Tax Credits

Job Growth Incentive Tax Credit (JGITC):  Businesses that create at least 20 new jobs with wages at or above the average wage of the county where the project is located may receive a corporate income tax credit.  The credit is equal to 50% of the FICA or payroll taxes the company pays for new hires.  Credits may be claimed for up to 8 years and are non-refundable and non-transferable.  Unused credits may be carried forward for up to 10 years.

GRANTS

Strategic Fund IncentiveThis discretionary program offers cash grants ranging from $2,500 to $5,000 for each new job created and retained for one year.  To qualify, a business must create jobs that pay an average wage that is at or above 100% of the average wage of the county where the project is located.  Local governments must provide matching funds for a business to be eligible for this program.

SPECIAL ZONING

Enterprise Zone Program:  Businesses that locate in an Enterprise Zone may qualify for the following non-refundable corporate income tax credits:

  • Investment Tax Credit (ITC):3% of equipment purchases
  • Job Training Tax Credit:12% of qualifying training expenses
  • New Employee Credit: $1,100 per job
  • R&D Increase Tax Credit:3% of increased R&D expenditures
  • Vacant Commercial Building Rehabilitation Tax Credit: 25% of rehab expenditures

To encourage investment in the state’s most rural and economically distressed areas, Rural Enhanced Enterprise Zones have been created.  Businesses that locate in Rural Enhanced Enterprise Zones may receive larger tax credit amounts and additional benefits than those offered under the Enterprise Zone program.

JOB TRAINING

Colorado FIRST/Existing Industry Customized Job Training Programs:  Job training grants of up to $1,200 per job are available for expanding or relocating businesses as well as companies that are implementing new technologies.  A minimum of 40% of the total training costs must be covered by the company.

TAX EXEMPTIONS

Sales and Use Tax Exemptions:  An exemption of state sales and use taxes is available for purchases of manufacturing machinery, machine tools, and parts.

 

Last updated: May 2016

 


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490