Colorado bill would extend rolling stock tax credit

| Tuesday, March 14, 2006

The Colorado House has approved a bill that would extend enterprise zone tax credits to rolling stock.

Sponsored by Rep. Buffie McFadyen, D-Pueblo West, the measure would make new trucks and trailer purchases eligible for the state’s 3 percent enterprise zone investment tax credit program.

Existing Colorado law limits the tax credit to purchases of equipment used “solely” or “exclusively” within an enterprise zone for at least one year. The mobile use of trucks and trailers disqualifies them from the tax credit.

The bill would clarify that all new equipment purchases, including truck tractors weighing more than 16,000 pounds and trailers, qualify for the 3 percent investment tax credit.

The credits would be phased in by 1 percent a year during the next three years. Once fully implemented, the credit would match the investment tax credit offered other forms of enterprise zone equipment.

HB1091 has been sent to the Senate for further consideration.

Comments