Pikes Peak Enterprise Zone

El Paso County and Teller County are dedicated to helping local businesses and organizations thrive! Through the Pikes Peak Enterprise Zone, we are working to improve the local business climate; facilitate growth in the quantity and quality of employment opportunities; respond effectively to local business expansion opportunities and constraints; develop and sustain increased rates of business investment and job creation; foster strong partnerships with citizens, businesses and non-profits; and provide numerous additional opportunities through tax savings.

Enterprise Zone (EZ) State Income Tax Credits:

The Enterprise Zone Program is a state income tax credit incentive which encourages new and established businesses to locate and expand in economically distressed areas of the state. The following incentives can be earned by businesses located within the geographical boundaries of the Pikes Peak Enterprise Zone.

Investment Tax Credit: Businesses making investments in equipment used exclusively within the Enterprise Zone for at least one year may claim a credit against their Colorado income taxes equal to 3% of the amount of the investment. Excess credits may be carried forward up to fourteen (14) years and pre-certification is required.

Commercial Vehicle Investment Tax Credit: Businesses that invest in commercial trucks, truck tractors, tractors, or semitrailers, and associated parts may earn the taxpayer a 1.5% credit if registered in Colorado and based and used predominantly in an Enterprise Zone for the first twelve months following purchase. Commercial Vehicle Investment Tax Credit Pre-Certification Application

Job Training Tax Credit: Employers who carry out a qualified job training program for their Enterprise Zone employees may now claim an income tax credit of 12% of their eligible training investment. On the job training is not a qualified job training program. Excess credits may be carried forward for up to fourteen (14) years and pre-certification is required.

New Employee Credit: Businesses hiring new employees in an Enterprise Zone may claim a state income tax credit of $1,100 for each net new employee. Excess credits may be carried forward for up to five (5) years and pre-certification is required.

Employer Sponsored Health Insurance Credit: Businesses may qualify for a credit of $1,000 for each employee who is insured under a health insurance plan or program provided by the employer. The employer must contribute 50% or more of the total cost of the plan. The business may only claim this credit for the first two years in the Enterprise Zone. Excess credits may be carried forward for up to five (5) years and pre-certification is required.

Research and Development Tax Credit: Businesses involved in private expenditures on research and development activities in the Enterprise Zone qualify for an income tax credit. This credit equals 3% of the amount of the increase in the taxpayer’s research and development expenditures within the Enterprise Zone for the current tax year above the average of research and development expenditures within the Enterprise Zone during the previous two tax years. The total amount of the credit must be divided equally over a four-year period. Qualified research must satisfy three criteria: it must be technological in nature, it must be useful in the development of a new or improved product or component of the business, and it must utilize the process of experimentation. There is no limit on the number of years excess credits may be carried forward; pre-certification is required.

Vacant Building Rehabilitation Credit: There is a credit of 25% of rehabilitation costs, up to a maximum credit of $50,000 per building, to rehabilitate commercial buildings that are at least 20 years old and which have been completely vacant for at least two years. Qualified expenditures includes exterior, structural, mechanical, and electrical improvements. Excess credits may be carried forward five (5) years and pre-certification is required.

Contribution Credit: Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs by supporting local economic improvements, resulting in job creation/retention and business expansion. Colorado taxpayers may earn a 25% state income tax credit by contributing to targeted efforts. Excess credits may be carried forward five (5) years. Learn more.

Sales and Use Tax Exemption: Purchases of manufacturing machinery and machine tools, parts, and materials used in machinery and machine tools used in the Enterprise Zone are exempt from the 2.9% State and 1.23% County sales and use tax.

For business located within the Enterprise Zone, the statewide sales and use tax exemption for purchases of manufacturing equipment is expanded to include non-capitalized equipment, parts, and tools to repair machinery. Also, machinery and machine tools used directly in the mining process qualify for the tax exemption. To claim this tax credit, complete form DR 1191 or DR 1192 through the Colorado Department of Revenue.

Please refer to Colorado Department of Revenue’s Enterprise Zone Income Tax Credit Guide for additional tax credit information and eligibility requirements.

Pikes Peak EZ Economic Development Goals:

  • Support business opportunities – and increase the number of out-of-area visitors to EZ contribution projects – that promote the region’s heritage, unique cultures, scenic beauty, wildlife, arts, sporting activities, and other tourism opportunities.
  • Support and encourage increased employment opportunities by partnering with economic development focused agencies and businesses in marketing, recruitment, and training efforts, resulting in new or increased job opportunities within the EZ.
  • In partnership with community stakeholders, support the revitalization of existing business districts through rehabilitation and business expansion.
  • Support Workforce Housing Capital Campaigns and Homeless Housing and Employment Services Operations, promoting a variety of housing and job opportunities in the region, resulting in an increase of successful housing outcomes and job placements.

Enterprise Zone Annual Pre-Certification and Certification

Legislative changes to the Enterprise Zone Program became effective in 2012 that now require pre-certification be completed annually for activities that will earn business tax credits. Additionally, pre-certification must be completed prior to beginning an activity to earn any of the business tax credits. Electronic pre-certification is simple and will ensure that your business can utilize the tax credits.

Please note, there is no ability to pre-date a pre-certification application. For each business income tax year, the business’s eligibility to claim EZ credits is from the point of approved pre-certification or the start of the income tax year, whichever is later, through the end of the business’ income tax year.


Please visit Colorado’s Office of Economic Development and International Trade’s Enterprise Zone page and simply click on the “Apply for a tax credit” button to begin the pre-certification process. If you are a new user, the State’s system administrator will need to approve your credentials setup request before you can complete the pre-certification process. Please note that this approval may take up to 48hrs. Please check back into the portal to confirm activation as you will not receive an approval email from the State.

An e-mail acknowledging receipt and submission of the pre-certification will be sent back to the tax preparer listed, and an additional e-mail will be sent either approving or denying that pre-certification. Please retain that approval e-mail in your records as it will be needed to receive certification for credits. Pre-certification can be completed up to three months in advance of the business’ tax year start date and is approved or denied by the EZ Administrator. Pre-certify each business location separately as credits are only available for business activity in an Enterprise Zone.

Enter an address in the “Interactive Enterprise Zone Map” to learn if your business is located within the Enterprise Zone geographical boundaries.


A business having pre-certified, and then conducted activities that are eligible for EZ credits, must then complete a certification application and receive approval from the EZ Administrator. Certification documents must be submitted with your Colorado income tax filing. The Certification document from the online application system takes the place of Department of Revenue forms DR0074, DR0076 and DR0077.

Pikes Peak Enterprise Zone Maps

Detailed maps of the Pikes Peak Enterprise Zone boundaries can be found below. To confirm whether your business is located in the Enterprise Zone geographical boundaries, please contact Sara Lobato or visit the State’s website and enter the business address in the Interactive Enterprise Zone Map.

Contact us:

Sara Lobato
Pikes Peak Enterprise Zone Administrator
9 E. Vermijo Ave.
Colorado Springs, CO 80903
Phone: 719-520-6480