Economic Development Incentive Programs
The State of Colorado coordinates with La Junta Economic Development to promote job growth within the city through numerous incentive platforms including finance, tax credits, and workforce development programs.
The following is a brief description of these incentive programs. For more in-depth information, please visit the Colorado Office of Economic Development and International Trade’s website.
Explore Incentive Programs
The Colorado Enterprise Zone Program is designed to promote a business-friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop in, and non-profit organizations to assist with the needs of these communities. Otero County is an Enterprise Zone.
Businesses wanting to claim any of the Colorado Enterprise Zone (EZ) income tax credits (excluding the Contribution Project credit for which pre-certification is not required), must annually pre-certify with their local EZ Administrator to be eligible to claim EZ tax credits.
This is a tax reduction program for both early-stage companies and new employees located in specified rural areas referred to as “Jump-Start” zones.
Jump Start zones are considered to be counties with a population of less than 250,000 residents; this makes companies in Otero County eligible for this program.
Companies participating in this program are not required to pay state and local income, sale, usage, or personal property tax fees. Certain company employees can also be individually exempted from state income taxes.
To participate,companies must be integrated into the economic base, and cannot presently be doing business in Colorado or competing with a currently existing Colorado business.
The Opportunity Zones Program was enacted as part of the 2017 tax reform package to address uneven economic recovery and persistent lack of growth that have left many communities across the country behind.
In the broadest sense, the enacted federal Opportunity Zone Program provides a tax incentive for investors to reinvest unrealized capital gains into low-income urban and rural communities.
Investors receive tax incentives in the form of deferrals, reductions, and possible elimination of certain federal capital gains taxes.
The local areas approved as Opportunity Zone include the City of La Junta and contiguous lands:
The Advanced Industries (AI) Accelerator Program promotes development within seven specific industries identified by the State by encouraging creativity, speeding up sales of new technology, facilitating public-to-private business relationships, improving accessibility to beginning-stage funds, and fostering a solid ecosystem that works to increase Colorado’s worldwide engagement.
This program supplies proof of concept grants to experimental organizations with technology exchange offices, beginning-stage businesses, and non-profit companies that patch holes in AI environmental systems.
The Strategic Cash Fund Incentive, facilitates and promotes new company expansions and relocations for the purpose of creating new work opportunities throughout the state of Colorado.
The Strategic Cash Fund Incentive also offers guidance on projects located in important statewide and local industries.
Workforce Development
The Job Growth Incentive Tax Credit (JGITC) provides a state income tax credit equal to 50% of the Federal Insurance Contributions Act (FICA) paid by the business on the net new job growth for each calendar year in the credit period.
This tax credit is performance-based, meaning companies that underperform in job creation or wages will not receive the total credit amount.
The Skill Advance Colorado Job Training Grant, administered through the Colorado Office of Economic Development & International Trade, helps businesses and nonprofits create customized job training for employees.
The funds are broken down into Colorado First funds and Existing Industry funds. Colorado First grant funds customized training only for net new hires at companies relocating to or expanding in Colorado.
Existing Industry grant funds customized training to help established Colorado companies and nonprofits remain competitive in their industry, adapt to new technology, and prevent layoffs.
Companies that implement a qualified job-training program for their enterprise zone employees may earn an income tax credit of 12% of their eligible training costs.
This tax credit helps develop a skilled workforce in distressed communities. Even if the business leaves the community, the skilled workforce typically remains an asset to the local economy.
Businesses operating in a Colorado Enterprise Zone can earn a state income tax credit of $1,100 per net new employee. Businesses can earn more tax credits if the business is an agricultural processor or is in an enhanced rural enterprise zone.
This tax credit encourages businesses to hire and expand employment opportunities, thus reducing unemployment rates. State and local governments benefit from income and sales tax revenue generated from these employees.
An additional tax credit of $2,000 per net new employee may be claimed for businesses in Enhanced Rural EZs – these are re-established every 2 years. Otero County is designated an enhanced rural enterprise zone for the calendar years 2019 and 2020.
For the first two years that a business is in an enterprise zone, the business can earn $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost.
This tax credit encourages businesses to provide a qualified health insurance plan to employees, potentially improving community health, and reducing public health costs.
La Junta Economic Development and our partners can help employers with workforce development, job training programs, and securing employment related tax incentives to help their businesses thrive in Southeast Colorado.
The Advanced Industries (AI) Accelerator Program promotes development within seven specific industries identified by the State by encouraging creativity, speeding up sales of new technology, facilitating public-to-private business relationships, improving accessibility to beginning-stage funds, and fostering a solid ecosystem that works to increase Colorado’s worldwide engagement.
