List of Enterprise Zone Tax Credits
- EZ – Investment Tax Credit: Businesses investing in Enterprise Zones through business personal property can earn a 3% tax credit. Special rules for renewable energy equipment apply.
- EZ – Job Training: Companies that implement a qualified job-training program for their enterprise zone employees may earn an income tax credit of 12% of their eligible training costs.
- EZ – New Employee Credit: Businesses increasing their workforce may earn a state income tax credit $1,100 per net new employee.
- EZ – Agricultural Processor: An additional tax credit of $500 per net new employee may be claimed by businesses adding value to agricultural commodities through manufacturing or processing.
- EZ- Enhanced Rural EZ: An additional tax credit of $2,000 per net new employee may be claimed for businesses in Enhanced Rural EZs – these are re-established every 2 years. EREZ designated counties are highlighted on the map below.
- EZ – Enhanced Rural Agricultural Processor: An additional tax credit of $500 per net new employee may be claimed if the business is an agricultural manufacturing or processing business in an Enhanced Rural EZ.
- EZ – Employer Sponsored Health Insurance: Offers businesses $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost. This credit is available for the first two years the business is located in an enterprise zone.
- EZ – Research and Development Tax Credit: Businesses conducting research and development may earn a 3% tax credit on the increase in such expenditures as compared to that of the prior 2 years.
- EZ – Vacant Commercial Building Rehabilitation: Encourages redevelopment of vacant commercial property with a 25% credit for the cost of rehabilitation of a building that is at least 20 years old and has been completely vacant for at least 2 years. The credit is limited to $50,000 per building. *When certifying for the EZ Vacant Commercial Building Rehabilitation tax credit, the applicant is required to provide evidence of the building’s age and vacancy condition prior the start of the remodel.
- EZ – Commercial Vehicle Investment Tax Credit: Investment in commercial trucks, truck tractors, tractors, or semitrailers, and associated parts registered in CO and based and used in an EZ may earn the taxpayer a 1.5% credit. Application Form and Instructions.
- EZ – Contribution Projects: Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Project status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that support local economic improvements, result in job creation/retention and business expansion, and have the support of the community. Colorado taxpayers may earn a 25% state income tax credit by contributing to targeted efforts. Learn more.
Enterprise Zone Map
The areas in color on the map below represent EZ territory.
The cross-hatch pattern highlights Enhanced Rural EZ status (valid for calendar years 2019 and 2020) for the portions of the county designated enterprise zone.
- Enter an address in the search field to learn if your business is in an enterprise zone.
- Click on a selected area in color for the name of the Administrative Zone and a link to contact information.
Go to Colorado Information Marketplace for Enterprise Zone map resources.
Enterprise Zone Administrators
Speak with your local Enterprise Zone Administrator to learn more about the EZ Program, local conditions, and other local incentives. Contacts can be found here.
Apply for Enterprise Zone Business Tax Credits
Pre-Certification: Businesses wanting to claim any of the Colorado Enterprise Zone (EZ) income tax credits (excluding the Contribution Project credit for which pre-certification is not required), must annually pre-certify with their local EZ Administrator to be eligible to claim EZ tax credits. Pre-certification can be completed up to three months in advance of the business’ tax year start date. Pre-certification is approved by the Local EZ Administrator. Pre-certify each business location as credits are only available for business activity in an Enterprise Zone.
Certification: A business having pre-certified, and then conducted activities that are eligible for EZ credits, must then complete a certification application and receive approval from the local EZ Administrator. Certification documents must be submitted with your Colorado income tax filing. The Certification document from our on-line application system takes the place of DOR forms DR0074, DR0076 and DR0077.
|Apply||Start and continue applications for Pre-Certifications and Certification of EZ tax credits.
User Guide – Pre-certification and User Guide – Certification.
The EZ Legacy Application System must be used for Pre-Certification and Certification applications formatted YY-XXXXXX
|Amend||Request that a submitted Pre-Certification or Certification application be re-opened so that you can make changes.|
|Transfer||Request a change in ownership of a Pre-Certification or Certification record.|
Special Notes about Applying:
- Investment Tax Credits, Job Training, New Jobs, Health Insurance, Research and Development and Vacant Building Rehabilitation require pre-certification and certification to claim income tax credits.
- Taxpayers whose business involves marijuana, be advised that C.R.S. 39-30-103 (8) states that … only a taxpayer that is engaged in a business that is legal under both state and federal law is eligible to claim a credit…. Though an EZ Administrator may approve a pre-certification and/or certification for EZ tax credits, the onus is on the taxpayer to comply with the statutes.
- There is no ability to pre-date a Pre-certification Application. For each business income tax year, the business’s eligibility to claim EZ credits is from the point of approved pre-certification or the start of the income tax year, whichever is later, through the end of the income tax year entered by the user.
- Electronic filing of State Income Tax is generally required. The Certification form(s) and DR 1366 for EZ tax credits must be attached to the electronic filing. If one’s e-file software does not support these attachments, they may be submitted through Revenue Online using the E-Filer Attachment option. Failure to include form DR 1366 may result in the enterprise zone credits being denied. [39-30-111, C.R.S.] For an electronic filing hardship exception, call 303-238-7378.
- Businesses that completed activities normally eligible for EZ credits prior to 1/1/2012 may not file amended income tax returns to claim credits. Businesses with an approved Certification Form for EZ Credits earned prior to 1/1/2012 may request amendments to the form if amending their CO income tax filing.
Contribute to an Enterprise Zone Economic Development Project
Enterprise Zone Contribution Projects are managed by local Zone Administrators to encourage public private partnerships to improve the economy for the benefit of the broader Enterprise Zone. Contribution Projects aim to focus community engagement on an economic issue or opportunity to elicit a shift and accomplish a targeted economic development goal within a defined time period.
Enterprise Zone Administrators are focused on managing this program with a strong ethic and focus on job creation/retention and business expansion in the Enterprise Zone.
Please contact a local Enterprise Zone Administrator to learn more about their objectives and to discuss Project opportunities.
The Colorado Economic Development Commission sets policies and review/approves all Contribution Projects within their authority under Colorado statutes. View program policies here.
Colorado taxpayers may earn Colorado income tax credits by contributing to targeted efforts – certification of the contribution is required.
Find a list of active Projects here.
EZ Contributions follow Federal Charitable Contribution rules, to learn more see IRS Publication 526. See the “Recent Developments” section for information on the treatment of state tax credits for charitable contributions. IRS Publication 561 provides guidance on valuing in-kind donations.
A taxpayer (individual or business) must make a donation to an approved Enterprise Zone Contribution Project. Provide the charitable organization with your Colorado Account Number (learn how) or the last 4 digits of your Social Security Number.
The project will provide the taxpayer with a Certificate documenting their contribution. Contact the Project Organization or the Local Zone Administrator with questions.
The taxpayer may claim the tax credit when filing state income taxes for the year in which the donation was made – review the Colorado Department of Revenue Form DR1366.
Other State Incentives for Charitable Contributions