Lafayette Enterprise & Opportunity Zones
What is an Enterprise Zone?
The Enterprise Zone (EZ) is a state funded program that was created 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. Areas of Longmont, Lafayette, and Broomfield recently received the North Metro Enterprise Zone designation.
What does this mean for your business?
EZ incentives and tax credits can have a significant impact, from $1,000 to $500,000.
Business Income Tax Credits
- Investment Tax Credit | 3% of depreciable equipment purchases
- Commercial Vehicle Investment Tax Credit | 1.5% of commercial vehicle purchase
- 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
- R&D Increase Tax Credit | 3% of increased R&D expenditures
- Vacant Building Rehabilitation Tax Credit | 25% of rehab expenditures (hard costs)
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
PRE-CERTIFICATION IS REQUIRED
Each income tax year, a business located in the 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.
What is an Opportunity Zone?
Opportunity Zones encourage economic growth via private capital investment by providing a tax incentive for investors to reinvest in disadvantaged communities. This program will bolster new business starts and business growth and development of real property and infrastructure in locations that are well positioned for investment.
Under the Tax Cuts and Jobs Act of 2017, Colorado was able to designate 25 percent of its eligible, low-income census tracts as Opportunity Zones. The Colorado Office of Economic Development and International Trade (OEDIT) and the Department of Local Affairs (DOLA) collaborated with a broad group of stakeholders, including economic developers, community partners, local governments, state legislators and investors in order to select Colorado's Opportunity Zones.
What functions do Opportunity Zones perform?
- Promote economic vitality in parts of the state that have not shared in the general prosperity over the past few years
- Fund the development of workforce and affordable housing in areas with escalating prices and inventory shortages
- Fund new infrastructure to support population and economic growth
- Invest in startup businesses who have potential for rapid increases in scale and the ability to "export" outside the state of Colorado
- Upgrade the capability of existing underutilized assets through capital improvement investments
Where is the Opportunity Zone located in Lafayette?
View a map on the State website: choosecolorado.com/oz/
Where can I learn more about the Opportunity Zone program?
Questions about the Enterprise or Opportunity Zone?
Economic Development Manager/LURA Executive Director