Colorado offers performance-based incentive programs that focus on entrepreneurs as well as new and expanding businesses. That, coupled with the state’s low cost of doing business, makes Colorado a very desirable location for business leaders.
Colorado encourages manufacturers to locate their manufacturing operations in Colorado recognizing their importance in the state’s economy. Colorado provides an exemption from state sales and use tax on purchases of manufacturing machinery, machine tools and parts.
A business or any portion of a business that is involved in the maintenance and repair, completion or modification of aircraft located within the boundaries of an airport designated as an Aviation Development Zone may qualify for a state income tax credit of $1,200 per new full-time employee.
Local governments may provide property tax credits or incentive payments based on the amount of increased property taxes for qualifying new business activity in their jurisdictions.
The Job Growth Incentive Tax Credit is a performance-based job creation incentive program that provides a state income tax credit equal to 50% of the FICA paid by the business on the net job growth for each calendar year in the credit period.
The Strategic Fund Incentive program supports and encourages new business development, business expansions and relocations that have generated new jobs throughout the state. In some cases, the Strategic Fund may also be able to provide support for initiatives led by nonprofit entities pertaining to key industries or regional development.
Enterprise Zone Tax Credits
Colorado’s Enterprise Zone (EZ) program provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state.
The Colorado First and Existing Industry grants are jointly administered by the Colorado Office of Economic Development and International Trade (OEDIT), and the Colorado Community College System. The state may be able to provide specific support to retain jobs or offers business-friendly tools that assist in retaining jobs (such as the Enterprise Zone Program) for this grant.
The Infrastructure Assistance program is designed to create new permanent jobs and retain existing jobs, primarily for low‐ and moderate‐income persons. The state may be able to provide specific support to retain jobs or offers business-friendly tools that assist in retaining jobs (such as the Enterprise Zone Program) for this grant.
Colorado promotes its biotechnology industries by providing them with a taxpayer-friendly means to recover the sales and use previously-paid tax expenses on equipment and supplies used for research and development.