Final
BILL SUMMARY for HB05-1253

HOUSE COMMITTEE ON FINANCE

Votes:
Action Taken:
Moved a conceptual amendment that would sunset the
Moved amendment L.001. (The technical amendment w
Refer HB 05-1253, as amended, to the Committee on 		PASS
Pass Without Objection
PASS


02:07 PM -- House Bill 05-1253 - Concerning an Income Tax Credit for Job Creation

Representative Hall, prime sponsor, distributed amendment L.001 (Attachment F) to committee members. He explained that House Bill 05-1253 provides an income tax credit for businesses that create new jobs in the course of either opening a new business or relocating or expanding an existing business. Credits could be claimed for 2006 income taxes for jobs created in 2005. The credit is based on the average wage of all new employees hired during the tax year for which the credit is claimed. A business may only claim the credit once for each employee hired to fill a new job.

The committee discussed the fiscal note. Representative Hall responded by talking about the secondary and indirect effects of the tax credit that are not addressed in the fiscal note and commented on how these effects could offset the bill's cost in the fiscal note. Representative Vigil asked Mr. Josh Harwood to respond to questions about the fiscal note.

02:21 PM -- Mr. Josh Harwood, Legislative Council Staff, responded to questions regarding the fiscal note.

The following persons testified:

02:29 PM -- Mr. Brian Vogt, Director of the Colorado Office of Economic Development and International Trade, testified in support of the legislation. Mr. Vogt discussed the state incentives that are in place to bring businesses to Colorado.

The committee discussed the ways the state could benefit from new job creation that may result from the bill. The committee discussed the average county wages in Colorado based on primary and secondary employers.

02:45 PM -- Mr. Mike Mauer, Legislative Council Staff, discussed the fiscal note and commented on the number of jobs that were added to Colorado's economy in the recent three years. Mr. Mauer discussed the secondary effects of job creation and the impact of indirect effects on Colorado's economy.

02:51 PM -- Mr. Bill Becker, President of Adams County Economic Developer's Council, testified in support of the legislation. He distributed a letter form the Economic Developers' Council of Colorado (Attachments G) and a letter from the Jefferson Economic Council (Attachment H) on the benefits of House Bill 05-1253.

02:55 PM -- Mr. Chuck Berry, President of the Colorado Association of Commerce and Industry, testified in support of House Bill 05-1253. He commented that House Bill 05-1253 would serve as a significant tool for economic development in Colorado.

02:58 PM -- Mr. John Cody, President of Longmont Area Economic Council, distributed a letter of support from his organization (Attachment I) and testified in support of the legislation.

03:03 PM -- Ms. Vicki Agler, National Federation of Independent Business (NFIB), testified in support of the legislation.

03:06 PM -- Mr. Tom Clark, Denver Metro Chamber, testified in support of the legislation.

03:11 PM -- Ms. Sandra Solin, Colorado Northern Business Alliance, testified in support of the legislation.
BILL:HB05-1253
TIME: 03:12:08 PM
MOVED:Garcia
MOTION:Moved amendment L.001. (The technical amendment would require that employer information be obtained from the Department of Labor and Employment.) The motion passed without objection by those members present.
SECONDED:May M.
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1253
TIME: 03:16:34 PM
MOVED:Garcia
MOTION:Moved a conceptual amendment that would sunset the credit after 10 years. The motion passed on a 11-1-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
No
Witwer
Yes
Judd
Yes
Vigil
Yes
Not Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:HB05-1253
TIME: 03:23:38 PM
MOVED:McCluskey
MOTION:Refer HB 05-1253, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:Massey
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS