Colorado Office of Economic Development and International Trade

Enhanced Rural EZ (EREZ)

The designation of Enhanced Rural Enterprise Zones (EREZ) was authorized under C.R.S 39-30-103.2 to further support economically distressed rural counties. EREZ counties are in an Enterprise Zone and meet two of the following five criteria:

  1. County unemployment rate greater than 50% above state average.
  2. County per capita income less than 75% of state average.
  3. County population growth rate less than 25% of state average.
  4. Total non-residential assessed value ranks in lower half of all counties.
  5. County population less than 5,000.

The Enhanced Rural Enterprise Zone (EREZ) program provides greater financial incentives to businesses to promote and encourage new job creation in designated economically lagging rural Enterprise Zone counties.  Businesses that qualify for the $500 NBF Jobs Credit and are located in an EREZ, qualify for an additional $2,000 EREZ Jobs Credit. Businesses that qualify for the $500 NBF Ag Processing Credit, qualify for the $500 NBF Jobs Credit, and are located in an EREZ qualify for the additional $500 EREZ Ag Processing Credit and qualify for the additional $2,000 EREZ Jobs Credit. See below for the calculation and total for the two EREZ tax credits:



$500
+ $2,000
$2,500



NBF Jobs Credit
EREZ Jobs Credit
Total EREZ Job Credit

         

$500
$500
$500
+ $2,000
$3,500

NBF Ag Processing Credit
EREZ Ag Processing Credit
NBF Jobs Credit
EREZ Jobs Credit
Total EREZ Ag Processing Credit

The state promulgates a revised list of eligible counties every two years. When a county goes off the EREZ list, taxpayers who have future job creation plans in such a county may file a certification for an extension of up to five additional years to continue claiming EREZ credits on additional, planned job creation.

Enhanced Rural Enterprise Zone Counties

The following counties have been designated as Enhanced Rural Enterprise Zones by the Director of the Colorado Office of Economic Development, effective for calendar years 2009 and 2010:

Alamosa
Archuleta
Baca
Bent
Chaffee
Cheyenne
Conejos
Costilla
Crowley
Custer
Delta

Dolores
Fremont
Hinsdale
Huerfano
Jackson
Kiowa
Kit Carson
Lake
Lincoln
Logan
Mineral

Otero
Ouray
Phillips
Prowers
Rio Grande
Saguache
San Juan
Sedgwick
Washington

This list was promulgated November 29, 2008. Under the law, this list will be revised every two years.

For tax years beginning on or after January 1, 2003 through December 31, 2010, the above counties were also designated as Enhanced Rural Enterprise Zones with the following exceptions:

  • Las Animas County eligible 2003-04.
  • Yuma County eligible 2005-06.
  • Clear Creek, Moffat eligible 2007-08.
  • Chaffee, Rio Grande Counties not eligible in 2005-2006.
  • Kit Carson County not eligible prior to 2005.
  • Logan County not eligible prior to 2007.
  • Fremont County not eligible prior to 2009.

To download the 2009 Enhanced Rural Enterprise Zone Fact Sheet click here:

Enhanced Rural Enterprise Zone Fact Sheet pdf