Colorado First and Existing Industry Program
This program helps basic industry employers with short-term, fast-track training for new employees or existing employees affected by major technological change. Training can be implemented in the company's own facilities or in special college training labs.

Direct training costs that are eligible for reimbursement through this program include: instructor wages, travel and per diem allowances, development of curriculum and instructional materials, purchase of consumable training supplies, and lease of training equipment and space.

The program amount awarded is determined on a case-by-case basis by the Colorado Office of Business Development and the Colorado Community College and Occupational Education System.

Colorado Economic Development Commission
The Colorado Economic Development Commission (EDC) was legislatively created in 1987 to encourage, promote, and stimulate economic development in Colorado, through the use of incentive and marketing funds. The EDC can provide interest rate write-downs, and low interest rate loans or subsidies to companies interested in locating to Colorado or Colorado companies considering relocating to another state.

Proposals are considered based on project merit, quality of jobs, and economic impact to the state. Proposals are taken to the Commission after staff approval by the Colorado Office of Business Development. A local match is also required. The program amount allocated is determined on a case-by-case basis.

Sales/Use Tax Exemption for Manufacturing Equipment
Machinery or machine tools (Section 38 Property as defined by the Internal Revenue Service) over $500 are exempt from state sales and use tax (currently three percent) when the equipment will be used in a manufacturing process. Component parts, fuels and electricity, ink and newsprint, and packaging materials are also exempt for the state sales and use tax. All other local sales and use tax still applies to equipment purchases unless negotiated otherwise. For businesses located outside a state enterprise zone, the purchase must be capitalized.

Cities may offer sales and use tax exemption depending on the project. The sales and use tax rates for cities in Jefferson County range from 2 to 3.75 percent.

Corporate Personal Property Tax Rebate
Effective in 1999, taxpayers may take a credit of $500 (or actual amount paid if less than $500) on Colorado income tax for local personal property taxes paid. If tax liability is over $500, an additional credit of 13.3 percent of personal property tax is allowed. Both credits are contingent upon a state surplus in a given fiscal year.

Colorado Enterprise Zone Program
This program is intended to assist with revitalization efforts in blighted areas throughout the state. Companies located within an established state Enterprise Zone are eligible for various state income tax credits.

• Investment tax credit (3 percent)
• New jobs tax credit ($500/new employee)
• Employer-sponsored health insurance plan ($200/employee for two years)
• R&D tax credit (3 percent of increased expenditure)
• Job training tax credit (10 percent)
• Tax credit for rehabilitation of vacant commercial buildings (25 percent)

Jefferson County has one of the sixteen state-designated Enterprise Zones. JEC staff administer the program for Jefferson County.

Further information about the Jefferson County Enterprise Zone

School-to-Careers State Income Tax Credit
Colorado businesses can claim a state income tax credit of 10 percent of their current year investment in a qualified school-to-work program. Eligible expenses include the following: wages, workers' compensation insurance, unemployment insurance, and training expenses to employ a student. For additional information on this program, call the Colorado Department of Revenue at 303-232-2446.

Employee Recruitment and Screening Assistance
Local- and state-supported employment and training programs can recruit, screen, and test potential job applicants based on a company's individual standards. A statewide computer system allows the various entities to share information on a company's employee needs and potential applicants. This system provides companies with a broader pool of potential employees. Job advertisements in local newspapers can also be coordinated.

For additional information, call Jefferson Economic Council at 303-202-2965.

Colorado Venture Capital Authority
In 2004, the Colorado State Legislature provided authorization for a new venture capital fund program. This legislation established a Venture Capital Authority (VCA) to oversee the new program, with assistance from the Colorado Office of Economic Development and International Trade. The VCA was allocated $50 million in premium tax credits that can be issued to insurance companies in exchange for cash at the rate of up to $5 million per year for ten years.

A private fund manager or managers, selected by the VCA through a competitive process, will use the cash obtained from the insurance companies to make investments in Colorado Qualified Businesses, including businesses that relocate their headquarters and principal business operations to Colorado within nine months and meet other eligibility requirements.

Corporate Personal Property Tax Rebate
This program allows local counties, municipalities, and school districts to negotiate with new and expanding Colorado companies for corporate personal property tax rebates of up to 50 percent for up to four years. Jefferson Economic Council facilitates requests for program applicants in Jefferson County on behalf of the county and school district.

