TCI Tax Intelligence: Colorado Enterprise Zone Update
The Colorado Economic Development Commission is currently in the process of a major overhaul of the boundaries for its Enterprise Zone Program for 2016. The most significant changes include additional zones in Larimer, Mesa, and Pueblo Counties, and expansions for Park and Weld Counties. Denver and surrounding cities also saw a lot of movement. These changes will have a large impact on businesses that are currently in a zone or part of a zone that will lose zone status next year, and businesses that will find themselves within new or expanded zones.
Colorado offers a number of incentives through its Enterprise Zone Program, including credits for the hiring, insuring, and training of new employees, research and development, investment, purchases of commercial vehicles, contributions to enterprise zone projects, and rehabilitation of vacant buildings within an enterprise zone. The program also offers sales and use tax exemptions for manufacturing and mining machinery and equipment.
The state previously made a number of changes to the Program in an effort to make it more attractive to businesses. House Bill 13-2165, passed in 2013 and affecting tax years beginning in 2014 and beyond, removed stringent qualification requirements and significantly increased benefits. Most notable among these was increasing the New Employee Credit from $500 to $1,100, increasing the Health Insurance Credit from $200 to $1,000, increasing the Training Credit from 10% to 12% of qualifying expenses, and raising the Investment Tax Credit threshold from $500,000 to $750,000 per year. The state now requires that a business file a pre-certification request before it can be eligible for any hiring, investment, or other enterprise zone incentives. Any activities prior to the state’s acceptance of the pre-certification will not qualify for benefits.
Equifax Workforce Solutions monitors all Colorado Enterprise Zones and can verify your locations, help you file your pre-certification request, and help calculate what these enterprise zone incentives mean to you with little or no burden to your business. If your company is interested in receiving more information on these or any other incentives, please contact your Account Manager (AM) or Pete Krieshok of Equifax Workforce SOlutions at 314-214-7325 or via email at pete.krieshok@Equifax.com.
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