First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0143.01 Megan McCall x4215
HOUSE BILL 23-1018
House Committees Senate Committees
Agriculture, Water & Natural Resources
A BILL FOR AN ACT
C
ONCERNING INCENTIVES TO PR OMOTE THE TIMBER INDUSTRY IN101
C
OLORADO, AND, IN CONNECTION THEREWITH , CREATING AN102
INTERNSHIP PROGRAM IN THE COLORADO STATE FOREST103
SERVICE AND CREATING A STATE INCOME TAX CREDIT FOR THE104
PURCHASE OF QUALIFYING ITEMS USED IN TIMBER PRODUCTION105
AND FOREST HEALTH.106
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Wildfire Matters Review Committee. The bill creates the timber,
HOUSE SPONSORSHIP
Lynch, Snyder, Story
SENATE SPONSORSHIP
Simpson, Cutter, Danielson, Ginal, Jaquez Lewis
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. forest health, and wildfire mitigation industries workforce development
program (program) in the state forest service. The program provides
partial reimbursement to timber businesses and forest health or wildfire
mitigation entities for the costs of hiring interns. The forest service must
adopt rules, policies, and procedures for the program, including criteria
for an internship to qualify, best practices for recruiting and selecting
interns to increase representation of historically underrrepresented
communities in the industries, the criteria to use in selecting qualified
interns, the required educational experience for an intern, and
administrative requirements for the program.
For income tax years beginning on or after January 1, 2023, but
before January 1, 2028, a business involved in forestry, logging, the
timber trade, the production of wood and secondary products, or forest
health and wildfire mitigation activities in Colorado may claim a credit
against state income tax for 20% of the cost incurred by the taxpayer in
purchasing certain equipment, vehicles, and equipment infrastructure. The
total aggregate credit in any one income tax year is limited to $10,000.
Any amount of the credit that exceeds the taxpayer's income tax liability
is not refundable but may be carried forward for up to 5 years.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 23-31-320 as2
follows:3
23-31-320. Timber, forest health, and wildfire mitigation4
industries workforce development program - creation - rules -5
legislative declaration - definitions. (1) T
HE GENERAL ASSEMBLY FINDS,6
DETERMINES, AND DECLARES THAT:7
(a) F
INDING QUALIFIED AND TRAINED EMPLOYEES IS A SIGNIFICANT8
CHALLENGE FOR THE STATE 'S TIMBER, FOREST HEALTH, AND WILDFIRE9
MITIGATION INDUSTRIES, AND IT IS ESPECIALLY DIFFICULT TO PROVIDE10
TRAINING AND EXPERIENCE TO YOUNGER WORKERS WHO ARE INTERESTED11
IN BEGINNING CAREERS IN THE TIMBER, FOREST HEALTH, AND WILDFIRE12
MITIGATION INDUSTRIES;13
(b) T
HE BARRIERS TO ENTRY FOR YOUNGER WORKERS WHO ARE14
HB23-1018-2- INTERESTED IN BEGINNING A CAREER IN THE TIMBER, FOREST HEALTH, AND1
WILDFIRE MITIGATION INDUSTRIES ARE SIGNIFICANT , INCLUDING ACCESS2
TO TRAINING PROGRAMS THAT PROVIDE REAL -WORLD WORK EXPERIENCE ;3
(c) I
NTERNSHIPS ARE A RECOGNIZED WAY TO BUILD A TALENT4
PIPELINE AND CAREER PATHWAY TO ALIGN EDUCATION , TRAINING, AND5
WORK-BASED LEARNING; AND6
(d) B
Y OFFERING INCENTIVES TO TIMBER BUSINESSES AND FOREST7
HEALTH AND WILDFIRE MITIGATION ENTITIES TO CREATE INTERNSHIPS ,8
THERE WILL BE MORE OPPORTUNITIES FOR STUDENTS TO OBTAIN WORK9
EXPERIENCE WITH TIMBER BUSINESSES OR WITH FOREST HEALTH OR10
WILDFIRE MITIGATION ENTITIES.11
