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
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. Pre-Certify Here.
Questions about Lafayette’s Enterprise Zone? Contact Brigid Keating, Economic Development Director, 303-661-1224.