Colorado Economic Development Directory

Colorado State Incentives

AIRCRAFT MANUFACTURER NEW EMPLOYEE TAX CREDIT: Aircraft manufacturers located in a Colorado aviation development zone may qualify for a state income tax credit of $1,200 per new employee.

An ‘aviation development zone’ is any airport in Colorado that is a public-use facility designated by the FAA in its latest National Plan of Integrated Airport Systems, which has registered with the Colorado Office of Economic Development and International Trade (OEDIT).

A business or portion of a business involved in the maintenance of aircraft is not eligible. If a facility performs both manufacturing and maintenance functions, only employees working exclusively in the manufacturing portion of the business may qualify for the credit.

BIOTECHNOLOGY SALES & USE TAX REFUND: Biotechnology industries may recover the sales and use taxes paid in the preceding year on equipment and supplies purchased to conduct biotechnology research and development. Qualified taxpayers may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property used directly and predominately in research and development of biotechnology. This includes property such as microscopes, chemical reagents, and software.

COLORDO FIRST/EXISTING INDUSTRY CUSTOMIZED TRAINING PROGRAMS: Jointly administered by the Colorado Office of Economic Development & International Trade (OEDIT) and the Colorado Community College System (CCCS). Colorado First grants are for companies that are relocating to CO or existing companies that are undertaking a major expansion. Existing Industry grants are designed for CO companies that are implementing new technology to remain competitive and keep jobs in the state. Approved training is for transferable job skills that support both the company’s economic competitiveness by re-training its workers in new skills, while enhancing the workers’ resumes and long-term employment opportunities.

ENTERPRISE ZONE PROGRAM: Provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state. There are 16 Enterprise Zones and 2 sub-zones in Colorado.

LOCAL INFRASTRUCTURE ASSISTANCE: Designed to create new permanent jobs and retain existing jobs, primarily for low- and moderate-income persons. It encourages new business development, expansions and retentions of businesses located in non-entitlement cities and counties (that shall minimize, to the extent practicable, displacement of existing businesses and jobs in neighborhoods). Funds may be provided for the construction and/or improvement of water lines & wastewater facilities, sewer lines, sewage treatment facilities, roadways, natural gas-line services, electric power services, railroad spurs, lighting, sidewalks and alternative power sources such as solar.

LOCAL GOVERNMENT PROPERTY TAX INCENTIVES (BUSINESS INCENTIVE AGREEMENTS): The Colorado Urban and Rural Enterprise Zone Act and House Bill 02-1399 enable local governments, at their discretion, to provide property tax credits or incentive payments (‘Business Incentive Agreements’ or ‘BIA’s’) based on the amount of increased property taxes for qualifying new business activity in their jurisdictions.

MANUFACTURING REVENUE BONDS: Provides favorable tax-exempt Private Activity Bond financing targeted to small manufacturers in Colorado. It provides for the financing of real estate, machinery and equipment associated with expansion projects specific to manufacturers. Borrowers must meet all eligibility thresholds and federal tax code requirements and often must compete for available volume, which is capped statewide under federal rules.