EZ References

EZ References

Regulations

Enterprise Zone Regulations are on the Colorado Secretary of State website

Statutes

Read the statutes, click here.

Colorado Department of Revenue

The Colorado Department of Revenue (DOR) is the rule making authority for Enterprise Zone tax credits. Questions about eligible investments may be answered through a Letter Ruling. DOR is the authority on tax forms and filings.

Contact DOR

DOR FYIs

These FYIs may not provide the current credit rate, but do contain useful information for calculating net new employees, understanding what business personal property is eligible under the Investment Tax Credit, and other useful information.

Legislative Changes

This section details changes that the Colorado General Assembly has made to the Enterprise Zone (EZ) Program:

Investment Tax Credit limit adjusted  House Bill 13-1265

New Employee Tax Credit no longer dependent on New Business Facility definition  House Bill 13-1142
Eliminated New Business Facility requirements on the 3 NBF credits. Any business in an EZ may earn the tax credit on net new employees.

Raised credit amount on 3 EZ Tax Credits Senate Bill 13-286

  • Places a limit on the amount that can be claimed for the EZ Investment Tax Credits at $750,000 per year.
  • Increases Jobs Credit from $500 to $1,100.
  • Increases Health Insurance Credit from $200 to $1,000.
  • Increases Job Training Tax Credit from 10% to 12%.
  • The statewide boundary review is moved up from 2016 to 2014.

Carry Forward Provision for Renewable Energy Companies
Extends the carry forward provision for the EZ Investment Tax Credit for renewable energy companies from 12 years to 20 years. House Bill 13-1190 Effective retroactively January 1, 2013

Pass Through Organizations and EZ Contribution Projects
Allows intermediary non-profits to accept donations and pass them through to EZ Contribution Projects.  Note: EZ Contribution Projects will need to work with their local EZ Administrator before changing any established local processes or reporting requirements. House Bill 13-1190

Required Review of Enterprise Zone Boundaries
The Executive Director of OEDIT shall review EZ designations at least once every 5 years to determine if EZ boundaries meet at least one of the three statutory criteria for determining economic distress.  Modifications to boundaries that are needed as a result of a review shall not be made in a high unemployment period. Senate Bill 10-162 Pre-Certification

Pre-Certification
Businesses are required to receive pre-certification each year prior to earning EZ business tax credits, and then must receive final certification from their local EZ Administrator after earning the credit.

File State Income Taxes Electronically
Businesses claiming EZ tax credits are required to file electronically with the Department of Revenue.

Zone Size Limits
Establishes a standard method for calculating a zone’s population, and sets the population limit for urban zones at 115,000 persons and for rural zones at 150,000 persons.

Program Evaluation
Removes ineffective and broad economic indicators from EZ statute.

NAICS Coding
Changes industry coding for EZ businesses from the SIC code to the more commonly used NAICS code.

Zone Administrator Fee Policy Oversight
Authorizes zones to charge reasonable fees to Contribution Project Organizations if desired, and gives authority to the Colorado Economic Development Commission (EDC) to approve fee policies.

House Bill 10-1200
Sets a temporary requirement that businesses defer claiming an EZ Investment Tax Credit (ITC) that exceeds $500,000 in years 2011, 2012 and 2013. Businesses are allowed to claim the deferred credit as an ITC carryover for 12 income tax years following the year the credit was originally allowed, plus 1 additional income tax year for each income tax year that the credit was deferred.

House Bill 10-1285
Commercial trucks, truck tractors, tractors, or semitrailers that meet all of the following requirements, as well as associated parts purchased on or after July 1, 2011, shall be deemed to be used solely and exclusively in an EZ if predominantly housed and based in an EZ for 12 months following its purchase:

  1. The vehicle is sold as new on or after July 1, 2011, and
  2. Is of model year 2010 or later, and
  3. Has a gross vehicle weight rating of 54,000+ lbs., and
  4. Is designated as Class A personal property per C.R.S. 42-3-106(2)(a), and
  5. Is licensed and registered in Colorado.

Commercial vehicles and associated parts meeting the requirements above are eligible for a State Income tax credit equal to 1.5% of the qualified investment pending certification by the EDC.

EZ References