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DENVER, CO — The House Committee on Business Affairs and Labor advanced Representatives Daneya Esgar and Tracy Kraft-Tharp’s bill to support businesses coming to Colorado and incentivize economic growth by extending the successful Transferable Tax Credit program for three years.
“I fought hard to create this critical tool for businesses three years ago, and with it we were able to deliver results for Pueblo and keep jobs in our town,” said Rep. Esgar, D-Pueblo. “Now we’re ensuring that this successful business development program will continue to keep and create jobs for Colorado for years to come.”
“The Transferable Tax Credit program has a track record of success, and I’m proud that we voted to extend it today,” said Business Affairs and Labor Committee Chair Rep. Kraft-Tharp. “We need to do everything we can to bring more jobs to Colorado and keep our state’s economy strong. This program will continue to do exactly that.”
HB20-1298 would extend the Office of Economic Development and International Trade’s
(OEDIT) performance-based Transferable Tax Credit (TTC) program for three years. The TTC program allows companies that make major capital investments in Colorado of at least $100 million to transfer certain OEDIT tax credits that they would not be able to use otherwise. These are tax credits that are earned in the course of making that investment and they include Colorado’s Job Growth Incentive Tax Credit and the Enterprise Zone (EZ) investment tax, EZ new employee credit, and EZ R&D credit.
Since inception, the Transferable Tax Credit program has only been used in two extremely unique economic development opportunities that created and kept well-paying jobs in Colorado and will benefit our economy for decades. The first was the retention of EVRAZ Rocky Mountain Steel in Pueblo, where the company plans to spend more than $400M to build a steel mill that will be the center of a local manufacturing ecosystem. The second was the relocation of VF Corp’s headquarters from North Carolina to Denver, which will create an estimated 800 new jobs in the Denver area.