Amendments for HB22-1166

House Journal, April 1
46 HB22-1166 be amended as follows, and as so amended, be referred to
47 the Committee on Finance with favorable
48 recommendation:
49
50 Amend printed bill, strike everything below the enacting clause and
51 substitute:
52
53 "SECTION 1. In Colorado Revised Statutes, add 23-31-318 as
54 follows:
55
1 23-31-318. Timber, forest health, and wildfire mitigation
2 industries workforce development program - creation - rules -
3 legislative declaration - definitions. (1) THE GENERAL ASSEMBLY FINDS,
4 DETERMINES, AND DECLARES THAT:
5 (a) FINDING QUALIFIED AND TRAINED EMPLOYEES IS A
6 SIGNIFICANT CHALLENGE FOR THE STATE'S TIMBER, FOREST HEALTH, AND
7 WILDFIRE MITIGATION INDUSTRIES, AND IT IS ESPECIALLY DIFFICULT TO
8 PROVIDE TRAINING AND EXPERIENCE TO YOUNGER WORKERS WHO ARE
9 INTERESTED IN BEGINNING CAREERS IN THE TIMBER, FOREST HEALTH, AND
10 WILDFIRE MITIGATION INDUSTRIES;
11 (b) THE BARRIERS TO ENTRY FOR YOUNGER WORKERS WHO ARE
12 INTERESTED IN BEGINNING A CAREER IN THE TIMBER, FOREST HEALTH,
13 AND WILDFIRE MITIGATION INDUSTRIES ARE SIGNIFICANT, INCLUDING
14 ACCESS TO TRAINING PROGRAMS THAT PROVIDE REAL-WORLD WORK
15 EXPERIENCE;
16 (c) INTERNSHIPS ARE A RECOGNIZED WAY TO BUILD A TALENT
17 PIPELINE AND CAREER PATHWAY TO ALIGN EDUCATION, TRAINING, AND
18 WORK-BASED LEARNING; AND
19 (d) BY OFFERING INCENTIVES TO TIMBER BUSINESSES AND FOREST
20 HEALTH AND WILDFIRE MITIGATION ENTITIES TO CREATE INTERNSHIPS,
21 THERE WILL BE MORE OPPORTUNITIES FOR STUDENTS TO OBTAIN WORK
22 EXPERIENCE WITH TIMBER BUSINESSES OR WITH FOREST HEALTH OR
23 WILDFIRE MITIGATION ENTITIES.
24 (2) AS USED IN THIS SECTION:
