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.