Denver Chamber of Commerce wants tax breaks saved

The Denver Metro Chamber of Commerce has delivered a list of business tax breaks to the governor's office that it thinks should be preserved to prevent damaging the state's economic recovery.

The business organization also is asking Gov. Bill Ritter for more detail from his revenue staff about which industry sectors benefit from various tax credits and exemptions before it joins talks on how to spare the state's budget from severe cutbacks.

In recent weeks, lawmakers have suggested scaling back, nixing or suspending tax benefits or loopholes for businesses to avoid sacrificing dollars intended for education and other social programs.

So far, the state business community has resisted offering suggestions, instead stressing the value to the economy that existing tax benefits provide.

"We do believe we have a role to play," said Tamra Ward, senior vice president of public affairs for the chamber. "If we can get data that will allow us to have a better understanding, it will be easier for us to make these decisions."

Business fees tapped

In a Sept. 24 letter to the governor and legislative leaders, chamber officials said the business community already has contributed to plugging recent budget gaps. They say the state has tapped $300 million in cash funds generated in part by business fees.

The chamber appealed for protection for four tax exemptions, contending that dire or direct negative consequences would result if they're touched. The exemptions are for:

• Tangible property used as a component in a manufactured product or service.

• Energy used for industrial, manufacturing or similar purposes.

• Purchases of machinery or tools used in the manufacturing process.

• Sales, storage and use of components in producing alternating current electricity from a renewable energy source.

The chamber also wants to safeguard two tax credits for enterprise zone investment and job growth.

Officials with the governor's office could not be reached for comment. But Ritter has gone on record as saying he does not favor eliminating the exemption for manufactured component parts as well as a food and drug exemption.

"Needs to be engaged"

Financial watchdog groups such as the Bell Policy Center and Colorado Fiscal Policy Institute have said big business should give up tax breaks, such as the enterprise zone credit, that have proven ineffective.

Sen. Brandon Shaffer, D-Longmont, said the letter is a signal that the business community is interested in talking.

"The business community needs to be engaged in this dialogue, especially if we think there might be some credits that make sense for us to suspend for a year or two to help us get through this," he said.

Miles Moffeit: 303-954-1415 or mmoffeit@denverpost.com