C.R.S. § 39-30.5-101 Short title
39-30.5-101. Short title. This article shall be known and may be cited as the "Rural Jump-start Zone Act".
Rural Jump-start Zone Act
C.R.S. tit. 39, art. 30.5
in effectC.R.S. § 39-30.5-102 Legislative declaration
39-30.5-102. Legislative declaration. (1) The general assembly hereby finds and declares that:
(a) While overall there are improvements to the Colorado economy, there still exists a significant contraction of local economies in certain areas of the state;
(b) Importantly, those areas are experiencing increased economic downturn as measured by changes in such factors as population, employment, weekly wage, assessed value of all property, and concentration of pupils eligible for free lunch; and
(c) Colorado's many diverse aspects are what make it such a unique and wonderful state, with varying economic sectors and regions making its strength greater than the sum of its parts. It is imperative that all sectors of the state be kept independently strong and be given the chance to improve, prosper, and contribute to the whole, from which all benefit. The general assembly is committed to reaching out to all such areas to ensure this goal is met.
(2) The general assembly further finds and declares that:
(a) Establishing certain rural jump-start zones is best suited to bring about the economic vitality so critically needed in those regions;
(b) Extending the "Rural Jump-start Zone Act" for another five-year period is necessary to meet the purpose of the act, which is to create or retain jobs in order to help address the still significant contraction of local economies in certain areas of the state; and
(c) When the state auditor evaluates the tax expenditures in the "Rural Jump-start Zone Act" as required in section 39-21-305, the evaluation can rely on clear, relevant, and ascertainable metrics and data provided by the commission pursuant to section 39-30.5-107.
(3) The general assembly finds that, by attracting businesses that are completely new to Colorado, economic growth will occur in distressed counties without negatively impacting other areas of the state and, while certain taxes, such as business personal property taxes, will not be collected within the rural jump-start zone, the net impact of those uncollected taxes will result in a net positive impact to the state, the distressed county, and the interested municipality.
C.R.S. § 39-30.5-103 Definitions
39-30.5-103. Definitions. As used in this article 30.5, unless the context otherwise requires:
(1) "Colorado economic development commission" or "commission" means the Colorado economic development commission created in section 24-46-102, C.R.S.
(1.5) "Colorado office of economic development" or "office" means the Colorado office of economic development created in section 24-48.5-101.
(2) "Credit certificate" means a statement issued by the commission certifying that the new business or new hire qualifies for an income tax credit allowed in section 39-30.5-105. The credit certificate shall not specify the amount of the credit, but must specify that the new business or new hire is eligible for the credit.
(3) "Department" means the department of revenue.
(4) "Distressed county" means a county with a population of less than two hundred fifty thousand and that reflects indicators of economic distress such as:
(a) Per capita income that is substantially below the statewide average;
(b) Local gross domestic product or similar performance measures that are substantially below the statewide average over the preceding five-year period;
(c) Unemployment levels that are substantially above the statewide average over the preceding five-year period;
(d) A net loss of people of workforce age measured over the preceding five-year period, or a failure to recover from a loss over the preceding ten-year period; or
(e) A countywide concentration of pupils eligible for free lunch pursuant to the federal "Richard B. Russell National School Lunch Act", 42 U.S.C. sec. 1751 et seq., greater than the statewide average concentration of pupils eligible for free lunch.
(4.5) "Economic development organization" means a nonprofit organization or governmental entity such as a small business development center, a business accelerator or incubator, a workforce center, a local economic developer, or other such organization or entity that promotes local economic development, but does not include the commission or the office.
(5) "Guidelines" means the guidelines developed by the commission as specified in section 39-30.5-104 (1).
(6) "Municipality" means a municipality as defined in section 31-1-101 (6), C.R.S., with boundaries wholly or partly within the distressed county's boundaries.