25 (a) "FOREST HEALTH OR WILDFIRE MITIGATION ENTITY" MEANS A
26 FOR-PROFIT OR NOT-FOR-PROFIT ENTITY LOCATED OR OPERATING IN
27 COLORADO THAT CONCERNS ITSELF WITH FOREST HEALTH OR WILDFIRE
28 MITIGATION ACTIVITIES INCLUDING PRESCRIBED BURNING AS DEFINED IN
29 24-33.5-1217 OR OTHER SCIENCE-BASED FOREST MANAGEMENT
30 PRACTICES.
31 (b) "FOREST SERVICE" MEANS THE COLORADO STATE FOREST
32 SERVICE IDENTIFIED IN SECTION 23-31-302 AND THE DIVISION OF
33 FORESTRY CREATED IN SECTION 24-33-104.
34 (c) "INTERNSHIP PROGRAM" MEANS THE TIMBER, FOREST HEALTH,
35 AND WILDFIRE MITIGATION INDUSTRIES WORKFORCE DEVELOPMENT
36 PROGRAM CREATED IN SUBSECTION (3) OF THIS SECTION.
37 (d) "TIMBER BUSINESS" MEANS A FOR-PROFIT BUSINESS ENTITY
38 INCORPORATED OR LOCATED IN COLORADO THAT CONCERNS ITSELF WITH
39 FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION OF WOOD
40 PRODUCTS SUCH AS FURNITURE, AND SECONDARY PRODUCTS SUCH AS
41 WOOD PULP FOR THE PULP AND PAPER INDUSTRY.
42 (3) THE TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION
43 INDUSTRIES WORKFORCE DEVELOPMENT PROGRAM IS HEREBY CREATED IN
44 THE FOREST SERVICE TO PROVIDE INCENTIVES TO TIMBER BUSINESSES AND
45 FOREST HEALTH OR WILDFIRE MITIGATION ENTITIES TO HIRE INTERNS
46 THROUGH PARTIAL REIMBURSEMENT OF THE COSTS TO SUCH BUSINESSES
47 AND ENTITIES OF HIRING INTERNS. NOT LATER THAN JANUARY 1, 2023,
48 THE FOREST SERVICE SHALL PROMULGATE POLICIES, PROCEDURES, AND
49 GUIDELINES FOR ADMINISTERING THE INTERNSHIP PROGRAM. THE
50 POLICIES, PROCEDURES, AND GUIDELINES MUST SPECIFY, AT A MINIMUM:
51 (a) THE CRITERIA FOR SELECTING A TIMBER BUSINESS OR FOREST
52 HEALTH OR WILDFIRE MITIGATION ENTITY FOR PARTICIPATION IN THE
53 INTERNSHIP PROGRAM, INCLUDING THE ABILITY OF THE BUSINESS OR
54 ENTITY TO EFFECTIVELY SUPERVISE AN INTERN AND THE OPPORTUNITY
55 FOR AN INTERN TO GET MEANINGFUL WORK EXPERIENCE;
56
1 (b) THE CRITERIA FOR AN INTERNSHIP TO QUALIFY UNDER THE
2 INTERNSHIP PROGRAM, INCLUDING THE FOLLOWING:
3 (I) THE INTERNSHIP MUST PROVIDE AN INTERN AT LEAST ONE
4 HUNDRED THIRTY HOURS OF WORK EXPERIENCE; AND
5 (II) THE INTERNSHIP CANNOT EXCEED SIX MONTHS IN DURATION
6 PER INTERN;
7 (c) BEST PRACTICES FOR A TIMBER BUSINESS OR FOREST HEALTH
8 OR WILDFIRE MITIGATION ENTITY TO USE IN RECRUITING AND SELECTING
9 QUALIFIED INTERNS TO INCREASE REPRESENTATION OF HISTORICALLY
10 UNDERREPRESENTED COMMUNITIES IN THE TIMBER, FOREST HEALTH, AND
11 WILDFIRE MITIGATION INDUSTRIES. IN DEVELOPING BEST PRACTICES, THE
12 FOREST SERVICE SHALL SPECIFICALLY CONSIDER HOW TO EXTEND
13 OPPORTUNITIES TO INDIVIDUALS WHO HAVE ACQUIRED EXPERIENCE IN
14 WILDLAND FIRE SERVICES THROUGH THE INMATE DISASTER RELIEF
15 PROGRAM, CREATED IN SECTION 17-24-124 (3).
16 (d) THE CRITERIA FOR A TIMBER BUSINESS OR FOREST HEALTH OR
17 WILDFIRE MITIGATION ENTITY TO USE IN SELECTING QUALIFIED INTERNS,
18 INCLUDING THE REQUIRED EDUCATIONAL EXPERIENCE FOR AN INTERN AND
19 THE ABILITY OF THE INTERN TO PERFORM MEANINGFUL WORK FOR THE
20 BUSINESS;
21 (e) THE PROCESS AND TIMETABLE FOR SELECTING QUALIFIED
22 BUSINESSES AND ENTITIES AND QUALIFIED INTERNS;
23 (f) THE ACCOUNTING REQUIREMENTS FOR TRACKING INTERNSHIP
24 COSTS; AND
25 (g) THE PROCESS BY WHICH A TIMBER BUSINESS OR FOREST
26 HEALTH OR WILDFIRE MITIGATION ENTITY MUST SEEK REIMBURSEMENT
