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Colorado Enterprise Zone

Colorado Enterprise Zone. Kevin Tilson Office of Economic Development and International Trade www.advancecolorado.com/enterprisezone. What is the Enterprise Zone (EZ)?.

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Colorado Enterprise Zone

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  1. Colorado Enterprise Zone Kevin Tilson Office of Economic Development and International Trade www.advancecolorado.com/enterprisezone

  2. What is the Enterprise Zone (EZ)? • State program that seeks to encourage economic development in economically distressed areas, through the use of State Income Tax Credits. • EZ designation is based on 3 criteria: • high unemployment, low per capita income, or slow population growth • Colorado Statutes 39-30-101 to 109 www.advancecolorado.com/enterprisezone

  3. Goal Jobs and Capital Investment: The goal is to improve economic conditions by encouraging businesses and non-profits to create jobs and increase capital investment in the areas that need it the most. www.advancecolorado.com/enterprisezone

  4. Colorado’s Enterprise Zone www.advancecolorado.com/enterprisezone

  5. 9 Tax Credits www.advancecolorado.com/enterprisezone

  6. Enhanced Rural Enterprise Zone (EREZ) www.advancecolorado.com/enterprisezone

  7. Potential State Revenue Gains • New jobs and capital investment created by businesses claiming EZ credits results in several different types of tax revenues. • Estimated revenue from 3 sources: • Income and Sales Tax paid by new EZ employees • Sales and Use Tax on EZ business investment • City, County and School property taxes on EZ business investment www.advancecolorado.com/enterprisezone

  8. Potential State Revenue Gains Personal income, sales and excise taxes paid by new employees of EZ businesses are $30.9 millionfor the 9,251 new employees added by EZ certifying businesses, given average state tax collections per employee of $3,350 in FY 2008. www.advancecolorado.com/enterprisezone

  9. Potential State Revenue Gains State sales and use taxes on taxable non-manufacturing equipment purchased by EZ businesses, based on the amount of investment certified by non-manufacturing businesses, would amount to approximately $53.2 millionin FY 2008. www.advancecolorado.com/enterprisezone

  10. Potential State Revenue Gains • New investment by EZ businesses added $2.4 billion of personal property. • At 2008 statewide average mill levies, this would generate almost: • $26.1 million in new tax revenue for school districts, • $13.1 million in new tax revenue for counties, • $5.4 million in new tax revenue for municipalities. www.advancecolorado.com/enterprisezone

  11. Enterprise Zone Facts 5,000 businesses claim EZ credits on avg. per year. There are 423 non-profit and local government economic development projects eligible to provide EZ contribution tax credits. 24,259 donors to EZ economic development contribution projects raising $55 million from just $12.2 million in State tax credits. www.advancecolorado.com/enterprisezone

  12. Enterprise Zone Facts • 66% of certifications are from rural Enterprise Zones • 48% of business tax credits ($) are from rural Enterprise Zones • 17% increase in the $ amount of rural tax credits since 2000 • The # of certification has remained the same. www.advancecolorado.com/enterprisezone

  13. Enterprise Zone Legislative Update • Senate Bill 234 • Joint Select Committee on Job Creation & Economic Growth • OEDIT to make recommendations on 7 ideas • In addition to anything else deemed necessary • State budget issues • We want your input! www.advancecolorado.com/enterprisezone

  14. Contact Information • State of Colorado • Kevin Tilson • (303) 892-3840 • kevin.tilson@state.co.us • Local Enterprise Zone Administrator • www.advancecolorado.com/enterprisezone • Click on “EZ Administrator Contact Info” www.advancecolorado.com/enterprisezone

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