House Bill 1190 will suspend the exemption on energy used in processing and manufacturing, effective March 1.
“Not only is the financial impact huge, but the lack of planning and budgeting time could severely affect companies as they have to pay this unexpected tax,” said the Greater Colorado Springs Chamber of Commerce.
House Bill 1192 will make every company that uses downloaded software pay a tax on every item they download. The bill is also effective March 1, giving businesses little time to incorporate the tax into their budgets.
House bill 1199 will limit the amount a corporation can reduce its state taxable income by carrying forward a net operating loss. Currently, there is no limit on the amount a business can carry forward – but this bill creates a limit of $250,000 for the next three years.
House bill 1200 is the Enterprise Zone Investment Tax Credit Deferral, and limits tax creditsfor blighted areas. Businesses in the affected areas will face limits to the existing credits.
The bills are being handed down as a single package, and were passed by the committee last week in the wee hours of the morning.
The package was created by Gov. Bill Ritter to help address the budget shortfall facing the state, said Tony Gagliardi, director of the Colorado division of the National Federation of Independent Businesses.
“Unfortunately this budget scheme is once again yoked to the backs of Colorado’s job creators, small businesses,” he said. “It is about small business, not big business – nor big government. That is the lead horse pulling every state’s economic wagon. Adding more lashes to it does not increase the speed, it only slows the progress.”
The legislation – and about nine other bills that will also affect small businesses – drew the ire of the business community throughout the state. Thursday, the Colorado Springs Chamber of Commerce joined chambers from Denver and Aurora, as well as other small business groups, to rally at the Capitol and protest the bills.
If the bills pass the second reading, there will be only one more reading in the House of Representatives before they move to the Senate.