Incentives to Leverage Business Growth

Companies growing or relocating to Northwest Colorado may be eligible for the Advanced Energy Project Credit (48C) designated for energy communities. This program provides tax credit for investments in advanced energy projects that expand clean energy manufacturing and recycling and critical materials refining, processing and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities. The program will provide an investment tax credit of up to 30% of qualified investments for certified projects that meet prevailing wage and apprenticeship requirements. Learn more.

This credit is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Employers make a written request to the state workforce agency of the state in which their business is located (where the employee works) to certify an individual as a member of a targeted group for purposes of qualifying for the work opportunity credit. Learn more.

Most of Rio Blanco County and the western section of Craig in Moffat County are in federal opportunity zones. Opportunity Zones offer certain tax benefits aimed at encouraging investment and economic development in low-income communities. The biggest advantage for investors is deferring taxes on capital gains by reinvesting those gains into Qualified Opportunity Funds (QOFs), which are investment vehicles that invest in businesses or real estate within Opportunity Zones. Learn more.

New Markets Tax Credits (NMTCs) are a federal tax credit program designed to incentivize private investment in low-income communities. The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDE).  The credit totals 39% of the original investment amount and is claimed over a period of seven years. The CDE in turn can offer low-interest loans and other types of financing for economic development and community development projects in NMTC areas. Colorado Housing and Finance Authority and Colorado Enterprise Fund are two such CDEs. The City of Craig and part of northern Routt County have NMTC tracts. Learn more.

The Strategic Fund Job Growth Incentive is for business expansion or relocation projects for which Colorado is in competition with at least one other state and the company has received a commitment of local government funding that matches any requested state government incentives. The incentive provides a cash payment over five years to companies that create and maintain new permanent jobs in Colorado. Learn more.

This is an eight-year job creation incentive to support competitive, multi-state, or country relocation and expansion projects. The tax credit gives businesses a Colorado state income tax credit equal to 50% of the FICA (Federal Insurance Contributions Act) tax paid by the business per net new job for each calendar year in the credit period. Learn more.

The Office of Economic Development & International Trade (OEDIT) and the Office of Just Transition (OJT), within the Colorado Department of Labor & Employment, are partnering to make a new phase of grants available to Tier One & Tier Two Just Transition communities to support their economic and workforce development activities. Most of Northwest Colorado are Tier 1 Just Transition Communities. Learn more.

Rural Jump-Start Program is a collaborative effort by the state, local governments, institutions of higher education and economic development organizations (EDO) to incentivize new businesses to start in or move to rural, economically distressed counties in Colorado and hire new employees. Tax benefits include relief from state income tax for the new business, state sales and use tax, county personal property tax, municipal personal property tax for the new business and state income tax for qualified new hires. If a business is located in a Rural-Jump Start zone that is also a Tier 1 Just Transition community, businesses can receive a matching grant of up to $40,000 as a newly established business and up to $5,000 per new hire. Most of Northwest Colorado are in enhanced Rural Jump-Start areas. Learn more.

The Advanced Industry Investment Tax Credit (AITC) encourages investments in Colorado advanced industries businesses by incentivizing investors with state income tax credits. Colorado businesses in the advanced industry sectors apply to be certified as an advanced industry business. They then use that status to attract Colorado investors who can earn a state income tax credit by investing in certified advanced industry businesses. Investors can earn a tax credit of 25% of their investment up to a maximum $100,000 credit on an investment of $10,000 or more. If the advanced industries business is in a Colorado enterprise zone or rural county, investors can earn a state income tax credit of 35% of their investment. Learn more.

The EZ Program encourages development in economically distressed areas of the state with high unemployment rates, low per capita income, or slow population growth. Businesses are eligible for state income tax credits and sales and use tax exemptions for specific business investments or economic development projects by incentivizing taxpayers to contribute through state income tax credits. Taxpayers who contribute to enterprise zone projects may earn income tax credits. The EZ program is administered by the Associated Governments of Northwest Colorado. Learn more.

The Skill Advance Colorado Job Training Grant helps businesses and nonprofits create customized job training for employees. This training includes building workers’ transferable skills and helping Colorado businesses remain competitive. Learn more.