Effort to extend rolling stock tax credit dies in Colorado

| 3/28/2006

A Colorado Senate panel killed a bill that would have extended enterprise zone tax credits to rolling stock.

The Senate State, Veterans and Military Affairs Committee voted 4-3 along party lines March 22 to kill the bill. The bill – HB1091 – passed the House early this month.

Senate President Joan Fitz-Gerald, D-Golden, gave some insight into the bill’s demise. She said she would not support any tax credits or tax reductions this year.

Sponsored by Rep. Buffie McFadyen, D-Pueblo West, the measure would have made 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 sought to 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 have been phased in by 1 percent a year during the next three years. Once fully implemented, the credit would have matched the investment tax credit offered other forms of enterprise zone equipment.