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.
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 |
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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.