Colorado’s Enterprise Zone program provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state. There are 16 Enterprise Zones and 2 sub-zones in Colorado, including the Town of Bennett. Businesses located in an Enterprise Zone may qualify for up to nine Enterprise Zone Tax Credits that encourage job creation and investment in the Enterprise Zone.
- Investment Tax Credit (3%) - This is the most widely used tax credit. It essentially allows businesses in the EZ to receive a credit against their state income tax of 3% of their capital investment in equipment. This is available to all businesses in the EZ.
- Training Credit (12%) - This allows businesses that make significant investment in human capital to recover 12% of their training program costs as an income tax credit. This is available to all businesses in the EZ.
- New Job Credit ($1,100 per Job) - If a business creates a “new job” in the EZ then it could be eligible to take advantage of this credit. (Existing jobs transferred from another Colorado location are not eligible).
- Health Insurance Credit ($1,000 per Job) - If the employer pays more than 50% of the employees’ health care benefits, there is an extra $1,000 that can be claimed for the first two full income tax years while located in the Enterprise Zone, in addition to the new job credit.
- Vacant Building Rehabilitation Credits – 25% credit for hard costs associated with rehabbing a building that has been vacant for at least 2 years and is at least 20 years old.
- R & D credits – 3% credit for increased investment in research and development. Must be technological in nature, utilize processes of experimentation and useful in the development of new products or services. In house or contract research qualifies.
- Commercial Vehicle Investment Tax Credit – 1.5% of commercial vehicle purchase. (CVITC Application)
- Manufacturing Sales Tax Exemption – There is a state-wide sales tax exemption for companies purchasing manufacturing equipment. Benefits for EZ companies are expanded- can include expensed items, materials used to repair equipment and mining equipment.
Purpose The Colorado Enterprise Zone (EZ) Program was created by the Colorado Legislature (C.R.S. Title 39, Article 30) to promote a business friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop in - and non-profit organizations to assist with the needs of - these communities. Program Description Taxpayers investing in Enterprise Zones can earn a credit on their Colorado income tax by planning and executing specific economic development activities.
- Colorado Enterprise Zone Fact Sheet
To find out more, click on the following links or contact Adams County Economic Development directly.
Adams County Economic Development, Inc.
12200 Pecos Street
Westminster, CO 80234