Business Tax Credits

Businesses may claim certain types of credits on their Colorado income taxes for activities that occur within an Enterprise Zone. 

If you think you might apply for any of the following EZ tax credits in tax year 2012, you must first pre-certify through the Online Pre-certification and certification system  

If you wish to apply for certification for any of the following EZ tax credits for 2011 or a prior tax year, or if you've already pre-certified for tax year 2012 and wish to certify, apply for certification through the Online Pre-certification and certification system  . 

Below is a summary of available tax credits:

• 3% Investment Tax Credit: Businesses investing in equipment or improvements used exclusively in an enterprise zone may claim a credit of 3% of the amount of the investment.
  
• $500 New job tax Credit: Businesses adding to their number of full time equivalent jobs may claim a tax credit against state income taxes of $500 for each such employee. 
  
• $2000 additional New Job Tax Credit: in Enhanced Rural Zones (Delta, HInsdale, Ouray counties)
• $500 additional New 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.
  
• $200 Employer Health Insurance Tax Credit. Businesses qualifying as a "new business facility" or as an "Expansion Facility" are allowed a $200 tax credit for two years for each employee who becomes insured under a qualifying employer-sponsored health insurance program.
  
• Credit to rehabilitate vacant buildings. Owners or tenants of commercial buildings which are at least 20 years old and have been vacant for at least 2 years may claim a credit of 25 percent of the cost of rehabilitating each building up to a maximum credit of $50,000..