Enterprise Zones

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Enterprise Zones are state-funded programs encouraging business development and job growth in economically distressed areas. The Adams County Economic Development Office administers the program in Adams County.

Click here for Adams County Enterprise Zone flyer

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HOW IT WORKS

Each income tax year, a business located in an Enterprise Zone must apply and be pre-certified before beginning an activity to earn any business tax credits listed below.
Start by checking your business address to see if you qualify. Visit the State Enterprise Zone site.

Once you determine that your business is in an enterprise zone, your next step is to pre-certify. Complete the pre-certification application on the OEDIT application portal. You will need to pre-certify each business location. You will need to apply for pre-certification in advance of the activity that is eligible for the credit.

Log in to your account or create a new account. To protect your personal information, new users are manually add to the portal, so it may take several days to activate your account. Review this Enterprise Zone Pre-certification How-To Guide (PDF)
Pre-certify each year. You can pre-certify up to three months before the start of the business’ tax year. You can pre-certify at any time during the tax year; however, the business is only eligible to earn enterprise zone tax credits for the period certified.
The local enterprise zone administrator will review and approve your pre-certification application.

For more detailed information on the additional steps to claim a credit after you pre-certify, visit the OEDIT Enterprise Zone Program webpage. We can help guide you through the process! Contact Ethan Rouse, Enterprise Zone Administrator with any questions: [email protected] or 720.523.6812

Types of Business Tax Credits

Job Training Tax Credit (12% of eligible training costs)

Businesses can earn a state income tax credit for 12% of eligible job-training costs for employees working within the enterprise zone.

New Employee Tax Credit ($1,100 or more per net new employee)

Businesses can earn a state income tax credit of $1,100 per net new employee.

Employer-Sponsored Health Insurance Tax Credit ($1,000 per net new employee)

For the first two years that a business is in an enterprise zone, the business can earn $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost.

Research and Development Tax Credit (3% of an increase in research and development expenses)

Businesses can earn a 3% tax credit for an increase in annual research and development expenses compared to what they spent the prior two years.

Vacant Commercial Building Rehabilitation Tax Credit (25% of rehabilitation costs (up to $50,000 in credits on $200,000 or more in costs)

If a business rehabilitates a commercial building that is at least 20 years old and has been vacant for at least two years, the business can earn a state income tax credit.

Commercial Vehicle Investment Tax Credit (1.5% of purchase price)

A taxpayer can earn a state income tax credit for 1.5% of the price of new commercial trucks, truck tractors, tractors, semi-trailers, and associated parts registered in Colorado and used in an enterprise zone.

Investment Tax Credit (3% of business personal property investment)

Businesses can earn a state income tax credit for 3% of an investment in business personal property.

Sales and Use Tax Exemption for Manufacturing and Mining (Sales and use tax exemption)

The statewide sales and use tax exemption for purchases of manufacturing equipment is expanded to include non-capitalized equipment and parts if the business is located within a zone. The enterprise zone statutes also expand manufacturing to include mining.

If you would like to apply for a tax credit, please see each individual tax credit page for specific eligibility and application requirements. We recommend reviewing the Enterprise Zone Income Tax Credit Guide for the complete eligibility requirements.