DENVER – After a two-year review process, the Colorado Office of Economic Development and International Trade (OEDIT) and the Colorado Economic Development Commission (EDC) are redesignating 15 Enterprise Zones across the state. These zones are intended to encourage business growth and job creation in economically distressed areas of the state.
“The Enterprise Zone program is a vital economic development tool that allows local administrators across our State to encourage business growth and investment in economically distressed communities across the state, advancing our commitment to build a Colorado economy that works for everyone,” said OEDIT Executive Director, Eve Lieberman.
The Colorado legislature created the Enterprise Zone (EZ) Program in 1986. Businesses in designated enterprise zones are eligible for state income tax credits as well as sales and use tax exemptions for specific investments. Local governments and nonprofits are also eligible to establish contribution projects to encourage investment in local economic development goals by enabling donors to benefit from income tax credits. Enterprise zones in rural counties that meet additional economic distress criteria can qualify for enhanced benefits.
“Based on stakeholder feedback, we know the Enterprise Zone program makes a difference in communities across Colorado. By adjusting zones to ensure compliance with state statute, we can ensure it continues to be an effective economic development tool in our state,” said Jeff Kraft, Deputy Director of OEDIT.
In fiscal year 2024-2025, the program supported 4,835 businesses with job training, investments in business personal property, increases in research and development, and hiring new employees, as well as over 300 contribution projects across the state.
As directed by the Enterprise Zone statute, OEDIT and the EDC review enterprise zone designations a minimum of once every ten years. Eligibility criteria are determined by statute and include benchmarks related to regional unemployment rates, total population, population growth, per capita income and additional consideration for communities whose economies are transitioning away from coal production.
The review process and final zone recommendations also incorporated all local recommendations that met the eligibility criteria. The EDC approved 15 redesignated zones at its Oct. 16 regular meeting and expects to review the 16th zone in November. Following today’s announcement, existing businesses in Enterprise Zones that have graduated out of the measures of economic distress have the opportunity to submit an application to be grandfathered into the program for an additional ten years. These applications must be received by Dec. 31, 2025. New Enterprise Zone boundaries go into effect Jan. 1, 2026.