Any part of a rural county that lies within an enterprise zone is designated as an enhanced rural enterprise zone. For tax years beginning on or after January 1, 2003, any new business facility located in an enhanced rural enterprise zone will be eligible for an additional new business employee credit and new business facility agricultural processing employee credit [39-30-103.2 C.R.S.].

The Department of Local Affairs designated 29 counties as enhanced rural enterprise zones in November 2002. The designation will be reviewed every two years. These counties meet at least two of the following criteria:

County unemployment rate is at least 50% above the state average, County population growth rate is less than 25% above the state average, County average per capita income is less than 75% of the state average, County assessed value of nonresidential value ranks in bottom half of all Colorado counties, County population is 5,000 or less.

Enhanced Rural Enterprise Zone Counties

Alamosa Archuleta Baca Bent Chaffee Cheyenne Conejos Costilla Crowley Custer Delta Dolores Hinsdale Jackson Kiowa Lake Las Animas Lincoln Mineral Otero Ouray Phillips Prowers Rio Grande Saguache San Juan Sedgwick Washington

DEFINITIONS

Related Taxpayer

Related taxpayer means a corporation, partnership, trust, or association controlled by the taxpayer; an individual, corporation, partnership, trust, or association under the control of the taxpayer; or a corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association under the control of the taxpayer.

Control of a corporation means the ownership, directly or indirectly, of stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of all other classes of stock of the corporation.

Control of a partnership or association means ownership of at least 80% of the capital or profits interest in such partnership or association. Control of a trust means ownership, directly or indirectly, of at least 80% of the beneficial and equitable interest in the principal or income of such trust.

For more information see FYI Income 10 http://www.revenue.state.co.us/fyi/pdf/income10.pdf

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