If a new business facility established by a taxpayer in an enterprise zone on or after January 1, 1989 is engaged in a business which adds value through manufacturing or processing to agricultural commodities, an additional credit of $500 per new business facility employee is allowed. The enterprise zone new business facility agricultural processing employee credit is computed the same as is the enterprise zone basic new business facility employee credit and is allowed in addition thereto. [39-30-105 (3) C.R.S]

The enterprise zone new business facility agricultural processing employee credit is available only to businesses that are directly engaged in manufacturing or processing agricultural commodities into some form other than that which enters normal agricultural commodity marketing channels. Harvesting, cleaning, packaging, storing, transporting, wholesaling, retailing, or otherwise distributing products without changing their form does not qualify. Businesses that package and ship commodities as well as restaurants or food retailers do not qualify for this credit.

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 $500 credit for each new business facility agricultural processing 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

Back