There are several economic incentives available to an expanding or relocating business within Logan County. The State of Colorado offers job creation grants, job training grants, business loans, tax credits, and other economic development stimulus. The local communities within Logan County and Logan County also are willing to provide economic incentives to expanding or relocating businesses, each handled on a case-by-case basis. The cities and Logan County can negotiate tax rebates, infrastructure improvements, and other financing to stimulate job creation and capital improvement.
State of Colorado
Economic Development - Job Creation Grants
Business incentive funds are available for businesses that commit to meet certain job creation requirements (for businesses with significant state or regional impact, retained jobs may be considered). The Economic Development Commission reviews and approves all requests for funding. Incentives vary based upon a number of factors; however, requests generally range between $1,000-$3,000 per each full-time job created.
Job Training Grant Funds
Through the Colorado FIRST Program (targeted to new jobs being created that need training) and the Existing Industry Program (targeted to existing jobs that need retraining for the business to remain competitive), the state has funds available to assist with employee training for specific businesses. Generally, up to $800 per employee trained may be provided.
Venture Capital
The State of Colorado has provided two venture capital funding models - Certified Capital Companies and the Venture Capital Authority. The state has 6 Certified Capital Companies that make loans and provide equity to Colorado businesses. The Certified Capital Companies are independently operated and generally make funding decisions. The Venture Capital Authority will provide seed- and early-stage capital to Colorado based businesses. The Venture Capital Authority is closely monitored by the Economic Development Commission.
Enterprise Zone Tax Credits
Logan County is designated as a Colorado Enterprise Zone, allowing qualifying businesses to take advantage of several tax credits.
Three Percent Investment Tax Credit
Businesses making investments in equipment used exclusively in an enterprise zone which would have qualified for the pre-1986 federal investment tax credit may claim a credit against their Colorado income taxes equal to three percent of the amount of the investment, subject to limitations on the amount which can be claimed in any one year. Investment which results from an in-state relocation is not eligible for the credit unless the new location qualifies as an expansion. Excess credits may be carried back three years and forward twelve.
$500 Job Tax Credit
Businesses hiring new employees in connection with a "new business facility" located in an enterprise zone may claim a tax credit against state income taxes of $500 for each such employee. An expansion of an existing facility may be considered a "new business facility" if the expansion adds at least 10 employees or a 10 percent increase over the previous annual average, if it is at least $1 million in investment, or, if less, at least doubles the original investment in the facility. The credit may be taken in subsequent years of the enterprise zone for each additional employee above the maximum number employed in any prior tax year. Excess credits may be carried forward five years.
Double Job Tax Credit for Agricultural Processing
An additional credit of $500 per new business facility employee may be claimed by businesses which add value to agricultural commodities through manufacturing or processing.
$200 Job Tax Credit for Employer Health Insurance
In order to encourage employer-sponsored health insurance plans, a taxpayer with a qualifying new business facility is allowed a two-year $200 tax credit for each new business facility employee who is insured under a qualifying employer-sponsored health insurance program.
R & D Tax Credit
Taxpayers who make private expenditures on research and experimental activities (as defined in federal tax law) conducted in an enterprise zone qualify for an income tax credit. This credit equals three percent of the amount of the increase in the taxpayer's R & D expenditures within the zone for the current tax year above the average of R&D expenditures within the zone area in the previous two years. No more than one fourth of the allowable credit may be taken in any one tax year.
Credit to Rehabilitate Vacant Buildings
Owners or tenants of commercial buildings in an enterprise zone which are at least 20 years old and which have been vacant for at least two years may claim a credit of 25 percent of the cost of rehabilitating each building. The credit is limited to $50,000.
Ten Percent Job Training Credit
Beginning in 1997 tax year, employers who carry out qualified job training program for their enterprise zone employees may claim an income tax credit of 10 percent of their eligible training costs.
Exemption from State Sales & Use Tax for Manufacturing & Mining Equipment
Manufacturing Machinery, Machine Tools; and Machine Parts are exempt from the three percent state sales and use tax statewide, regardless of where within the state the equipment is used.
When used solely within an enterprise zone this exemption may also be claimed for purchases of: Mining Equipment and Materials Used to Make Eligible Machinery. Eligible purchases used in an enterprise zone are exempt whether the purchases are capitalized or expensed for accounting purposes.
Local Government Tax Incentives
The cities and county are authorized to negotiate with individual taxpayers who have qualifying new business facilities (a) an incentive payment equal to not more than the amount of the increase in property tax liability over pre-enterprise zone levels; and (b) a refund of local sales and use taxes on purchases of equipment, machinery, machine tools, or supplies used in the taxpayer's business in the enterprise zone.
No formal incentive policy currently exists with the cities within Logan County or with Logan County, but each understands the value of investing for the future and considers each opportunity on a case-by-case basis. Logan County Economic Development Corporation can assist in the development of an economic impact analysis to include with an incentive request to show local governments the return on their investment in incentives.