Businesses making investments in equipment used exclusively in an enterprise zone which would have qualified for the pre-1986 federal investment tax credit may claim a credit against their Colorado income taxes equal to 3 percent of the amount of the investment, subject to limitations on the amount which can be claimed in any one year. Investment which results from an in-state relocation is not eligible for the credit unless the new location qualifies as an expansion. Excess credits may be carried back three years and forward twelve.
$500 Job Tax Credit
R&D Tax Credit
Double Job Tax Credit for Agricultural Processing
Credit to Rehabilitate Vacant Buildings
Exemption for Manufacturing and Mining Equipment
The following items may be exempted from state sales and use tax:
- Manufacturing Machinery,
- Machine Tools, and
- Machine Parts are exempt from the 3 percent state sales and use tax statewide, regardless of where within the state the equipment is used.
When used solely within an enterprise zone this exemption may also be claimed for purchases of:
- Mining Equipment
- Materials Used to Make Eligible Machinery
Eligible purchases used in an enterprise zone are exempt whether the purchases are capitalized or expensed for accounting purposes.