Colorado 2023 Regular Session

Colorado House Bill HB1018 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fourth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 23-0143.01 Megan McCall x4215
8	8	HOUSE BILL 23-1018
9	9	House Committees Senate Committees
10	10	Agriculture, Water & Natural Resources
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING INCENTIVES TO PR OMOTE THE TIMBER INDUSTRY IN101
14	14	C
15	15	OLORADO, AND, IN CONNECTION THEREWITH , CREATING AN102
16	16	INTERNSHIP PROGRAM IN THE COLORADO STATE FOREST103
17	17	SERVICE AND CREATING A STATE INCOME TAX CREDIT FOR THE104
18	18	PURCHASE OF QUALIFYING ITEMS USED IN TIMBER PRODUCTION105
19	19	AND FOREST HEALTH.106
20	20	Bill Summary
21	21	(Note: This summary applies to this bill as introduced and does
22	22	not reflect any amendments that may be subsequently adopted. If this bill
23	23	passes third reading in the house of introduction, a bill summary that
24	24	applies to the reengrossed version of this bill will be available at
25	25	http://leg.colorado.gov/
26	26	.)
27	27	Wildfire Matters Review Committee. The bill creates the timber,
28	28	HOUSE SPONSORSHIP
29	29	Lynch, Snyder, Story
30	30	SENATE SPONSORSHIP
31	31	Simpson, Cutter, Danielson, Ginal, Jaquez Lewis
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
34	34	Dashes through the words indicate deletions from existing statute. forest health, and wildfire mitigation industries workforce development
35	35	program (program) in the state forest service. The program provides
36	36	partial reimbursement to timber businesses and forest health or wildfire
37	37	mitigation entities for the costs of hiring interns. The forest service must
38	38	adopt rules, policies, and procedures for the program, including criteria
39	39	for an internship to qualify, best practices for recruiting and selecting
40	40	interns to increase representation of historically underrrepresented
41	41	communities in the industries, the criteria to use in selecting qualified
42	42	interns, the required educational experience for an intern, and
43	43	administrative requirements for the program.
44	44	For income tax years beginning on or after January 1, 2023, but
45	45	before January 1, 2028, a business involved in forestry, logging, the
46	46	timber trade, the production of wood and secondary products, or forest
47	47	health and wildfire mitigation activities in Colorado may claim a credit
48	48	against state income tax for 20% of the cost incurred by the taxpayer in
49	49	purchasing certain equipment, vehicles, and equipment infrastructure. The
50	50	total aggregate credit in any one income tax year is limited to $10,000.
51	51	Any amount of the credit that exceeds the taxpayer's income tax liability
52	52	is not refundable but may be carried forward for up to 5 years.
53	53	Be it enacted by the General Assembly of the State of Colorado:1
54	54	SECTION 1. In Colorado Revised Statutes, add 23-31-320 as2
55	55	follows:3
56	56	23-31-320. Timber, forest health, and wildfire mitigation4
57	57	industries workforce development program - creation - rules -5
58	58	legislative declaration - definitions. (1) T
59	59	HE GENERAL ASSEMBLY FINDS,6
60	60	DETERMINES, AND DECLARES THAT:7
61	61	(a) F
62	62	INDING QUALIFIED AND TRAINED EMPLOYEES IS A SIGNIFICANT8
