Any taxpayer who establishes a new business facility in an enterprise zone can claim an income tax credit of $500 for each new business facility employee who is working within the zone prorated according to the number of months of employment during the tax year. For subsequent tax years, a credit of $500 shall be allowed for any increase in the average number of new business facility employees working in the zone. [39-30-105 C.R.S.]

For tax years beginning on or after January 1, 1993, the excess credit is not refundable but may be carried forward for a period of up to 5 years.

For tax years beginning on or after January 1, 2003, an additional $2,000 credit for each new business facility employee is available to businesses located in an enhanced rural enterprise zone. The enhanced portion of the new business facility employee credit not used to offset tax can be carried forward for a period of up to 7 years.

For more information see FYI Income 10

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