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Business Resources Finance Incentives Labor Housing Utilities Taxes Transportation Helpful Links County Profile Major Employers |
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IncentivesUnlike some other counties across Colorado, Yuma County is an Enhanced Colorado Enterprise Zone. This means Yuma County allows qualifying businesses to take advantage of several additional tax credits. In addition, the cities of Yuma and Wray along with Yuma County have adopted incentive policies and can negotiate tax rebates, infrastructure improvements, and other financing to stimulate job creation and capital investment.Enterprise Zone Tax Credits: Businesses that create new jobs in a new or qualifying expanded business facility in an eligible Enhanced Rural EZ ("EREZ") will be eligible for an additional state income tax credit of $2,000 per new business facility ("NBF") employee. This enhanced credit is in addition to the regular enterprise zone tax credit of $500 per NBF employee, for a total credit of $2,500 credit per NBF employee in an EREZ. For NBF employees hired in an agricultural processing business, there is an additional credit of $500 per NBF employee in an EREZ, plus the regular EZ credit of $500 per NBF agricultural processing employee -- in other words, a total of $3,500 per new agricultural processing job. EREZ credits earned in excess of the taxpayer's tax liability may be carried forward for up to 7 years (the regular EZ new job credits have a 5 year carry forward). Three percent investment tax credit: 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: Businesses hiring new employees in connection with a "new business facility" located in an enterprise zone may claim a tax credit against state income taxes of $500 for each such employee. An expansion of an existing facility may be considered a "new business facility" if the expansion adds at least 10 employees or a 10 percent increase over the previous annual average, if it is at least $1 million in investment, or, if less, at least doubles the original investment in the facility. The credit may be taken in subsequent years of the enterprise zone for each additional employee above the maximum number employed in any prior tax year. Excess credits may be carried forward five years. Double job tax credit for agricultural processing: An additional credit of $500 per new business facility employee may be claimed by businesses which add value to agricultural commodities through manufacturing or processing. $200 job tax credit for employer health insurance: In order to encourage employer-sponsored health insurance plans, a taxpayer with a qualifying new business facility is allowed a two-year $200 tax credit for each new business facility employee who is insured under a qualifying employer-sponsored health insurance program. R&D tax credit: Taxpayers who make private expenditures on research and experimental activities (as defined in federal tax law) conducted in an enterprise zone qualify for an income tax credit. This credit equals 3 percent of the amount of the increase in the taxpayer's R&D expenditures within the zone for the current tax year above the average of R&D expenditures within the zone area in the previous two years. No more than one fourth of the allowable credit may be taken in any one tax year. Credit to rehabilitate vacant buildings: Owners or tenants of commercial buildings in an enterprise zone which are at least 20 years old and which have been vacant for at least 2 years may claim a credit of 25 percent of the cost of rehabilitating each building. The credit is limited to $50,000. Ten percent job training credit: Beginning with 1997 tax years, employers who carry out a qualified job training program for their enterprise zone employees may claim an income tax credit of 10 percent of their eligible training costs. Exemption from state sales and use tax for manufacturing and mining equipment:
Local government tax incentives: The cities and county are authorized to negotiate with individual taxpayers who have qualifying new business facilities: (a) an incentive payment equal to not more than the amount of the increase in property tax liability over pre-enterprise zone levels; and (b) a refund of local sales taxes on purchases of equipment, machinery, machine tools, or supplies used in the taxpayer's business in the enterprise zone. Most commonly, local governments will negotiate up to a 50 percent tax refund on personal property tax for four years and up to a 100 percent refund on real property tax for four to ten years.
For a summary of Colorado Enterprise Zone Facts, click here:
For a more complete explanation state-wide incentive and funding policies, visit the Colorado Office of Economic Development:
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