The Enterprise Zone Commercial Vehicle Investment Tax Credit (CVITC) helps businesses invest in commercial vehicles and parts for vehicles. Your business can earn a state income tax credit for 1.5% of the costs for new commercial trucks, truck tractors, tractors, semi trailers, and associated parts when you register the vehicle in Colorado and use it in an enterprise zone for one year.
The Colorado legislature created the Enterprise Zone (EZ) Program to encourage development in economically distressed areas of the state. The 16 designated enterprise zones have high unemployment rates, low per capita income, or slow population growth.
Local enterprise zone administrators manage their respective enterprise zones.
We recommend reviewing the Enterprise Zone Income Tax Credit Guide for the complete eligibility requirements.
Type: Tax credit
For: Businesses located in enterprise zones
Amount: 1.5% of the costs for new commercial vehicles
Application deadline: Rolling
OEDIT division: Business Funding and Incentives
To use this map, type in your address in the top left-hand corner. You may need to scroll out to identify whether or not you are located within an enterprise zone. If your location is highlighted in a color, you are located in an enterprise zone. If your location is in a checkered colored area, it is located in an enhanced rural enterprise zone.
Both new and existing businesses located in enterprise zones may qualify for the credit. For businesses that open in the middle of a tax year, you will need to prorate the credit based on the number of full calendar months during the year that the business operated in the zone.
Businesses need to be legal under both state and federal law. For example, businesses in the marijuana industry do not qualify for this tax credit.
To be eligible for this tax credit, the purchase needs to be:
- a commercial truck, truck tractor, tractor, semi trailer, or associated parts
- purchased as new on or after July 1, 2011
- model year 2010 or later
- gross vehicle weight rating of 54,000+ lbs
- designated as Class A personal property per C.R.S. 42-3-106(2)(a)
- licensed and registered in Colorado
- predominantly housed and based in the enterprise zone for 12 months after purchase
There are three steps to claim this tax credit. Before you make any investments towards this tax credit, you need to pre-certify through the online application portal.
1. Complete pre-certification on the OEDIT application portal. Log in to your account or create a new account. To protect your personal information, we manually add new users to the portal, so it may take several days to activate your account.
- Pre-certification sets eligibility to earn enterprise zone tax credits. You can pre-certify at any time up to three months before the start of the tax year.
- Pre-certify each business location. Credits are only available for business activity at a pre-certified business location within an enterprise zone.
- The local enterprise zone administrator will review and approve your pre-certification application.
- We recommend reviewing the EZ Pre-Certification How-To Guide (PDF).
2. Complete application part A (recognition)
- Complete Application Part A (PDF). Email or mail it to the program manager. We will confirm that we received your application.
- Submit application Part A as soon as possible after you make a qualified investment, or within 14 months at the latest. If the qualified investment was housed and based in the enterprise zone for 12 months, submit application part one with application Part B.
3. Complete application part B (certification)
- Submit Application Part B (PDF) within two months after the qualified investment has been predominantly housed and based in the enterprise zone for 12 months; that is, within 14 months of when you made the investment.
- Email or mail it to the program manager. We will confirm that we received your application.
- If the EDC approves the second part of your application, your application will be certified. We will email you a PDF of the tax credit certificate.
By statute, each year the amount of tax credits that the Colorado Economic Development Commission (EDC) can approve is based on a calculation from the Colorado Department of Treasury. The EDC approves these tax credits on a first-come-first-served basis, so submit application part one as soon as possible after your business makes the qualified investments.
You need to amend your tax filing(s) to return any tax credit amount you claimed if you do not:
- submit part B within 14 months of the purchase date of the qualified vehicle
- maintain the qualified investment in the enterprise zone for 12 months
Amend your enterprise zone record
If you misreported or need to modify your enterprise zone certification application, you can amend or reset your certification by submiting the amendment form. To amend or submit certification applications for years 2014 or earlier (formatted YY-XXXXXX) you need to use the Enterprise Zone Legacy Application System.
Transfer ownership of your enterprise zone record
If your business changed accounting firms, you will need to transfer your pre-certification and certification records. A business owner or authorized company official will need to submit the transfer form.