Enterprise Zone Program
A Platform for Community Development
The Colorado Enterprise Zone (EZ) Program is designed 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 non-profit organizations to assist with the needs of - these communities.
Private-sector business activity encouraged by these income tax incentives brings job opportunities and capital investment to economically distressed areas. The private investment results in tax revenue for school districts, cities, counties and the state, outweighing the costs of the tax credits granted.
List of Enterprise Tax Zone Credits
- EZ-Investment Tax Credit: Providing businesses a tax credit of 3 percent for equipment purchases.
- EZ-Job Training: Companies that implement a qualified job-training program for their enterprise zone employees may claim an income tax credit of 12 percent of their eligible training costs.
- EZ-New Employee Credit: A tax credit offering businesses $1,100 per new job.
- EZ-Agreicultural Processing: A tax credit of $500 per new business facility employee may be claimed by business adding value to agricultural commodities through manufacturing or processing.
- EZ-Enhanced Rural Enterprise Zone New Employee: Offers $2,000 total per new job for new businesses located within an enterprise zone.
- EZ-New Employee Enhanced Ag Processor Credit: Businesses located in an enterprise zone may be eligible for credit of $500 per new employee, if the business is an agricultural manufacturing or processing business.
- EZ-Health Insurance: Offers businesses $1,000 per insured job available for the first two years in state enterprise zones.
- EZ-Research and Development Tax Credit: A tax credit for businesses up to 3 percent, based on the increase of a company's research and development expenditures within an enterprise zone during the previous two income tax years.
- EZ-Vacant Building Rehab: Allows owners or tenants of a building in an Enterprise Zone that is at least 20 years old and that has been completely vacant for at least two years to claim a tax credit of 25 percent of the cost of rehabilitating the building for commercial use, up to $50,000
- EZ-Commercial Vehicle Investment Tax Credit: Offers businesses a state income tax credit up to 1.5 percent on commercial trucks, truck tractors, tractors, or semitrailers, as well as associated parts.
- EZ-Contribution Projects: Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Projects status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that meet the economic development needs, result in job creation/retention and business expansion, and have the support of the community. Colorado taxpayers may earn Colorado income tax credits by contributing to targeted efforts.
For additional information regarding the Colorado Enterprise Zone (EZ) Program visit the website, http://choosecolorado.com/doing-business/incentives-financing/ez/