The House approved a bipartisan plan Wednesday to extend and expand incentives for investment in new tech ventures in Colorado. Startups that would benefit include bioscience, aerospace, advanced manufacturing, energy, electronics, engineering and information technology businesses.
Under House Bill 1090, the current tax credit of up to $50,000 for investing in a tech startup through the end of this year would be extended through 2022. And the current $750,000 cap for total tax credits granted in any year under the program would be doubled to $1.5 million.
The measure is sponsored in the House by state Reps. Tracy Kraft-Tharp, D-Arvada, and Jim Wilson, R-Salida.
A press statement by House Democrats says the tax credit already has created “nearly 700 good-paying jobs at Colorado high-tech startup companies since 2014.” The press release quotes Kraft-Tharp:
“Access to seed capital is one of the key challenges facing early-stage companies. … This bill reduces risks to investors and draws additional investment dollars to Colorado’s emerging high-tech economy.”
The proposal passed the House 43-20, with eight Republicans in tow. The GOP is generally less keen on government-directed economic incentives like tax credits, but the Republican-leaning Colorado Association of Commerce and Industry endorsed the bill early on.
HB 1090 now heads to the Republican-run Senate.