(2) A
S USED IN THIS SECTION:12
(a) "F
OREST HEALTH OR WILDFIRE MITIGATION ENTITY " MEANS A13
FOR-PROFIT OR NOT-FOR-PROFIT ENTITY LOCATED OR OPERATING IN14
C
OLORADO THAT CONCERNS ITSELF WITH FOREST HEALTH OR WILDFIRE15
MITIGATION ACTIVITIES INCLUDING PRESCRIBED BURNING AS PROVIDED16
FOR IN SECTION 24-33.5-1217 OR OTHER SCIENCE -BASED FOREST17
MANAGEMENT PRACTICES .18
(b) "F
OREST SERVICE" MEANS THE COLORADO STATE FOREST19
SERVICE IDENTIFIED IN SECTION 23-31-302 AND THE DIVISION OF20
FORESTRY CREATED IN SECTION 24-33-104.21
(c) "I
NTERNSHIP PROGRAM" MEANS THE TIMBER, FOREST HEALTH,22
AND WILDFIRE MITIGATION INDUSTRIES WORKFORCE DEVELOPMENT23
PROGRAM CREATED IN SUBSECTION (3) OF THIS SECTION.24
(d) "T
IMBER BUSINESS" MEANS A FOR-PROFIT BUSINESS ENTITY25
INCORPORATED OR LOCATED IN COLORADO THAT CONCERNS ITSELF WITH26
FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION OF WOOD27
HB23-1018
-3- PRODUCTS SUCH AS FURNITURE , AND SECONDARY PR ODUCTS SUCH AS1
WOOD PULP FOR THE PULP AND PAPER INDUSTRY .2
(3) T
HE TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION3
INDUSTRIES WORKFORCE DEVELOPMENT PROGRAM IS HEREBY CREATED IN4
THE FOREST SERVICE TO PROVIDE INCENTIVES TO TIMBER BUSINESSES AND5
FOREST HEALTH OR WILDFIRE MITIGATION ENTITIES TO HIRE INTERNS6
THROUGH PARTIAL REIMBURSEMENT OF THE COSTS TO SUCH BUSINESSES7
AND ENTITIES OF HIRING INTERNS. NOT LATER THAN JANUARY 1, 2024,8
THE FOREST SERVICE SHALL PROMULGATE POLICIES , PROCEDURES, AND9
GUIDELINES FOR ADMINISTERING THE INTERNSHIP PROGRAM . THE10
POLICIES, PROCEDURES, AND GUIDELINES MUST SPECIFY, AT A MINIMUM:11
(a) T
HE CRITERIA FOR SELECTING A TIMBER BUSINESS OR FOREST12
HEALTH OR WILDFIRE MITIGATION ENTITY FOR PARTICIPATION IN THE13
INTERNSHIP PROGRAM, INCLUDING THE ABILITY OF THE BUSINESS OR14
ENTITY TO EFFECTIVELY SUPERVISE AN INTERN AND THE OPPORTUNITY FOR15
AN INTERN TO GET MEANINGFUL WORK EXPERIENCE ;16
(b) T
HE CRITERIA FOR AN INTERNSHIP TO QUALIFY UNDER THE17
INTERNSHIP PROGRAM, INCLUDING THE FOLLOWING:18
(I) T
HE INTERNSHIP MUST PROVIDE AN INTERN AT LEAST ONE19
HUNDRED THIRTY HOURS OF WORK EXPERIENCE ; AND20
(II) T
HE INTERNSHIP CANNOT EXCEED SIX MONTHS IN DURATION21
PER INTERN;22
(c) B
EST PRACTICES FOR A TIMBER BUSINESS OR FOREST HEALTH23
OR WILDFIRE MITIGATION ENTITY TO USE IN RECRUITING AND SELECTING24
QUALIFIED INTERNS TO INCREASE REPRESENTATION OF HISTORICALLY25
UNDERREPRESENTED COMMUNITIES IN THE TIMBER , FOREST HEALTH, AND26
WILDFIRE MITIGATION INDUSTRIES. IN DEVELOPING BEST PRACTICES, THE27
HB23-1018
-4- FOREST SERVICE SHALL SPECIFICALLY CONSIDER HOW TO EXTEND1
OPPORTUNITIES TO INDIVIDUALS WHO HAVE ACQUIRED EXPERIENCE IN2
WILDLAND FIRE SERVICES THROUGH THE INMATE DISASTER RELIEF3
PROGRAM CREATED IN SECTION 17-24-124 (3).4
(d) T
HE CRITERIA FOR A TIMBER BUSINESS OR FOREST HEALTH OR5
WILDFIRE MITIGATION ENTITY TO USE IN SELECTING QUALIFIED INTERNS ,6
INCLUDING THE REQUIRED EDUCATIONAL EXPERIENCE FOR AN INTERN AND7
THE ABILITY OF THE INTERN TO PERFORM MEANINGFUL WORK FOR THE8
BUSINESS;9
(e) T
HE PROCESS AND TIMETABLE FOR SELECTING QUALIFIED10
BUSINESSES AND ENTITIES AND QUALIFIED INTERNS ;11
(f) T
HE ACCOUNTING REQUIREMENTS FOR TRACKING INTERNSHIP12
COSTS; AND13
(g) T
HE PROCESS BY WHICH A TIMBER BUSINESS OR FOREST14
HEALTH OR WILDFIRE MITIGATION ENTITY MUST SEEK REIMBURSEMENT15
FROM THE STATE FOR THE INTERNSHIP COSTS IT HAS ASSUMED .16
(4) S
UBJECT TO AVAILABLE APPROPRIATIONS, THE FOREST SERVICE17
