Adams County Enterprise Zones
Enterprise Zone (EZ) Program Overview
The Colorado Enterprise Zone (EZ) Program encourages investment and job creation in economically distressed areas by offering state income tax credits to businesses and contributors. Sixteen zones across the state provide incentives for business expansion and community projects. The Adams County Economic Development Department administers the program in Adams County.
Types of Business Tax Credits
Learn more about the various state income tax credits available to eligible for-profit businesses. 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.
Businesses can earn a state income tax credit for 12% of eligible job-training costs for employees working within the enterprise zone.
Businesses can earn a state income tax credit of $1,100 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.
Businesses can earn a 3% tax credit for an increase in annual research and development expenses compared to what they spent in the prior two years.
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.
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.
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.
Enterprise Zone Contribution Projects
Earn additional EZ Tax Credits for charitable contributions made to approved nonprofit organizations.
The primary goal of the Enterprise Zone (EZ) Contribution Project Program is to create or preserve an environment that will help attract, expand, and retain employers in the Enterprise Zone.
Colorado Taxpayer Incentives: State income tax credits equal to 25% of monetary contributions and 12.5% of in-kind contributions are available to Colorado taxpayers who make charitable contributions to approved nonprofits that improve the economic conditions of the EZ.
Eligible businesses
Both new and existing businesses located in enterprise zones may qualify for the credit. For businesses that open in the middle of a tax year, you will need to prorate the credit based on the number of full calendar months during the year that the business operated in the zone.
Businesses need to be legal under both state and federal law. For example, businesses in the marijuana industry do not qualify for this tax credit.
Eligible investors
Any Colorado taxpayer can support an enterprise zone contribution project. You do not have to live or work in the enterprise zone to invest.
Eligible managing organizations
The enterprise zone administrator may engage with eligible entities engaged in improving economic conditions within enterprise zones. The organization managing the project needs to be a governmental entity or a nonprofit in Good Standing with the Colorado Secretary of State. Either an entire organization or a specific program/project of the organization may be eligible to manage an enterprise zone contribution project.
How to Qualify and Claim a Credit
Once you determine that your business is in an enterprise zone, there are three steps to claim this tax credit.
- 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, we manually add new users to the portal, so it may take several days to activate your account.
- Pre-certify each year. You can pre-certify up to three months before the start of the business’s 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.
- After the end of your tax year, return to the OEDIT application portal and complete the certification application
- Log in to your account and fill out the certification application.
- Activity conducted during the covered pre-certification period is eligible for enterprise zone tax credits.
- The local enterprise zone administrator will review and approve your certification application.
- File Colorado income taxes and include certification documents.
- Once the certification application is approved by the local enterprise zone administrator, you will receive via email a tax credit certificate that you need to submit with your Colorado income tax return. You can also access the certificate in the OEDIT application portal. This certificate replaces Colorado Department of Revenue forms DR0074, DR0076, and DR0077.
- Complete and submit the Colorado Department of Revenue form DR1366 and the EZ Tax Credit Certificates with your Colorado income tax return.
- Partnerships also need to complete and submit the DR0078a for the distribution of the credits.