The tax break was originally intended to encourage insurers to maintain a large workforce in Colorado. According to the legislative manifesto and according to an assessment by the state auditor’s office, the General Assembly found that even after the standards were modified in the House Bill 21-1312, insurers were still eligible for lower interest rates, although they did not maintain or increase their overall employment in the state. Even if companies don’t increase employment, the benefits of lowering interest rates may increase, as tax benefits are based on premiums collected, and premiums are rising nationwide.