This program supplies proof of concept grants to experimental organizations with technology exchange offices, beginning-stage businesses, and non-profit companies that patch holes in AI environmental systems.
The statewide sales and use tax exemption for purchases of manufacturing equipment is expanded to include non-capitalized equipment and parts if the business is located within a zone. The enterprise zone statutes also expand manufacturing to include mining.
Revitalization
The City of La Junta Historic Preservation Board (CLG) assists city residents with nominations to the city, state, and national registers, providing preservation advice following the Secretary of the Interiors Standards and Guidelines, supporting educational efforts pertaining to history and preservation, assisting with preservation projects, sharing information on tax credits, and advising the City on preservation approaches.
The La Junta Urban Renewal Authority (LJURA) is an urban renewal authority that serves as the City of La Junta’s redevelopment agency. LJURA’s primary function is to assist the city and property owners in elimination and prevention of slums and blighted areas. To accomplish its mission, the authority works in close partnership with the City of La Junta and City Council.
Through the Colorado Enterprise Zone Program, if a business rehabilitates a commercial building that is at least 20 years old and has been vacant for at least two years, the business can earn a state income tax credit for 25% of rehabilitation costs (up to $50,000 in credits on $200,000 or more on costs).
This tax credit encourages the revitalization of dilapidated buildings and blighted areas, bringing new businesses and employees to the community. State and local governments gain tax revenue from new economic activity.
The Enterprise Zone Contribution Tax Credit provides a tax credit to Colorado taxpayers that contribute to targeted enterprise zone (EZ) projects. When taxpayers make a certified contribution, they can claim:
• 25% of a cash donation as a state income tax credit.
• 12.5% of an in-kind donation as a state income tax credit
The amount of this tax credit is capped at $100,000 per taxpayer per tax year. If you cannot use all of your credits in a given tax year, you can carry forward the balance up to five years.
The Southeastern Colorado Enterprise Development (SECED) Business Loan Fund is an alternative (gap) financing method designed to help finance business projects that will positively impact the economic health of the communities within Baca, Bent, Crowley, Kiowa, Otero and Prowers counties. Individuals who meet eligibility requirements may apply.
Using a variety of resources, CHFA’s Community Development team partners with lenders and economic developers to provide you with the financing you need for real estate acquisition, renovations, and equipment purchases.
The SBA works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions.
The SBA reduces risk for lenders and makes it easier for them to access capital. That makes it easier for small businesses to get loans.
The Procurement Technical Assistance Center (PTAC) provides technical support to companies pursuing contracted and subcontracted options with regional, local, and federal governments. There are numerous PTAC locations throughout the State of Colorado; the closest location to La Junta is the Colorado Springs location located at the El Paso County Citizens Service Center.
FREE, CONFIDENTIAL CONSULTING & AFFORDABLE TRAINING PROGRAMS
The Colorado SBDC Network is dedicated to helping you achieve your goals. Make an appointment with a consultant or sign up for a workshop today and let us help you create and retain jobs, increase sales, secure loans and win contracts.
For more information, contact Mickey Lewis-Gemici, Director, Southeast Colorado SBDC, 719-384-6959, Mickey Lewis-Gemici@ojc.edu.
The Colorado Workforce Center, located in La Junta, provides a variety of FREE services to assist employers and job seekers alike.
These services include:
• Job listings
• Computer and internet access
• Career counseling and training for job seekers
• Tax credits and training reimbursement for employers
• Recruitment of workers, pre-screening, and referral services
• Customers can choose either self-service or staff-assisted options to meet their employment needs.
Investment Tax Credits
The Opportunity Zones Program was enacted as part of the 2017 tax reform package to address uneven economic recovery and persistent lack of growth that have left many communities across the country behind.
In the broadest sense, the enacted federal Opportunity Zone Program provides a tax incentive for investors to reinvest unrealized capital gains into low-income urban and rural communities.
Investors receive tax incentives in the form of deferrals, reductions, and possible elimination of certain federal capital gains taxes.
The local areas approved as Opportunity Zone include the City of La Junta and contiguous lands:
Through the Enterprise Zone Investment Tax Credit Program, businesses can earn a state income tax credit for 3% of an investment in business personal property. New business personal property increases a company’s capacity. The taxes a business pays on these purchases far exceed all tax credits under the enterprise zone program.
Through the Colorado Enterprise Zone Program, a taxpayer can earn a state income tax credit for 1.5% of the price of new commercial trucks, truck tractors, tractors, semi-trailers, and associated parts registered in Colorado and used in an enterprise zone.
This tax credit encourages businesses to register new commercial vehicles in Colorado and pay Colorado licensing and registration fees.