Colorado Aircraft Manufacturers New Employee Tax Credit: Aircraft manufacturers located in a Colorado aviation development zone may qualify for a state income tax credit of $1,200 per new employee.
Colorado Biotechnology Sales and Use Tax Refund: Colorado promotes its biotechnology industries by providing them with a taxpayer-friendly means to recover the sales and use taxes paid in the preceding year on equipment and supplies purchased to conduct biotechnology research and development. Qualified taxpayers may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property used directly and predominately in research and development of biotechnology. This includes property such as microscopes, chemical reagents, and software. The refund helps promote the biotechnology industry in the state, aiding both start-up and established companies.
Colorado Enhanced Incentive Fund: The Enhanced Incentive Program (EIP) provides an additional performance-based incentive payment to companies that have qualified under the State’s Job Creation Performance Incentive Fund (PIF) and have created new jobs paying at higher than average wages. The program is designed to support highly desirable and high-impact deals.
Colorado FIRST Training Assistance: This is a program administered by the Colorado Office of Business Development and the Colorado Community College and Occupational Education System. The program can be used to offset qualifying training costs. The amount of funds available is based on training needs, salary levels, timetable and resources available. Eligible training reimbursement costs include instructor wages, travel and per diem allowances, curriculum development and materials, training supplies, and costs related to training equipment and space. For more information, contact ACED at 303-453-8510.
Colorado Economic Development Commission (EDC): This state entity was established in 1987 to encourage, promote and stimulate economic development efforts in Colorado. The EDC considers projects based on economic merit and can provide low interest, short-term or interest write-downs on loans. A local match is required and must be approved by the Commission after staff approval by the Colorado Office of Business Development. For more information, contact ACED at 303-453-8510.
Colorado One Percent Investment Credit: All companies can take advantage of the regular 1% investment tax credit available statewide.
Colorado Research & Development Sales Tax Refund: During fiscal years in which the state has excess revenues, a qualified taxpayer may claim a refund of a certain percentage of all state sales and use tax paid on the sale, purchase, storage, use or consumption of tangible personal property, including machinery, used inColorado for research and development.
Colorado Personal Property Tax Rebate: Effective in 1999, taxpayers may take a credit of $500 (or actual amount paid if less than $500) on Colorado income tax for local personal property taxes paid. If tax liability is over $500, an additional credit of 13.3 percent of personal property tax is allowed. Both credits are contingent upon a state surplus in a given fiscal year.
Colorado Sales/Use Tax Exemption for Manufacturing Equipment: Purchases of machinery or machine tools over $500 are exempt from state sales and use tax (currently three percent) statewide when used in the manufacturing process. The items shall be used directly, and exclusively in manufacturing tangible personal property for sale or profit. Component parts, fuels and electricity, ink and newsprint, and packaging materials are also exempt from the state sales and use tax. All other local sales and use tax still applies to equipment purchases unless negotiated otherwise. For business located outside an enterprise zone, the purchase must be capitalized. At the time of purchase, a company must file a “Purchase of Machinery and Machine Tools” Form DR 1191 with the vendor from which the item is purchased and with the Colorado Department of Revenue. For more information see Department of Revenue publication – FYI Sales 10 at www.taxcolorado.com