Business Taxes, Credits and Incentives
Enterprise Zone Tax Credit Incentives
Fremont County is included in the San Luis/Upper Arkansas Valley (UA) Enterprise Zone. Being qualified in an Enterprise Zone can mean tax credits for businesses. Download the Enterprise Zone Fact sheet.
What is a state Enterprise Zone?
An enterprise zone is defined as an area of Colorado in which special tax incentives are offered to businesses that expand or locate in the zone. The purpose of the tax incentives is to create new jobs and investments in the zone.
What are the tax incentives/credits available in the Enterprise Zones?
Colorado enterprise zones provide state tax incentives to businesses located in the zone, particularly for new or expanding businesses.
The Enterprise Zone program provides tax incentives to encourage businesses to locate and expand in designated areas of the state.
Here are some of the highlights of the Enterprise Zone credits and incentives:
- Three percent investment tax credit. Businesses making investments in equipment used exclusively in an enterprise zone may claim a credit against their Colorado income taxes equal to 3 percent of the amount of the investment, subject to limitations.
- $500 job tax credit. Businesses hiring new employees in connection with a "new business facility" located in an enterprise zone may claim a tax credit against state income taxes of $500 for each such employee.
- Double job tax credit for agricultural processing. An additional credit of $500 per new business facility employee may be claimed by businesses which add value to agricultural commodities through manufacturing or processing.
- $200 job tax credit for employer health insurance. In order to encourage employer-sponsored health insurance plans, a taxpayer with a qualifying new business facility is allowed a two-year $200 tax credit for each new business facility employee who is insured under a qualifying employer-sponsored health insurance program.
- R&D tax credit. Taxpayers who make private expenditures on research and experimental activities conducted in an enterprise zone qualify for an income tax credit.
- Credit to rehabilitate vacant buildings. Owners or tenants of commercial buildings in an enterprise zone which are at least 20 years old and which have been vacant for at least 2 years may claim a credit of 25 percent of the cost of rehabilitating each building. The credit is limited to $50,000.
- Credit for contributions to zones. A taxpayer who makes a contribution to certain eligible enterprise zone development projects including business assistance, job training, economic development marketing, community development and homeless organizations in zones may claim a tax credit.
- Ten Percent Job Training Credit. Employers who carry out a qualified job training program for their enterprise zone employees may claim an income tax credit of 10 percent of their eligible training costs.
- Exemption from state sales and use tax for manufacturing and mining equipment. Eligible purchases used in an enterprise zone are exempt whether the purchases are capitalized or expensed for accounting purposes.
The zone administrator will issue certification to each business located within the zone that such business is in the zone. The business must attach a copy of the "Enterprise Zone Certification of Qualified Business" to its Colorado income tax return if the business is claiming an enterprise zone credit.
Businesses should also contact FEDC to determine if city or county tax credits are available to businesses in Colorado enterprise zones.
For more information, visit the Colorado Office of Economic Development Enterprise Zones web page.
Other Business Taxes
Sales and Use Tax:
The state imposes a sales and use tax of 2.9 percent.
The Fremont County sales tax rate is 1.5%. There is also a county lodging tax of 2.0%
The Canon City sales tax rate is 2.0%.
The Florence city sales tax rate is 2.5%.
Personal Property Tax:
Machinery and equipment used in your business is subject to a Personal Property Tax assessment by Fremont County
More Business Tax Information
Colorado Department of Revenue’s Tax Information for Businesses Web page