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Improving the economyRitter signs bills to create jobs and improve Colo.’s workforcePeter Marcus, DDN Staff WriterTuesday, May 5, 2009 |  | | SIGNING — Gov. Bill Ritter signs two bills into law yesterday. |
The governor signed into law yesterday two pieces of legislation said to be the centerpiece of legislative efforts this year to create jobs and train the workforce.
House Bill 1001 will offer a state income tax credit to companies that create at least 20 new jobs in urban areas or five new jobs in rural areas; Senate Bill 171 will expand training programs for companies looking to train for an entire industry sector — specifically targeting renewable energy jobs.
“The two bills I signed today mark a key step toward our long-term vision of creating a modern, knowledge-based economic ecosystem in Colorado,” Gov. Bill Ritter said yesterday at a signing ceremony at Denver’s World Trade Center Plaza. “This ecosystem depends on controlling health care costs, reforming education and building a 21st-century transportation system.”
Tax credits will only be offered to companies that pay at least 110 percent of the county wage; a company must create and maintain any new job for one full year before becoming eligible to receive the credit.
The legislation was sponsored by Rep. Joe Rice, D-Littleton, and Sen. Rollie Heath, D-Boulder.
“We can continue to put our economy back on track by providing incentives to new businesses to open their doors in Colorado,” said Rice.
Supporters believe House Bill 1001 will create a “completely new toolbox” that will add new jobs to local communities and help increase business for thousands of small businesses across Colorado.
Economic-development leaders have complained for years that Colorado does not offer enough incentives to attract companies from across the nation and world to setup shop across the state. Regional competitors like New Mexico and Texas offer millions of dollars in attraction incentives.
House Bill 1001 will offer $2.9 million in tax credits.
The nine-member Colorado Economic Development Commission will determine which companies are offered the credit.
Making Colo. competitive
“These two bills … will make Colorado more competitive for job growth opportunities, and give us the ability to train our workers and our labor force more effectively … Put together, it’s a powerful economic package,” said Don Elliman, director of the governor’s Office of Economic Development & International Trade. “These bills will make a difference.”
Mike Kazmierski, president of the Colorado Springs Economic Development Corp., pointed out that the measure comes at a crucial time, when more than 200,000 Coloradans are unemployed.
Ritter echoed similar thoughts.
“We’re facing an unprecedented economic downturn, everyone is struggling,” he said. “That’s why we focused this session on partnering with businesses to help create jobs, and at the same time, strengthening our economy.”
Improving the workforce
The second piece of legislation signed by Ritter yesterday — Senate Bill 171 — will allow companies to partner with community colleges and other training providers to create a training program for an entire industry sector.
Companies will be able to apply for a grant from the Colorado First and Existing Industry training grants program. The measure is expected to cost the state $2.7 million per year.
While the bill targets the renewable energy industry — aerospace, tourism, bioscience and information technology industries are also being targeted.
“We can hit the road running today developing more new energy jobs,” said Rep. Nancy Todd, D-Aurora, who sponsored SB 171 along with Sen. Gail Schwartz, D-Snowmass, and Rep. Ed Vigil, D-Fort Garland. “A trained workforce will ensure that Colorado continues to attract new energy jobs to the state.”
Ritter on Thursday plans to sign the third significant piece of legislation that is considered to be part of the 2009 economic-development package.
Senate Bill 67 would give businesses direct access to credit and capital.
| Comments: |
| Darrell @ 2009-05-07 23:02:22 | As a friend of mine pointed out, giving tax breaks to some companies means that other companies or individuals have to pick up the slack. The result is a distorted market place rather than more jobs. But, I guess our elected politicians want you to feel like they're doing something. A better policy would be laizzez faire --- leave them be. |
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