MAY REIMBURSE A QUALIFIED TIMBER BUSINESS OR FOREST HEALTH OR18
WILDFIRE MITIGATION ENTITY AN AMOUNT NOT TO EXCEED FIFTY PERCENT19
OF THE ACTUAL COST TO THE BUSINESS OR ENTITY TO EMPLOY THE INTERN .20
T
HE ACTUAL COST INCLUDES THE WAGES PAID TO THE INTERN , A21
REASONABLE ALLOCATION OF FIXED OVERHEAD EXPENSES , AND ALL22
INCIDENTAL COSTS DIRECTLY RELATED TO THE INTERNSHIP . BASED ON THE23
ANNUAL APPROPRIATION FOR THE INTERNSHIP PROGRAM , THE FOREST24
SERVICE SHALL DETERMINE HOW MANY INTERNSHIPS MAY BE APPROVED ,25
THE AMOUNT OF REIMBURSEMENT PER INTERNSHIP , AND WHETHER A26
TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE MITIGATION ENTITY27
HB23-1018
-5- MAY BE REIMBURSED FOR MORE THAN ONE INTERN IN THE SAME FISCAL1
YEAR. HOWEVER, NO TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE2
MITIGATION ENTITY MAY BE REIMBURSED FOR MORE THAN THREE3
INTERNSHIPS IN THE SAME FISCAL YEAR.4
SECTION 2. In Colorado Revised Statutes, add 39-22-549 as5
follows:6
39-22-549. Credit for purchase of equipment, vehicles, and7
structures used in the timber, forest health, and wildfire mitigation8
industries - legislative declaration - definitions - repeal. (1) (a) I
N9
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL10
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE11
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE12
DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES13
THAT THE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT CREATED14
IN THIS SECTION ARE TO:15
(I) I
MPROVE INDUSTRY COMPETITIVENESS FOR THE STATE 'S TIMBER16
INDUSTRY AND PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES ENGAGED17
IN TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION ACTIVITIES ,18
THEREBY IMPROVING THE HEALTH OF COLORADO'S FORESTS AND19
REDUCING THE RISK OF CATASTROPHIC WILDFIRE ; AND20
(II) R
EDUCE BASIC OPERATIONAL COSTS FOR BUSINESSES OR21
ENTITIES ENGAGED IN THE STATE 'S TIMBER, FOREST HEALTH, AND22
WILDFIRE MITIGATION INDUSTRIES BY ALLOWING SUCH BUSINESSES OR23
ENTITIES A SPECIFIED CREDIT AGAINST THEIR INCOME TAXES FOR THEIR24
PURCHASE OF MECHANIZED EQUIPMENT , VEHICLES, AND EQUIPMENT25
INFRASTRUCTURE USED TO MAKE WOOD PRODUCTS OR CONDUCT26
PRESCRIBED BURNING OR OTHER SCIENCE -BASED FOREST MANAGEMENT27
HB23-1018
-6- PRACTICES, THEREBY PROMOTING THE STATE 'S TIMBER, FOREST HEALTH,1
AND WILDFIRE MITIGATION INDUSTRIES.2
(b) I
N ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE3
AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDIT , THE4
DEPARTMENT OF REVENUE SHALL TRACK THE NUMBER OF CREDITS5
ALLOWED, THE TOTAL VALUE OF THE CREDITS ALLOWED , THE AVERAGE6
AMOUNT OF EACH CREDIT ALLOWED , AND THE NUMBER OF QUALIFYING7
ITEMS PURCHASED FOR WHICH THE CREDIT WAS ALLOWED .8
(2) A
S USED IN THIS SECTION:9
(a) "E
QUIPMENT INFRASTRUCTURE " MEANS ANY EQUIPMENT USED10
IN THE MANUFACTURING OF W OOD PRODUCTS AND INCLUDES , WITHOUT11
LIMITATION, DRY KILNS, SAWMILLS, DEBARKERS, PELLET MILLS, AND12
STRUCTURES NECESSARY TO ENCLOSE LOGGING OR OTHER OPERATIONS13
ENGAGED IN BY A TAXPAYER.14
(b) "Q
UALIFYING ITEMS" MEANS:15
(I) A
NY MECHANIZED EQUIPMENT THAT IS USED FOR THE16
HARVESTING, SKIDDING, PROCESSING, AND LOADING OF TREES;17
(II) A
NY TRUCK OR TRAILER THAT IS USED FOR THE HAULING OF18
LOGS;19
(III) A
NY EQUIPMENT INFRASTRUCTURE THAT IS USED IN THE20
MANUFACTURING OF WOOD PRODUCTS ;21
(IV) A
NY EQUIPMENT THAT IS USED IN SMALL -DIAMETER TREE22
REMOVAL AND PROCESSING ; AND23
(V) A
