Enterprise Zones
The Colorado Enterprise Zone (EZ) program provides incentives for new businesses to locate or expand in economically distressed areas in Colorado as designated by the Colorado Economic Development Commission (EDC). Businesses located in a zone may qualify for 9 different Enterprise Zone Tax Credits and Incentives to encourage job creation and investment.
The Colorado Economic Development Commission (EDC) designates the Enterprise Zones. There are 16 Enterprise Zones and two sub-zones in Colorado. Four zones are in Metro Denver; two are located in Northern Colorado.
During the 2010 Legislative Session, there were several bills that were passed resulting in significant changes to Enterprise Zone Tax Credits and the process by which Enterprise Zone tax forms are certified. Information on these bills can be found at www.colorado.gov.
Businesses located in a zone can qualify for the following Enterprise Zone tax credits and incentives to encourage job creation and investment in Colorado:
- Investment Tax Credit - 3% of equipment purchases
- Job Training Tax Credit - 10% of qualified training expenses
- New Business Facility (NBF) Tax Credits - NBF status req'd for these 3 credits
Jobs Credit - $500 per new job
Ag Processing Jobs Credit - $1,000 total per new job
Health Insurance Credit - $200 x 2 years per new job
- R&D Increase Tax Credit - 3% of increased R&D expenditures
- Vacant Building Rehabilitation Tax Credit - 25% of rehabilitation expenditures
- Manufacturing/Mining Sales and Use Tax - Expanded sales and use tax exemption in EZ
- Contributions to Enterprise Zone Projects - 25% cash / 12.5% in-kind of donation
- Local Incentives - Increased incentives in some EZ areas
Enterprise Zone administrators on the local level certify whether businesses are located within an Enterprise Zone. The business must attach a copy of the Enterprise Zone Certification of Qualified Business form DR0074 (available in the Document Downloads to the right) to its Colorado income tax return. Detailed information on Colorado Enterprise Zone incentives, contact information, and forms can be found in the Document Downloads.