Get the POWER of PRO!
Support Center > Knowledge base> Article: Colorado Enterprise Zone New Business Facility Employee Credits

Colorado Enterprise Zone New Business Facility Employee Credits

Article ID: 33706 Email Print
Question
Colorado Enterprise Zone New Business Facility Employee Credits

Answer

The Enterprise Zone New Business Facility Employee Credits are:

  • The new business facility employee credit.
  • The new business facility agricultural processing employee credit.
  • The employer-sponsored health insurance credit.

New Business or Expansion Business Facility Jobs Credits

A business new to or an existing business expanding its employee base in the Denver Enterprise Zone may receive up to a $500 State tax credit for each new job created. In order to qualify the business must be located in the Zone and be one of the following:

  • New Business Facility - A newly constructed or leased facility used by the taxpayer to operate a revenue producing enterprise.
  • New Business Expansion Facility - A facility which expands by increasing its employee base at least 10% or 10 additional employees, whichever is less, or makes new equipment purchases (Section 38 property) of at least $1 million or, if less, at least double the original investment. The business does not have to be "new".
The credit is pro-rated at $41.67 per month per employee. For example, if the job remains all year, the credit is $500. If the job exists only for 6 months, the credit would be $250.  A new business facility is eligible for a credit for all of the jobs it creates in its first year.  A new business expansion facility is eligible for credit for the net jobs created using the prior highest annual average number of employees as a base year. Please see the Department of Revenue's FYI Enterprise Zone New Business Facility Employee Credits, Income #10.

New Business Agricultural Processing Credit

 

A $500 State tax credit is available per New Business Facility or Business Expansion Facility employee to any taxpayer who operates a business within the Denver Enterprise Zone that manufactures or processes an agricultural commodity.  Please see the Department of Revenue's FYI Enterprise Zone New Business Facility Employee Credits, Income #10.

Employer-Sponsored Health Insurance Tax Credit


A Denver Enterprise Zone taxpayer who qualifies for the New Business Facility or Expansion Facility Jobs Tax Credit (see above) can also qualify for an additional credit of $200 for the first two full tax years of operation. The credit is available for each employee who is insured under a health insurance plan provided by the employer where the employer pays at least 50% of the insurance premium. This credit will carry forward 5 years. Please see the Department of Revenue's FYI Enterprise Zone New Business Facility Employee Credits, Income #10.

related articles

Article Details
Views: 573 Created on: Jun 15, 2013
Date updated: Sep 03, 2015
Posted in: STATES, Colorado

Poor Outstanding