Enterprise Zone (EZ) Program

Overview

Get rewarded for investing in your business. The Enterprise Zone (EZ) Program is your gateway to powerful state income tax credits.

The Colorado EZ Program was established by the Colorado Legislature to encourage economic growth in economically distressed areas by creating a more business friendly environment. The program offers state income tax credits to incentivize businesses to locate and develop in these communities.

Businesses and taxpayers investing in Enterprise Zones may qualify for Colorado income tax credits by planning and executing specific economic development activities. To be eligible, all business activities must be legal under both state and federal law.

EZ Tax Credits Available

Visual overview of Enterprise Zone tax credits; full details provided in the following section

Commercial Vehicle Investment Tax Credit

A taxpayer may claim a state income tax credit equal to 1.5% of the costs of new commercial trucks, truck tractors, tractors, semi-trailers and associated parts registered in Colorado and used in an Enterprise Zone. Pre-certification is required, and applicants must complete a separate two-part application through the Colorado Office of Economic Development & International Trade.

Commercial Vehicle Investment Tax Credit details

Contribution Tax Credit

The EZ Contribution Tax Credit provides a state income tax credit to Colorado taxpayers who support approved Enterprise Zone projects. Taxpayers may claim a credit equal to 25% of a cash donation and 12.5% of an in-kind donation. The credit is capped at $100,000 per taxpayer, per tax year. Unused credits may be carried forward for up to five years.

Contribution Tax Credit details

Employer-Sponsored Health Insurance Tax Credit

For the first two full tax years that a business operates in an Enterprise Zone, it may earn $1,000 tax credit for each employee enrolled in a qualified health plan, provided the employer pays at least 50% of the cost. Pre-certification is required. Unused credits may be carried forward for up to five years.

Employer-Sponsored Health Insurance Tax Credit details

Investment Tax Credit

Businesses that invest in qualified business personal property and equipment used exclusively within the Enterprise Zone for at least one year may earn a tax credit equal to 3% of the qualified investment. Pre-certification is required. Unused credits may be carried forward for up to 14 years.

Investment Tax Credit details

Job Training Tax Credit

Businesses may earn a state income tax credit equal to 12% of eligible job training costs for employees working within the Enterprise Zone. Pre-certification is required. Unused credits may be carried forward for up to 14 years.

Job Training Tax Credit details

New Employee Tax Credit

Businesses that hire new employees within an Enterprise Zone may earn a state income tax credit of $1,100 per net new employee. Additional tax credits may be available for agricultural processors. Pre-certification is required. Unused credits may be carried forward for up to five years.

New Employee Tax Credit details

Research and Development Tax Credit

Businesses may earn a 3% tax credit on the increase in annual research and development expenses compared to what they spent the prior two years. Pre-certification is required. Unused credits may be carried indefinitely.

Research and Development Tax Credit details

Sales and Use Tax Exemption for Manufacturing and Mining Tax Credit

Purchases of machinery and machine tools, parts and materials used for manufacturing are exempt from the 2.9% Colorado State and 0.25% Arapahoe County sales and use tax.

For businesses located within the Enterprise Zone, this exemption is expanded to include non-capitalized equipment, as well as parts and tools to repair machinery. Machinery and machine tools used directly in mining also qualify for the tax exemption. To claim this tax exemption, complete form DR 5002 through the Colorado Department of Revenue.

Sales and Use Tax Exemption for Manufacturing and Mining Tax Credit details

Vacant Commercial Building Rehabilitation Tax Credit

Businesses that rehabilitate a commercial building that is at least 20 years old and has been vacant for at least two years, may earn a state income tax credit equal to 25% of rehabilitation costs, up to $50,000 per building. Qualified expenditures include exterior, structural, mechanical and electrical improvements. Pre-certification is required. Unused credits may be carried forward for up to five years.

Vacant Commercial Building Rehabilitation Tax Credit details

Application Process

Step 1: Pre-Certify: Annual Pre-Certification is required for each business location prior to making any eligible investments or activities.

Step 2: Certify Certification: At the end of the tax year, complete the Certification application to receive tax credits for activities performed during the Pre-Certification period.

Step 3: Submit: Claim your tax credits by filing the approved EZ Certification with the business' state income tax return.

EZ Pre-Certification Application Details

As a result of legislative changes in 2012, businesses are required to complete an online EZ Pre-Certification application each year to qualify for Enterprise Zone tax credits.

What is EZ Pre-Certification?

Pre-Certification is a simple online process that confirms your business’s eligibility to earn and claim valuable tax credits under the EZ Program.

When to Pre-Certify:

Up to 90 days before the start of your business’s tax year.
Or at any time during your tax year, (credits apply only from the approval date forward – no retroactive credits).

How to Apply:

Visit the Colorado Office of Economic Development & International Trade’s Enterprise Zone page.
Select the “Apply for a tax credit."
Your application will be reviewed and approved by your local EZ Administrator.
Be sure to keep the approval email for your records.

If you have any questions or need assistance with the process, feel free to reach out to your local EZ Administrator.

Apply Now

EZ Certification Application Details

Once your business tax year ends – and before filing your Colorado state tax return, you must complete the EZ Certification application to earn EZ tax credits.

Important: You must have an approved Pre-Certification for the same tax year to be eligible.

When to Certify:

After your tax year ends and before submitting your tax return to the Colorado Department of Revenue.

How to Apply:

Visit the Colorado Office of Economic Development & International Trade’s Enterprise Zone page.
Select the “Apply for a tax credit.”
Enter your EZ Pre-Certification number from your approved Pre-Certification application when prompted.
Upon approval, you’ll receive an official EZ Certification Tax Credit Certificate by email from the State.

Be sure to keep this certificate for your records, as it will be needed when filing your taxes.

Apply Now

Additional Information

EZ Economic Development Goals

Support business opportunities and increase visitors to EZ contribution projects that highlight the region’s heritage, cultures, scenic beauty, wildlife, arts, sporting activities and other tourism offerings.

Support and encourage increased employment opportunities through partnerships with economic development-focused agencies and businesses focused on marketing, recruitment and training.

Promote revitalization of existing business districts through rehabilitation and business expansion.

Support workforce housing initiatives that expand housing options and job placements.

Support a thriving healthcare ecosystem by encouraging investment in medical facilities, expanding access to high-quality care, encouraging healthcare innovation and supporting job growth.

Frequently Asked Questions

What is the EZ Program?
The Colorado Enterprise Zone Program offers state income tax credits to encourage businesses to grow and expand in designated areas of the state. Starting January 1, 2026, Centennial businesses located in eligible zones may participate. Annual Pre-Certification is required to qualify.

Who qualifies for EZ tax credits?
Businesses within designated Enterprise Zones may be eligible. Use the Enterprise Zone Interactive Map to confirm your location. Pre-Certification is required each year.

How are credits claimed?
The Enterprise Zone Program includes information on how to qualify and claim tax credits. Businesses must complete both the Pre-Certification and Certification through the state. Once approved, tax credits are claimed when filing your Colorado income tax return. While businesses can apply at any time, credits may be earned as early as January 1, 2026, if Pre-Certification is completed.

Questions

If you have any questions about the EZ program, qualifications or certifying, please contact Centennial’s Economic Development Department at ED@centennialco.gov.