Every year, businesses may claim any of the Colorado Enterprise Zone (EZ) income tax credits; however, they must annually pre-certify with their local EZ Administrator in order to be eligible to claim these credits. Any qualifying activity/purchase taking place before pre-certifying will not qualify for the credit.
A business having pre-certified and completed activities that are eligible for Enterprise Zone credits must then complete a certification application and receive approval from the local Enterprise Zone Administrator. Certification documents should be submitted with your Colorado income tax filing.
Pre-certification is approved by the Local Enterprise Zone Administrator; a business with multiple locations in an Enterprise Zone may include all locations within that Enterprise Zone on a single pre-certification application. Businesses with multiple locations in various Enterprise Zones must complete an application for each Enterprise Zone.
Some of the credits that can be earned by businesses located in Enterprise Zones include Investment tax credit, job training credit, new employee credit, employer sponsored health insurance credit, R&D tax credit and vacant commercial building rehabilitation tax credit.
Typically, sales/use tax and property tax benefits for businesses in enterprise zones do not require pre-certification.
To determine whether your business qualifies for the credit please click here to access the map of the Enterprise Zones in Colorado.
RubinBrown can assist in securing pre-certification for your business as well as calculating and certifying the available credits, sales/use tax benefits and property tax benefits. Please contact one of RubinBrown's State and Local Tax professionals for more information.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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