Final
BILL SUMMARY for HB05-1314

HOUSE COMMITTEE ON FINANCE

Votes:
Action Taken:
Moved amendment L.001. (The amendment reduces the
Refer House Bill 05-1314, as amended, to the Commi		Pass Without Objection
PASS


02:30 PM -- House Bill 05-1314 - Concerning Aviation Development Zones

Representative Borodkin, prime sponsor, explained the provisions of the bill and distributed a Legislative Council Staff memorandum on the fiscal assessment of proposed amendment L.001 (Attachment B) to committee members. Also distributed were two articles on tax incentives for airline manufactures (Attachments C and D) and a 2004 Annual Report for the Airports Division Northwest Mountain Region (Attachment E).

Representative Borodkin commented that as amended by L.001, the tax credit in House Bill 05-1314 is worth up to $1,200 per year per new employee, prorated by month; limited to 12 consecutive months total for each new employee; and not refundable, but may be carried forward for up to five years. Representative Borodkin asked fiscal note staff to comment on the revised numbers in the fiscal note.

02:33 PM -- Mr. Chris Ward, Legislative Council Staff, explained the provisions in amendment L.001. Mr. Ward commented that the amendment reduces the impact of the bill to the extent that some eligible businesses will not be able to take advantage of the tax credit because they have no tax liability. Mr. Ward mentioned that as amended by L.001, House Bill 05-1314 would reduce state revenues by up to $36,000 per year.

The committee briefly discussed the credit under the bill as amended by amendment L.001.

The following persons testified:

02:40 PM -- Mr. William Hamilton, Pilots of Colorado, testified in support of the legislation. Mr. Hamilton commented on the number of pilots who would benefit from the legislation. Mr. Hamilton commented that Colorado does not have a financial tax incentive in place to benefit aviation manufactures. He closed by saying House Bill 05-1314 will bring aviation manufacturers to Colorado rather than having these businesses move to other states that provide greater tax incentives.

02:42 PM -- Mr. Robert Olislagers, Airport Director for Centennial Airport, testified in support of the legislation and commented on how the legislation could benefit airports in Colorado.

02:48 PM -- Mr. George Bye, Chief Executive Officer, Aviation Technology Group, Inc., and Mr. Charlie Johnson, Chief Financial Officer, Aviation Technology Group, Inc., commented on the benefits that airline manufacturing businesses bring to Colorado. Mr. Bye commented that for every aviation manufacturing job, three additional jobs are created as support jobs for the industry. Mr. Bye closed by commenting that despite the fact that the tax benefit under House Bill 05-1314 was reduced from the introduced version of the bill, aviation manufactures appreciate the tax benefit and it will go a long way to bring more jobs to Colorado. Mr. Bye distributed a packet of color photos (Attachment F) to committee members that shows some of the jet aircraft that is manufactured by the Aviation Technology Group.

03:03 PM -- Ms. Debbie Woodward, Economic Developers' Council of Colorado, testified in support of the legislation and talked about the primary job creation that would occur should Aviation Technology Group, Inc., relocate to Colorado. Ms. Woodward distributed a letter from the Council (Attachment G) supporting House Bill 05-1314.

03:06 PM -- Mr. Preston Gibson, Jefferson Economic Council, testified in support of the legislation and distributed a letter of support (Attachment H) for HB 05-1314 from the Council. Mr. Gibson commented that this bill will help economic development efforts at all airports in Colorado.

03:10 PM -- Ms. Kristi Pollard, South East Business Partnership, urged the committee to support House Bill 05-1314 and commented on the ways airports could benefit from the bill. Representative Vigil commented on the labor force that would also benefit from the legislation.
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03:13 PM -- Mr. Travis Vallin, Colorado Department of Transportation, testified in support of the legislation.

03:16 PM -- Mr. Dennis Heap, Front Range Airport, testified in support of the legislation and commented on the public and private investment that goes into the development of an airport.

03:19 PM -- Mr. John Brackney, Denver Metro Chamber of Commerce, testified in support of the legislation.
BILL:HB05-1314
TIME: 03:22:09 PM
MOVED:Vigil
MOTION:Moved amendment L.001. (The amendment reduces the fiscal impact of the bill by: making the tax credit worth up to $1,200 per year per new employee, prorated by month; limits the credit to 12 consecutive months total for each new employee; and makes the credit not refundable, but allows for a five year carry forward period.) The motion passed without objection by those members present.
SECONDED:McCluskey
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:HB05-1314
TIME: 03:24:21 PM
MOVED:McCluskey
MOTION:Refer House Bill 05-1314, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:Benefield
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