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). There are 16 Enterprise Zones in Colorado.
Businesses located in a zone can qualify for the following Enterprise Zone tax credits and incentives to encourage job creation and investment in Colorado.
Business Income Tax Credits:
- Investment Tax Credit - 3% of equipment purchases
- Commercial Vehicle Investment Tax Credit (CVITC) - 1.5% of commercial vehicle purchases
- Job Training Tax Credit - 12% of qualified training expenses
- New Business Facility (NBF) Tax Credits - NBF status required for these three credits
- Jobs Credit - $1,100 per new job
- Agriculture Processor New Employee Credit Jobs - $500 total per new job
- Employer Sponsored Health Insurance Credit - $1,000 per covered employee
- R&D Increase Tax Credit - 3% of increased R&D expenditures
- Vacant Building Rehabilitation Tax Credit - 25% of rehabilitation expenditures
Additional Enterprise Zone Incentives:
- Manufacturing/Mining Sales and Use Tax Exemption - Expanded sales and use tax exemption in EZ
- Contributions to Enterprise Zone Projects - 25% cash/12.5% in-kind donation
- Local Incentives - Increased incentives in some EZ areas
See the Colorado Office of Economic Development and International Trade website for downloadable forms and additional details.