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Gold Sponsors
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Economic Development Newsletter Signup
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Overview
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Overview
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Eligibility
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How to apply
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Selection process
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Award distribution
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Conditions of funding
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Success Stories
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Program Summary
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.
In designated enterprise zones:
- businesses are eligible for state income tax credits and sales and use tax exemptions for specific business investments
- economic development projects form by incentivizing taxpayers to contribute through state income tax credits
- taxpayers who contribute to enterprise zone projects may earn income tax credits
Enterprise zone areas within rural counties that meet additional economic distress criteria receive enhanced rural enterprise zone status. Businesses within enhanced rural enterprise zones earn additional tax credits when adding net new employees.
Apply for a tax credit Amend your EZ record Transfer your EZ record
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Overview
Type: Program
For: Municipalities, counties, and economic development offices
Zone designation renewal: Every 10 years
OEDIT division: Business Funding and Incentives
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Program Summary
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.
In designated enterprise zones:
- businesses are eligible for state income tax credits and sales and use tax exemptions for specific business investments
- economic development projects form by incentivizing taxpayers to contribute through state income tax credits
- taxpayers who contribute to enterprise zone projects may earn income tax credits
Enterprise zone areas within rural counties that meet additional economic distress criteria receive enhanced rural enterprise zone status. Businesses within enhanced rural enterprise zones earn additional tax credits when adding net new employees.
Apply for a tax credit Amend your EZ record Transfer your EZ record
OverviewType: Program
For: Municipalities, counties, and economic development offices
Zone designation renewal: Every 10 years
OEDIT division: Business Funding and Incentives
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Colorado allows for 16 enterprise zones. All 16 zones are established, meaning no new enterprise zones can be created. Local governments can connect with the program manager or the zone administrator of the encompassing or contiguous area to discuss being included in an already established enterprise zone.
Community measures
Colorado law defines population and economic distress measures for enterprise zones.
Population measures
The population of a rural enterprise zone needs to be 150,000 or less. The population of an urban enterprise zone needs to be 115,000 or less.
Economic distress measures
All enterprise zones need to meet at least one of these economic distress criteria defined by U.S. Census Bureau’s American Community Survey (ACS) data and/or Colorado Department of Local Affairs (DOLA) data. We post eligibility data from the ACS 5-year survey data that is released each December covering the period ending the prior calendar year.
To qualify, areas need to meet these criteria:
- 5-year population growth rate below 25% of the state average
- unemployment rate that is 125% or greater than the state average
- per capita income below 75% of the state average
Metric
Current Benchmark
5-year Population growth rate Below 1.60% Unemployment rate Greater than or equal to 5.88% Per capita income Less than $27,311.25
The Current Enterprise Zone Eligibility Data (XLS) spreadsheet identifies the eligibility of areas including counties, places, census tracts, and block groups. You will need to know the GeoID for the area of interest to use this resource. This resource is intended for enterprise zone administrators and people looking for changes to a boundary.