Final
BILL SUMMARY for
HB05-1050
HOUSE
COMMITTEE ON
FINANCE
Votes:
Action Taken:
Moved amendment L.001. (The amendment re-defines
Refer HB 05-1050, as amended, to the Committee on
Pass Without Objection
PASS
10:59 AM -- House Bill 05-1050 - Concerning Economic Development Incentives for Colorado Employers
Representative Garcia, prime sponsor, explained House Bill 05-1050 establishes an incentive for economic development by allowing certain employers to retain a portion of the state income taxes they withhold from their employees' pay. To qualify for the incentive, an employer must be engaged in a "strategic project" that will generate more in state revenue than the value of the incentive within a fiscal year. A strategic project entitles an employer to retain 50 percent of the state income taxes withheld from employees hired exclusively for the project. Once qualified, an employer can keep the remaining 50 percent, as long as an amount equal to the additional incentive is spent on a public infrastructure project and certain other conditions are met.
Representative Garcia distributed amendment L.001 (Attachment E) and a handout on the Colorado Jobs Initiative (Attachment F) to committee members and commented that amendment L.001 would restrict the number of employers who could capture the tax incentive under the bill. He commented that amendment L.001 changes the definition of and places restrictions on primary employers who qualify for the tax incentives in the bill.
Representative Massey commented on a concern that small employers would not be able to capture the tax incentives under the bill. The committee discussed the potential increase in Colorado jobs should House Bill 05-1050 be enacted. Representative Garcia discussed the types of larger employers who might benefit from the legislation and commented on the revenue gains that smaller communities may see should new employers locate in them. The committee discussed the repealer in the bill.
The following persons testified
:
11:23 AM --
Mr. John Cody, President of the Longmont Area Economic Council, testified in support of the legislation. Prior to giving the committee a PowerPoint presentation, he distributed a letter from the council (Attachment G) and a handout on job growth in Colorado (Attachment H). He commented that quality jobs are important to Colorado because they bring new wealth into the state. He also discussed the importance of primary job growth in Colorado and talked about net new job growth in Metro Denver and Colorado.
11:39 AM --
Mr. Rocky Scott, Colorado Springs Economic Development Council, testified in support of the legislation. Mr. Scott commented on other states that have provided incentives to primary employers and the need for Colorado to do as much as it can to bring more businesses into the state.
BILL:
HB05-1050
TIME:
11:47:03 AM
MOVED:
Garcia
MOTION:
Moved amendment L.001. (The amendment re-defines employer for purposes of the bill. It also clarifies several requirements for employers who claim tax incentives under the bill.) The motion passed without objection by those members present.
SECONDED:
McCluskey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final
YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1050
TIME:
11:52:44 AM
MOVED:
Garcia
MOTION:
Refer HB 05-1050, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:
McCluskey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Excused
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
Yes
Final
YES:
10
NO:
2
EXC:
1
ABS:
0
FINAL ACTION:
PASS
11:58 AM
Adjourn.