(7) "New business" means a business that:
(a) Is not operating in the state at the time it submits its application to a state institution of higher education to participate in the rural jump-start zone program;
(b) Is not moving existing jobs into the rural jump-start zone from another area in the state;
(c) Hires at least five new hires; except that, in a county with a population of less than one hundred thousand, hires at least three new hires;
(d) Is not substantially similar in operation to and, at the time the new business submits its application to participate in the rural jump-start zone program, does not directly compete with the core function of a business that is operating in the rural jump-start zone in which the new business will be located and in a distressed county contiguous to the rural jump-start zone; and
(e) Adds to the economic base and exports goods and services outside the distressed county.
(8) "New hire" means an individual who has performed labor or services in the rural jump-start zone for the new business for more than six months from the date hired and for which such individual receives a federal form W-2 and where the job performed by the individual:
(a) Is either a full-time, wage-paying job or is equivalent to a full-time, wage-paying job requiring at least thirty-five hours per week; and
(b) Has a salary or compensation equal to or greater than the county average annual wage.
(9) "Rural jump-start zone" means an area within the boundaries of a distressed county that is either:
deral form W-2 and where the job performed by the individual:
(a) Is either a full-time, wage-paying job or is equivalent to a full-time, wage-paying job requiring at least thirty-five hours per week; and
(b) Has a salary or compensation equal to or greater than the county average annual wage.
(9) "Rural jump-start zone" means an area within the boundaries of a distressed county that is either:
(a) In one or more incorporated portions of the distressed county if the municipality provides the commission with a general resolution as described in section 39-30.5-106 agreeing to provide incentive payments, exemptions, or credits to offset the imposition of business personal property tax on and, if the municipality wishes, to offset the imposition of any other municipal tax on all new businesses in order to be a participant in the rural jump-start zone program;
(b) In one or more incorporated portions of the distressed county if the municipality provides the commission with a limited resolution as described in section 39-30.5-106 that indicates the municipality agrees to only provide incentive payments, exemptions, or credits to offset the imposition of business personal property tax on and, if the municipality wishes, to offset the imposition of any other municipal tax on a specific new business in order to be a limited participant in the rural jump-start zone program; or
(c) In the unincorporated portions of the distressed county.
(10) "Rural jump-start zone program" means the rural jump-start zone program created in this article.
(11) "State institution of higher education" means a state institution of higher education as defined in section 23-18-102 (10), C.R.S., a local district college, or an area technical college that:
(a) Has a campus located in the distressed county; or
(b) Includes a distressed county in the community college's service area or the regional education provider's service area.
(12) "Tier one transition community" means a coal transition community that is located in a rural jump-start zone and that the office, with the concurrence of the executive directors of the department of labor and employment and the department of local affairs, determines has already experienced or is at risk of experiencing significant economic disruption, the proximate cause of which is either the closure or conversion of a coal-fueled electrical power generating plant in Colorado or in a contiguous state or a sustained and likely permanent decline in broader coal markets due to similar closures or conversions nationally and globally.
C.R.S. § 39-30.5-104 Rural jump-start zone program requirements - commission - guidelines - definitions
39-30.5-104. Rural jump-start zone program requirements - commission - guidelines - definitions. (1) (a) The commission shall develop guidelines for the administration of the rural jump-start zone program created in this article 30.5, including, but not limited to:
(I) Application requirements, including application requirements for the grant program under section 39-30.5-105 (5) and subsections (7)(c) and (7)(d) of this section;
(II) Guidelines regarding the issuing of credit certificates and grants; and
(III) Guidelines concerning the process by which the commission will determine whether a new business is not substantially similar in operation to and does not directly compete with the core function of a business that is operating in the rural jump-start zone in which the new business will be located and in a distressed county contiguous to the rural jump-start zone at the time the new business submits its application to a state institution of higher education or an economic development organization to participate in the rural jump-start zone program.
(b) The guidelines must be posted on the Colorado office of economic development's website no later than December 1, 2015. All updated guidelines must be posted on the office's website no later than December 1 of any year in which the guidelines are updated.
(c) In developing the guidelines, the commission shall follow the policies of the Colorado commission on higher education regarding service areas and regional education providers.
