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.
Enterprise Zone Philanthropy
The Enterprise Zone also has philanthropic program that encourages contributions to local projects that enhance business and /or create employment. Taxpayers investing in Enterprise Zones can earn a credit on their Colorado income tax by planning and executing specific economic development activities.
Cash contributions totaled $ 340,870.66; in-kind contributions totaled $69,591.23, resulting in $93,916.57 in tax credits. Individual top contributors were: Qualified Renewable Energy , Morgan County Economic Development, Irrigation Research Foundation, Morgan County and Eben Ezer.
Contribution Tax Credits earned by taxpayers making donations to eligible EZ Contribution Projects need to certify those donations with the project organization or Local Enterprise Zone Administrator. A list of qualified projects is available online at colorado.gov/enterprise-zone-program