27 FROM THE STATE FOR THE INTERNSHIP COSTS IT HAS ASSUMED.
28 (4) SUBJECT TO AVAILABLE APPROPRIATIONS, THE FOREST SERVICE
29 MAY REIMBURSE A QUALIFIED TIMBER BUSINESS OR FOREST HEALTH OR
30 WILDFIRE MITIGATION ENTITY AN AMOUNT NOT TO EXCEED FIFTY PERCENT
31 OF THE ACTUAL COST TO THE BUSINESS OR ENTITY TO EMPLOY THE
32 INTERN. THE ACTUAL COST INCLUDES THE WAGES PAID TO THE INTERN, A
33 REASONABLE ALLOCATION OF FIXED OVERHEAD EXPENSES, AND ALL
34 INCIDENTAL COSTS DIRECTLY RELATED TO THE INTERNSHIP. BASED ON
35 THE ANNUAL APPROPRIATION FOR THE INTERNSHIP PROGRAM, THE FOREST
36 SERVICE SHALL DETERMINE HOW MANY INTERNSHIPS MAY BE APPROVED,
37 THE AMOUNT OF REIMBURSEMENT PER INTERNSHIP, AND WHETHER A
38 TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE MITIGATION ENTITY
39 MAY BE REIMBURSED FOR MORE THAN ONE INTERN IN THE SAME FISCAL
40 YEAR. HOWEVER, NO TIMBER BUSINESS OR FOREST HEALTH OR WILDFIRE
41 MITIGATION ENTITY MAY BE REIMBURSED FOR MORE THAN THREE
42 INTERNSHIPS IN THE SAME FISCAL YEAR.
43 SECTION 2. In Colorado Revised Statutes, add 39-22-543 as
44 follows:
45 39-22-543. Credit for purchase of equipment, vehicles, and
46 structures used in the timber, forest health, and wildfire mitigation
47 - legislative declaration - definitions - repeal. (1) IN ACCORDANCE
48 WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES
49 A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE
50 STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION, THE
51 GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE GENERAL
52 LEGISLATIVE PURPOSES OF THE TAX CREDIT CREATED IN THIS SECTION ARE
53 TO IMPROVE INDUSTRY COMPETITIVENESS FOR THE STATE'S TIMBER
54 INDUSTRY AND PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES ENGAGED
55 IN TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION ACTIVITIES,
56 THEREBY IMPROVING THE HEALTH OF COLORADO'S FORESTS AND
1 REDUCING THE RISK OF CATASTROPHIC WILDFIRE. THE SPECIFIC INTENDED
2 PURPOSE OF THE TAX CREDIT CREATED IN THIS SECTION IS TO REDUCE
3 BASIC OPERATIONAL COSTS FOR BUSINESSES OR ENTITIES ENGAGED IN THE
4 STATE'S TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION INDUSTRIES
5 BY ALLOWING SUCH BUSINESSES OR ENTITIES A SPECIFIED CREDIT AGAINST
6 THEIR INCOME TAXES FOR THEIR PURCHASE OF MECHANIZED EQUIPMENT,
7 VEHICLES, AND EQUIPMENT INFRASTRUCTURE USED TO MAKE WOOD
8 PRODUCTS OR CONDUCT PRESCRIBED BURNING OR OTHER SCIENCE-BASED
9 FOREST MANAGEMENT PRACTICES, THEREBY PROMOTING THE STATE'S
10 TIMBER, FOREST HEALTH, AND WILDFIRE MITIGATION INDUSTRIES. IN
11 ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO
12 MEASURE THE EFFECTIVENESS OF THE CREDIT, THE DEPARTMENT OF
13 REVENUE SHALL TRACK THE NUMBER OF CREDITS ALLOWED, THE TOTAL
14 VALUE OF THE CREDITS ALLOWED, THE AVERAGE AMOUNT OF EACH
15 CREDIT ALLOWED, AND THE NUMBER OF QUALIFYING ITEMS PURCHASED
16 FOR WHICH THE CREDIT WAS ALLOWED.
17 (2) AS USED IN THIS SECTION:
18 (a) "EQUIPMENT INFRASTRUCTURE" MEANS ANY EQUIPMENT USED
19 IN THE MANUFACTURING OF WOOD PRODUCTS AND INCLUDES, WITHOUT
20 LIMITATION, DRY KILNS, SAWMILLS, DEBARKERS, PELLET MILLS, AND
21 STRUCTURES NECESSARY TO ENCLOSE LOGGING OR OTHER OPERATIONS
22 ENGAGED IN BY A TAXPAYER.
23 (b) "QUALIFYING ITEMS" MEANS:
