In 1996, the Colorado State Legislature implemented the Enterprise Zone Tax credit program to assist economically distressed areas of the state. Colorado’s Enterprise Zone (EZ) program provides certain state income tax credits and other incentives for private enterprise to expand or for new businesses to locate within a state EZ area. All of Dolores, Montezuma, Archuleta and San Juan counties, and most of La Plata County, currently lie within the Southwest Enterprise Zone which is administered by the Region 9 Economic Development District of Southwest Colorado (Region 9). A business (which includes a farm or ranch) located within these boundaries may be eligible for EZ tax credits, including capital investment tax credits, job tax credits, research and development tax credits, and other credits and incentives. Detailed information about each of the EZ tax credits is available at: www.advancecolorado.com/ez. Specific tax questions should be directed to the Department of Revenue or to your CPA. General information for the Southwest EZ can be obtained from Region 9. The primary function of the EZ administrator is to provide information and determine whether a business is located within the Enterprise Zone boundaries, process and sign the Certification of Qualified Enterprise Zone Business forms and work with designated Enterprise Zone Contribution Projects. Pre-Certification Is Required Beginning January 1, 2012 Pre-certification shall be obtained from Region9 (local EZ Administrator) in 2012 and EVERY year thereafter in which a business anticipates earning an EZ tax credit. Therefore, before creating a job or making an investment, a business MUST receive precertification for that income tax year. Information regarding how to request pre-certification will be available at www.advancecolorado.com/ez. Pre-certification is required for Department of Revenue forms DR0074, DR0076 and/or DR0077. It is suggested that any business that may be planning on using one or more of the credits during the year complete the pre-certification in early January. Submitting information for pre-certification does not obligate the business to actually earn or use the credit(s). Pre-certification (generally beginning of income tax year) and regular Certification (end of income tax year) both require approval by the Southwest Enterprise Zone administrator and will need to be filed electronically. Electronic EZ Submission is Available You may now begin filing Southwest Enterprise Zone Business Certification requests electronically. By the beginning of 2012, all certifications (with the exception of the Contribution Credit) MUST be filed electronically. One of the Enterprise Zone credits pertains to designating a project or organization as an Enterprise Zone Contribution Project. This designation allows contributors to receive a 25% State Tax Credit for cash donations to the Enterprise Zone Project and 12.5% State Tax Credit for in-kind contributions. |