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Tax committee adopts amendment but tables HB326 disaster small-business tax credit pending fiscal review
Summary
The House Taxation & Revenue Committee on Thursday adopted an amendment to a small-business disaster tax credit bill but then tabled the measure, saying the expense needs review before the committee advances a new tax credit.
The House Taxation & Revenue Committee heard House Bill 3.26 (referred to in committee paperwork as HB326), a proposal to create a $5,000 state tax credit for small businesses located in areas covered by a gubernatorial disaster declaration. The sponsor said the tax credit is targeted at businesses that sustained at least a 30% decline in gross revenue and that have annual gross receipts under $2 million; claimants must have been in operation for at least two consecutive taxable years.
Representative Gonzales (sponsor) presented the bill and introduced an amendment that clarified language around the required 30% decline in revenue and extended the certification window: a claimant could seek certification of the credit up to one year after the date of the governor's emergency declaration to allow for taxable-year timing. Pam Stokes of the Legislative Council Service provided technical assistance on the amendment. Supporters from the field — including Glenn Walters of the Small Business Development Centers and local resident Joaquin Romero, who cited closures in Las Vegas and Mora after the Hermits Peak/Calf Canyon fires — urged passage as targeted relief for hard-hit small businesses.
Committee members asked technical questions about timing, application and fiscal implications. Representative De Dasas moved to adopt the amendment; the committee adopted it without recorded opposition. On procedural grounds the committee considered committee practice for tax expenditures: a member moved to table the bill pending inclusion in a broader tax package or confirmation of fiscal capacity. The chair called for any opposition to the tabling motion; none was stated on the record and the meeting adjourned with the bill held in committee (tabled).
Next steps: HB3.26 (HB326) will be held in committee; sponsors may seek placement in a later tax package if leadership and appropriators determine fiscal capacity. Claimants and stakeholders should note the amendment's eligibility details: $5,000 credit, 30% revenue decline threshold, two consecutive years in operation, annual gross receipts under $2,000,000, and certification requested within one year of the governor's declaration.
