Enterprise zone bill withdrawn

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A bill that would eliminate all enterprise zone tax credits, House Bill 1396, was withdrawn this morning by its sponsor,  Rep. Joel Judd, D-Denver.

Stefannie Finley, president of the Colorado Springs Chamber of Commerce’s governmental affairs division, said Judd didn’t have enough supporting voters from the House Finance Committee.

Opponents claimed the bill will both cost jobs and cripple the state’s economic recovery. Proponents believed that eliminating such tax “breaks” would have brought another $77 million annually into the state’s coffers.

Another enterprise zone bill, HB 1200, passed the House on Tuesday by a single vote. The bills establishes a $250,000 limit on the amount of enterprise – zone tax credits that businesses can claim for the next three years. The bill was opposed by all 27 Republicans in the House, as well as by five Democrats. Pueblo Democratic representatives Sal Pace and Buffie McFadyen opposed the bill, but Colorado Springs Democrats Mike Merrifield and Dennis Apuan joined 31 other Democrats in support.

The bill was vigorously opposed by many business interests. It will now head for the Senate, where it will be heard by the Senate Finance Committee.

A less controversial enterprise zone bill, Senate Bill 162, sponsored by Rep. Rollie Heath, D-Boulder, passed the House easily on a bipartisan 55-9 vote. The bill requires companies to certify that they moved to an enterprise zone for the tax breaks before they can receive the credits and incentives associated with the zone.

One Response to Enterprise zone bill withdrawn

  1. Why would anyone support pulling tax credits in today’s economic climate? These guys are idiot, out-of-touch lawmakers who have no clue what it means to run a business. I’m surprised these guys can write their names let alone make a rational decision about economics. I guess they’re taking a page from our President: Business = bad. Short-term increase in revenues for government = good.

    H Willey
    April 28, 2010 at 1:58 pm