(2) No later than December 1, 2015, the commission shall determine which of the state's counties are distressed counties. If a distressed county is interested in participating in the rural jump-start zone program, the distressed county shall provide the commission with a resolution described in section 39-30.5-106.
(3) Each distressed county shall retain its designation as a distressed county for three years from the date of the designation. After the three-year period, the commission shall review the designation. If the commission determines that the county is no longer distressed, the new business and the new hires retain the benefits specified in section 39-30.5-105 for the remaining portion of the four-year period outlined in that section, or the remaining extended period if the commission grants an extension of the period pursuant to section 39-30.5-105 (1)(a)(II), (2)(a)(II), or (3)(b).
(4) (a) A state institution of higher education or an economic development organization intending to participate in the rural jump-start zone program shall adopt a conflict of interest policy. The conflict of interest policy must provide that:
(I) A representative of the state institution of higher education or the economic development organization may not use the relationship between the state institution of higher education or the economic development organization and the new business as a means for inurement or private benefit to the representative of the state institution of higher education or the economic development organization, any relative of such representative, or any business interests of such representative;
(II) A person who engages in the business of selling goods or services to a state institution of higher education or to an economic development organization, an employee of such person, or a person with a business interest in such person's business shall not vote on or participate in the administration by the state institution of higher education or by the economic development organization of any transaction with such business; and
(III) (A) Upon becoming aware of an actual or potential conflict of interest, a representative of the state institution of higher education or the economic development organization shall advise the chief academic officers or executive director of the institution or the executive director of the economic development organization of the conflict.
anization of any transaction with such business; and
(III) (A) Upon becoming aware of an actual or potential conflict of interest, a representative of the state institution of higher education or the economic development organization shall advise the chief academic officers or executive director of the institution or the executive director of the economic development organization of the conflict.
(B) Each state institution of higher education and each economic development organization shall maintain a written record of all disclosures made pursuant to subsection (4)(a)(III)(A) of this section.
(C) By January 31, 2016, and by January 31 of each year thereafter, each state institution of higher education and each economic development organization shall provide the record maintained under subsection (4)(a)(III)(B) of this section to the commission.
(b) For the purposes of a conflict-of-interest policy developed under subsection (4)(a) of this section:
(I) "Business interest" means that a representative:
(A) Owns or controls ten percent or more of the stock of the entity; or
(B) Serves as an officer, director, or partner of the entity.
(II) "Relative" means any person living in the same household as the representative of the state institution of higher education or of the economic development organization, any person who is a direct descendant of the representative's grandparents, or the spouse of such representative.
(III) "Representative of the state institution of higher education or of the economic development organization" means any employee with decision-making authority over the rural jump-start zone program.
(4.5) An economic development organization intending to participate in the rural jump-start zone program must be approved by the commission as established in the commission's guidelines.
(5) A new business must apply to a state institution of higher education or an economic development organization to participate in a rural jump-start zone program. The state institution of higher education or economic development organization shall require the new business to provide documentation that the new business meets the definition of new business as specified in section 39-30.5-103 (7) and that the new hires will meet the definition of new hire as specified in section 39-30.5-103 (8). If the state institution of higher education or economic development organization approves the new business, then the state institution of higher education or economic development organization shall apply to the commission for the approval of a rural jump-start zone as specified in subsection (6) of this section and approval of the new business for the rural jump-start zone program benefits as specified in subsection (7) of this section.
(6) (a) Upon approving a new business as specified in subsection (5) of this section, the state institution of higher education or economic development organization shall submit a complete written application for approval for a rural jump-start zone to the commission by the deadline established in the commission's guidelines. The application must include:
(I) Either the identification of:
(A) The state institution of higher education and identification of either the distressed county in which a campus is located or the distressed county that is included in the community college's service area or the regional education provider's service area; or
(B) The economic development organization and identification of the distressed county in which the organization is located or serves;
(II) Identification of the new business and documentation indicating that requirements for the new business have been met, including an estimate of the number of new hires that the new business anticipates it will hire;
gional education provider's service area; or
(B) The economic development organization and identification of the distressed county in which the organization is located or serves;
(II) Identification of the new business and documentation indicating that requirements for the new business have been met, including an estimate of the number of new hires that the new business anticipates it will hire;
(III) Satisfactory documentation that there exists a relationship between the new business and the state institution of higher education or between the new business and the economic development organization. Such documentation must show that:
(A) The relationship will result in positive benefits to the community and the local economy; and
(B) The mission and activities of the new business align with or further either the academic mission of the state institution of higher education or the mission of the economic development organization.
