The purpose of the Enterprise Zone contribution tax credit is to encourage taxpayers to assist local Enterprise Zone administrators working with governmental and nonprofit partners, to undertake activities implementing the economic development plan for the Enterprise Zone. According to the statute, “economic development” is defined to mean projects directly related to job creation or job preservation. In addition, community development projects and assisting homeless shelters that provide employment-related services in zones are eligible. The Colorado Economic Development Commission (EDC) is responsible for reviewing and approving proposed projects that are determined to be eligible under the requirements of the law, or are essential to the mission of the Enterprise Zone. For approved projects, taxpayers making cash contributions taxpayers qualify annually for a 25% tax credit up to $100,000 or a 12.5% credit for in-kind contributions up to $50,000.
The following private contribution programs are eligible:
• Administration & Marketing Contribution Projects - Contributions by taxpayers that are made for approved sub-zone projects for administration, and marketing of the Jefferson County Enterprise Zone qualify. These are special programs or projects that market specific areas within the zone. These programs are designed to implement part of the Jefferson County Enterprise Zone Development Plan.
• Business Assistance - Taxpayers making a contribution to approved business assistance programs that include management training and counseling, business incubators, finance funds, feasibility studies, etc. are eligible annually.
• Community Development - Effective with tax years beginning on or after January 1, 2003, contributions to promote nonprofit or government-funded community development projects in or supporting Enterprise Zone areas may be eligible for contribution tax credits. The community development projects must show that they contribute at least indirectly to job creation and job preservation in the Enterprise Zone. Taxpayers that make a contribution to approved qualified community development programs are eligible.
• Homeless Shelters - Contributions to projects that provide temporary, emergency or transitional housing programs for the homeless are eligible. The organization must offer or provide referrals to, job placement and counseling services for the purpose of promoting employment for homeless persons in Enterprise Zones.
• Job Training - Contributions to qualified and approved training projects directed at specific skill training in cooperation with area business and industry may be eligible for tax credits. General institutional support of educational institutions will not be approved. Taxpayers that make a contribution to approved qualified job training programs are eligible.
• Public Infrastructure - Companies who make contributions for public infrastructure improvements may make a contribution to the appointed agency to implement infrastructure improvements within the zone (e.g. water or sewer line extensions, road improvements, etc.). Tax credits are limited to those improvements that will be publicly owned and maintained. Only multiple user projects are eligible; no single user projects qualify.
For more detailed information, refer to Department of Revenue publication FYI Income 23, or contact the Jefferson County Enterprise Zone Administrator at email@example.com or 303.202.2965
Certified contribution projects in Jefferson County:
40 West Arts District
The Action Center
Colorado Christian University – Redevelopment Project
Colorado Colfax Marathon
Developmental Disabilities Resource Center
Foothills Art Center
Hands of the Carpenter
Jefferson County Economic Development Corporation
Jefferson Symphony Orchestra
Senior Resource Center