enterprise zones

This page will provide detailed information about enterprise zones and their implications for businesses.

What is an Enterprise Zone?

An Enterprise Zone in Colorado refers to economically disadvantaged areas where businesses are eligible for special tax incentives upon expansion or relocation.

For further details, visit the Department of Revenue’s website at www.taxcolorado.com or contact them at (303) 238-7378. These incentives are designed to stimulate economic growth within these zones.

What is an Enterprise Zone?

  1. The Investment Tax Credit, a valuable incentive, provides a 3.0% tax credit for equipment used exclusively in a Colorado Enterprise Zone.
  2. The New Business Facility Job Tax Credit offers a $500 credit against state income taxes for each new employee hired by new or expanding businesses in an enterprise zone.
  3. The New Business Facility Job Tax Credit for Agricultural Processing offers a $500 credit per new agricultural processing job in an enterprise zone. Notably, enhanced Rural Enterprise Zones may qualify for additional credits of up to $2,500 per new job.
  4. The New Business Facility Job Tax Credit for Employer Health Insurance provides credits for new employees insured under qualifying employer-sponsored health plans.
  5. The Research and Development Tax Credit supports R&D activities within an enterprise zone.
  6. The Tax Credit for Private Contributions to Enterprise Zone Administrators allows taxpayers contributing to economic development plans in enterprise zones to claim credits.
  7. Tax Credits for Rehabilitating Vacant Commercial Buildings in enterprise zones are available.
  8. The Job Training Credit offers a 10% income tax credit on eligible training costs for enterprise zone employees.
  9. State Sales and Use Tax Exemptions are available for manufacturing and mining equipment used within enterprise zones.
  10. Local Government Tax Incentives in enterprise zones include property tax credits and sales tax refunds on eligible purchases.