Incentive Programs
Colorado Economic Development Commission
The nine-member Colorado Economic Development Commission (EDC) was created by the legislature to promote economic development in Colorado. The EDC approves loans and grants from the economic development fund to public and private entities throughout the state to help existing businesses expand and new companies locate in Colorado. It also implements marketing programs to support ongoing business activities. All policy and funding decisions are made by commission members. The commission is also responsible for policy decisions concerning other major incentive programs, including the state Enterprise Zone program, the Job Creation Performance Incentive Fund, the Enhanced Incentive Program, and the Film Incentives Cash Fund.
In cooperation with state, local, and private entities, the EDC develops incentive packages to assist with existing business expansions and new company relocations in order to promote job creation and retention in all regions of the state. In determining whether to approve incentive awards, the EDC reviews the number of jobs to be created, average salary levels, location, and other factors. Requests usually range from $1,000 to $3,000 per job created.
Parties interested in EDC incentive awards should contact the Colorado Office of Economic Development and International Trade's Business Finance staff early in the planning process.
For more information, please see: Economic Development Commission
Colorado Job Creation Performance Incentive Fund
The Job Creation Performance Incentive Fund (PIF) provides a performance-based incentive payment to qualifying companies that have created net new jobs paying above average wages. The program is designed to support and encourage new business development, business expansions and relocations that have generated new jobs throughout the state.
Businesses may be eligible for the following incentive amounts, which are paid on a per-job basis.
Average Wage Rate % |
$ Incentive Per Net New Job |
< 110% |
$0 |
110% - 114% |
$1,000 |
115% - 119% |
$1,250 |
120% + |
$1,500 |
For requirements and contact information, please see the attached fact sheet.
Enhanced Incentive Program
The Enhanced Incentive Program provides additional performance-based incentives to companies that qualify under the Colorado Job Creation Performance Incentive Fund and have created jobs with wages that exceed the Average Wage Rate by greater amounts. The program is designed to support and promote highly desirable, high impact job creation opportunities. The EDC makes Enhanced Incentive Program funds available on a first come, first served basis until available funds in a given year have been expended.
Businesses eligible for these enhanced incentives will receive the following incentive amounts, which are paid on a per-job basis.
Rural Location |
Urban Location |
||
Average Wage |
$ Incentive Per |
Average Wage |
$ Incentive Per |
125% - 134% |
$2,500 |
150% - 159% |
$2,000 |
135% - 149% |
$2,750 |
160% - 174% |
$2,250 |
150% + |
$3,000 |
175% + |
$2,500 |
For requirements and contact information, please see the attached fact sheet.
Enterprise Zones
Colorado's Enterprise Zone program provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state. Criteria for the establishment of zones include higher than average unemployment rates, low per capita incomes, and/or a population base of less than 80,000. There are 18 enterprise zones and subzones in Colorado. Businesses making qualifying investments and creating jobs in these zones are entitled to various incentives, including ten different Enterprise Zone tax credits.
For more requirements, benefits and contact information, please see: Enterprise Zones
To determine if a specific address is within a zone, contact the local zone administrator.
Fact Sheet - Enterprise Zone Facts
Fact Sheet - Enhanced Rural Enterprise Zone Job Credits
Job Training Incentives
Enhancing the competitiveness of Colorado companies through training assistance, the Colorado FIRST Customized Job Training Program provides financial assistance to companies training new employees for recently created jobs.
The Existing Industry Job Training Program provides similar financial assistance for companies wanting to retain employees or train existing employees in order to implement new technologies.
Qualifying companies may apply for up to $800 per job in training grants. Additionally, high-impact projects may be eligible for additional discretionary funds administered by the Economic Development Commission. Businesses must pay at least 40% of total training costs.
For requirements and contact information, please see the attached fact sheet.
Local Assistance
Local Property Tax Incentives: 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. For more information, please see: Local Property Tax Incentives
Infrastructure Assistance Program: The infrastructure assistance program is designed to create new permanent jobs and retain existing jobs, primarily for low- and moderate-income persons. This program encourages new business development, expansions and retentions of businesses located in non-entitlement cities and counties. For more information, please see: Infrastructure Assistance Program
Targeted Tax Incentives
Aircraft Manufacturer Tax Credit: Aircraft manufacturers that locate within a Colorado Aviation Development Zone (ADZ) may qualify for a state income tax credit of $1,200 per new employee. For more information, please see: Aviation Tax Credit
Biotechnology Sales and Use Tax Refund: 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. For more information, please see: Biotech Sales Tax Refund
Colorado Film Incentives Cash Fund: Films produced in Colorado can qualify for a 10% rebate of Colorado production expenses for motion picture, television, and similar film productions. To be eligible, a production company must spend at least 75% of its production expenditures on qualified local expenses and 75% of its payroll expenditures on qualified local payroll expenses. Out-of-state production companies must spend a total of at least $1 million, and Colorado-based companies must spend at least $100,000. For more information, contact the Colorado Film Commission.