Rural Jump-Start Program

Rural Jump-Start Program

The Rural Jump-Start Zone program provides specific tax relief to New Businesses and New Hires of these businesses that are located in certain economically distressed areas of rural Colorado and align with local or regional state higher education institutions in order to promote economic development in these areas. This program is based on Senate Bill 15-282, and codified under Colorado Revised Statutes 39-30.5-101. This program is administered by the Colorado Office of Economic Development and International Trade (OEDIT) and the Colorado Economic Development Commission (EDC), in conjunction with other government entities.

 

Current Applications

The Rural Jump-Start program has received an application from a company that designs and builds a new type of hydraulically actuated remote quick connect system to control pressure for the fracking of oil and gas wells. Per the Rural Jump-Start statute, applicant companies cannot participate in the Rural Jump-Start program if they compete with existing Colorado companies. If you believe that this company competes with an existing Colorado company, please contact:

Ken Jensen
[email protected]
303.892.3743

 

The Application Process

Program Documents

 

Counties that have formed Rural Jump-Start Zones:

Archuleta, Delta, Dolores, Las Animas, Logan, Mesa, Moffat, Montezuma, Montrose, Otero, Prowers, Rio Blanco, Routt, San Juan

 

Counties Eligible to Apply for the Rural Jump-Start Program:

Alamosa, Baca, Bent, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Fremont, Hinsdale, Huerfano, Jackson, Kiowa, Kit Carson, Lake, Lincoln, Mineral, Morgan, Phillips, Pueblo, Rio Grande, Saguache, Sedgwick, Washington, Yuma

 

Rural Jump-Start Program Overview

The Rural Jump-Start Zone program (based on Senate Bill 15-282) is a tax relief program for new businesses and new hires who locate into certain designated areas called Jump-Start zones. The program offers the following benefits:

  • Relief from state income taxes for the new business
  • Relief from the state sales & use tax for the business
  • Relief from county and municipal personal property taxes for the business
  • Relief from state income taxes for the employee

This program is jointly administered by OEDIT, the Colorado Economic Development Commission (EDC) and the Colorado Department of Revenue.

Definition of Rural Jump-Start Zone

A Rural Jump-Start Zone must be located in a county with a population of less than 250,000 people that has been designated as economically distressed by the EDC.

Program Structure

This program is a joint effort between institutes of higher education, counties, municipalities, businesses and employees.

Institutes of Higher Education

The institutes of higher education (IHE’s) are the two and four year public colleges in Colorado, as well as certain specialty schools. The IHE’s play a key role in this program, as every business that applies to the program must apply through an IHE and be endorsed by that IHE. The IHE’s have are associated with specific counties, so not every IHE can work in every zone.

Counties

In order to participate in this program, a county must be designated as economically distressed by the EDC. Having been so designated, the county must pass a resolution to offer tax relief.

Municipalities

In order to participate in this program, a municipality must first be located in a county that has passed a resolution to participate. Furthermore, the municipality must pass a resolution to participate as well. No municipality can be forced to participate in the program, and a municipality is not enrolled in the program simple because its county is.

Businesses

A business that wishes to participate in this program must be a new business that is locating into the Jump-Start zone. Furthermore, the business must apply to the IHE and be endorsed by the IHE.

Employees

Employees who wish to participate in the program must be working for a business that has been approved by the EDC.

Program Communication
In order to ensure that there is no ambiguity concerning the rules of this program, we are asking all our partners and the various agencies they work with to make sure that information released about the program is up-to-date and accurate.  To ensure that this happens, we are asking that any written correspondence (e-mail, website or printed material) about the program to potential beneficiaries include the following text:

All applications for participation in Rural Jump-Start will be submitted via a formal online process, reviewed by the Colorado Office of Economic Development and International Trade (OEDIT), and will require approval by the Colorado Economic Development Commission (EDC).  Final rules for the program and the application processes for businesses, institutes of higher education, municipalities and counties are published in the program manual.  Anyone wishing for information about the Rural Jump-Start program should contact Ken Jensen at OEDIT at 303-892-3743.

Ken Jensen Deputy Director, EDC Operations (303) 892-3743 ken.jensen@state.co.us