63	63	CHALLENGE FOR THE STATE 'S TIMBER, FOREST HEALTH, AND WILDFIRE9
64	64	MITIGATION INDUSTRIES, AND IT IS ESPECIALLY DIFFICULT TO PROVIDE10
65	65	TRAINING AND EXPERIENCE TO YOUNGER WORKERS WHO ARE INTERESTED11
66	66	IN BEGINNING CAREERS IN THE TIMBER, FOREST HEALTH, AND WILDFIRE12
67	67	MITIGATION INDUSTRIES;13
68	68	(b) T
69	69	HE BARRIERS TO ENTRY FOR YOUNGER WORKERS WHO ARE14
70	70	HB23-1018-2- INTERESTED IN BEGINNING A CAREER IN THE TIMBER, FOREST HEALTH, AND1
71	71	WILDFIRE MITIGATION INDUSTRIES ARE SIGNIFICANT , INCLUDING ACCESS2
72	72	TO TRAINING PROGRAMS THAT PROVIDE REAL -WORLD WORK EXPERIENCE ;3
73	73	(c) I
74	74	NTERNSHIPS ARE A RECOGNIZED WAY TO BUILD A TALENT4
75	75	PIPELINE AND CAREER PATHWAY TO ALIGN EDUCATION , TRAINING, AND5
76	76	WORK-BASED LEARNING; AND6
77	77	(d) B
78	78	Y OFFERING INCENTIVES TO TIMBER BUSINESSES AND FOREST7
79	79	HEALTH AND WILDFIRE MITIGATION ENTITIES TO CREATE INTERNSHIPS ,8
80	80	THERE WILL BE MORE OPPORTUNITIES FOR STUDENTS TO OBTAIN WORK9
81	81	EXPERIENCE WITH TIMBER BUSINESSES OR WITH FOREST HEALTH OR10
82	82	WILDFIRE MITIGATION ENTITIES.11
83	83	(2) A
84	84	S USED IN THIS SECTION:12
85	85	(a) "F
86	86	OREST HEALTH OR WILDFIRE MITIGATION ENTITY " MEANS A13
87	87	FOR-PROFIT OR NOT-FOR-PROFIT ENTITY LOCATED OR OPERATING IN14
88	88	C
89	89	OLORADO THAT CONCERNS ITSELF WITH FOREST HEALTH OR WILDFIRE15
90	90	MITIGATION ACTIVITIES INCLUDING PRESCRIBED BURNING AS PROVIDED16
91	91	FOR IN SECTION 24-33.5-1217 OR OTHER SCIENCE -BASED FOREST17
92	92	MANAGEMENT PRACTICES .18
93	93	(b) "F
94	94	OREST SERVICE" MEANS THE COLORADO STATE FOREST19
95	95	SERVICE IDENTIFIED IN SECTION 23-31-302 AND THE DIVISION OF20
96	96	FORESTRY CREATED IN SECTION 24-33-104.21
97	97	(c) "I
98	98	NTERNSHIP PROGRAM" MEANS THE TIMBER, FOREST HEALTH,22
99	99	AND WILDFIRE MITIGATION INDUSTRIES WORKFORCE DEVELOPMENT23
100	100	PROGRAM CREATED IN SUBSECTION (3) OF THIS SECTION.24
101	101	(d) "T
102	102	IMBER BUSINESS" MEANS A FOR-PROFIT BUSINESS ENTITY25
103	103	INCORPORATED OR LOCATED IN COLORADO THAT CONCERNS ITSELF WITH26
104	104	FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION OF WOOD27
105	105	HB23-1018
106	106	-3- PRODUCTS SUCH AS FURNITURE , AND SECONDARY PR ODUCTS SUCH AS1
107	107	WOOD PULP FOR THE PULP AND PAPER INDUSTRY .2
108	108	(3) T
109	109	HE TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION3
110	110	INDUSTRIES WORKFORCE DEVELOPMENT PROGRAM IS HEREBY CREATED IN4
111	111	THE FOREST SERVICE TO PROVIDE INCENTIVES TO TIMBER BUSINESSES AND5
112	112	FOREST HEALTH OR WILDFIRE MITIGATION ENTITIES TO HIRE INTERNS6
113	113	THROUGH PARTIAL REIMBURSEMENT OF THE COSTS TO SUCH BUSINESSES7
114	114	AND ENTITIES OF HIRING INTERNS. NOT LATER THAN JANUARY 1, 2024,8
115	115	THE FOREST SERVICE SHALL PROMULGATE POLICIES , PROCEDURES, AND9
116	116	GUIDELINES FOR ADMINISTERING THE INTERNSHIP PROGRAM . THE10
117	117	POLICIES, PROCEDURES, AND GUIDELINES MUST SPECIFY, AT A MINIMUM:11
118	118	(a) T
119	119	HE CRITERIA FOR SELECTING A TIMBER BUSINESS OR FOREST12
120	120	HEALTH OR WILDFIRE MITIGATION ENTITY FOR PARTICIPATION IN THE13
121	121	INTERNSHIP PROGRAM, INCLUDING THE ABILITY OF THE BUSINESS OR14
122	122	ENTITY TO EFFECTIVELY SUPERVISE AN INTERN AND THE OPPORTUNITY FOR15
123	123	AN INTERN TO GET MEANINGFUL WORK EXPERIENCE ;16
