Tax Credits

Businesses may claim certain types of credits on their Colorado income taxes for activities that occur within the Enterprise Zone. For details on each type of credit, please go to: EZ Tax Credits.    Below is a summary of these tax credits:

• Three percent investment tax credit: Businesses investing in equipment used exclusively in an enterprise zone may claim a credit of 3% of the amount of the investment.
  Use Form DR0074 (can be completed on your computer)
• $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. 
  Use Form DR0074 (can be completed on your computer)
• $2000 extra job credit: in Enhanced Rural Zones (Delta, HInsdale, Ouray counties)
• Double job tax credit for agricultural processing: An additional credit of $500 per new business facility employee may be claimed by businesses that add value to agricultural commodities through manufacturing or processing.
  Use Form DR0074 (can be completed on your computer)
• $200 job tax credit for employer health insurance. Businesses with a qualifying new business facility are allowed a two-year $200 tax credit for each new business facility employee who is insured under a qualifying employer-sponsored health insurance program.
  Use Form DR0074 (can be completed on your computer)
• 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.
  Use Form DR0076  (can be completed on your computer)