The Colorado Chamber’s Colorado Manufacturing Initiative
The Colorado Chamber Protests Efforts by National Labor Relations Board to Further Union Interests:
Last week, The Colorado Chamber President Chuck Berry and The Colorado Chamber Board of Directors Chair Lou Hutchison sent a letter to NLRB Board Chair Mark Gaston Pearce opposing a proposed rule change that could lead to more “ambush” union elections. Read more…
EPA Considering Changes to Clean Water Act
The Environmental Protection Agency (EPA) is considering rule changes to the Clean Water Act which would expand the definition of “Waters of the United States”. This change could impact anyone doing business in or near a flood plain. Tell us if this issue is important to you by emailing Patrick Pratt at[email protected].
Export Control Rules Changing
On May 20, 2014, Eric Hirschhorn, the Undersecretary of Industry and Security for the Department of Commerce was in Colorado to explain recent export control changes. More than 15,000 items have recently moved from International Traffic in Arms Regulation (ITAR) to the Commerce Control List (CCL) in an effort to streamline the federal government’s export control process. More changes will come this summer. For more information on this issue or to participate in the weekly teleconference, visit www.bis.doc.gov.
The Colorado Manufacturing Initiative’s Perspective: the 2014 Legislative Session
HB-1011 is a bipartisan bill that increases funding for the advanced industries export acceleration grant program passed and is awaiting Governor John Hickenlooper’s signature.
HB-1012 is a bipartisan bill that offers tax credits for “angel investments” in qualifying small businesses passed and is awaiting the Governor’s signature.
HB-1013 would have reimbursed businesses within the advanced industries for a portion of the cost of hiring interns and apprentices. The bill died on concerns that it would take too much money from the grant program established by HB-1011 as funding for both came from the same source.
Though State and Local Tax (SALT) compliance continues to become more complex, and state revenue departments continue to increase their scrutiny of filings, opportunities abound for companies to benefit from a variety of tax incentives. This is definitely true of the manufacturing industry and even more so manufacturing in Colorado. Below are five critical areas your business may benefit from:
Testing, Modification, or Inspection. Colorado provides a sales tax exemption for purchases of tangible personal property for testing, modification, or inspection if the ultimate use of the product is outside the state (i.e. exports) and the testing period does not exceed 90 days. (click here for more information on production inspections for exports)
Cleanrooms. Machinery used in qualifying cleanrooms used in producing computer components, software, biotechnological products, and pharmaceuticals are often exempt from Colorado sales and use tax.
Resale Exclusion. Don’t forget that everything that becomes part of the manufactured product is often exempt from sales and use tax. This extends to packaging, cartons, labels, instruction and safety pamphlets, skids, bags, and pallets, as seen on items such as private label softgels and other new pharmaceutical products.
Machinery Exemption. Many states, including Colorado, provide a sales tax exemption for machinery, tools, and equipment used in manufacturing tangible personal property.
Research and Development. Many states provide a refund of state sales and use tax paid on tangible personal property used directly and predominantly in biotechnology, clean technology, and medical devices.
Qualifying for some SALT credits may not be easy or straightforward, but the possible benefit is significant. Working with an experienced, manufacturing industry-focused tax professional will ensure your business can leverage all the potential opportunities, and avoid any criteria-based pitfalls.
Kreg Brown, Audit Partner at EKS&H is a sponsor of the Colorado Manufacturing Initiative and a The Colorado Chamber Board Member. He can be reached at: (303) 740-9400 or[email protected].
NAM News: Crumbling Infrastructure Hurting Manufacturers
“Speaking on a panel organized by the National Association of Manufacturers (NAM), the Council on Competitiveness and the U.S. Chamber of Commerce, NAM President and CEO Jay Timmons delivered a simple message for policymakers: Our nation’s aging and crumbling infrastructure is impeding manufacturers’ competitiveness.” Read the full article…
And Colorado policymakers are doing something about it! Senator Michael Bennet has introduced the bi-partisan “Partnership to Build America Act” which would develop an infrastructure fund to support loan guarantees and financing authority for state and local governments. Read more…
Metalcraft Industries, a 66 year old company located in Westminster, CO, does precision machining, sheet metal, and metal stamping. Be sure to say hi to Larry Caschette, Vice President of Manufacturing next time you see him!
Workers’ Comp Tips!
Summer in Colorado presents its own distinct workplace safety challenges. The sun can be especially hazardous to the health of employees. Many workers, especially those who work outside, are at risk for injuries ranging from severe sunburn to heat exhaustion. It’s important for The Colorado Chamber members and their workers to understand and protect themselves from summer hazards.Continue reading…
Members of the Colorado Manufacturing Initiative receive a 20% discount on manufacturing databases from MNI when they order online.Click here to find out more!
Colorado Manufacturing Initiative
Colorado Association of Commerce & Industry 1600 Broadway, Suite 1000 Denver, Colorado 80202 [email protected]