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Incentives

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.

City of Longmont Incentives

Development Fee Rebates

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.

Personal Property Tax Rebates

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.

R&D Sales and Use Taxes

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.

Manufacturing Equipment

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.    

Priority Review for Economic Development Projects

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.    

State of Colorado Incentives

Job Growth Tax Incentive

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.

Strategic Fund Incentive

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:

  • Strong level of local matching commitments ($1:$1 requested)
  • Potential for economic “spinoff” benefits, such as attracting suppliers, generating tourism/travel activity, high prestige, or a large expansion initiative
  • Capital investment, relative to the number of jobs
  • Responds to a special local economic event, such as replacing recent lay-offs
  • Inter‐state competitive factors
  • Headquarters in Colorado
  • Other unique conditions

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.

Enterprise Zone Tax Credits

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.

Colorado FIRST / Existing Industry Customized Training Programs

These programs increase transferable job skills that support both the company’s economic competitiveness and enhance worker’s resumes and long-term employment opportunities.

  • Colorado FIRST grants are for companies that are relocating to or expanding in Colorado and provide funds only to net new hires.
  • Existing Industry grants focus on providing assistance to established Colorado companies in order to remain competitive within their industry, adapt to new technology and prevent layoffs.

Federal Incentives

Opportunity Zone

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.

Rigid Bits

“Longmont has been my home off and on since I moved to Colorado more than 12 years ago. I fell in love with the community and in 2015 decided to make it my permanent home. Because of the strong ties with the community, there was no question when I founded Rigid Bits in 2017 that it is where we would set our roots down. As an added bonus, NextLight is the fastest internet service provider in the country, which is a great fit for us.

Rigid Bits provides cybersecurity services to businesses nationwide, providing valuable insight to prevent attacks and respond immediately to cybersecurity events. Since 2017, we have supported 70 businesses across 17 states and a variety of industries. We have experienced 300% year-over-year growth with no signs of slowing down. Our plans are to continue to expand Rigid Bits’ services to support businesses in all industries with their cybersecurity needs, changing the way we work as the industry and threats change. As our growth continues, we will bring on new employees and just last month moved into larger office space in Longmont in preparation for our future”.

– Jeff Oden, Founder