Bill Summary for Bill Number HB14-1014

Date: 02/04/2014

Final
BILL SUMMARY for HB14-1014

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View-->	Action Taken:
Adopt amendment L.001 The motion passed without ob Adopt amendment L.002 The motion passed without ob Refer House Bill 14-1014, as amended, to the Commi	Pass Without Objection Pass Without Objection PASS

01:35 PM -- House Bill 14-1014

Representative Williams, chair, called the meeting to order. A quorum was present. Representative Kraft-Tharp and Representative DelGrosso, sponsors, presented House Bill 14-1014, concerning modifications to the job growth incentive tax credit. Beginning in tax year 2014, the bill modifies the job growth incentive tax credit by:

• extending the period for which an employer may receive credits from 60 months (five years) to 96 months (eight years);
• lowering the requirement that wages for jobs generating the credit be at least 110 percent of the average wage in the county within which the jobs are created to 100 percent of the county's average wage; and
• altering the burden of proof that the credit was instrumental to the creation of said jobs; rather than stating that without the credit the jobs would likely not have been located in Colorado, the bill requires employers to state that without the credit the probability of locating the jobs in Colorado would be reduced.

The sponsors discussed the bill and the fiscal note. They distributed a list of the companies that have benefitted from the job growth incentive tax credit (Attachment A) and a letter of support from the Denver South Economic Development Partnership (Attachment B). The sponsors responded to questions from the committee on the fiscal note as it relates to state income and sales taxes.

140204 AttachA.pdf

140204 AttachB.pdf

01:48 PM -- Carol Hedges, representing the Colorado Fiscal Institute (CFI), testified against the bill. Ms. Hedges distributed a copy of her presentation (Attachment C). She discussed the purpose of her organization, and her organizations issues with the bill. Ms. Hedges responded to questions from the committee and the sponsors.

140204 AttachC.pdf

01:58 PM -- Ken Lund, representing the Office of Economic Development and International Trade (OEDIT), testified in support of the bill. Mr. Lund discussed tax incentive programs in other states and discussed the bill's ability to give the state economy a competitive advantage. Director Lund distributed and discussed a handout of tax incentive scenarios created by OEDIT (Attachment D). Director Lund responded to questions from the committee on incentives in rural areas.

140204 AttachD.pdf

02:15 PM

Representative DelGrosso distributed two amendments, Amendment L.001 (Attachment E) and Amendment L.002 (Attachment F), and asked Director Lund to discuss them both. Director Lund and the sponsors continued to respond to questions from the committee.

140204 AttachE.pdf

140204 AttachF.pdf

02:20 PM -- Pam Reichert, representing the Metro Denver Economic Development Corporation, testified in support of the bill. Vice President Reichert discussed the purpose of her organization. She discussed the disincentives Colorado faces as a higher wage state. She stated that this bill's three year extension of the five year tax credit authorized in House Bill 13-1287 will allow companies who receive the incentive later to receive the full benefit. She discussed the successes of the incentive program.

02:27 PM -- Patrick Boyle, representing the Colorado Competitive Council (C3) and the Colorado Association of Congress and Industry (CACI), testified in support of the bill. Mr. Boyle stated that these organizations have supported the tax incentive program from the beginning.

02:30 PM -- Preston Gibson, representing the Economic Development Council of Colorado, testified in support of the bill. He distributed a handout to the committee (Attachment G). He stated that he was authorized to express support from Metro North Chamber of Commerce, the South Metro Denver Chamber, and the Aurora Chamber of Commerce. He listed companies that have benefitted from the incentive, and discussed the level of competition in attracting businesses.

140204 AttachG.pdf

02:34 PM

The sponsors presented their amendments.


BILL:	HB14-1014
TIME:	02:34:30 PM
MOVED:	Kraft-Tharp
MOTION:	Adopt amendment L.001 The motion passed without objection.
SECONDED:	Rosenthal
		VOTE
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Wright
	Kraft-Tharp
	Williams

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB14-1014
TIME:	02:35:40 PM
MOVED:	Kraft-Tharp
MOTION:	Adopt amendment L.002 The motion passed without objection.
SECONDED:	Holbert
		VOTE
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Wright
	Kraft-Tharp
	Williams

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

02:36 PM

The sponsors delivered closing remarks.


BILL:	HB14-1014
TIME:	02:37:07 PM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 14-1014, as amended, to the Committee on Finance. The motion passed on a vote of 11-0.
SECONDED:	Holbert
		VOTE
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Wright	Yes
	Kraft-Tharp	Yes
	Williams	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS