Article
Increase cash flow with Colorado’s tax credits and incentives programs
May 29, 2025 · Authored by Gina Kucera, Gabriel Sermeno, Jackson Zhu, Evan Krueger
To foster economic growth, the state of Colorado administers several tax credit and incentive programs that can apply to both local businesses and out-of-state expansions.
Given the ever-evolving nature of the tax landscape, identifying credits and incentives applicable to your business can be challenging. And yet, overlooking these opportunities can cause you to miss significant saving opportunities — savings that can be invested back into your business.
Gain insights into Colorado’s tax credit and incentive programs and how they can support business success, including:
Enterprise Zone Program
The Colorado legislature created the Enterprise Zone (EZ) Program to encourage development in economically distressed areas of the state. The 16 designated enterprise zones have high unemployment rates, low per capita income, or slow population growth.
Enterprise zones in rural counties meeting additional distressed criteria receive enhanced rural enterprise zone status. Businesses locating within these zones can qualify for additional tax credits when adding new employees.
These zones are re-evaluated and redesignated every 10 years. The Office of Economic Development & International Trade (OEDIT) is currently in the process of redesignating the enterprise zones and will result in new zone maps effective Jan. 1, 2026.
Potential benefit
Businesses locating within an enterprise zone are eligible for state income tax credits and sales and use tax exemptions for specific business investments and activities. The benefit is received through the following incentive programs outlined below.
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
