DENVER (AP) – A tax subsidy for businesses in economically depressed areas would be minimized under a bill passed by Democrats in the Colorado House.
The proposed changes to the state’s Enterprise Zone program are a response to questions about the effectiveness of the subsidy.
The credit was created in 1986 to spur economic growth in struggling areas. It was once available in a few areas but now covers 70 percent of the state.
The bill caps the credit to $750,000 for a business per year, instead of the $1 million recommended by a legislative-created panel that studied the issue last year. The Metro Denver Economic Development Corp. pulled its support for the bill because of the lower cap.
Only one Republican voted in favor of the bill Tuesday. It now heads to the Senate.
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