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 nonprofit organizations to assist with the needs of – these communities.
Taxpayers investing in Enterprise Zones can earn a Colorado income tax credit by planning and executing specific economic development activities. Only taxpayers engaged in business activities that are legal under both state and federal law are eligible to claim EZ income tax credits.
Businesses can earn a state income tax credit for 12% of eligible job-training costs for employees working within the enterprise zone.
Learn more about the Job Training Tax Credit
Businesses can earn a state income tax credit of $1,100 per net new employee.
Learn more about the New Employee Tax Credit
For the first two years that a business is in an enterprise zone, the business can earn $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost.
Learn more about the Employer-Sponsored Health Insurance Tax Credit
Businesses can earn a 3% tax credit for an increase in annual research and development expenses compared to what they spent the prior two years.
Learn more about the Research and Development Tax Credit
If a business rehabilitates a commercial building that is at least 20 years old and has been vacant for at least two years, the business can earn a state income tax credit for 25% of rehabilitation costs (up to $50,000 in credits on $200,000 or more on costs).
Learn more about the Vacant Commercial Building Rehabilitation Tax Credit
A taxpayer can earn a state income tax credit for 1.5% of the price of new commercial trucks, truck tractors, tractors, semi-trailers, and associated parts registered in Colorado and used in an enterprise zone.
Learn more about the Commercial Vehicle Investment Tax Credit
Businesses can earn a state income tax credit for 3% of an investment in business personal property.
Learn more about Investment Tax Credit
The statewide sales and use tax exemption for purchases of manufacturing equipment is expanded to include non-capitalized equipment and parts if the business is located within a zone. The enterprise zone statutes also expand manufacturing to include mining.
Learn more about the Sales and Use Tax Exemption for Manufacturing and Mining
The Enterprise Zone Contribution Tax Credit provides a tax credit to Colorado taxpayers that contribute to targeted enterprise zone projects. When taxpayers make a certified contribution, they can claim, 25% of a cash donation as a state income tax credit and 12.5% of an in-kind donation as a state income tax credit.
Learn more about the Enterprise Zone Contribution Tax Credit
Jamie CroutSenior Economic Development Specialist303-734-8904jcrout@littletonco.gov