Rewarding investment and innovation.

Colorado provides a competitive tax structure that rewards investments and business innovation. All levels of government recognize the importance of providing citizens services and infrastructure while maintaining a fair and equitable tax structure.

Colorado has the 15th-most business-friendly tax climate according to the Tax Foundation's 2010 State Business Tax Climate Index. Also, Colorado has the 12th-best corporate tax index.

In November 2005, Coloradoans voted to invest in Colorado’s future, without raising taxes. Referendum C allows the state to retain excess tax revenues and permits the state to spend those revenues on K-12 public education, healthcare, public higher education, and transportation projects.

In 2010, Governor Bill Ritter signed into law economic development bills including HB 10-1333, the Green Jobs Colorado Program; HB 10-1180, incentives for the Colorado film industry; SB 10-158, the Creative Industries Division bill; and SB 10-162, enterprise zone modernization.

In addition, Colorado offers various targeted tax incentive programs to companies creating new jobs and investment in the state:

Colorado Targeted Tax Incentives

• Aircraft Manufacturer Tax Credit - Aircraft manufacturers that locate within a Colorado Aviation Development Zone (ADZ) may qualify for a state income tax credit of $1,200 per new employee. 
• Biotechnology Sales and Use Tax Refund - Qualified taxpayers may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property used directly and predominately in research and development of biotechnology. 
• Colorado Film Incentives Cash Fund - Films produced in Colorado can qualify for a 10 percent rebate of Colorado production expenses for motion picture, television, and similar film productions. 

Local Property Tax Incentives

• The Colorado Urban and Rural Enterprise Zone Act and House Bill 02-1399 enable local governments, at their discretion, to provide property tax credits or incentive payments (Business Incentive Agreements (BIA)) based on the amount of increased property taxes for qualifying new business activity in their jurisdictions. 

Tax Amnesty Program

• The Colorado Department of Revenue launched a campaign Sept. 19, 2011, to convince delinquent taxpayers to pay under a tax amnesty program. Taxpayers who owe the state money have a 45-day period beginning Oct. 1 to pay any back taxes without penalty or criminal prosecution. Interest charges on delinquent taxes will be halved. The offer is open to people and businesses who still owe on taxes that were due by Dec. 31, 2010. The Colorado Department of Revenue will allow certain taxpayers to pay the full amount of overdue taxes, including one-half of any interest due, without being subject to any other civil or criminal penalties. The state predicts the amnesty program will bring in $10 million to $12 million.
• The Colorado Tax Amnesty Program will run from Oct. 1 through Nov. 15, 2011, and applies to taxes that were due on or before Dec. 31, 2010. The amnesty DOES NOT include 2010 Colorado income tax, which was due April 18, 2011. http://www.coloradotaxamnesty.com/

Helpful links:

• Colorado Department of Revenue:
  • Customer support site
• Colorado Department of Labor and Employment:
  • Register a new business
  • Employer information

Document Downloads

The Metro Denver EDC posts weekly updates on bills affecting businesses and economic development in Colorado on the Legislation page under Metro Denver Economy.