As California companies continue to experience the benefits of the California Enterprise Zone program, other states from the around the nation are re-evaluating their own corporate tax break programs.  The latest state to review the program is Colorado.  Miles Moffeit, from the Denver Post reports:

“Colorado lawmakers started shining a flashlight into the dense state tax code earlier this year, looking for special-interest loopholes they could plug to prevent the budget crisis from deepening.  They found dozens of industry tax breaks that could potentially be nixed or scaled back, according to a report circulating at the Capitol.  Some are shallow pools of potential revenue, such as exemptions on bull-semen sales — estimated to cost the state $3.2 million this year. Others are deeper, such as $600 million worth of breaks expected to go to manufacturing companies for the purchase of component parts.”

The key that these states needs to be reminded of is the total importance of attracting and retaining businesses.  New companies migrating to a state not only creates jobs and tax sales revenue, it also benefits the economic ecosystem of the region.  Real estate, retail sales and the service industries are simply a few of the sectors positively effected by new businesses moving into a city/state.

Tags: colorado, Enterprise Zones, tax break programs

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