Enterprise Zone Tax Credits

The Enterprise Zone (EZ) Program is a program run by the State of Colorado's Office for Economic Development and International Trade (OEDIT). The EZ Program encourages development in economically distressed areas of the state. 

Cortez, Colorado (and the entire Montezuma Valley) is in a designated enterprise zone. This means that:

  • Businesses are eligible for state income tax credits and sales and use tax exemptions for specific business investments
  • Economic development projects form by incentivizing taxpayers to contribute through state income tax credits
  • Taxpayers who contribute to enterprise zone projects may earn income tax credits

Region 9 Economic Development District is the Enterprise Zone for the area. You can learn more about Enterprise Zones and contact their staff by visiting https://www.region9edd.org/enterprise-zone.

Cortez and Montezuma County have also been deemed an "Enhanced Enterprise Zone" which means businesses may be eligible for higher tax credits that in other regions.

Business Tax Credits and Incentives

Businesses in Enhanced Enterprise Zones could be eligible for some of the following tax credits:

  • New employee = $2,000
    • Agricultural manufacturing or processing employee = additional $500
  • Employee Health Insurance Credit = $1,000
  • Job Training Investment Credit = 12% of qualified investments
  • Vacant Building Rehabilitation = 25% of aggregate qualified expenditures up to $50,000
  • Commercial Vehicle Investment Credit = 1.5% of purchase price

For a full list of tax credits and specific instructions see this document.

Qualify for EZ Tax Credits

Before you are eligible to receive EZ Tax Credits, you must follow these steps (you can also ask your accountant to help you do this.):

  1. Complete the pre-certification application on the OEDIT portal
  2. Complete the certification application on the OEDIT portal
  3. File Colorado income taxes and include certification documents (to receive EZ credits you must file electronically)

Top learn more about the Enterprise Zone Program visit https://oedit.colorado.gov/enterprise-zone-program or https://choosecolorado.com/doing-business/incentives/enterprise-zone-program/.