Date: 04/30/2014

Final
BILL SUMMARY for HB14-1389

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
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03:37 PM -- HB14-1389

Representatives Pabon and DelGrosso came to the table to present House Bill 14-1389. They explained that the bill creates a sales and use tax exemption for information technology equipment used in qualified data centers. The sales tax exemption would apply to computers, data storage equipment, cooling systems, power infrastructure, and racking systems. The representatives responded to questions on how many jobs the bill could create, the companies that would qualify for the exemption, how many people have been employed by data centers already established in Colorado, whether the bill includes a reporting requirement on the tax exemption, and the main operation costs of data centers in Colorado and how they compare to other states. Amendments L.003 (Attachment G) and L.005 (Attachment H) were distributed to the committee, and the sponsors responded to a question on the tax exemption cap provided in Amendment L.003.

14HseFin0430AttachG.pdf14HseFin0430AttachG.pdf 14HseFin0430AttachH.pdf14HseFin0430AttachH.pdf

03:54 PM

Committee discussion ensued on why the tax exemption will attract companies and talent to Colorado. The representatives responded to questions on the exemption, how many other states have a similar tax exemption, and whether the exemption has proved fruitful for those states. Discussion of the value of attracting data center and associated companies to Colorado ensued.


04:11 PM

The representatives responded to questions on the investment of tax dollars in jobs that would be created by the bill.


04:14 PM

The committee discussed Amendment L.003 (Attachment G).
BILL:HB14-1389
TIME: 04:14:37 PM
MOVED:Pabon
MOTION:Adopt amendment L.003 (Attachment G). The motion passed on a vote of 9-2, with 2 members excused.
SECONDED:DelGrosso
VOTE
Becker
Yes
DelGrosso
Yes
Foote
Yes
Joshi
Excused
Kagan
Yes
Melton
Yes
Pabon
Yes
Priola
Yes
Saine
No
Swalm
Excused
Wilson
Yes
Labuda
No
Court
Yes
YES: 9 NO: 2 EXC: 2 ABS: 0 FINAL ACTION: PASS


04:18 PM

Representative Pabon explained Amendment L.005 (Attachment H), which alters the bill to include data center compliance with Office of Economic Development and International Trade requirements.
BILL:HB14-1389
TIME: 04:19:41 PM
MOVED:Pabon
MOTION:Adopt amendment L.005 (Attachment H). The motion passed without objection.
SECONDED:DelGrosso
VOTE
Becker
DelGrosso
Foote
Joshi
Kagan
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


04:19 PM

The sponsors made their closing comments and the committee discussed the merits of the bill.
BILL:HB14-1389
TIME: 04:25:23 PM
MOVED:Pabon
MOTION:Refer House Bill 14-1389, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-4, with 2 members excused.
SECONDED:DelGrosso
VOTE
Becker
No
DelGrosso
Yes
Foote
No
Joshi
Excused
Kagan
No
Melton
Yes
Pabon
Yes
Priola
Yes
Saine
Yes
Swalm
Excused
Wilson
Yes
Labuda
No
Court
Yes
YES: 7 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS


04:26 PM

The committee was adjourned.