jefferson Economic Council, distributed a study on enterprise zones (Attachment D) and testified in opposition toward the bill. Mr. Gibson noted that this bill will cost jobs and tax dollars for state and local governments. These tax incentives under the program strengthen Colorado's economic viability by creating jobs and spurring economic development. The committee engaged in a discussion on the tax incentives in the bill. Mr. Gibson closed by discussing the secondary and indirect effects of tax credits.
05:08 PM -- Ms. Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), testified in opposition of the bill and distributed a handout to the committee (Attachment E).
05:14 PM -- Mr. Pat Duran, representing the Yuma County Economic Development Corporation, testified in opposition of the bill.
05:15 PM -- Mr. Richard Werner, representing the Pueblo Economic Development Corporation, testified in opposition to the bill. He noted that when companies look at economic incentives, they look at the cost of business. He closed by saying that Forbes ranked Colorado fourth in its economic business climate.
05:33 PM -- Mr. Doug Hurst, representing Qwest, testified in opposition to the bill. He closed by discussing the tax incentives offered by other states. He closed by discussing the tax incentives under the program and the jobs that it brings to Colorado.
05:44 PM -- Mr. Matt Cheroutes, representing OEDIT, testified in opposition to the bill.
05:45 PM
The bill was laid over.
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05:46 PM
The committee adjourned.