Item 2C: Ratification of IGR Minutes

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Ms. Taylor expressed concern about the provision of tax credits, which the bill would give for the transportation of woody biomass from forest management operations to biofuel producers. Mr. Hill observed that the bill would provide three different tax credits, which would have a negative impact to some degree on state revenue, though he did not anticipate it to be significant. Ms. Taylor moved to adopt an Oppose position on HB 3608. Ms. Ortiz asked if other entities received tax credits for moving other energy resources, such as gas. Mr. Hill responded that he did not know the answer. Ms. Wilson stated that there were a number of tax credits that were under scrutiny. She said the Chair of the House Revenue Committee had asked for a list of all of the existing tax credits, including sunset dates. She agreed that the impact on state revenue would be small at first, because it was a new industry, and depending on how large the industry became, the impact could change. She underscored that the purpose of the bill was to spur economic growth and development and jobs. In response to a question from Ms. Ortiz, Ms. Wilson said she did not believe the bill would pass during the special session. She reiterated that each representative was allowed to sponsor one bill, noting that this was Representative Thompson’s bill. Ms. Ortiz preferred to monitor the bill. Ms. Taylor noted that she had already placed a motion on the table. Ms. Ortiz offered a friendly amendment to change Ms. Taylor’s motion from adopting an Oppose position to adopting a Monitor position. Ms. Taylor declined the friendly amendment. Ms. Ortiz, seconded by Mr. Poling, moved to amend the motion to substitute Monitor for Oppose. The amendment passed, 2:1; Ms. Taylor voting in opposition. The motion passed, as amended, 2:1; Ms. Taylor voting in opposition. House Bill 3611 Ms. Wilson explained that the bill created a subtraction from federal income tax for health insurance premium payments. She said staff recommended adopting a Neutral position. Mr. Poling questioned taking a neutral position. He understood that it would not have a direct impact on the City, but he believed it would have some impact on state income tax revenue. Mr. Hill acknowledged that the impact to state income tax could impact the City, but he judged the impact to be relatively small. He said it would apply to those people who paid individual health insurance. Mr. Poling, seconded by Ms. Ortiz, moved to change the position from Neutral to Moni- tor. The motion passed unanimously, 3:0. House Bill 3631 MINUTES—Council Committee on Intergovernmental Relations January 27, 2010 Page 4