Colorado's Urban and Rural Enterprise Zone Act of 1986 established a program that designates certain areas of the state as Enterprise Zones. Under the program, incentives are available for private enterprises to expand and for new businesses to locate in economically distressed areas of Colorado designated as Enterprise Zones.
The Colorado Economic Development Commission (EDC) designates Enterprise Zones. Four of Colorado's 18 Enterprise Zones are in Metro Denver, and two exist in Northern Colorado.
Enterprise Zone Tax Credits
Businesses located in a zone can qualify for the following Enterprise Zone tax credits and incentives to encourage job creation and investment in Colorado:
- 3 percent investment tax credit for equipment purchased and used within the zone
- 3 percent research and development tax credit
- $500/New full-time employee tax credit
- $200/New full-time employee/two year health insurance tax credit
- 25 percent tax credit to rehabilitate vacant buildings
- 12.5 - 25 percent tax credit for contributions to zone projects
- 10 percent tax credit for job training