Enterprise Zone
Business Tax Credits
Information
| Credit Examples
| Contribution
Projects |
Project Eligibility | EZ
FAQ's |
EZ Map
Business Tax Credits
Several business tax credits exist
for businesses within the Enterprise Zone. Download
the State of Colorado Enterprise Zone PDF documents
associated with each benefit listed here for complete
details. (Requires
Adobe Acrobat Reader)
3%
Investment Tax Credit: Businesses making investments
in equipment used exclusively in an Enterprise Zone
which would have qualified for the pre-1986 federal
investment tax credit may claim a credit against their
Colorado income taxes. Excess credits may be carried
back 3 ears and forward 12 years. (PDF-FYI Income 11)
$500 Job Tax Credit:
Businesses hiring new employees in connection with a
“new business facility” located in an Enterprise
Zone may claim a tax credit against state income taxes.
If a business expands and meets the criteria to qualify
as a “new business facility”, they may claim
the $500 Job Tax Credit. Excess credits may be carried
forward 5 years. (PDF-FYI Income 10)
Double Job Tax Credit for Agricultural
Processing: An additional $500 credit per new
business facility employee may be claimed by businesses
that add value to agricultural commodities through manufacturing
or processing. (PDF-FYI Income 10)
$200 Job Tax Credit for Employer
Sponsored Health Insurance: A taxpayer with
a new business facility is allowed a two-year $200 tax
credit for each new business facility employee who is
insured under a qualifying employer-sponsored health
insurance program (employer must pay at least 50% of
the premium). (PDF-FYI Income 10)
10% Job Training Credit:
Beginning with 1997 tax years, employers who carry out
a qualified job training program for their Enterprise
Zone employees may claim a Colorado income tax credit
of 10% of their eligible training costs. (PDF-FYI
Income 31)
Credit to Rehabilitate Vacant
Buildings: Owners or tenants of commercial
buildings in an Enterprise Zone which are at least 20
years old and which have been vacant for at least 2
years may claim a credit of 25% of the cost of rehabilitating
each building. The credit is limited to $50,000. (PDF-FYI Income 24)
Research and Development Tax
Credit: Taxpayers who make private expenditures
on research and experimental activities (as defined
in federal tax law) conducted in an Enterprise Zone
qualify for an income tax credit of 3% of the R&D
expenditures. (PDF-FYI Income 22)
Exemption from State
Sales and Use Tax for Manufacturing and Mining Equipment:
Eligible purchases used in an Enterprise Zone are exempt
whether the purchases are capitalized or expensed for
accounting purposes. (PDF-FYI
Sales 69)
Here
Are Some Examples of the Tax Credits:
If you purchase new equipment for your
business: a computer, a point of sale system, kitchen
equipment, manufacturing machinery, an agricultural
irrigation system or other tangible personal property
that is used to generate revenue, you may be eligible
for a 3% Investment Tax Credit.
If you add additional jobs to your
workforce, you may be eligible for a $500 Job Tax
Credit per additional employee.
If you are an agricultural processing
business and you add additional employees to your staff,
you may be eligible for an extra $500 Job Tax Credit
making a total of $1,000 per additional employee
If you provide additional training
for your employees (other than on-the-job training),
you may be eligible for a 10% Job Training Credit.
If you provide employer-sponsored health
insurance for your employees, you may be eligible for
a $200 per employee (for two years) Health
Insurance Tax Credit.
If you rehabilitate a 20 year
old vacant building, you may be eligible for 25%
of the building renovation costs.
Detailed
Tax Credit Examples (PDF's): (Requires
Adobe Acrobat Reader)
How Do You Apply for
Enterprise Zone Tax Credits?
Once you have established that
a business is locatedd in the Mesa County Enterprise
Zone, you shuold follow these steps:
|
