Colorado enterprise zones provide state tax incentives to businesses located in the zone, particularly for new or expanding businesses. Not all businesses qualify for all the tax incentives. Please refer to the following individual FYI publications. The tax credits are:

1. Investment Tax Credit for businesses located in a Colorado enterprise zone. See FYI Income 11 for more information about this credit.
2. New Business Facility Jobs Credits for new or expanding business facilities located in an enterprise zone that create new jobs. See FYI Income 10 for more information about these credits.
3. State Sales and Use Tax Exemption for Manufacturing and Mining Equipment used in an enterprise zone. This exemption is for equipment used directly in the manufacturing or mining (including oil and gas) process. It applies to state sales and use tax and some state-collected local sales tax. See FYI Sales 10 for more information on the manufacturing equipment exemption and FYI Sales 69 for more information on the mining equipment exemption.
4. Research and Development Tax Credit for research and development carried on in an enterprise zone. See FYI Income 22 for more information about this credit.
5. Tax Credit for Private Contributions to Enterprise Zone Administrators. See FYI Income 23 for more information about this credit.
6. Tax Credit for the Rehabilitation of Vacant Commercial Buildings located in an enterprise zone. See FYI Income 24 for more information about this credit.
7. Qualified Job Training Program Investment Credit for taxpayers who invest in a training program. See FYI Income 31 for more information about this credit.

Insurance companies are eligible for enterprise zone credits. Although insurance companies pay premium tax instead of income tax, they may claim enterprise zone credits to the same extent that corporations, which pay income tax, can claim the credits. For additional information, contact the Colorado Insurance Commissioner at (303) 894-7499. The zone administrator will issue certification to each business located within the zone that such business is in the zone.

The business must attach a copy of the Enterprise Zone Certification of Qualified Business form (DR 0074) to its Colorado income tax return if the business is claiming an enterprise zone credit. A copy of this form is included in this publication. Businesses should also contact local governments to determine if city or county tax credits are available to businesses in Colorado enterprise zones.

For more information see FYI Income 6

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