Andy Kerr

Lawmaker uses solar bill to shine light on tax issue

Denver Business Journal

Give state Rep. Brian DelGrosso credit: It takes a gutsy freshman legislator to try to wipe out Colorado’s $1.2 billion business personal property tax with a floor amendment during debate on a “green jobs” bill.

Colo. Rep. Brian DelGrosso, R-Loveland

The Loveland Republican, as you might expect, was not successful in his effort. But the logic he used in proposing a too-quick solution to one of the business community’s longest-running issues with the state is likely to come back over and over again until it gains traction.

DelGrosso made his move during floor debate over House Bill 1267, which exempts leased residential solar electric-generating equipment from the business personal property tax. Sponsoring Rep. Andy Kerr, D-Lakewood, said he introduced the measure to create a level playing field between the leased equipment and residential solar equipment that is owned by residents, which is exempt from the tax.

But supporters of the measure argued also that the tax breaks will create jobs for the solar-installation industry and, in turn, generate new tax revenue from the state. Rep. Jerry Frangas, D-Denver, cited, for example, a consultants’ study showing that for every six solar residential installations that are done, one full-time job is created.

To DelGrosso, a member of the House Finance Committee who sat through the tumultuous hearings on the nine-bill package to suspend or eliminate about $118 million in tax exemptions earlier this year, the argument rang very familiar. Business leaders clamored that eliminating their tax breaks could cause them to lay off as many as 15,000 workers, but Democrats questioned that argument and said that the exemption cuts were necessary to balance the budget.

So, DelGrosso strode to the floor microphone and said that Kerr’s arguments brought to light the positive benefits of tax exemptions toward businesses. And if this bill could generate hundreds of new jobs by creating a business personal property tax exemption for one piece of property, then think how many jobs could be created if the tax were eliminated altogether.

DelGrosso’s motion to amend HB 1267 to end the business personal property tax was ruled to not fit under the title of the bill, which narrowly addressed the property tax treatment of an independently owned residential solar electric generation facility. But after hearing for weeks that cutting tax exemptions would not harm Colorado employment numbers, his point was made.

“It proves that giving some of these businesses exemptions and creating thousands of jobs will increase revenue for the state,” DelGrosso said.

HB 1267, by the way, received preliminary approval Friday and could come up for a final House vote as soon as Monday.