Enterprise Zone Business Tax Credits

Enterprise Zone Business Tax Credits

The Enterprise Zone (EZ) Program is a program run by the State of Colorado's Office of  Economic Development and International Trade (OEDIT). The EZ Program encourages development in economically distressed areas of the state. 

Montezuma County, including Cortez, Colorado is in a designated enterprise zone. This means that:

  • Businesses are eligible for EZ State income tax credits for specific business investments, like equipment purchases, hiring employees, job training, rehabbing a vacant building. Farms and ranches are EZ eligible as well. 
  • EZ business tax credits are available to retain business owners, create jobs, encourage growth, and to attract outside companies to relocate to the area.

Region 9 Economic Development District of SW Colorado is the Enterprise Zone administrator for the area. You can learn more about Enterprise Zones and contact their staff by visiting https://www.region9edd.org/enterprise-zone.

Montezuma County has also been deemed an "Enhanced Enterprise Zone" through the end of 2024, which means businesses may be eligible for higher tax credits than in other regions. (Enhanced EZ's are re-designated by the State every 2 years.)

Recording is from the EZ Business Tax Credit Information Session on March 13, 2024.

More Information

  1. 2024 EZ Business Tax Credit Presentation
  2. Enterprise_Zone_Tax_Guide
  3. EZ Overview Montezuma 2023

Business Tax Credits and Incentives

Businesses in Enhanced Enterprise Zones could be eligible for some of the following tax credits:

  • New employee = $1,100
  • New employee in an Enhanced EZ = additional $2,000
    • Agricultural manufacturing or processing employee = additional $500
  • Employee Health Insurance Credit = $1,000
  • Job Training Investment Credit = 12% of qualified investments
  • Vacant Building Rehabilitation = 25% of aggregate qualified expenditures up to $50,000
  • Commercial Vehicle Investment Credit = 1.5% of purchase price

For a full list of tax credits and specific instructions see this document.

Apply for EZ Tax Credits

Before you are eligible to receive EZ Tax Credits, you must follow these steps (you can also ask your accountant to help you do this.):

  1. Request a user login to access the State’s EZ portal. 
    • Select "Southwest Colorado" as the Enterprise Zone for Montezuma County.
    • The EZ system administrator will approve your request. This may take up to 48 hours. You will receive a confirmation email as soon as your account is activated.
  2. Complete the pre-certification application on the OEDIT portal
    • This process geocodes the business address and notifies the State the business is EZ eligible. No obligation to earn EZ tax credits but MUST be pre-certified to claim EZ tax credits. 
  3. Complete the certification application on the OEDIT portal
  4. File Colorado income taxes and include certification documents (to receive EZ credits you must file electronically)

Enterprise Zone Contribution Projects

Any Colorado taxpayers who contributes to State approved Enterprise Zone non-profit projects can earn certified EZ income tax credits to offset state tax liabilities. 

Click here to see the list of State designated EZ Contribution Projects in our region.


Top learn more about the Enterprise Zone Program visit https://oedit.colorado.gov/enterprise-zone-program or https://choosecolorado.com/doing-business/incentives/enterprise-zone-program/.