H_BUS_2017A 02/07/2017 Committee Summary

01:33 PM - HB 17-1090



Representative Kraft-Tharp and Representative Wilson, co-sponsors, introduced House Bill 17-1090. The bill extends the Advanced Industry Investment Income Tax Credit Program through tax years 2018 to 2022. The bill authorizes the Office of Economic Development and International Trade in the Governor's Office (OEDIT) to issue $1.5 million worth of state income tax credits each year to qualified investors.



Under current law, in addition to other requirements, a business must have less than $5 million in annual revenue and be actively operating and generating revenue for less than five years to qualify for an investment. HB17-1090 allows a business to meet only one of these criteria.



On November 1, 2022, the bill requires OEDIT to submit a report summarizing all the tax credits issued since January 1, 2018.



The bill sponsors responded to questions from the committee.



01:40 PM -- April Giles, Colorado BioScience Association, testified in support of the bill.



01:44 PM -- Jeff Kraft, OEDIT, spoke about the tax credit program and testified in support of the bill. Mr. Kraft responded to questions from the committee.













02:02 PM -- Sarah Ruddell, Carbon Cycle Energy, testified in support of the bill.



02:06 PM -- Elyse Blazevich, Securisyn Medical, testified in support of the bill.



02:09 PM -- Dave Shine, dBMEDx, testified in support of the bill.



02:11 PM -- Patrick Boyle, Colorado Competitive Council, testified in support of the bill.



02:12 PM



Ms. Ruddell, Ms. Blazevich, Mr. Shine responded to questions from the committee.



02:15 PM



Mr. Kraft from OEDIT returned to the table to respond to additional questions from the committee.



02:24 PM

02:26 PM -- HB 17-1091



Representative Wilson introduced House Bill 17-1091. The bill creates an income tax credit for taxpayers who provide donations to non-profit sponsors of employer-assisted housing projects in rural areas of the state for tax years 2017 through 2020. The credit is calculated as the amount donated to a sponsor to be used for costs associated with employer-assisted housing projects for employees with adjusted incomes of less than 120 percent of area median household income. The credit is nonrefundable, meaning it is limited to the taxpayer's income tax liability. Any remaining credits may be carried forward for up to five years.



The bill specifies the procedures for documenting and certifying donations and applying for an allocation of the tax credit through a housing agency, including the Colorado Housing and Finance Authority (CHFA) or a local government housing authority. Housing agencies are required to report on the economic activity, usage, and impacts of the employer-assisted housing project if a tax credit is allocated. Housing agencies may collect an application fee of up to $500 and a reservation fee of up to 3 percent of the tax credit from prospective sponsors.



Representative Wilson provided amendment L.001 (Attachment A) and a memorandum on the associated fiscal impact of the proposed amendment (Attachment B).



170207 AttachA.pdf170207 AttachB.pdf



Representative Wilson responded to questions from the committee.



02:39 PM -- Eloise Hirsch, OEDIT, testified in opposition to specific aspects of the proposed amendment.



02:41 PM



Representative Wilson and Ms. Hirsch responded to questions from the committee.



02:44 PM -- Wendell Pryor, Chaffee County Economic Development Corporation, testified in support of the bill. Mr. Pryor responded to questions from the committee.



02:49 PM -- John Vecchiarelli, Department of Revenue, responded to questions from the committee.





02:54 PM



Representative Wilson discussed amendment L.001.

02:55 PM



Representative Wilson made closing remarks on the bill.



Committee members made closing remarks on the bill and Representative Wilson responded to committee questions.



02:58 PM



The committee took a brief recess.



03:07 PM



The committee reconvened. The chair laid the bill over until the end of the committee's calendar for final action.







03:08 PM -- HB 17-1092



Representative Lebsock introduced House Bill 17-1092. The bill changes state laws governing contracts between performing rights societies and proprietors of retail venues that perform or broadcast music for public enjoyment.



Representative Lebsock discussed amendment L.001 (Attachment C).



170207 AttachC.pdf



03:11 PM -- Iola Bean, representing herself, testified in support of the bill.



03:17 PM -- Joseph DiMona, Broadcast Music Inc. (BMI), testified in support of the strike-below amendment. Mr. DiMona responded to questions from the committee.



03:37 PM -- Nick Hoover, Colorado Restaurant Association, testified in support of the bill and the strike-below amendment.



03:42 PM -- Heather Frayer, Colorado Bar Owners Association, testified in support of the bill.

03:48 PM



Representative Lebsock made closing remarks on the bill.

03:50 PM -- HB 17-1091

03:51 PM



The committee adjourned.