Colorado Insurer Group Calls out Bill Targeting Businesses to Make-up for Budget Shortfall

Colorado lawmakers are putting thousands of jobs at risk with a proposal that would repeal Colorado’s Regional Home Office Insurance Premium Tax Credit, an insurer group is charging.

HB20-1420 will have significant consequences to thousands of current and future Colorado jobs, community investments and charitable contributions. Colorado insurance consumers could also pay for it in higher insurance premiums at a time when we can least afford it, according to the Rocky Mountain Insurance Association.

“As our state is trying to find a way to bring business back, this move will have long-term implications in driving business and well-paying jobs out of Colorado to neighboring states-who are competing with Colorado to attract business and workforce opportunities by providing a positive, stable workforce environment and incentives,” Carole Walker, executive director of the RMIIA, said in a statement. “This bill demands one of Colorado’s largest employers-the insurance industry, and consumers to shoulder additional taxes at a time when we need to invest in business-not push jobs out of state.”

Companies that invest in putting a regional office in Colorado and abide by a very high bar of providing jobs-ranging from executive to staff-level along with other statutory requirements-receive a 1% tax credit on the amount of premium tax paid. Companies that do not qualify pay 2% on premiums collected, according to the group.

The bill, known as the Tax Fairness Act, would close tax loopholes and protect communities, proponents say.

“The tax breaks that would be eliminated under this plan are ones that overwhelmingly go to the highest income Coloradans, meaning those who actually need a break aren’t benefiting currently,” states a letter from the Colorado Fiscal Institute. “Removing these tax breaks is what actually helps Coloradans who are struggling to recover from the pandemic.”

The bill has been heard in the finance and appropriations committees.