124	124	(b) T
125	125	HE CRITERIA FOR AN INTERNSHIP TO QUALIFY UNDER THE17
126	126	INTERNSHIP PROGRAM, INCLUDING THE FOLLOWING:18
127	127	(I) T
128	128	HE INTERNSHIP MUST PROVIDE AN INTERN AT LEAST ONE19
129	129	HUNDRED THIRTY HOURS OF WORK EXPERIENCE ; AND20
130	130	(II) T
131	131	HE INTERNSHIP CANNOT EXCEED SIX MONTHS IN DURATION21
132	132	PER INTERN;22
133	133	(c) B
134	134	EST PRACTICES FOR A TIMBER BUSINESS OR FOREST HEALTH23
135	135	OR WILDFIRE MITIGATION ENTITY TO USE IN RECRUITING AND SELECTING24
136	136	QUALIFIED INTERNS TO INCREASE REPRESENTATION OF HISTORICALLY25
137	137	UNDERREPRESENTED COMMUNITIES IN THE TIMBER , FOREST HEALTH, AND26
138	138	WILDFIRE MITIGATION INDUSTRIES. IN DEVELOPING BEST PRACTICES, THE27
139	139	HB23-1018
140	140	-4- FOREST SERVICE SHALL SPECIFICALLY CONSIDER HOW TO EXTEND1
141	141	OPPORTUNITIES TO INDIVIDUALS WHO HAVE ACQUIRED EXPERIENCE IN2
142	142	WILDLAND FIRE SERVICES THROUGH THE INMATE DISASTER RELIEF3
143	143	PROGRAM CREATED IN SECTION 17-24-124 (3).4
144	144	(d) T
145	145	HE CRITERIA FOR A TIMBER BUSINESS OR FOREST HEALTH OR5
146	146	WILDFIRE MITIGATION ENTITY TO USE IN SELECTING QUALIFIED INTERNS ,6
147	147	INCLUDING THE REQUIRED EDUCATIONAL EXPERIENCE FOR AN INTERN AND7
148	148	THE ABILITY OF THE INTERN TO PERFORM MEANINGFUL WORK FOR THE8
149	149	BUSINESS;9
150	150	(e) T
151	151	HE PROCESS AND TIMETABLE FOR SELECTING QUALIFIED10
152	152	BUSINESSES AND ENTITIES AND QUALIFIED INTERNS ;11
153	153	(f) T
154	154	HE ACCOUNTING REQUIREMENTS FOR TRACKING INTERNSHIP12
155	155	COSTS; AND13
156	156	(g) T
157	157	HE PROCESS BY WHICH A TIMBER BUSINESS OR FOREST14
158	158	HEALTH OR WILDFIRE MITIGATION ENTITY MUST SEEK REIMBURSEMENT15
159	159	FROM THE STATE FOR THE INTERNSHIP COSTS IT HAS ASSUMED .16
160	160	(4) S
161	161	UBJECT TO AVAILABLE APPROPRIATIONS, THE FOREST SERVICE17
162	162	MAY REIMBURSE A QUALIFIED TIMBER BUSINESS OR FOREST HEALTH OR18
163	163	WILDFIRE MITIGATION ENTITY AN AMOUNT NOT TO EXCEED FIFTY PERCENT19
164	164	OF THE ACTUAL COST TO THE BUSINESS OR ENTITY TO EMPLOY THE INTERN .20
165	165	T
166	166	HE ACTUAL COST INCLUDES THE WAGES PAID TO THE INTERN , A21
167	167	REASONABLE ALLOCATION OF FIXED OVERHEAD EXPENSES , AND ALL22
168	168	INCIDENTAL COSTS DIRECTLY RELATED TO THE INTERNSHIP . BASED ON THE23
169	169	ANNUAL APPROPRIATION FOR THE INTERNSHIP PROGRAM , THE FOREST24
170	170	SERVICE SHALL DETERMINE HOW MANY INTERNSHIPS MAY BE APPROVED ,25
171	171	THE AMOUNT OF REIMBURSEMENT PER INTERNSHIP , AND WHETHER A26
172	172	TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE MITIGATION ENTITY27
173	173	HB23-1018
174	174	-5- MAY BE REIMBURSED FOR MORE THAN ONE INTERN IN THE SAME FISCAL1
175	175	YEAR. HOWEVER, NO TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE2
176	176	MITIGATION ENTITY MAY BE REIMBURSED FOR MORE THAN THREE3
177	177	INTERNSHIPS IN THE SAME FISCAL YEAR.4
178	178	SECTION 2. In Colorado Revised Statutes, add 39-22-549 as5
179	179	follows:6
180	180	39-22-549. Credit for purchase of equipment, vehicles, and7
181	181	structures used in the timber, forest health, and wildfire mitigation8
182	182	industries - legislative declaration - definitions - repeal. (1) (a) I
183	183	N9
184	184	ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL10
