Longmont has tax incentives directed at a variety of activities including manufacturing, R&D, new construction or tenant finish, and personal property investment. We also coordinate incentives that are available from the Colorado Office of Economic Development including employee training and job creation grants.
This program enables new and expanding primary employers to receive a rebate of permit fees and City sales taxes collected in association with the construction of new space or tenant improvements in existing buildings. Fees eligible for rebate include: building permit/plan review and City sales tax (2% which is the unrestricted portion of the total sales tax). The fees/taxes are paid at the time a building permit is issued and are rebated to the employer when a certificate of occupancy is issued.
This program allows a 50% rebate for each of four years, of the City’s portion of personal property taxes for new and expanding primary employers.
Eligible primary employers may choose between the Development Fee Rebate or the Personal Property Tax Rebate programs. Incentives may not be granted from both programs.
New businesses are exempt from paying the City 2.0% unrestricted sales and use tax on the purchase and use of measurement and inspection equipment or research and development equipment for the first two years. Employers can apply for an additional three years of sales and use tax rebates at any time during the life of the employer in Longmont, as long as it meets the FTE job creation and salary requirements of the program.
Exempts the employer from paying the City 3.53% sales and use tax on the purchase and use of machinery and machine tools to be used in Longmont directly and exclusively in manufacturing tangible personal property for sale or profit with a cost in excess of $1,000 to be directly used in Longmont.
The City of Longmont and Longmont Economic Development Partnership provide a variety of economic incentives for primary employers. One of those incentives includes the moniker of “Priority Project”. A project deemed a priority will be regarded in the development system as a prime concern for both staffing assignments and process time in which a priority project may take precedence over other projects in the system upon evaluation of the current project load and schedule.
The performance-based Job Growth Incentive Tax Credit provides a state income tax credit to businesses undertaking job creation projects that would not occur in Colorado without this program. Businesses need to create at least 20 new jobs in Colorado, with an average yearly wage of at least 100% of the county average wage rate based on where the business is located. All new jobs must be maintained for at least one year after the positions are hired to qualify.
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 non-profit entities pertaining to key industries or regional development. A business may receive funding if it proposes to create new jobs in Colorado that are maintained for at least one year. A business must also meet the requirements below:
Additional consideration may be given to businesses that do not meet the EDC’s minimum 100% annual average wage rate requirement if additional criteria is met.
The Colorado Enterprise Zone (EZ) Program is designed to promote a business-friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop in, and non-profit organizations to assist with the needs of these communities.
Private-sector business activity encouraged by these income tax incentives brings job opportunities and capital investment to economically distressed areas. The private investment results in tax revenue for school districts, cities, counties and the state, outweighing the costs of the tax credits granted.
These programs increase transferable job skills that support both the company’s economic competitiveness and enhance worker’s resumes and long-term employment opportunities.
Opportunity Zones were enacted as part of the 2017 tax reform package (Tax Cuts and Jobs Act) to address uneven economic recovery and persistent lack of growth that have left many communities across the country behind. In the broadest sense, the newly enacted federal Opportunity Zone (OZ) program provides a federal tax incentive for investors to invest in low-income urban and rural communities through favorable treatment of reinvested capital gains and forgiveness of tax on new capital gains.