1 / 14

Colorado Enterprise Zone: Economic Development and Tax Incentives Overview

The Colorado Enterprise Zone (EZ) program is designed to enhance economic development in distressed areas through state income tax credits. Designation is based on high unemployment, low per capita income, or slow population growth. The program aims to create jobs and increase capital investment, leading to improved economic conditions. In FY 2008, new EZ businesses generated significant tax revenues, including $30.9 million from personal income and sales taxes. With over 5,000 businesses claiming EZ credits annually, its impact on rural areas is substantial.

abel
Télécharger la présentation

Colorado Enterprise Zone: Economic Development and Tax Incentives Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Colorado Enterprise Zone Kevin Tilson Office of Economic Development and International Trade www.advancecolorado.com/enterprisezone

  2. What is the Enterprise Zone (EZ)? • State program that seeks to encourage economic development in economically distressed areas, through the use of State Income Tax Credits. • EZ designation is based on 3 criteria: • high unemployment, low per capita income, or slow population growth • Colorado Statutes 39-30-101 to 109 www.advancecolorado.com/enterprisezone

  3. Goal Jobs and Capital Investment: The goal is to improve economic conditions by encouraging businesses and non-profits to create jobs and increase capital investment in the areas that need it the most. www.advancecolorado.com/enterprisezone

  4. Colorado’s Enterprise Zone www.advancecolorado.com/enterprisezone

  5. 9 Tax Credits www.advancecolorado.com/enterprisezone

  6. Enhanced Rural Enterprise Zone (EREZ) www.advancecolorado.com/enterprisezone

  7. Potential State Revenue Gains • New jobs and capital investment created by businesses claiming EZ credits results in several different types of tax revenues. • Estimated revenue from 3 sources: • Income and Sales Tax paid by new EZ employees • Sales and Use Tax on EZ business investment • City, County and School property taxes on EZ business investment www.advancecolorado.com/enterprisezone

  8. Potential State Revenue Gains Personal income, sales and excise taxes paid by new employees of EZ businesses are $30.9 millionfor the 9,251 new employees added by EZ certifying businesses, given average state tax collections per employee of $3,350 in FY 2008. www.advancecolorado.com/enterprisezone

  9. Potential State Revenue Gains State sales and use taxes on taxable non-manufacturing equipment purchased by EZ businesses, based on the amount of investment certified by non-manufacturing businesses, would amount to approximately $53.2 millionin FY 2008. www.advancecolorado.com/enterprisezone

  10. Potential State Revenue Gains • New investment by EZ businesses added $2.4 billion of personal property. • At 2008 statewide average mill levies, this would generate almost: • $26.1 million in new tax revenue for school districts, • $13.1 million in new tax revenue for counties, • $5.4 million in new tax revenue for municipalities. www.advancecolorado.com/enterprisezone

  11. Enterprise Zone Facts 5,000 businesses claim EZ credits on avg. per year. There are 423 non-profit and local government economic development projects eligible to provide EZ contribution tax credits. 24,259 donors to EZ economic development contribution projects raising $55 million from just $12.2 million in State tax credits. www.advancecolorado.com/enterprisezone

  12. Enterprise Zone Facts • 66% of certifications are from rural Enterprise Zones • 48% of business tax credits ($) are from rural Enterprise Zones • 17% increase in the $ amount of rural tax credits since 2000 • The # of certification has remained the same. www.advancecolorado.com/enterprisezone

  13. Enterprise Zone Legislative Update • Senate Bill 234 • Joint Select Committee on Job Creation & Economic Growth • OEDIT to make recommendations on 7 ideas • In addition to anything else deemed necessary • State budget issues • We want your input! www.advancecolorado.com/enterprisezone

  14. Contact Information • State of Colorado • Kevin Tilson • (303) 892-3840 • kevin.tilson@state.co.us • Local Enterprise Zone Administrator • www.advancecolorado.com/enterprisezone • Click on “EZ Administrator Contact Info” www.advancecolorado.com/enterprisezone

More Related