24 (I) ANY MECHANIZED EQUIPMENT THAT IS USED FOR THE
25 HARVESTING, SKIDDING, PROCESSING, AND LOADING OF TREES;
26 (II) ANY TRUCK OR TRAILER THAT IS USED FOR THE HAULING OF
27 LOGS;
28 (III) ANY EQUIPMENT THAT IS USED IN THE MANUFACTURING OF
29 WOOD PRODUCTS;
30 (IV) ANY EQUIPMENT THAT IS USED IN SMALL-DIAMETER TREE
31 REMOVAL AND PROCESSING; AND
32 (V) ANY EQUIPMENT THAT IS USED IN CONDUCTING PRESCRIBED
33 BURNING AS DEFINED IN SECTION 24-33.5-1202 (8.3).
34 (c) "TAXPAYER" MEANS ANY SOLE PROPRIETORSHIP, PARTNERSHIP,
35 LIMITED LIABILITY CORPORATION, SUBCHAPTER S CORPORATION, OR
36 REGULAR CORPORATION DOING BUSINESS IN THE STATE THAT CONCERNS
37 ITSELF WITH FORESTRY, LOGGING, THE TIMBER TRADE, THE PRODUCTION
38 OF WOOD PRODUCTS SUCH AS FURNITURE, AND SECONDARY PRODUCTS
39 SUCH AS WOOD PULP FOR THE PULP AND PAPER INDUSTRY, OR WITH
40 FOREST HEALTH AND WILDFIRE MITIGATION ACTIVITIES INCLUDING
41 PRESCRIBED BURNING AS DEFINED IN 24-33.5-1217 OR OTHER
42 SCIENCE-BASED FOREST MANAGEMENT PRACTICES.
43 (3) WITH RESPECT TO TAX YEARS COMMENCING ON OR AFTER
44 JANUARY 1, 2022, BUT PRIOR TO JANUARY 1, 2027, THERE IS ALLOWED TO
22 45 ANY TAXPAYER A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
46 IN THE AMOUNT OF TWENTY PERCENT OF THE COST INCURRED BY THE
47 TAXPAYER IN PURCHASING A QUALIFYING ITEM, NOT TO EXCEED TEN
48 THOUSAND DOLLARS IN THE AGGREGATE FOR ALL QUALIFYING ITEMS
49 PURCHASED IN ANY ONE INCOME TAX YEAR.
50 (4) (a) IF A QUALIFYING ITEM THAT WAS PRODUCED IN COLORADO
51 IS AVAILABLE, THE TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE
52 CLAIMED FOR QUALIFYING ITEMS PRODUCED IN COLORADO. IF A
53 QUALIFYING ITEM PRODUCED IN COLORADO IS NOT AVAILABLE, THE TAX
54 CREDIT ALLOWED BY THIS SECTION MAY BE CLAIMED REGARDLESS OF
55 WHERE THE QUALIFYING ITEM IS PRODUCED.
56
1 (b) IF AN ELECTRIC-POWERED QUALIFYING ITEM IS AVAILABLE,
2 THE TAX CREDIT ALLOWED BY THIS SECTION MAY ONLY BE CLAIMED FOR
3 ELECTRIC-POWERED QUALIFYING ITEMS. IF AN ELECTRIC-POWERED
4 QUALIFYING ITEM IS NOT AVAILABLE, THE TAX CREDIT MAY BE CLAIMED
5 REGARDLESS OF THE POWER SOURCE OF THE QUALIFYING ITEM.
6 (5) IF THE AMOUNT OF THE CREDIT SPECIFIED IN SUBSECTION (3)
7 OF THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES DUE ON THE
8 INCOME OF THE TAXPAYER IN THE INCOME TAX YEAR FOR WHICH THE
9 CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT NOT USED AS AN
10 OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX YEAR SHALL NOT BE
11 ALLOWED AS A REFUND BUT MAY BE CARRIED FORWARD AS A CREDIT
12 AGAINST SUBSEQUENT YEARS' TAX LIABILITY FOR A PERIOD NOT
13 EXCEEDING FIVE YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST
14 INCOME TAX YEARS POSSIBLE. ANY AMOUNT OF THE CREDIT THAT IS NOT
15 USED DURING SAID PERIOD SHALL NOT BE REFUNDABLE TO THE TAXPAYER.
16 (6) TO CLAIM A CREDIT UNDER THIS SECTION, A TAXPAYER MUST
17 SUBMIT TO THE DEPARTMENT OF REVENUE WITH DOCUMENTATION IN A
18 FORM SATISFACTORY TO THE DEPARTMENT OF REVENUE THAT
19 DEMONSTRATES THE TAXPAYER PURCHASED THE QUALIFYING ITEM AND
20 THE COST OF THE ITEM PURCHASED BY THE TAXPAYER.
21 (7) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2032.
22 SECTION 3. Act subject to petition - effective date. This act
23 takes effect at 12:01 a.m. on the day following the expiration of the
24 ninety-day period after final adjournment of the general assembly; except
25 that, if a referendum petition is filed pursuant to section 1 (3) of article V
26 of the state constitution against this act or an item, section, or part of this
27 act within such period, then the act, item, section, or part will not take
28 effect unless approved by the people at the general election to be held in
29 November 2022 and, in such case, will take effect on the date of the
30 official declaration of the vote thereon by the governor.".
31
32 Page 1, strike lines 104 through 106 and substitute "FOREST SERVICE
33 AND CREATING A STATE INCOME TAX".
34
35