185	185	THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE11
186	186	PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE12
187	187	DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES13
188	188	THAT THE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT CREATED14
189	189	IN THIS SECTION ARE TO:15
190	190	(I) I
191	191	MPROVE INDUSTRY COMPETITIVENESS FOR THE STATE 'S TIMBER16
192	192	INDUSTRY AND PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES ENGAGED17
193	193	IN TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION ACTIVITIES ,18
194	194	THEREBY IMPROVING THE HEALTH OF COLORADO'S FORESTS AND19
195	195	REDUCING THE RISK OF CATASTROPHIC WILDFIRE ; AND20
196	196	(II) R
197	197	EDUCE BASIC OPERATIONAL COSTS FOR BUSINESSES OR21
198	198	ENTITIES ENGAGED IN THE STATE 'S TIMBER, FOREST HEALTH, AND22
199	199	WILDFIRE MITIGATION INDUSTRIES BY ALLOWING SUCH BUSINESSES OR23
200	200	ENTITIES A SPECIFIED CREDIT AGAINST THEIR INCOME TAXES FOR THEIR24
201	201	PURCHASE OF MECHANIZED EQUIPMENT , VEHICLES, AND EQUIPMENT25
202	202	INFRASTRUCTURE USED TO MAKE WOOD PRODUCTS OR CONDUCT26
203	203	PRESCRIBED BURNING OR OTHER SCIENCE -BASED FOREST MANAGEMENT27
204	204	HB23-1018
205	205	-6- PRACTICES, THEREBY PROMOTING THE STATE 'S TIMBER, FOREST HEALTH,1
206	206	AND WILDFIRE MITIGATION INDUSTRIES.2
207	207	(b) I
208	208	N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE3
209	209	AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE4
210	210	DEPARTMENT OF REVENUE SHALL TRACK THE NUMBER OF CREDITS5
211	211	ALLOWED, THE TOTAL VALUE OF THE CREDITS ALLOWED , THE AVERAGE6
212	212	AMOUNT OF EACH CREDIT ALLOWED , AND THE NUMBER OF QUALIFYING7
213	213	ITEMS PURCHASED FOR WHICH THE CREDIT WAS ALLOWED .8
214	214	(2) A
215	215	S USED IN THIS SECTION:9
216	216	(a) "E
217	217	QUIPMENT INFRASTRUCTURE " MEANS ANY EQUIPMENT USED10
218	218	IN THE MANUFACTURING OF W OOD PRODUCTS AND INCLUDES , WITHOUT11
219	219	LIMITATION, DRY KILNS, SAWMILLS, DEBARKERS, PELLET MILLS, AND12
220	220	STRUCTURES NECESSARY TO ENCLOSE LOGGING OR OTHER OPERATIONS13
221	221	ENGAGED IN BY A TAXPAYER.14
222	222	(b) "Q
223	223	UALIFYING ITEMS" MEANS:15
224	224	(I) A
225	225	NY MECHANIZED EQUIPMENT THAT IS USED FOR THE16
226	226	HARVESTING, SKIDDING, PROCESSING, AND LOADING OF TREES;17
227	227	(II) A
228	228	NY TRUCK OR TRAILER THAT IS USED FOR THE HAULING OF18
229	229	LOGS;19
230	230	(III) A
231	231	NY EQUIPMENT INFRASTRUCTURE THAT IS USED IN THE20
232	232	MANUFACTURING OF WOOD PRODUCTS ;21
233	233	(IV) A
234	234	NY EQUIPMENT THAT IS USED IN SMALL -DIAMETER TREE22
235	235	REMOVAL AND PROCESSING ; AND23
236	236	(V) A
237	237	NY EQUIPMENT THAT IS USED IN CONDUCTING PRESCRIBED24
238	238	BURNING AS DEFINED IN SECTION 24-33.5-1202 (8.3).25
239	239	(c) "T
240	240	AXPAYER" MEANS ANY SOLE PROPRIETORSHIP, PARTNERSHIP,26
241	241	LIMITED LIABILITY CORPORATION , SUBCHAPTER S CORPORATION, OR27
242	242	HB23-1018
243	243	-7- REGULAR CORPORATION DOING BUSINESS IN THE STATE THAT CONCERNS1
244	244	ITSELF WITH FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION2
245	245	OF WOOD PRODUCTS SUCH AS FURNITURE , AND SECONDARY PRODUCTS3
246	246	SUCH AS WOOD PULP FOR THE PULP AND PAPER INDUSTRY , OR WITH FOREST4
247	247	HEALTH AND WILDFIRE MITIGATION ACTIVITIES INCLUDING PRESCRIBED5
