Contribution Projects
Baca County Enterprise Zone Contribution Projects
The State of Colorado Enterprise Zone program allows a 25% tax credit to be given to businesses or individuals who contribute to approved Enterprise Zone projects. This includes but is not limited to these eligible categories of projects:
Homeless shelters
Business assistance (training, incubators, finance funds, feasibility studies, etc.)
Job training projects
Publicly-owned infrastructure projects
Marketing for business, economic, business district development
Rural health care
Community development projects
In general, a project must have as one of its main purposes creating or preserving an environment that will help attract, expand, or retain employers in the enterprise zone.
All individuals and businesses located with State of Colorado Income Tax liability may make a contribution to any or all of the approved projects listed below and receive a tax credit. Cash contributions: 25% tax credit. In-kind contributions: 12.5% (of value) tax credit. The maximum credit allowed to any one taxpayer is $100,000 per year (this is the cash equivalent to a cash contribution of $400,000).
Approved Baca County Enterprise Zone Contribution Projects
Southeast Colorado Hospital
Statutory Purpose and Authority
The purpose of the Enterprise Zone Contribution Tax Credit (authorized by
C.R.S. 39-30-103.5) is to encourage taxpayers to assist local enterprise zones, working with governmental and non-profit partners, to undertake activities implementing the economic development plan for the Enterprise Zone. "Economic development" is further defined by the statute to mean directly related to: "job creation or job preservation", "promoting nonprofit or government-funded community development projects in enterprise zones" and "assisting homeless shelters which provide employment-related services". The Colorado Economic Development Commission (EDC) is charged with reviewing and approving proposed projects that it determines are: "Eligible under the requirements of the law, or
Essential to the mission of the Enterprise Zone".
Project Proposal
Projects (or modifications of existing projects) must be approved by a designated Local Enterprise Zone Administrator. If approved: Projects are submitted by the local administrator to the State for approval by the EDC.
Organizations seeking approval must follow all reporting and procedural requirements of the EDC and Department of Revenue. Eligibility to provide the Enterprise Zone Contribution Tax Credit to donors may be suspended if a project stops complying with statutory requirements.
The EDC reviews new Contribution Project proposals the second Thursday of every other month. Future meetings are tentative and subject to change.
Project proposals should be submitted via email to the local zone administrator using the
EZ Contribution Project Proposal Form.
Forms must be digitally signed by the applicant organization. If approved by the local zone administrator, the project will be submitted to the State on behalf of the project.
Eligible Categories of Projects
For guidance on what types of programs or organizations can be proposed as an Enterprise Zone Contribution Project, please contact the local Enterprise Zone administrator.
The EDC has determined that projects which fall into the categories listed in this document generally meet the purposes allowed by law, subject to review of individual project issues.
In general, a project must have as one of its main purposes creating or preserving an environment that will help attract, expand, or retain employers in the enterprise zone.
Direct employment by the sponsoring non-profit organization will not be used to qualify a project, nor will project construction employment.
Guidelines
Zone Geography: If a project operates both within and outside of Enterprise Zone boundaries, the sponsoring organization must show that EZ contributions are used to cover expenditures that can reasonably be allocated to the zone geography. An eligible homeless organization’s housing or employment support services must be located within a zone.
Multiple Purpose Organizations: Organizations that serve multiple purposes in addition to an approved project must maintain separate accounting systems to ensure zone contributions are used only for approved functions.
No Direct Benefit: The statute states that no credit is allowed for contributions that directly benefit the contributor. The EDC will not approve proposals that:
Provide infrastructure for an individual user or developer who is also a contributor, provide job training projects for an individual company that is a contributor. The EDC may consider proposals where matching contributions come from sources that do not receive a direct benefit.
Reporting Requirements: Organizations receiving EZ contributions must: Report contributions to the local zone administrator promptly, Zone administrators must report contributions to the State EZ staff within 90 days, Organizations must submit an EDC staff report by November 1 each year listing proposed projects to be re-certified for the coming calendar year. Organizations with approved contribution projects must also submit annual recertification applications and other required performance reporting before this deadline.
Cap on Aggregate Tax Credits per Project: Each project must limit total contributions it certifies for the Enterprise Zone Contribution Tax Credit each year to $750,000 or less in potential tax credits. This is equivalent to: $3 million in cash donations, or $6 million in in-kind donations.
Local Zone Fees
Local Enterprise Zone Administrators are allowed to charge a fee to organizations receiving administrative services for Enterprise Zone projects. Taxpayers are not charged a fee on their contribution. Taxpayers receive the Contribution Tax Credit on the full donation amount.
For details, contact the local Enterprise Zone Administrator.
