Companies bite on Colorado’s new job-incentive program

Colorado’s House Bill 1001, signed into law recently by Gov. Bill Ritter, gives companies a state income-tax credit if they choose Colorado over competing states for establishment of at least 20 new jobs.

Employers using the incentive effectively would receive a credit of 3.8 percent on state income taxes for up to five years. The Colorado income tax is 4.63 percent.

At least three companies — and possibly more — have been in contact with state or local economic-development groups, said Don Elliman, director of the Colorado Office of Economic Development and International Trade.

"I do not believe in the cases that I am aware of that we would be close to competitive without HB 1001," Elliman said.

Business-development analysts said that until the tax incentive passed, Colorado often was bypassed by expanding or relocating businesses because other states were more competitive with financial incentives.

Officials said they can’t identify the three domestic prospects or the one operating near the Mexican border, because none has decided yet on locating in Colorado.

By Steve Raabe
The Denver Post

Full Story: http://www.denverpost.com/ci_12415433