Colorado law currently gives local governments (including counties, municipalities and special districts) the power to negotiate business incentive agreements with new or expanding businesses, giving local governments a valuable tool to attract and keep businesses and stimulate economic growth and job creation within their respective jurisdiction.  These incentive agreements may provide for a rebate of up to 100% of the business personal property tax for a new or expanding business for a period not to exceed 10 years.  C.R.S. §§ 30-11-123 (counties), 31-115-903 (municipalities) and 32-1-1702 (special districts).

HB 13-1206, introduced in the Colorado House of Representatives this session, seeks to expand the power of local governments to negotiate such business incentive agreements with businesses that are considering relocating to another state.  The bill requires that the local government has “verifiable documentation” that there is a substantial risk that the business will relocate out of the state.  “Verifiable documentation” must include information that the business could “reasonably and efficiently relocate” out of the state and that at least one other state is being considered by the business.

This bill fits squarely within the goals of current law to stimulate economic growth and job creation and gives local governments another valuable tool to keep jobs in Colorado.  The bill recently passed the Colorado House of Representatives.