Bill Summary for Bill Number HB09-1105

Date: 02/04/2009

Final
BILL SUMMARY for HB09-1105

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.003. The motion passed without	Pass Without Objection TIE

09:45 AM -- House Bill 09-1105 - Concerning the Colorado Innovation Investment Tax Credit

Representative Kefalas, prime sponsor, explained the provisions of the bill and distributed a news article on the measure (Attachment A). Representative Kefalas noted that the bill allows certain investors to receive an income tax credit for investments made in certain aerospace, bioscience, clean energy, and information technology small businesses during tax years 2010 through 2014. The credit is equal to 15 percent of the investment for the tax year in which the investment is made and the following tax year, up to a maximum total of $100,000.

Representative Kefalas continued by noting that the credit is non-refundable, not transferable and may be carried forward for five years. The state may grant a maximum of $3.0 million in credits during each tax year. If applications worth more than $3.0 million qualify, they will be approved on a first-come, first-serve basis. After a brief discussion on the credit, the committee heard testimony.

The following persons testified:

10:01 AM -- Dr. Martin Shields, Colorado State University, testified in support of the bill. Dr. Shields noted that the bill offers Colorado economic opportunities in terms of increasing educational opportunities that is an investment in Colorado's economic future.

Representative Benefield distributed a handout entitled Balancing Taxes, Education Funding and Long-Term Economic"(Attachment B) and discussed the options the General Assembly has in terms of balancing the budget and allocating money for higher education. The committee discussed the challenges of funding education in FY 2009-10.

10:23 AM -- Ms. Su Hawk, Colorado's Technology Association (CSIA), testified in support of the bill and discussed the Information Technology ( IT) industry in Colorado. The industry employs over 60,000 workers in the state with an average salary of $84,000 per year and is an economic engine for the state's economy. She closed by saying that this bill will help the industry and indicate that the state wants entrepreneurs in Colorado.

10:40 AM -- Mr. Mark Forsyth, Rocky Mountain Innovation Initiative, testified in support of the bill and noted that it is important to fund new business start-ups in Colorado to stimulate the economy. House Bill 09-1105 works to provide funding for these companies. This bill will attract more private capital to Colorado businesses. States other than Colorado that have similar tax incentives have seen this credit bring more businesses to their state. In Wisconsin, the total Angel investments doubled in one year. He closed by asking the committee to support the legislation.

10:57 AM -- Mr. Ed DeCecco, Office of Legislative Legal Services, responded to committee questions on the administration of the income tax credits in the bill.

11:00 AM -- Mr. Mark Forsyth, Rocky Mountain Innovation Initiative, continued by responding to committee questions about the bill being a short-term economic stimulus. The committee discussed the types of early-stage companies that would receive investment money under the bill.

11:06 AM -- Mr. Dennis Oddy, Colorado's Technology Association (CSIA), testified in support of the bill and talked about the value of venture-capital to start-up companies in Colorado. Software development companies add to Colorado's innovative spirit and can work to stimulate the state's economy.

11:11 AM -- Mr. Jack Wheeler, Colorado Bioscience Association, testified in support of the bill. This bill will provide small business bioscience companies with the start-up capital companies need to get their companies off the ground to be able to eventually obtain venture capital funding.

11:17 AM -- Ms. Sandra Solin, Northern Colorado Legislative Alliance, testified in support of the bill. Venture capital is an important driver for Colorado's economy, especially when the credit markets are frozen for many small businesses.

11:19 AM -- Mr. Stephen Miller, Denver Ventures, testified in support of the legislation. He closed by saying that by making an investment in a Colorado company, the money invested in the business remains in the state.

11:22 AM

The bill was placed on the table for action and amended by adoption of amendment L.003 (Attachment C). After a brief committee discussion, the bill was laid over to allow the bill sponsor time to make some drafting changes. The bill has been placed on the committee schedule for Wednesday, February 18, 2009, upon adjournment. The Chair did not close the amendment phase.


BILL:	HB09-1105
TIME:	11:22:14 AM
MOVED:	Kefalas
MOTION:	Moved amendment L.003. The motion passed without objection by those members present. After a brief committee discussion, the bill was laid over, as amended.
SECONDED:	Kerr A.
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1105
TIME:	11:26:50 AM
MOVED:
MOTION:
SECONDED:
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE