Job Growth Incentive Tax Credit Program
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Performance based job creation incentive providing a Colorado income tax credit to businesses creating 20+ net new full-time jobs in Colorado that meet specific county wage criteria. Credit is based on 50% of the FICA paid by the business on the net job growth for each year in the 8-year credit period. .
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Colorado Strategic Fund
Performance based cash incentive to businesses that meet certain requirements including the creation of net new full-time permanent jobs in Colorado that meet specific county wage criteria and are maintained for at least one year. Incentive amount is based on the annual average wage rate for the net new full-time jobs compared to the county average wage rate.
Commercial Aeronautical Zone (CAZ)
The Colorado Springs Airport is located with a regionally created CAZ which provides local sales and use tax abatement for companies located within the CAZ that are specifically engaged in a variety of aeronautical activities.
Colorado Sales and Use Tax Exemption on Aircraft and Aircraft Parts
Aircraft used in interstate commerce by a commercial airline and parts permanently affixed to aircraft are exempt from Colorado sales and use tax. This includes, but is not limited to, fuselage parts, parts for the aircraft’s engine(s), seats permanently affixed to the aircraft, and aircraft paint.
Pikes Peak Enterprise Zone
Businesses locating within the Pikes Peak Enterprise Zone may be eligible for one or several Colorado income tax credits related to hiring new employees, making investments in equipment, training employees and conducting research and development activities.
- Investment Tax Credit – 3% of the investment amount made on equipment/machinery
- Jobs Tax Credit – $1,100 per new FTE job created
- Employer Sponsored Health Insurance Credit – $1,000 per new employee for the first 2 years who is insured under a health insurance plan or program
- Research & Development Tax Credit – 3% of the amount of increase in R&D expenditures within the zone
- Vacant Building Rehabilitation Credit – 25% of rehabilitation costs up to a maximum of $50,000
- Job Training Credits – 12% of eligible training investments in a qualified job training program
Biotechnology Sales and Use Tax Refund
Qualified tax payers may seek an annual refund for all Colorado sales and use taxes paid in the previous year on purchases of tangible personal property used directly and predominately in research and development of biotechnology including microscopes, chemical reagents, and software.
Colorado FIRST & Existing Industry Training Grant
Cash grant program may be provided for up to $1,200 per employee for customized technical training of new and existing employees earning an hourly wage greater than $12/hour.
In-State Tuition Benefit
Companies who are relocating employees to Colorado and are taking advantage of an economic development incentive from the State of Colorado or a local jurisdiction, may obtain for their employees or employee dependents seeking admission to a Colorado public institution of higher education, in-state tuition designation.
Manufacturing Equipment State & County Sales Tax Exemption
State (2.9%) and El Paso County (1.23%) sales and use tax exemption for purchases of machinery or machine tools, or parts thereof (in excess of $500), by a company engaged in manufacturing. The equipment must be used in Colorado directly and exclusively by the company to manufacture tangible personal property for sale or profit.
City and County Business Personal Property Tax Credits
Colorado assesses a business personal property tax levied against personal property assets of a business or organization. As a business incentive, El Paso County does not collect their portion of the business personal property tax. The City of Colorado Springs is in the process of phasing out the collection of their portion of the tax as well, which will be fully eliminated by 2018.
City Sales and Use Tax Rebate on Construction Materials
Based on meeting job creation and investment criteria a rebate of 50% of the City’s 2% general fund portion of City sales and use tax collected on construction materials may be provided for a project.
Opportunity Zones
This economic and community development tax incentive program provides a new impetus for private investors to support distressed communities through private equity investments in businesses and real estate ventures. The incentive is deferral, reduction and potential elimination of certain federal capital gains taxes.
City Sales and Use Tax Rebate on Business Personal Property
Based on meeting job creation and investment criteria a rebate of 50% of the City’s 2% general fund portion of City sales and use tax collected on annual purchases of business personal property may be provided. Agreement terms based upon jobs created. Businesses may qualify for an Alternative Rate of Tax program for large purchases of machinery and equipment.
Foreign Trade Zone (FTZ)
Duty deferral, duty reduction and duty avoidance for the transfer, use, and storage of imported materials. Several FTZ sites are located at the Colorado Springs Airport.
Rapid Response Team (RRT)
Expedited permitting process for primary employers that can reduce the typical approval process time by about half.
Colorado Springs Utilities
Municipally-owned, four-service utility providing electricity, natural gas, water and wastewater services at competitive rates and nationally recognized customer service. Nearly 75% of electric lines are underground which offers outstanding electric reliability (99.9917%). Colorado Springs Utilities has the ability to enter into economic development special contracts with qualifying commercial customers.
Financing Tools
- City Private Activity Bonds – Bond financing for investing in qualified projects that provide federal and state income tax free, low interest loans of $1M to $10M
- El Paso County Revolving Loan Fund – Federally funded loan pool established to create and retain jobs in El Paso County.
- Pikes Peak Regional Development Corporation – SBA 504 Loan Program with loan amounts up to $5,000,000 ($5,500,000 for manufacturers).
