Reports & Data

Reports & Data

Data & Collection

EZ Certification is verification that the address provided by the taxpayer is in the EZ. Data used in OEDIT’s EZ reports comes from certification forms that must get “certified” as being in the EZ before they can be claimed with the Department of Revenue. This data has not been claimed by the taxpayer from Dept. of Revenue yet (and may never be claimed); has not been verified, audited or accepted by Dept. of Revenue yet; and does not represent numbers that have an impact on state income tax revenue. Only tax credits that are claimed impact state tax revenue.

Historically, only about 40-60 percent of what was certified was claimed by taxpayers on their state income taxes. Tax credit data from the Dept. of Revenue’s annual report represents amounts that were actually claimed by taxpayers and reduced the income taxes paid by taxpayers in exchange for locating in an EZ.

Program Intent

The intent of this program is to encourage a business to locate and expand in a distressed geography. Each EZ incentive is tied to a specific activity; the tax credit is earned after the business performs the activity including: specified investments, job training and creating new jobs. These activities benefit the local economy with additional activity and tax revenues.

  • purchase equipment … the tax revenue that is paid on qualifying investments typically far exceeds the amount of credits for the entire program (Investment Tax Credit)
  • provide job training … this develops a skilled workforce in the distressed area and if the business leaves, the skilled workforce typically remains as an asset to the local economy (Job Training Credit)
  • create a job….in addition to an improved employment situation, state and local governments receive tax revenue (New Employee Credit, Agricultural Processor and Enhanced Rural Credits)
  • create a job with healthcare benefits … quality job creation that provides health insurance coverage receives an additional incentive (Employer Sponsored Health Insurance Credit)
  • increase research and development … innovation attracts synergistic businesses while new products and services bring outside dollars into the local economy (R&D Credit)
  • rehabilitate an old, vacant building … this revitalizes blighted areas and houses new businesses and employees (Vacant Commercial Building Rehabilitation Credit)
  • license and register commercial vehicles in state … this brings additional revenue to the state (Commercial Vehicle Investment Tax Credit)

Return on Investment

Each EZ tax credit is tied to a certain desired activity that has to be performed before the tax credit is earned. Each EZ business tax credit has an ROI built into the requirements to earn the tax credit. In addition, activity associated with EZ business tax credits generates tax revenue.

EZ Annual Reports & Resources

Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us