State Incentives
The state of Colorado offers several incentive programs that are available throughout the seven-county Metro Denver region and the two-county Northern Colorado area.
Job Creation
- Strategic Fund - The fund provides performance-based incentive payments to qualifying companies that create new, full-time, permanent jobs in Colorado that are maintained for at least one year and meet other requirements such as potential for economic spinoff. » Fact Sheet
- The Job Growth Incentive Tax Credit - Passed in 2009, the program allows companies to apply to the Colorado Economic Development Commission (EDC) for a state income tax credit based on the payroll tax cost they incur from creating new jobs. To qualify for the credit, companies must create at least 20 new jobs in urban areas or five new jobs in rural enterprize zone areas, and pay wages above the local average. If approval is received, the company is then credited half of the amount it paid in federal Social Security and Medicare taxes on the jobs created, which in most cases is roughly 3.8 percent of each job's annual wage. » Fact Sheet
Training
Colorado FIRST/Existing Industry Customized Training Programs - The Colorado Office of Economic Development & International Trade and the Colorado Community College System jointly administer both programs. The maximum grant award for both programs is $800 per employee and applicants must meet criteria such as providing sustainable wage thresholds. Senate Bill 171, passed in 2009, allows companies to partner with a community college or other training provider to apply for a grant from this program in order to create a training program for an entire industry sector. Potential employees will be able to take part in these training programs before being hired by a company. » Fact Sheet
- Colorado FIRST grants are for companies moving to the state or for existing companies planning to expand.
- Existing Industry grants are awarded to Colorado companies working to implement a new technology to remain competitive and retain jobs in Colorado.
Project Assistance
- The Colorado Economic Development Commission (EDC) - Provides state funds for qualified economic development projects. Funds may include grants, low interest, short-term loans, or an interest write-down on a loan. Each project is considered on a case-by-case basis using factors such as the number of jobs, salary levels, location, local participation, and resource availability.
» EDC 2010 Annual Report
- Planning and Feasibility Study Grants - These grants are designed to provide funding to determine the feasibility of a project or to plan for a project. Generally, funding may be provided up to $20,000 per study; however, this amount may vary based on a number of factors. » Program Application Guidelines
- Bioscience Discovery Evaluation Grant Program - Aims to foster growth of the state's bioscience industry by expanding bioscience research and accelerating development of new products and services. Program funding is disbursed through Proof-of-Concept grants, Early-State Bioscience Company grants, and research institution grants for infrastructure development.
» Program Application Guidelines and Forms
- Infrastructure Assistance Program - The infrastructure program utilizes federal funds from the U.S. Department of Housing and Urban Development to construct or improve infrastructure. To receive the grants, companies must demonstrate that the project will create or retain low- and moderate-income jobs.
» Fact Sheet
- Manufacturing Revenue Bond Program - Tax exempt Private Activity Bond financing may be available for qualified manufacturing projects. Funds can be used to finance real estate and equipment purchases. » Program Application Guidelines
- Clean Energy Fund Grants - The Governor's Energy Office awards New Energy Economic Development (NEED) grants to promote emerging energy efficiency and renewable energy technologies. » Program Information
Tax Credits
- Biotechnology Sales and Use Tax Refund - State sales and use taxes paid on the sale, storage, use, or consumption of tangible personal property to be used in Colorado directly and predominantly in research and development of biotechnology are refundable. » Filing Procedures and Forms
- Colorado Aircraft Manufacturer New Employee Tax Credit - Aircraft manufacturers located in a Colorado aviation development zone may qualify for a state income tax credit of $1,200 per new employee. » Fact Sheet
- Contaminated Land Redevelopment Income Tax Credit - An income tax credit for expenses associated with the redevelopment of contaminated land is available for qualified projects.
» Application Form
- Enterprise Zones - The Enterprise Zone Program provides tax credits for private enterprise to expand and for new businesses to locate in economically distressed areas of Colorado as designated by the Colorado Economic Development Commission (EDC). Businesses located in a zone may qualify for ten different Enterprise Zone Tax Credits and Incentives to encourage job creation and investment in Colorado. Additional information, maps, and contact information is available in the Enterprise Zone section of this website.
- Sales Tax Exemption on Aircraft and Aircraft Parts - The sale of a new or used aircraft to a person who is not a resident of Colorado for registration and primary use outside of the state is exempt from state sales tax. » Fact Sheet
- Qualifying Therapeutic Discovery Projects - A tax credit provided under new section 48D of the Internal Revenue Code (IRC), enacted as part of the Patient Protection and Affordable Care Act of 2010 (P.L. 111-148). The credit is a tax benefit targeted to therapeutic discovery projects. » Application Details
Venture Capital
- Certified Capital Companies Program (CAPCO) - The CAPCO program was created by the Colorado State Legislature in 2001 to provide venture capital funds to new and expanding small businesses throughout the state. » Fact Sheet
- Colorado Venture Capital Authority (VCA) - The Colorado General Assembly passed legislation that established a Colorado Venture Capital Authority in 2004. The VCA makes seed and early-stage capital investments in businesses from $250,000 to $3.3 million. » Fact Sheet