COLORADO ENTERPRISE ZONE

WHAT IS THE COLORADO ENTERPRISE ZONE?

The Colorado legislature created the Enterprise Zone (EZ) Program to encourage development in economically distressed areas of the state. The 16 designated enterprise zones have high unemployment rates, low per capita income, or slow population growth.

In designated enterprise zones:

  • Businesses are eligible for state income tax credits and sales and use tax exemptions for specific business investments.
  • Local governments and nonprofits can set up contribution projects to achieve economic development goals.
  • Taxpayers who contribute to enterprise zone projects may earn income tax credits.
 
We recommend reviewing the Enterprise Zone Income Tax Credit Guide on the Colorado Department of Revenue’s website for the complete eligibility requirements.
PRE-CERTIFICATION IS REQUIRED

Each income tax year, a business located in the Colorado Enterprise Zone must apply and must be pre-certified prior to beginning an activity to earn any of the business tax credits listed. At the end of the income tax year, a business must certify that the activities were performed. Pre-certification and certification are easily applied for online and are required annually.

PRE-CERTIFY HERE
MAJOR BENEFITS

Enterprise Zone tax credits can have a significant impact, from $1,000 to $750,000. The following incentives can be earned by business located in the Enterprise Zone.

Business Income Tax Credits
  •  Investment Tax Credit | 3% of depreciable equipment purchases
  • Job Training Tax Credit | 12% of qualified training expenses
  • New Employee Tax Credit | $1,100 per new job 
  • Agriculture Processor New Employee Tax Credit | $2,000 per new job
  • Employer Sponsored Health Insurance Credit | $1,000 per covered employee
  • Research & Experimental Activities Tax Credit | 3% of increased R&D expenditures
  • Vacant Building Rehabilitation Tax Credit | 25% of rehab expenditures (hard costs).
  • Commercial Vehicle Investment Tax Credit | 1.5% of commercial vehicle purchase
Additional EZ Incentives
  • Manufacturing/Mining Sales and Use Tax Exemptions | Expanded S&U tax exemption in EZ
  • Contribution Tax Credit | 25% cash / 12.5% in-kind on contributions to EZ projects
Click here for additional information
Changes coming January 1, 2027
  • Employer Sponsored Health Insurance Credit: This credit will be restricted to taxpayers with fewer than 50 employees. Taxpayers with 50 or more employees will be ineligible.
  • Research & Experimental Activities Tax Credit: The taxpayer must make at least $150,000 in expenditures in research and experimental activities within the tax year to remain eligible.
  • Vacant Building Rehabilitation Tax Credit: The credit now only applies to buildings that have been completely unoccupied for at least 135 days preceding the date the rehabilitation is officially placed in service. The credit is now capped at an amount equal to 25% of the aggregate qualified expenditures per building, or $200,000 per building, whichever limit is less.
  • Renewable Energy Investments: Both the Credit and Refund options will be reinstated. This establishes an income tax credit featuring a strict 14-year carryover period for any excess, unused credit amounts.
  • Commercial Vehicle Investment Tax Credit: This tax credit will be eliminated completely as of January 1, 2027
ARE YOU IN THE NORTH METRO ENTERPRISE ZONE?

Enter your address to find out if your business is located in the Enterprise Zone and qualifies for these tax credits.

***Due to boundary amendments approved in July 2026, this map may be out of date. Reach out to your local EZ administrator to verify eligibility. ***

Contribution Projects

The Enterprise Zone Contribution Tax Credit provides a tax credit to Colorado taxpayers who contribute to targeted enterprise zone (EZ) projects. When taxpayers make a certified contribution, they can claim:

  • 25% of a cash donation as a state income tax credit
  • 12.5% of an in-kind donation as a state income tax credit
Current Contribution Projects within North Metro Enterprise Zone
  • Longmont Economic Development Partnership
  • Longmont Downtown Development Authority
  • St. Vrain Valley School District
  • Pearl Promise
  • Tinkermill
  • We’ve compiled a list of Active Contribution Projects to consider investing in
Ready to Become a Contribution Project?

An enterprise zone contribution project needs to:

  • support the documented economic development goals for the enterprise zone 
  • link to job creation and retention and/or business expansion in the broader enterprise zone (not only at the project organization)
  • have support from the enterprise zone administrator and the community
 
Please fill out the form below. I’ve included the information you will need below. 
Apply to become a contribution project here

In order to complete the application, you will need the information listed below:

  1. Organization Information
    •  Organization Name
    • EIN
    • Address
    • Contact name, email, and phone
  2. Enterprise Zone Economic Development Role. Please choose one that applies:
    •  Stimulate capital investment
    • Increase employment opportunities
    • Promote workforce development
    • Revitalize central business districts and commercial corridors
  3. Project Type
    •  Capital Campaign Project:
      • Community facility
      • Workforce housing
      • Tourist attraction
      • Infrastructure 
    • Operations Project:
      • Business assistance
      • Economic development organization
      • Job training program
      • Visitor event/attraction
      • Healthcare
    • What activites will EZ contributions support?
    • Explain how the proposed EZ Contribution Project activities will help your organization reach the selected Economic Development Goal
    • Describe how the proposed activities directly and indirectly supports job creation and retention and/or business expansion in the EZ.
    • What additional federal, state, and/or community resources are supporting this effort?
    • Date of EZ CP Completion
    • Budget Estimate
  4. Expected Contributions
    • Monetary & In-kind
    • What is the minimum contribution amount you plan to accept? (North Metro’s is $100, and the cap is $250)
    • What types of in-kind contributions do you plan to accept?
  5. Required Attachments
    • Certificate of Good Standing
    • Community Letters of Support (3)
    • Signed W-9
    • EZ Admin map denoting the activity locations and area of economic impact?

Learn More

The State of Colorado offers additional information about the Enterprise Zone program and its associated incentives.

Click Here

Read More

Longmont Economic Development Partnership has put together a one-page fact sheet to read and reference as you explore the Enterprise Zone program.

Click Here

VIEW GUIDE

For help with Enterprise Zone Tax Credits, check out this helpful guide

Click Here

For more information about the North Metro Enterprise Zone, contact the North Metro EZ Administrator, Krista Colehower with Longmont Economic Development Partnership, by email at [email protected].

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