A measure designed to make Colorado a magnet for the alternative energy industry—creating virtual hubs for the industry to proliferate—was approved today by the House Finance Committee.

House Bill 1255, sponsored by Reps. Brian DelGrosso, R-Loveland, and John Kefalas, D-Fort Collins, authorizes municipalities or counties to collaborate on creating what’s called  “alternative energy parks,” similar to enterprise zones, where financial incentives are given to targeted development within the designated area.

Proponents of the concept say they hope that by creating the framework, companies will form vibrant clusters of industry collaboration much the way Silicon Valley and dot-com geographic meccas sprang up. Del Grosso said if Colorado doesn’t supply the incentive, other states will.

“We need to keep Colorado competitive in this industry, and we are losing out to other states because we don’t have the right tools in our toolbox,” said DelGrosso.

Once an area is designated an alternative energy park, industries moving in would be offered a variety of financial incentives including tax-increment financing and tax credits.

Speaking in opposition to the measure was Karen Wick of the Colorado Education Association, the state’s largest teachers union.  Wick said the tax incentives that would be extended to the industry could squeeze education dollars.

“Anytime there is a drop in General Fund revenue the schools are impacted and when those funds are affected, so are the kids, ” said Wick.

Rep. Dickey Hullinghorst, D-Niwot, agreeing with Wick, said that if alternative-energy companies are given the incentives, it would come with a price tag too high to consider.

“With the budget issues that we are facing, and having to make cuts, and making tax expenditures such as these, the trade-off is to take money from things like education,” said Hullinghorst.

Yet, DelGrosso maintains that the influx of industry will more than offset any perceived loss of revenue through an increase in tax revenue that the businesses will create.

“There will actually be more revenue flowing into these areas derived from new investments and jobs,” said DelGrosso.

The measure is now headed to the full House for consideration.

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