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.
In designated Enterprise Zones:
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