To qualify for a rebate, the project must fall in to one of the following categories:

• New Business Facility–a newly acquired, constructed, or leased facility used to operate a revenue-producing enterprise.
• Qualified Replacement Facility–a facility in which a business has invested at least $3 million or 300 percent of the investment in the old facility.
• Qualified Expansion Facility–expansion qualifies under "new business facility," and the facility isn't a "replacement facility."

In addition, a company requesting a rebate must be a "primary employer," a company that sells a product or service outside the County (bringing new dollars into the County) and pay average salaries of over $33,394 (excluding top management). JEC will also perform an economic impact analysis to show if the project will bring a positive revenue return to Jefferson County.

Calculating Rebate Amount
Industrial and commercial property is assessed for property tax purposes at 29% of market value. Jefferson County's mill levy is 25.978 mills. Because of the various special and school districts and incorporated cities and towns, total mill levies can vary. The average total mill levy in Jefferson County is about 98-100 mills. However, the rebate only applies to the mill levy portion collected by the negotiating entity, ie. county, municipality or school district.

Sample Calculation
The following is a sample formula for calculating the personal property tax rebate for the county's portion of the mill levy:

29% x market value of personal property x county's mill levy x 50%=
Yearly rebate for up to 4 years.

29% x $10 million in personal property x 25.978 mills or (.025978) x 50% =
$37,668 over 4 years = $150,672 (less depreciation)

Applying for Personal Property Tax Rebate
The following chart describes the process an applicant uses when applying for a personal property tax rebate in Jefferson County. (PDF file, you'll need the free Adobe Acrobat Reader to view and print.)

Applications for businesses requesting a personal property tax rebate can be obtained from Jefferson Economic Council by calling 303-202-2965. Click here for a PDF file of the application. You'll need the free Acrobat Reader to view and print.

Community Development Block Grants
Federal Community Development Block Grants (CDBG) from the Department of Housing and Urban Development (HUD) are set aside for business finance projects, including: loans, loan guarantees, equity investments, or infrastructure grants.

Jefferson County receives a small allocation for economic development activities in the County that meet HUD's requirements.

Business Capital of Colorado, Inc. is a multi-bank community development corporation that gives up to $50,000 loans to existing small businesses that cannot qualify for conventional bank financing. The revolving loan fund includes funding from CDBG monies.

For more information, call Jefferson County's Community Development Department at 303-271-4610.

Jefferson County Enterprise Zone Program
This program is intended to assist with revitalization efforts in blighted areas throughout the state. Companies located within an established state Enterprise Zone are eligible for various state income tax credits.

• Investment tax credit (3 percent)
• New jobs tax credit ($500/new employee)
• Employer-sponsored health insurance plan ($200/employee for two years)
• R&D tax credit (3 percent of increased expenditure)
• Job training tax credit (10 percent)
• Tax credit for rehabilitation of vacant commercial buildings (25 percent)

Jefferson County has one of the sixteen state-designated Enterprise Zones. Jefferson Economic Council (JEC) staff administers the program for Jefferson County.

More information on the Jefferson County Enterprise Zone Program

Private Activity Bonds
Manufacturers can apply for tax-exempt industrial development bonds allocated to the County to help finance construction of relocation and/or expansion projects under $10 million.

The benefits of using the bonds are:

• Low interest rates
• Long-term (20+ years) fully amortized structure of the bonds.

Bond allocations can be used for the following: building, equipment, land, project "soft" costs (architects, engineers, attorneys, etc), landscaping, fixtures and furnishings, and cost to issue bonds. There is an application fee for the program. For additional information, call JEC at 303-202-2965.

Local assistance programs vary among the municipalities in Jefferson County. Specific program information can be obtained by calling the appropriate economic development department or agency. In general, programs may fall into the following categories:

• Training assistance
• Permit fee waivers
• Local tax abatement
• Low-interest loans
• Employee relocation assistance

Listed below are contacts for local incentives:

Jefferson Economic Council, 303-202-2965
Arvada Economic Development Association, 303-431-3928
City of Golden, 303-384-8095
City of Lakewood, 303-987-7730
City of Westminster, 303-430-2400, ext. 2113
City of Wheat Ridge, 303-235-2806