Date: 02/28/2013

Final
BILL SUMMARY for HB13-1142

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
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11:32 AM -- House Bill 13-1142 - Concerning Enterprise Zone Tax Incentive Agreements

Representative Hullinghorst, prime sponsor, explained the provisions of the bill and the work of the Enterprise Zone Task Force to evaluate the Enterprise Zone Program's effectiveness in job creation and other policy goals. She began by saying that House Bill 13-1142 modifies four tax credit programs under the Urban and Rural Enterprise Zone Act, beginning with tax year 2014. Representative Hullinghorst continued by saying the bill limits the amount of the enterprise zone (EZ) investment tax credit that may be claimed to $1 million per tax year, and allows a taxpayer to appeal to the Colorado Economic Development Commission for a credit in excess of the $1 million limit.

The committee engaged in a discussion regarding the $500,000 cap on the 3 percent investment tax credit that was put in place by House Bill 10-1200. Staff was asked to respond to committee questions.

11:56 AM -- Mr. Louis Pino, Legislative Council Staff, responded to committee questions about the revenue impact in the fiscal note.

The committee engaged in a discussion on the calculations in the fiscal note and staff responded.

11:59 AM -- Mr. Ron Kirk, Economist, Legislative Council Staff, discussed the methodology used to calculate the revenue impacts resulting from the 2010 legislation. The factors that were considered were corporate levels of investment, corporate profits, and the condition of the economy as it began to grow after the economic recession that began in December 2007. The committee discussed the program. Mr. Ron Kirk distributed a memorandum (Attachment A) on tax incentives for business activities conducted in enterprise zones and explained how the incentives correlate to the business cycle. The committee discussed the provisions in the bill.

13HseFin0228AttachA.pdf13HseFin0228AttachA.pdf

After a brief committee discussion, the committee began to hear testimony.

12:11 PM -- Mr. Will Hauptman, representing himself, testified in opposition to the bill.

12:15 PM -- Mr. Cheng Wu, representing himself, testified in opposition to the bill.

Representative Court and the committee continued the discussion on whether the provisions of the bill met the intended goals of the sponsor. Representative Hullinghorst responded to additional committee questions regarding the $1 million cap in the bill for the 3 percent investment tax credit. After continued discussion by Representative Kagan, and Question of whether the cap in the bill accomplished the sponsor's intent, staff was asked to respond to technical drafting questions.

12:18 PM -- Ms. Esther van Mourik, Office of Legislative Legal Services, responded to committee questions. The committee discussed the intent of the bill. After committee discussion, Representative Court, Chair, laid over House Bill 13-1142 to March 13, 2013. Representative Court announced that testimony would continue at that time.


12:23 PM

The committee adjourned.