HB22-1166 Summary

• Creates timber industry workforce development program in Colorado State Forest Service to reimburse qualified timber businesses up to 50% of actual costs to hire interns, with a maximum of 3 internships per business per fiscal year and internships lasting at least 130 hours but no more than 6 months.

• Forest Service must establish policies, procedures, and guidelines for the internship program by January 1, 2023, including criteria for selecting participating businesses and qualified interns.

• Extends existing sales and use tax exemption for Colorado wood products to include all wood harvested in Colorado sold on a retail basis (lumber, furniture, wood chips, wood pellets) for fiscal years beginning July 1, 2022 through June 30, 2026.

• Allows timber businesses to claim a state income tax credit equal to 20% of costs incurred purchasing mechanized equipment, vehicles, and equipment infrastructure used in wood product production, capped at $10,000 per tax year, for tax years 2021 through 2026.

• Unused tax credits may be carried forward for up to 5 years; bill repeals this tax credit section effective July 1, 2037.