248	248	BURNING AS PROVIDED FOR IN SECTION 24-33.5-1217 OR OTHER6
249	249	SCIENCE-BASED FOREST MANAGEMENT PRACTICES .7
250	250	(3) W
251	251	ITH RESPECT TO TAX YEARS COMMENCING ON OR AFTER8
252	252	J
253	253	ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED TO9
254	254	ANY TAXPAYER A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE 2210
255	255	IN THE AMOUNT OF TWENTY PERCENT OF THE COST INCURRED BY THE11
256	256	TAXPAYER IN PURCHASING A QUALIFYING ITEM , NOT TO EXCEED TEN12
257	257	THOUSAND DOLLARS IN THE AGGREGATE FOR ALL QUALIFYING ITEMS13
258	258	PURCHASED IN ANY ONE INCOME TAX YEAR .14
259	259	(4) (a) I
260	260	F A QUALIFYING ITEM THAT WAS PRODUCED IN COLORADO15
261	261	IS AVAILABLE, THE TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE16
262	262	CLAIMED FOR QUALIFYING ITEMS PRODUCED IN COLORADO. IF A17
263	263	QUALIFYING ITEM PRODUCED IN COLORADO IS NOT AVAILABLE, THE TAX18
264	264	CREDIT ALLOWED BY THIS SECTION MAY BE CLAIMED REGARDLESS OF19
265	265	WHERE THE QUALIFYING ITEM IS PRODUCED .20
266	266	(b) I
267	267	F AN ELECTRIC-POWERED QUALIFYING ITEM IS AVAILABLE, THE21
268	268	TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE CLAIMED FOR22
269	269	ELECTRIC-POWERED QUALIFYING ITEMS . IF AN ELECTRIC-POWERED23
270	270	QUALIFYING ITEM IS NOT AVAILABLE, THE TAX CREDIT MAY BE CLAIMED24
271	271	REGARDLESS OF THE POWER SOURCE OF THE QUALIFYING ITEM .25
272	272	(5) I
273	273	F THE AMOUNT OF THE CREDIT SPECIFIED IN SUBSECTION (3) OF26
274	274	THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES DUE ON THE27
275	275	HB23-1018
276	276	-8- INCOME OF THE TAXPAYER IN THE INCOME TAX YEAR FOR WHICH THE1
277	277	CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT NOT USED AS AN2
278	278	OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX YEAR IS NOT3
279	279	REFUNDABLE BUT MAY BE CARRIED FORWARD AS A CREDIT AGAINST4
280	280	SUBSEQUENT YEARS' TAX LIABILITY FOR A PERIOD NOT EXCEEDING FIVE5
281	281	YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX YEARS6
282	282	POSSIBLE. ANY AMOUNT OF THE CREDIT THAT IS NOT USED DURING SAID7
283	283	PERIOD IS NOT REFUNDABLE TO THE TAXPAYER .8
284	284	(6) T
285	285	O CLAIM A CREDIT UNDER THIS SECTION, A TAXPAYER MUST9
286	286	SUBMIT TO THE DEPARTMENT OF REVENUE DOCUMENTATION IN A FORM10
287	287	SATISFACTORY TO THE DEPARTMENT OF REVENUE THAT DEMONSTRATES11
288	288	THE TAXPAYER PURCHASED THE QUALIFYING ITEM AND THE COST OF THE12
289	289	ITEM PURCHASED BY THE TAXPAYER .13
290	290	(7) T
291	291	HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2036.14
292	292	SECTION 3. Act subject to petition - effective date. This act15
293	293	takes effect at 12:01 a.m. on the day following the expiration of the16
294	294	ninety-day period after final adjournment of the general assembly; except17
295	295	that, if a referendum petition is filed pursuant to section 1 (3) of article V18
296	296	of the state constitution against this act or an item, section, or part of this19
297	297	act within such period, then the act, item, section, or part will not take20
298	298	effect unless approved by the people at the general election to be held in21
299	299	November 2024 and, in such case, will take effect on the date of the22
300	300	official declaration of the vote thereon by the governor.23
301	301	HB23-1018
302	302	-9-