ENTERPRISE ZONE TAX CREDITS
Investment Tax Credit: Businesses investing in Enterprise Zones through business personal property can earn a 3% tax credit. Special rules for renewable energy equipment apply.
Job Training: Companies that implement a qualified job-training program for their enterprise zone employees may earn an income tax credit of 12% of their eligible training costs.
New Employee Credit: Businesses increasing their workforce may earn a state income tax credit of $1,100 per net new employee.
Agricultural Processor: An additional tax credit of $500 per net new employee may be claimed by businesses adding value to agricultural commodities through manufacturing or processing.
Employer Sponsored Health Insurance: Offers businesses $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost. This credit is available for the first two years the business is located in an enterprise zone.
Research and Development Tax Credit: Businesses conducting research and development may earn a 3% tax credit on the increase in such expenditures as compared to that of the prior 2 years.
Vacant Commercial Building Rehabilitation: Encourages the redevelopment of vacant commercial property with a 25% credit for the cost of rehabilitation of a building that is at least 20 years old and has been completely vacant for at least 2 years. The credit is limited to $50,000 per building.
Commercial Vehicle Investment Tax Credit: Investment in commercial trucks, truck tractors, tractors or semitrailers, and associated parts registered in Colorado and based and used in an Enterprise Zone may ear the taxpayer a 1.5% credit.
Contribution Projects: Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Project status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that support local economic improvements, result in job creation/retention and business expansion, and have the support of the community. Colorado taxpayers may earn a 25% state income tax credit by contributing to targeted efforts. West End Economic Development Corporation is a Certified Enterprise Zone Contribution Project.
APPLYING FOR ENTERPRISE ZONE BUSINESS TAX CREDITS
Pre-Certification: Businesses wanting to claim any of the Colorado Enterprise Zone (EZ) income tax credits (excluding the Contribution Project credit for which pre-certification is not required), must ANNUALLY pre-certify with their local EZ Administrator to be eligible to claim EZ tax credits. Pre-certification can be completed up to three months in advance of the business’ tax year start date. Pre-certification is approved by the Local EZ Administrator. Pre-certify each business location as credits are only available for business activity in an Enterprise Zone.
The Enterprise Zone Administrator for the West End is Trish Thibodo, Region 10, firstname.lastname@example.org.
Certification: A business having pre-certified, and then conducted activities that are eligible for EZ credits, must then complete a certification application and received approval from the local EZ Administrator. Certification documents must be submitted with your Colorado income tax filing. The Certification document from the State of Colorado’s application system takes the place of DOR forms DR0074, DR0076 and DR0077. Instructions for Pre-Certifications and Certification of EZ tax credits can be found at HERE.
CONTRIBUTE TO AN ENTERPRISE ZONE ECONOMIC DEVELOPMENT PROJECT
Enterprise Zone Contribution Projects are managed by local Zone Administrators to encourage public private partnerships to improve the economy for the benefit of the broader Enterprise Zone. Contribution Projects aim to focus community engagement on an economic issue or opportunity to elicit a shift and accomplish a targeted economic development goal within a defined time period.
Enterprise Zone Administrators are focused on managing this program with a strong ethic and focus on job creation/retention and business expansion in the Enterprise Zone.
West End Economic Development is a certified Enterprise Zone Contribution Project, with tax credits allocated through December 31, 2022.
Enterprise Zone Contributions follow Federal Charitable Contribution rules (IRS Publication 526). A taxpayer (individual or business) must make a donation to an approved Enterprise Zone Contribution Project. Provide the charitable organization with your Employer Identification Number or the last 4 digits of your Social Security Number. The project will provide the taxpayer with a Certificate documenting their contribution. Contact the Project Organization or the local Zone Administrator with questions.
The taxpayer may claim the tax credit when filing state income taxes for the year in which the donation was made (review Colorado Department of Revenue Form DR1366 for further info).
The West End Enterprise Zone is managed by Region 10, League for Economic Assistance and Planning.
Zone 13: Region 10 Enterprise Zone
Counties include: Delta, Gunnison, Hinsdale, Montrose, Ouray and San Miguel
Trish Thibodo, Enterprise Zone Administrator
Region 10 League for Economic Assistance
145 S Cascade Avenue
Montrose CO 81401