COLORADO INCENTIVES 

Colorado shows an average deal value of $9.8 million with 191 new jobs created per deal

STRATEGIC FUND PROGRAM

The Strategic Fund provides a commitment to businesses that have met certain requirements under the Economic Development Commission’s (“EDC”) Strategic Fund. A business may receive funding consideration if it proposes to create net new full‐time permanent jobs in Colorado that are maintained for at least one year. 

In addition, a business must materially meet the circumstances noted below:

  • Strong level of local matching commitments ($1:$1 requested);
  • Potential for economic “spinoff” benefits, such as attracting suppliers, generating tourism/travel activity, high prestige, or a large expansion initiative;
  • Capital Investment, relative to the number of jobs (significant capital investment is $100,000 or > per employee);
  • Responds to a special local economic event, such as replacing recent layoffs;
  • Interstate competitive factors;
  • Headquarters in Colorado; and
  • Other unique conditions.

The business would need to demonstrate feasibility and financial capability along with the ability to create the number of jobs committed. Businesses already receiving an incentive from the EDC may not receive an incentive from the Strategic Fund for the same net new fulltime permanent jobs.

The following tables reflect potential incentive levels based on the annual average wage rate of a businesses’ committed creation of net new fulltime permanent jobs compared to the county average wage rate. The annual average wage rate calculation does not include fringe benefits.

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JOB GROWTH INCENTIVE TAX CREDIT

The Job Growth Incentive Tax Credit provides a state income tax credit to businesses undertaking job creation projects that would not occur in Colorado without this program and that have met certain requirements.

Businesses have to create at least 20 net new jobs (fulltime equivalents) in Colorado during the credit period (defined as 60 consecutive months where the business may qualify for an annual tax credit) with an average yearly wage of at least 110% of the county average wage rate based on where the business is located.  A business located in an Enhanced Rural EZ has to create at least 5 net new jobs (fulltime equivalents) in Colorado during the credit period (defined as 60 consecutive months where the business may qualify for an annual tax credit) with an average yearly wage of at least 110% of the county average wage based on where the business is located.

The maximum tax credit the EDC can authorize is calculated by taking 50% of the FICA paid by the business on the net job growth for each year in the credit period. The maximum tax credit authorized for a business may be less if deemed appropriate by the EDC. Although the maximum tax credit authorized by the EDC is calculated by projected information submitted by the business, the actual tax credits issued will be based on actual performance.

If the issued tax credits exceed the taxpayer’s income tax for the income tax year in which the business is first authorized to use the credit, the amount of the tax credit not used shall not be allowed as a refund, but may be carried forward and applied in each of the 10 succeeding income tax years (must be applied to the earliest tax return possible).

COLORADO FIRST / EXISTING CUSTOMIZED JOB TRAINING PROGRAM

The Colorado FIRST and Existing Industry grants are jointly administered by OEDIT and the Colorado Community College System. Colorado FIRST grants are for companies that are relocating to or expanding in Colorado and provide funds only to net new hires. Existing Industry grants focus on providing assistance to established Colorado companies in order to remain competitive within their industry, adapt to new technology and prevent layoffs. The programs increase transferable job skills that support both the company’s economic competitiveness and enhance worker's resumes and long-term employment opportunities.

Program eligibility includes:

  • Companies must contribute a minimum of 40% to the total costs of grant-funded training
  • All grant-funded training must be customized for the company’s specific needs
  • An on-site company visit by OEDIT and CCCS representatives is required
  • Companies must pay an average hourly wage greater than $11.96/hour in urban areas; in rural Colorado, a company’s average wages must be at least $9.79/hour

OTHER COLORADO INCENTIVE PROGRAMS

  • Enterprise Zone Tax Credit
  • Public Infrastructure Grants
  • Biotechnology Sales and Use Tax Refund
  • Manufacturing Sales and Use Tax Exemption
  • Aviation Development Zone Tax Credit
  • Film Incentive Program
  • Advanced Industries Accelerator Programs
  • Colorado Capital Access (CCA) - SSBCI
  • Cash Collateral Support (CCS) - SSBCI
  • Colorado Credit Reserve
  • Regional Tourism Act (RTA)
  • Venture Capital Authority (VCA)
  • CDBG Business Loan Funds
  • CDBG-DR (Disaster Recovery)
  • CDBG Planning and Feasibility Studies
  • Certified Capital Companies (CAPCO) Program
  • Private Activity Bonds
  • Bioscience Discovery Evaluation Grants