Enterprise Zones

Enterprise Zones

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
 

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.
• At the end of the income tax year, businesses must certify that qualified activities were performed.
• We can help guide you through the process!  Contact Ethan Rouse, Enterprise Zone Administrator with any questions: [email protected]  or 720.523.6812
• Start by checking your business address to see if you qualify. Visit the State Enterprise Zone site. 
   

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.