Colorado Other Enterprise Zone Credits
Colorado offers various enterprise zone credits to encourage economic development in designated areas. These credits are available to individuals and businesses that invest in or operate within enterprise zones. The following outlines key credits and how they are calculated.
Enterprise Zone Research and Experimental Expenditures Credit
- The credit is equal to 3% of the increase in research and experimental expenditures in an enterprise zone over the average of the two prior years.
- Eligible taxpayers must have increased their research expenditures in the enterprise zone compared to the average of the previous two tax years.
Enterprise Zone Contribution Credit
- Taxpayers who make monetary or in-kind contributions to support the economic development plan for an enterprise zone may claim this credit.
- Additional details are available in the Department’s publication on Enterprise Zone Contribution Credit.
New Business and New Hire Credits for Individuals
- Individuals claiming the credit as a sole proprietor, partner, or shareholder in a partnership or S corporation must complete Section D of Form DR 0113.
- Line 11 of Section D should be left blank unless the taxpayer is claiming both the new hire credit for wages earned as an employee and the new business credit for ownership in a new business.
Business Facility New Employee Credits
- These credits are calculated using Worksheet 1 provided in Form DR 1370.
- Taxpayers must submit copies of credit certificates issued to generate this credit.
Additional Resources
For more information on enterprise zone credits, refer to the official publications and forms provided by the Colorado Department of Revenue.
Source:
Enterprise Zone Tax Guide
Form DR 0113
Form DR 1370
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.