Lafayette Enterprise & Opportunity Zones

What is an Enterprise Zone?

The Enterprise Zone (EZ) is a state funded program that was created to promote a business friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop in - and non-profit organizations to assist with the needs of - these communities. Areas of Longmont, Lafayette, and Broomfield recently received the North Metro Enterprise Zone designation.

What does this mean for your business?

EZ incentives and tax credits can have a significant impact, from $1,000 to $500,000.

Business Income Tax Credits

• Investment Tax Credit | 3% of depreciable equipment purchases
• Commercial Vehicle Investment Tax Credit | 1.5% of commercial vehicle purchase
• Job Training Tax Credit | 12% of qualified training expenses
• New Employee Tax Credit | $1,100 per new job
• Agriculture Processor New Employee Tax Credit | $2,000 per new job
• Employer Sponsored Health Insurance Credit | $1,000 per covered employee
• R&D Increase Tax Credit | 3% of increased R&D expenditures 
• Vacant Building Rehabilitation Tax Credit | 25% of rehab expenditures (hard costs)

Additional EZ Incentives

• Manufacturing/Mining Sales and Use Tax Exemptions | Expanded S&U tax exemption in EZ
• Contribution Tax Credit | 25% cash / 12.5% in-kind on contributions to EZ projects

PRE-CERTIFICATION IS REQUIRED

Each income tax year, a business located in the Enterprise Zone must apply and must be pre-certified prior to beginning an activity to earn any of the business tax credits listed. At the end of the income tax year, a business must certify that the activities were performed. Pre-certification and certification are easily applied for online and are required annually.

Pre-Certify HERE