Colorado offers a host of incentives for entrepreneurs and businesses of all sizes.
Please visit the Colorado Office of Economic Development and International Trade's (OEDIT) webpage OEDIT.colorado.gov for additional programs and detailed information. If you feel your business might qualify for any of these incentives, please contact Region 9.
The Job Growth Incentive Tax Credit is an eight-year job creation incentive to support competitive, multi-state, or country relocation and expansion projects. The tax credit gives businesses a Colorado state income tax credit equal to 50% of the FICA (Federal Insurance Contributions Act) tax paid by the business per net new job for each calendar year in the credit period.
The tax credit is performance-based. If a company under performs in job creation or wages, the company will not receive the total credit amount.
If the issued tax credits exceed the business’s income tax liability for the tax year in which the credit is being claimed, the unused tax credit does not become a tax refund. A business may carry forward the unused tax credit and apply it in each of the 10 succeeding income tax years. The tax credit needs to be applied to the earliest tax return possible. New jobs created in each year of the program earn credits for the company, but those new jobs must be maintained for one year before credits are vested.
Your business may not start or announce the proposed project in Colorado until your business submits a final application to Global Business Development and the Colorado Economic Development Commission approves the application. You must wait to complete any of these activities including but not limited to:
The Skill Advance Colorado Job Training Grant (formerly the Colorado First and Existing Industry Grant) helps businesses and nonprofits create customized job training for employees.
This training:
The funds are broken down into Colorado First funds and Existing Industry funds. Colorado First grant funds customized training only for net new hires at companies relocating to or expanding in Colorado. Existing Industry grant funds customized training to help established Colorado companies and nonprofits remain competitive in their industry, adapt to new technology, and prevent layoffs.
The Skill Advance Colorado Job Training Grant (formerly the Colorado First and Existing Industry Grant) helps businesses and nonprofits create customized job training for employees.
This training:
The funds are broken down into Colorado First funds and Existing Industry funds. Colorado First grant funds customized training only for net new hires at companies relocating to or expanding in Colorado. Existing Industry grant funds customized training to help established Colorado companies and nonprofits remain competitive in their industry, adapt to new technology, and prevent layoffs.
Local government and community organizations can offer incentives such as fee waivers, expedited land use review and approval, actual cash payments, grant administrator sponsorship, etc. Region 9 can connect your business to available resources.
Local Government Incentives in an Enterprise Zone
Any city, county or special district within an enterprise zone is authorized to negotiate with individual taxpayers who have qualifying new business facilities:
a) an incentive payment or property tax credit equal to not more than the amount of the increase in property tax liability over pre-enterprise zone levels; and
b) a refund of local sales taxes on purchases of equipment, machinery, machine tools, or supplies used in the taxpayer's business in the enterprise zone.
For example, if the Town's mill levy of a vacant lot is a $100, and a business improves that property with/and/or equipment installed, the Town's mill levy might increase to a thousand dollars. The increase of $900 could be waived by the town. Usually, this is phased over time, for example, the first year, 100% of the tax increase is abated, the second year it is 80%, the third year it is 60%, etc.
The Rural Jump-Start Zone program is a tax relief program for new businesses and new hires who locate or start up in certain designated areas called Jump-Start zones. Designated counties in Region 9's service area include: Archuleta, Dolores, La Plata, Montezuma, and San Juan as well as several municipalities. This program is jointly administered by the Colorado Office of Economic Development and International Trade (OEDIT), the Colorado Economic Development Commission (EDC), and the Colorado Department of Revenue. Region 9 EDD is an approved sponsoring organization.
The program offers the following benefits:
• Relief from state income taxes for the new business
• Grants benefits
• Relief from the state sales & use tax for the new business
• Relief from county and municipal business personal property tax for the new business
• Relief from state income taxes for the employee
Proof of Concept Grant: This grant uses funding to identify and pull technologies from research institutions where they were discovered and connect them to the private sector where they can be developed into products for commercialization.
Early-Stage Capital and Retention Grant: This grant uses funding to support companies using technologies developed in proof of concept grants and other early stage start-ups that have created viable products that meet a market need and that can be created or manufactured in Colorado and exported globally.
Infrastructure Funding: This grant uses funding to accelerate commercialization and innovation of advanced industry products and services by building capacity and workforce for the advanced industries ecosystem. The application for this grant is open twice a year in the spring and fall.
Export Accelerator Program: This is a financial assistance program for aspiring and current Colorado exporters. The grant program supports eligible small and medium-sized business through funds to offset international business development and marketing costs.
The state of Colorado offers Historic Preservation Grants for properties listed on a local, State, or National historic register. Acquisition and Development grants involve physical work (preservation, restoration, or rehabilitation) and usually require that the applicant provide a 25% match. Grant funds are available to publicly owned properties, or to privately owned properties in partnership with a non-profit or public entity. More information is available at their website or the History Colorado Preservation Planning Unit at 303- 866-3392.
Federal and state tax laws provide tax incentives for certain projects in historic buildings. These credits allow taxpayers to reduce, on a dollar-for-dollar basis, the amount of income tax they owe to the government. The amount of credit that can be obtained is calculated as a percentage of the overall rehabilitation costs associated with the project-
Applicants are urged to contact History Colorado’s Office of Archaeology and Historic Preservation (OAHP) as early as possible to ensure that all requirements are met when applying for these programs.
