enterprise zone

Local Businesses Should Pre-Certify for their 2018 Enterprise Zone Tax Credits

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For 2018, nearly all businesses in southwest Larimer County, including the Estes Valley are eligible for Colorado state income tax credits when they create new jobs, invest in certain business property and job training, and other developmental activities that are encouraged under the state's Enterprise Zone program.  Below is a map that shows the extent of the Estes Park Enterprise Zone.

Local businesses could benefit from thousands of dollars of state income tax credits when they invest in expanding their business.  Potential tax credits include investment tax credits for equipment (3%) or vehicle (1.5%) purchases, a job training tax credit (12.5% for qualified expenses), a new employee tax credit of $1,100 per job, and the employer sponsored health insurance credit ($1,000 per employee)

There is a catch, though.  In order to qualify for these credits, eligible businesses must pre-certify on or before December 31, 2017—or risk losing some or all of these potential tax credits for 2018. For each tax year, the business’s eligibility to claim EZ credits is from the point of approved pre-certification or the start of the income tax year, whichever is later, through the end of the income tax year entered by the user. 

You should check with your tax adviser to ensure they are filing a pre-certification on your behalf.  You can also file the pre-certification yourself.  The Office of Economic Development and International Trade (OEDIT) maintains an online portal to electronically file these pre-certifications at http://choosecolorado.com/doing-business/incentives-financing/ez/

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Local Businesses Must Pre-Certify for 2017 Enterprise Zone Tax Credits

In 2016, nearly all businesses in southwest Larimer County, including the Estes Valley, became eligible for Colorado state income tax credits when they create new jobs, invest in certain business property and job training, and other developmental activities that are encouraged under the state's Enterprise Zone program.  Below is a map that shows the shaded area representing the Estes Park Enterprise Zone.

Local businesses can benefit from thousands of dollars of state income tax credits when they invest in expanding their business.  Potential tax credits include investment tax credits for equipment (3%) or vehicle (1.5%) purchases, a job training tax credit (12.5% for qualified expenses), a new employee tax credit of $1,100 per job, and the employer sponsored health insurance credit ($1,000 per employee).

There is a catch, though.  In order to qualify for these credits in 2017, existing businesses must pre-certify on or before December 31, 2016.  No filing extensions or late filings will be accepted. For start-ups and newly-created businesses, eligibility to claim EZ credits starts the later of the approved pre-certification date or the start of the income tax year, through the end of the current income tax year. 

At Mueller & Associates, we routinely file these pre-certifications for free each December for our business clients who operate in Enterprise Zones throughout the State of Colorado.  You should check with your own tax advisor to ensure that they are filing a pre-certification on your behalf.  You can also file the pre-certification yourself.  The Office of Economic Development and International Trade (OEDIT) maintains an online portal to electronically file these pre-certifications by going to the following link: http://choosecolorado.com/doing-business/incentives-financing/ez/