Enterprise Zone Tax Credits

Enterprise Zone Program

The Colorado Enterprise Zone Program encourages job creation and capital investment in economically distressed areas by providing tax credits to businesses and projects to promote and encourage economic development activities. The program was created in 1986 and is based on areas in Colorado that have high unemployment rates, low per capita income, or slow population growth.

Prior to each income tax year, a business located in an EZ must apply and be Pre-certified prior to beginning an activity to earn any of the business tax credits. At the end of the income tax year, a business must Certify that the activities were performed. To apply for pre-certification or to certify, please visit choosecolorado.com. Legislation regarding the enterprise zone can be found here. Only taxpayers engaged in business that is legal under both state and federal law are eligible to claim EZ income tax credits.

Jeffco EDC serves as the Enterprise Zone Administrator for Jefferson County, managing and marketing the program for the county. Jeffco EDC works in partnership with our economic development partners to educate businesses about the benefits of the program.

For more information, please contact us.

 

Helpful Links

Tax Credit Credit Amount FYI
Investment Tax Credit (ITC) 3% of equipment purchases FYI Income 11
Job Training Tax Credit 12% of qualified training expenses FYI Income 31
New Jobs Credit $1,100 / net new job FYI Income 10
Health Insurance Credit $1,000 / employee first 2 years company in EZ FYI Income 10
R&D Increase Tax Credit 3% of increased R&D expenditures FYI Income 22
Vacant Building Rehabilitation Tax Credit 25% of rehabilitation expenditures FYI Income 24
Commercial Vehicle Investment Tax Credit 1.5% of commercial vehicle purchases FYI Income 11 & CVITC form
Additional EZ Incentives Incentive Amount FYI
Manufacturing / Mining Sales and Use Tax Expanded sales & use tax exemption in EZ FYI Sales 10 & FYI Sales 69 & DR1191 form
Contributions to Enterprise Zone Projects 25% cash / 12.5% in-kind of donation FYI Income 23
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