To qualify for the Rural Jump-Start Program, new businesses must meet the following requirements:

1. Not be operating (selling a product or service) in Colorado at the time the business submits and application
   1. Eligible businesses may be planning, fundraising, recruiting, doing market research, preparing for production (designing/prototyping), filing business formation or registration, or manufacturing and testing a proof of concept, even if some revenue is associated with the activity.
2. Be located in a Rural Jump-Start zone;
3. Cannot directly compete with the core function of another business that is operating in the applicant county or in any adjacent, economically distressed county
   1. For example, a coffee shop would not qualify unless there were no other coffee shops in that county or any adjacent county
4. Export goods and services outside the county (bring in income from outside the county)
5. Form a relationship with a program Sponsoring Entity to align missions and benefit the community
6. Adhere to the business plan submitted during application
7. Not be a sole proprietor
8. Plan to hire at least three to five employees that meet the requirements for program New Hires by the 3rd full year in the program:

The minimum hiring requirements for the Rural Jump-Start program are based on the population of the county where the business is located. The chart below outlines the required hiring timeline for businesses to follow:

Employees must meet the following program requirements to be considered a New Hire:

1. Earn at least the county’s average annual wage or higher;
2. Receive a W-2 from the business;
3. Be legally allowed to work in the United States;
4. Be a resident of Colorado;
5. Be employed for at least six months with the business;
6. Be a full-time employee (work at least 35 hours per week); and
7. Spend at least 80 percent of their non-travel time at a location inside the Rural Jump-Start zone (they do NOT have to live in the zone)

Qualified New Hires receive 100 percent reimbursement of their State Income Tax.

There are three steps that must be taken to become a Rural-Jump Start Business:

1. Contact the sponsoring entity in your Rural Jump-Start zone to determine qualification and create a Memorandum of Understanding, outlining the relationship.
2. Go to the OEDIT Salesforce portal and login to your account or create a new one. To protect your personal information, we manually add new users to the portal, so it may take several days to activate your account.
3. Collaborate with the sponsoring entity to complete and submit the Rural Jump-Start application in Salesforce. Applications require the following documents:
   1. Business Plan, including:
      1. A description of customers and competitors, how your business adds to the economic base, and how the business plans to export goods/services outside the county;
      2. Pro-forma income statement for the next three years;
      3. Income statements and balance sheets for the last three years, if applicable;
      4. Total employee and New Hire forecast for the next five years; and
      5. Percentage of sales in Colorado, outside of Colorado, and outside the U.S.
   2. Articles of incorporation or organization; and
   3. Statement of Good Standing from the Colorado Secretary of State

Upon submission, OEDIT staff complete a rigorous competitive analysis in the applicant’s county and adjacent, economically distressed counties.

During a one-month waiting period, an existing Colorado business in an applicant’s county or an adjacent, economically distressed county may challenge an application if it believes a company would directly compete with the existing company’s core function. If another business challenges an application, OEDIT staff review the challenge and make a decision as to whether or not to move forward with the application.

If there are no challenges to the application and the business passes the competitive analysis, it will be presented to the Economic Development Commission for final approval. The Economic Development Commission meets on the third Thursday of every month.

New Hire Compliance

OEDIT staff will analyze a company’s new hires each year after receiving Annual Reports. If an Annual Report does not meet requirements, OEDIT staff will discuss the report with the business to ensure it is accurate. If a business does not meet the New Hire requirements, OEDIT staff will suspend Rural Jump-Start benefits for that year. The company will submit a plan for how the business will meet the requirements for the next year. If a company is suspended, it can only be reinstated after a subsequent year’s Annual Report.

If a business does not meet the requirements the next year, then it will lose Rural Jump-Start status. If this happens, the business must re-apply to the program with a new application.

Eligibility for Other Tax Credits

Businesses that receive benefits from the Rural Jump-Start program may not claim any other tax incentive for establishing the New Business, including tax incentives for the New Hires hired by the New Business.  Such prohibited incentives include the Job Growth Tax Incentive Credit and the Enterprise Zone New Employee Credits and potential others.

Businesses that receive benefits from the Rural Jump-Start zone program may claim tax credits for programs that do not incentivize establishing New Businesses and hiring new employees.  For instance, a business receiving benefits from the Rural Jump-Start program may also utilize the Enterprise Zone Investment Tax Credit, the Historic Preservation Tax Credit, the Advanced Industry Accelerator Grant, etc.

If you have an existing Colorado business and believe a Rural Jump-Start business applicant would directly compete with your company’s core function, you may challenge the application before the Colorado Economic Development Commission approves it. To challenge a business application, please contact the program manager.

Claiming Tax Benefits

1. Businesses must submit an annual report.
   1. Businesses are required to submit an annual report each year at the end of January, due in the OEDIT Salesforce portal(opens in new window). Typically, annual reports are due by the last day of January, for the previous year. Your annual report will include information on business performance such as:
      1. The number of employees, new hires, and owners;
      2. The number of employees, new hires, and owners;
      3. Geographic areas of sales;
      4. Product updates; and
      5. How you support the sponsoring entity’s mission.
   2. After reviewing a business’s annual report, OEDIT staff present all reports for approval to the Economic Development Commission. Once approved, tax certificates for the business, qualified New Hires, and owners will be sent to the business for distribution.
2. To claim the New Business State Income Tax Refund:
   1. Form DR 0113 - New Businesses must complete the form and file it with the RJS New Business tax credit certificate.
3. To claim the New Business State Sales & Use Refund:
   1. Form DR 0137B - New businesses must complete the form to claim a refund.
4. To claim the New Business County and Municipal Business Personal Property Tax Relief:
   1. Contact your county or municipality for information about tax relief from county and municipal business personal property tax.
5. To claim the New Hire State Income Tax Refund:
   1. Eligible New Hires must submit the following documents with their state taxes:
      1. Rural Jump-Start New Hire tax credit certificate
      2. Form DR 0113 - Employees of a new business only need to complete Section D to claim the new hire income tax credit, and should leave line 11 blank. 

General Operating Matching Grant

The Rural Jump-Start program matches a business’s operating expenses on a 3:1 or 25% basis, with a minimum reimbursement of $5,000. For example, if a business spent $20,000 on business supplies, the program would match $5,000.

The program will only match expenses made on or after the Economic Development Commission EDC’s approval of the business joining Rural Jump-Start. OEDIT cannot reimburse for expenses that occurred before the approval date.

Requests for reimbursement must be for reasonable business expenses such as, rent/mortgage, equipment, salaries, marketing, utility bills, etc. Reimbursements will not be allowed for tax-related expenses, late fees, or purchases that also benefit the owner personally. OEDIT staff reserves the right to deny reimbursements.

Active Rural Jump-Start Businesses, as of February 2025.