Two laws go into effect tomorrow that provide tax breaks to businesses in order to promote job growth and future-looking clean-energy businesses. Tax cuts in a time of drastic budget shortfalls? Yes, if it means expanding the tax base and actually re-instituting and collecting those taxes in the future. And in fact it looks as though the tax breaks are carefully targeted as limited incentives to draw employers to the state and to expand the state’s green-tech sector. They are not permanent. The bills won bipartisan support. One of the proud sponsors will have to miss the day the law takes effect tomorrow because he had to to leave the country to serve in Iraq.
At last it seems we are seeing true leadership from the Republican side of the aisle. Except that these bills were sponsored by Democrats.
House Bill 1001, the Income Tax Credit For Colorado’s Job Growth, was sponsored by Littleton Rep. Joe Rice and Boulder Sen. Rollie Heath. The bill provides the incentives to companies that move to Colorado and create at least 20 new jobs. Employers will pay half federal social security and Medicare taxes for up to ten years.
House Bill 1035, the Clean Technology/Medical Device Tax Refund, was sponsored by Greeley Democrat Jim Riesberg and again Boulder’s Sen. Heath. The law will allow technology companies of 50 or fewer employees to receive refunds of state sales and use taxes on research and development for clean technology and medical devices.