The Denver City Council business committee unanimously approved an extension of Denver’s Business Investment Program Wednesday, passing the ordinance on to the full council for a vote.

The Business Investment Program began in 2013 to incentivize business owners to launch or expand businesses in Denver by providing them with a business personal property (BPP) tax credit, reducing the BPP tax bill.

“Back then, the city took a close look at what levers could be pulled to help the city rebuild its economy after the Great Recession,” said Turid Nagel-Casebolt with Denver Economic Development and Opportunity, which runs the program.

“Now here we are, facing economic challenges from the COVID-19 pandemic, and we’re again looking at what tools we have to help us recover sharper and faster.”

If the proposed ordinance is not passed, the Business Investment Program, last reauthorized in 2017, will expire in 2022.

According to the city, 20 to 30 businesses participate in the program each year, 60% of which are small businesses with between five and 100 employees. Around 30% of the businesses are in manufacturing, 12% are in food service and 12% are in scientific/technical services.

The city estimates that, since 2013, the program has generated $475 million in investment and over 7,000 new jobs in Denver.

The tax credit generally reduces BPP tax liability on equipment by 10% to 13% for a four‐year period. Qualifying property includes tools, fixtures, machinery and equipment used in office, communication, construction and manufacturing.

The proposed ordinance would also slightly change the project, extending reauthorization from every five years to every 10 years and extending the tax credit from a four-year period to a 10-year period for businesses that have invested over $50 million in BPP.

“I think it’s great that we are providing economic incentives for businesses in return for choosing Denver,” Councilman Chris Hinds said, adding that Denver has “special sauce” in its location and population that attract businesses.

New businesses, existing businesses that have moved to Denver and existing Denver businesses that have expanded are eligible for the program. Expanded businesses must have increased their BPP by 100% or $1 million, or have increased staff by 10% or 10 employees.

Other Colorado jurisdictions have similar discounts or exemptions for BPP tax, including Jefferson County, Colorado Springs, Larimer County, Boulder, Douglas County, Arapahoe County and Adams County.

The proposal will have to be approved by the full Denver City Council before being implemented.