Press Release - Robust Economic-Development Bills
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE
TUESDAY, MAY 20, 2008
CONTACT:
Evan Dreyer, 720.350.8370, evan.dreyer@state.co.us
GOV. RITTER BOOSTS COLORADO BUSINESSES, SIGNS ROBUST ECONOMIC-DEVELOPMENT BILLS INTO LAW
LITTLETON -- Gov. Bill Ritter today gave a significant boost to Colorado's economy, signing legislation that eases the tax burden on tens of thousands of businesses statewide and provides incentives to keep Colorado companies competitive in the 21st century.
Joined by state Economic Development Director Don Elliman, Colorado business leaders and several lawmakers at a ceremony in the historic Littleton business district, Gov. Ritter signed four bills into law:
House Bill 1183 (Hodge/Veiga), New Job Creation Incentives
House Bill 1225 (Rice/Williams), Business Personal Property Tax
House Bill 1261 (Buescher/Bacon), Fly-Away Sales Tax Exemption
House Bill 1380 (Jahn/Shaffer), Single-Sales Factor
"Back in September, we first announced our 2008 legislative agenda to keep businesses in Colorado competitive," Gov. Ritter said. "People called it the most robust economic-development package in 10 or 20 years. I'm extremely pleased to be signing these bills into law today, as they represent some of our biggest successes of the entire legislative session.
"This legislation will benefit large companies on the Front Range and small businesses on the Eastern Plains, across the Western Slope, throughout the San Luis Valley and in every other corner of Colorado."
A number of major business organizations across Colorado supported -- and in some cases helped craft -- the legislation signed today, including: the Denver Metro Chamber of Commerce, the Colorado Association of Commerce and Industry, Colorado Competitive Council and Colorado Concern (Click to view letters of support).
HB 1225 exempts 30,400 additional businesses from Colorado's Business Personal Property Tax. Currently, businesses are exempt from paying the tax if they have personal property such as computers and other equipment worth less than $2,500. HB 1225 raises the exemption threshold to $7,000 over five years.
HB 1380 simplifies Colorado's corporate tax structure by establishing a "single sales factor" for multi-state corporations. This is the most comprehensive income tax reform in Colorado in more than four decades. It creates an incentive for companies that want to build their workforce and increase their physical presence in Colorado, and it rewards companies currently investing in the people and infrastructure of Colorado.
HB 1261 abolishes Colorado's "fly-away" sales tax on airplanes made in Colorado but sold to out-of-state owners. This will be a tool to entice aircraft manufacturers to Colorado.
HB 1183 will make it easier for businesses -- especially small rural businesses -- to qualify for job-creation incentives through the state's Performance-Based Incentives Fund.
Gov. Ritter also noted two additional pieces of the business-development package:
HB 1001 (Riesberg/Bacon) creates the Colorado Bioscience Research Grant Program. Signed into law in April, the bill will provide $26.5 million over five years to help grow the bioscience industry in Colorado.
Gov. Ritter also has committed to investing $3.5 million from the Clean Energy Fund directly into economic development for renewable energy projects over the next year.
"Thanks to this legislation, Colorado businesses will not just compete in the 21st century global economy -- we will lead the way," Gov. Ritter said. "These bills will allow our existing businesses to grow and allow us to recruit new companies to our great state.
"They will allow us to create good-paying Colorado jobs for hard-working Colorado residents," he said. "They will allow us to create new opportunities and continue to build a knowledge-based economy around the high-tech industries of the future.
"These proposals will give businesses more tools to succeed -- from a reduced tax burden to less red tape. This package is good for our economy, good for our small businesses and good for our communities."
Also participating in today's announcement were state Reps. Joe Rice and Cheri Jahn; Sen. Brandon Shaffer; Jim Noon from Centennial Containers and representing the National Federation of Independent Businesses; John Hughes, chairman, South Metro Chamber of Commerce; and Joe Lehman, director of government policy, Lockheed Martin.
For a complete list of 2008 legislation Gov. Ritter has signed into law, click here.