Pueblo is the only community in Colorado that offers CASH incentives to expand or relocate your business.
+Cash for your capital improvements
+Cash for your infrastructure
+Cash for your equipment
+Cash for your team growth
SALES & USE TAX CAPITAL IMPROVEMENTS FUND
This fund was created to support job creation. This cash fund awards grants based on the quality and quantity of jobs created. The overall economic impact of the project to the community is taken into consideration when making this award. Eligible uses of the fund include brick and mortar project expenses, infrastructure and in some instances equipment.
The project may not be speculative in nature and the applicant must document to the City Council’s satisfaction the applicants financial ability and experience to complete the project and fulfill the applicant’s representations and commitments made with respect to the project, including, without limitation, the number of new employees who will fill primary jobs, the project value, and the project’s gross salary.
The State of Colorado does not impose personal property taxes or inventory taxes on businesses. There is not a unitary state tax and neither the city of Pueblo nor Pueblo County imposes any local income taxes.
Certain state and federal tax credits serve as an encouragement to business expansion:
The Inventory Tax Credit is a refund against state income taxes which permits 100 percent (100%) credit on local property taxes paid on business inventories.
The “new Colorado investment tax credit” is allowed in an amount equal to 10% of the total qualified investment as determined under section 46© of the internal revenue code in qualified property as defined in section 48 of the internal revenue code as such sections existed prior to the Revenue Reconciliation Act of 1990.
The “new investment tax credit” is basically 10% of what the federal regular percentage ITC would be if it were still in effect.
The “old investment tax credit” is 10% of the current year federal investment credit, which includes the rehabilitation, energy and reforestation investment credits on assets located in Colorado. The credit is limited to the first $5,000 of tax liability plus 25% of the tax in excess of $5,000.
The city and county can negotiate an abatement of up to 50 percent (50%) of their personal property taxes with any company which establishes a new business facility or expands an existing facility.
The Pueblo Urban Enterprise Zone was established on September 15, 1986. It is part of the State of Colorado’s Enterprise Zone program under the Colorado Urban and Rural Enterprise Zone Act.
The New Business Facility Employee Credit: Any taxpayer who establishes a new business facility located in an enterprise zone can claim an income tax credit of $1,100 for each new business facility employee who is working within the zone. For subsequent tax years, a credit of $1,100 shall be allowed for any increase in the average number of new business facility employees working in the zone in excess of the maximum number employed in any prior tax year. A new business facility is a newly acquired, constructed or leased facility used by the taxpayer to operate a revenue-producing enterprise.
The New Business Facility Agricultural Processing Employee Credit: An additional credit of $500 per new business facility employee may be claimed by businesses that add value through manufacturing or processing to agricultural commodities.
The Employer Sponsored Health Insurance Credit: For the first full income two years while located in an enterprise zone, a taxpayer is allowed to take a credit of $1000 for each new business facility employee insured under a health insurance plan or program that is approved by the State Insurance Commissioner for sale in Colorado and at least 50% of the cost of which is paid by the taxpayer.
Research and Development Tax Credit: Taxpayers who make expenditures on research and experimental activities in the Enterprise Zone qualifies for a three percent (3%) income tax credit. The tax calculated as three percent (3%) of the amount of increase in the taxpayer’s research & development expenditures within an enterprise zone over the average of such expenditures during the previous two years. The expenditures must meet the research and experimental activities as defined in section 174 of the federal Internal Revenue Code of 1986, as amended.
Twenty Five Percent (25%) Tax Credit to Rehabilitate Vacant Buildings up to $50,000: This tax credit is intended to encourage building owners to undertake rehabilitation projects and bring buildings back into use. A building in an enterprise zone that is at least 20 years old and has been completely vacant for at least 2 years qualify for this tax credit for rehabilitative purposes. A taxpayer must submit DR 0076 from the Enterprise Zone administrator and documentation of the qualified expenditures to claim the credit.
Qualified Job Training Program Investment Credit: For income tax years, beginning on or after January 1, 1997, Colorado taxpayers are allowed to claim a credit of ten percent (10%) of their total current year investment in a qualified job training program. “Qualified job training program” means a structured training or basic education program conducted on-site or off-site by the taxpayer or another entity to improve the job skills of employees who are employed by the taxpayer.
Enterprise zone investment tax credit: The enterprise zone investment tax credit is 3% of any qualified investment in section 38 property: (1) acquired and placed in service or constructed during the tax year, and (2) used exclusively (100%) in a Colorado enterprise zone for the first year of its ownership by the taxpayer. The enterprise zone investment tax credit with respect to any qualified investment is in lieu of any “old investment tax credit” otherwise allowed with respect to the same expenditure.
Opportunity Zones were enacted as part of the 2017 tax reform package (Tax Cuts and Jobs Act) to address uneven economic recovery and persistent lack of growth that have left many communities across the country behind. In the broadest sense, the newly enacted federal Opportunity Zone (OZ) program provides a federal tax incentive for investors to invest in low-income urban and rural communities through favorable treatment of reinvested capital gains and forgiveness of tax on new capital gains. In Colorado, Opportunity Zones may help address a number of challenges:
This economic and community development tax incentive program provides a new impetus for private investors to support distressed communities through private equity investments in businesses and real estate ventures. The incentive is deferral, reduction and potential elimination of certain federal capital gains taxes. U.S. investors currently hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone— this is a significant untapped resource for economic development. Opportunity Funds provide investors the chance to put that money to work rebuilding the nation’s distressed communities. The fund model will enable a broad array of private equity fund managers and investors to pool their resources, increasing the scale of investments going to under-served areas.
Pueblo’s job training program includes pre-employment training of primary and/or training of primary job workers upon first being hired. A company must agree to give graduates of the job training program hiring priority and to pay a minimum wage for each primary job of at least $10.00 per hour or the minimum hourly wage under Colorado First/Existing Industry Customized Training Programs, whichever is greater, plus fringe benefits. The $800 grant per primary job employee will be available if the following conditions are met: (1) Only when a trained or experienced work force is not already available, (2) the company acts as sponsor in the development and implementation of the program, (3) Forty percent of the training cost is financed by the sponsoring company, (4) training programs last no longer than is required to provide workers with the required job skills, and (5) only direct costs of the program are included in the computation of the total cost of the program.
The State of Colorado Rural Jump-Start Program helps attract new businesses and jobs. Counties, municipalities, and higher education institutions work together to apply for this program.
When a community is a designated rural jump-start zone, new businesses can receive incentive payments and tax relief including credits, exemptions, and refunds from:
