Business Tax Credits

Colorado’s Enterprise Zone (EZ) program provides certain state income tax credits and other incentives for private enterprise to expand or for new business to locate within the state EZ area. A business (which includes farms, ranches, and agriculture) located within the EZ boundary may be eligible for EZ credits variety of activities, including: investment in equipment, jobs created, employee training, employer sponsored health insurance, rehabilitation of vacant buildings, and research and development activities.

Is My Business in the Enterprise Zone? Click Here for Map.

 

What Credits are available?

Business Tax Credits Credit Amount for tax years
commencing prior to 1/1/2014
Credit Amount for tax years
commencing on or after 1/1/2014
CO Department of Revenue Informational FYI
Investment Tax Credit 3% of Equipment Purchases 3% of Equipment Purchases with $750,000 limit FYI Income 11
Job Training Tax Credit 10% of qualified training expenses 12% of qualified training expenses FYI Income 31
*NBF Jobs Credit $500 per new job $1,100 per new job FYI Income 10
*NBF Ag. Processing Credit $500 add’l per new a.p. job = $1,000 total $500 add’l per new a.p. job = $1,600 total FYI Income 10
*NBF Health Insurance Credit $200 x 2 years ($400) add’l per new job $1,000 x 2 years ($2,000) add’l per new job FYI Income 10
R&D Increase Tax Credit 3% of increased R&D expenditures 3% of increased R&D expenditures FYI Income 22
Vacant Building Rehabilitation Credit 25% of rehab expenditures (hard costs) 25% of rehab expenditures (hard costs) FYI Income 24
Commercial Vehicle Investment Tax Credit 1.5% of commercial vehicle purchases 1.5% of commercial vehicle purchases FYI Income 11
Note: NBF credits require New Business Facility status as defined by the Colorado Department of Revenue. See FYI Income 10 for details.
* For tax years commencing on or after 1/1/2014, the New Business Facility requirement is not longer a requirement to qualify for these credits

A complete list of EZ credits that are available along with the statute and FYI links can be found at www.advancecolorado.com/ez.

How do I claim these credits?

You must first complete a Pre-Certification annually here prior to engaging in any activity that your company plans to seek Colorado Enterprise Zone credits for. After your tax year is completed, fill out an Enterprise Zone Certification form online here. Once the form is submitted online, the Enterprise Zone Administrator will review the submitted information and approve or deny the certification after which an e-mail from the system will be sent to the e-mail address entered on the certification. Once this is received, you file it with your yearly Colorado State Income Tax Forms.