Reauthorization of Rural Jump-Start Program

Currently, the rural jump-start zone grant program (grant program) terminates on July 1, 2024, and all grant money in the rural jump-start zone grant fund account (account) reverts to the general fund on June 30, 2024. The bill continues the grant program until July 1, 2026 2025, and the grant money in the account reverts to the general fund on June 30, 2026 2025.

The bill changes the total allowable administrative cost of the grant program from $100,000 per fiscal year to $300,000 total for the sum of all fiscal years that the grant program is in effect.

The new business income tax credit and the new hire income tax credit, which are benefits under the grant program, currently expire on January 1, 2026. The bill extends the tax credits for 5 years, until January 1, 2031.

The bill prohibits the Colorado office of economic development commission (commission) (office) from approving more than 3 rural jump-start zones in counties with populations of less than 100,000 in any year. The number of credit certificates that the commission office may issue in each approved rural jump-start zone in one income tax year for all new hires employed by all new businesses that are in one of the 14 industries that the commission office targets for economic development in the state is increased from 300 to 500 600 . The bill appropriates $873,304 to the office of the governor for use by economic development programs. This appropriation is from the rural jump-start zone grant fund account. To implement the bill, the office may use this appropriation for rural jump start.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)