NY EQUIPMENT THAT IS USED IN CONDUCTING PRESCRIBED24
BURNING AS DEFINED IN SECTION 24-33.5-1202 (8.3).25
(c) "T
AXPAYER" MEANS ANY SOLE PROPRIETORSHIP, PARTNERSHIP,26
LIMITED LIABILITY CORPORATION , SUBCHAPTER S CORPORATION, OR27
HB23-1018
-7- REGULAR CORPORATION DOING BUSINESS IN THE STATE THAT CONCERNS1
ITSELF WITH FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION2
OF WOOD PRODUCTS SUCH AS FURNITURE , AND SECONDARY PRODUCTS3
SUCH AS WOOD PULP FOR THE PULP AND PAPER INDUSTRY , OR WITH FOREST4
HEALTH AND WILDFIRE MITIGATION ACTIVITIES INCLUDING PRESCRIBED5
BURNING AS PROVIDED FOR IN SECTION 24-33.5-1217 OR OTHER6
SCIENCE-BASED FOREST MANAGEMENT PRACTICES .7
(3) W
ITH RESPECT TO TAX YEARS COMMENCING ON OR AFTER8
J
ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED TO9
ANY TAXPAYER A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE 2210
IN THE AMOUNT OF TWENTY PERCENT OF THE COST INCURRED BY THE11
TAXPAYER IN PURCHASING A QUALIFYING ITEM , NOT TO EXCEED TEN12
THOUSAND DOLLARS IN THE AGGREGATE FOR ALL QUALIFYING ITEMS13
PURCHASED IN ANY ONE INCOME TAX YEAR .14
(4) (a) I
F A QUALIFYING ITEM THAT WAS PRODUCED IN COLORADO15
IS AVAILABLE, THE TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE16
CLAIMED FOR QUALIFYING ITEMS PRODUCED IN COLORADO. IF A17
QUALIFYING ITEM PRODUCED IN COLORADO IS NOT AVAILABLE, THE TAX18
CREDIT ALLOWED BY THIS SECTION MAY BE CLAIMED REGARDLESS OF19
WHERE THE QUALIFYING ITEM IS PRODUCED .20
(b) I
F AN ELECTRIC-POWERED QUALIFYING ITEM IS AVAILABLE, THE21
TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE CLAIMED FOR22
ELECTRIC-POWERED QUALIFYING ITEMS . IF AN ELECTRIC-POWERED23
QUALIFYING ITEM IS NOT AVAILABLE, THE TAX CREDIT MAY BE CLAIMED24
REGARDLESS OF THE POWER SOURCE OF THE QUALIFYING ITEM .25
(5) I
F THE AMOUNT OF THE CREDIT SPECIFIED IN SUBSECTION (3) OF26
THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES DUE ON THE27
HB23-1018
-8- INCOME OF THE TAXPAYER IN THE INCOME TAX YEAR FOR WHICH THE1
CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT NOT USED AS AN2
OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX YEAR IS NOT3
REFUNDABLE BUT MAY BE CARRIED FORWARD AS A CREDIT AGAINST4
SUBSEQUENT YEARS' TAX LIABILITY FOR A PERIOD NOT EXCEEDING FIVE5
YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX YEARS6
POSSIBLE. ANY AMOUNT OF THE CREDIT THAT IS NOT USED DURING SAID7
PERIOD IS NOT REFUNDABLE TO THE TAXPAYER .8
(6) T
O CLAIM A CREDIT UNDER THIS SECTION, A TAXPAYER MUST9
SUBMIT TO THE DEPARTMENT OF REVENUE DOCUMENTATION IN A FORM10
SATISFACTORY TO THE DEPARTMENT OF REVENUE THAT DEMONSTRATES11
THE TAXPAYER PURCHASED THE QUALIFYING ITEM AND THE COST OF THE12
ITEM PURCHASED BY THE TAXPAYER .13
(7) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2036.14
SECTION 3. Act subject to petition - effective date. This act15
takes effect at 12:01 a.m. on the day following the expiration of the16
ninety-day period after final adjournment of the general assembly; except17
that, if a referendum petition is filed pursuant to section 1 (3) of article V18
of the state constitution against this act or an item, section, or part of this19
act within such period, then the act, item, section, or part will not take20
effect unless approved by the people at the general election to be held in21
November 2024 and, in such case, will take effect on the date of the22
official declaration of the vote thereon by the governor.23
HB23-1018
-9-