OED wants you to locate and grow your business in Denver. To assist you, we offer several business incentives to not only get you here but keep you here by helping your business grow and expand. 

Denver participates in the Colorado Enterprise Zone program, which provides state income tax credits for companies investing within certain geographical boundaries, (click here to view the Enterprise Zone map).  These include:

1. Investment Tax Credits: A state tax credit equal to 3% of the investment in equipment, computers, furniture etc.  (Section 38 Property
2. Business Facility Jobs Credit:  Up to $500 tax credit for each new job created.
3. Employer sponsored Health Insurance Tax Credit:  Up to $200.00/employee
4. Job Training Tax Credit:  Credit for 10% of an employer’s eligible training expense
5. Manufacturing Equipment State Sales Tax Exemption:  Exemption from state sales tax on machinery, tools and parts used in the Zone.
6. Rehab of Vacant Buildings:  25% tax credit (up to $50,000) on the cost of rehabbing a vacant building  (2 years) and is at least 20 years old.
7. New Business Agricultural Processing credit:  An additional $500 state tax credit for each new employee in businesses that manufacture or process agricultural commodities.
8. R&D Tax Credit:  A 3% credit for private expenditures on research and experimental activity as defined by Federal tax law.

In addition, the state supports a tax credits for contributions to non-profit enterprise zone projects:  Any taxpayer who contributes to a zone-approved non-profit project may receive a tax credit of 25% for cash contributions and 12.5% for in-kind contributions.

Economic Development Financing

Finding the money you need from the best possible source is an important considering to any start up or expanding business.  OED will work with you to explain and review the various economic development-financing programs available, (ex. SBA, Industrial Revenue Bonds, etc.) and help determine which makes the most sense based on your situation and needs. 

Tax Rebates

In certain situations, rebates of specific business taxes paid to the City and County of Denver may be rebated based on the project investment and the types and numbers of jobs created.  This type of incentive is decided on a case-by-case basis and typically requires the creation of at least 100 new jobs. No more than 50% of a specific tax can be rebated within a given year. 

Job Creation Performance Incentive Fund and Enhanced Incentive Program
The Colorado Office of Economic Development and International Trade (OEDIT) began accepting applications for the Job Creation Performance Incentive Fund (PIF) and the Enhanced Incentive Program (EIP) on January 2, 2007. These programs provide performance-based incentives to businesses that have created net new jobs, paying higher than average wages, and that have maintained such jobs for one year. After maintaining the net new jobs for one year, a business has 90 days from the last day of the month in which the jobs were filled to submit an incentive application. Incentives will be provided in the order in which the EDC receives complete, accurate and eligible applications (first come, first serve) until all program funds have been expended.

OEDIT provides administrative support for the Colorado Economic Development Commission (EDC). The EDC has oversight authority for both of these programs. To learn more about these programs, go to www.AdvanceColorado.com or contact Shela Tatro in the Business Finance Division at 303-892-3840.

Gap Financing

OED offers two programs that provide gap financing.  “Gap” financing is used when the banks and business owner are unable to secure all the funds necessary to complete the total project amount, leaving a “gap” between the two.  In these situations, OED is able to provide the remaining funds.

Revolving Loan Fund:  This program can provide up to 25% of a project costs and must be located within specific geographical areas within Denver.

Neighborhood Business Revitalization Program:  This program can provide up to 50% of a project’s financing.  The availability of this program is limited to specific geographic areas within Denver.

For questions or additional information about gap financing, please contact the Small Business Lending Group in the Denver Office of Economic Development at 720 913 1999.