HB 23-1018

HB 23-1018, also known as the Timber Industry Incentives bill, aims to support Colorado's timber and forest health industries by providing financial assistance. It offers partial reimbursement for hiring interns and allows businesses in these sectors to claim a tax credit of up to 20% for purchasing equipment, vehicles, and infrastructure, with a yearly limit of $10,000. This bill benefits companies involved in forestry, logging, timber trade, wood production, and wildfire mitigation activities by helping them manage costs and recruit talent from underrepresented communities. Since the bill has been signed into law, these incentives are now available to eligible businesses starting January 1, 2023.

Official Summary

Wildfire Matters Review Committee. The bill creates the timber, 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. (Note: This summary applies to this bill as introduced.)

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