(IV) Identification of the municipalities with boundaries wholly or partly within the distressed county's boundaries;
(V) A resolution as described in section 39-30.5-106 from each interested municipality;
(VI) A description of the rural jump-start zone boundaries; and
(VII) Any other information that the commission deems necessary as specified in the commission's guidelines.
(b) A state institution of higher education or economic development organization may also submit a complete written application for approval for a rural jump-start zone to the commission by the deadlines established in the commission's guidelines when such state institution of higher education or economic development organization has not yet approved a new business as specified in subsection (5) of this section. In this case, the application must include:
(I) (A) Identification of the state institution of higher education and identification of either the distressed county in which a campus is located or the distressed county that is included in the community college's service area or the regional education provider's service area; or
(B) Identification of the economic development organization and identification of the distressed county in which the organization is located or serves.
(II) Identification of the municipalities with boundaries wholly or partly within the distressed county's boundaries;
(III) A resolution as described in section 39-30.5-106 from each interested municipality;
(IV) A description of the rural jump-start zone boundaries; and
(V) Any other information that the commission deems necessary as specified in the commission's guidelines.
(7) (a) The commission shall, at a public meeting properly noticed, review each application for a rural jump-start zone submitted by a state institution of higher education or an economic development organization. Based on the application submitted and the commission's guidelines, the commission may approve the rural jump-start zone and may approve the new business for the rural jump-start zone program benefits specified in section 39-30.5-105; except that the commission may not approve more than three rural jump-start zones for the 2016 calendar year and may not approve any rural jump-start zones or approve any new businesses for the rural jump-start zone program benefits on and after January 1, 2031. The commission may only approve a new business for the rural jump-start zone program benefits if the commission is satisfied that the new business meets the definition of new business as specified in section 39-30.5-103 (7), that the new hires will meet the definition of new hire as specified in section 39-30.5-103 (8), and that the new business will be located in the rural jump-start zone for which the state institution of higher education or economic development organization sought approval.
he commission is satisfied that the new business meets the definition of new business as specified in section 39-30.5-103 (7), that the new hires will meet the definition of new hire as specified in section 39-30.5-103 (8), and that the new business will be located in the rural jump-start zone for which the state institution of higher education or economic development organization sought approval.
(b) (I) A new business that receives approval as specified in subsection (7)(a) of this section for the rural jump-start zone program benefits must submit a request for the issuance of a credit certificate by the deadlines established in the commission's guidelines. The request must include an estimated amount, as calculated by the new business, of the income tax credits for the new business and any new hires and the sales and use tax refunds allowed in section 39-30.5-105 and an estimated amount, as calculated by the new business, of incentive payments, exemptions, or refunds provided by local governments as specified in section 39-30.5-106.
(II) The office of economic development shall not issue more than a total of two hundred credit certificates in one income tax year for all new hires employed by all new businesses in each rural jump-start zone that receive approval as specified in subsection (7)(a) of this section; except that the office of economic development has the discretion to increase this limit to six hundred credit certificates if the new business is in one of the fourteen industries that the office of economic development targets for economic development in the state.
(III) If the benefit is for new hires, the commission shall provide the credit certificates for such new hires directly to the new business, and the new business shall provide a copy of the credit certificate to the new hire with their federal form W-2.
(IV) If the commission determines the new business or new hire no longer meets the requirements set forth in this article, the commission shall not issue credit certificates for the income tax credits allowed in section 39-30.5-105 (1) and (2) and shall not notify the department that the new business is eligible for the sales and use tax refund allowed in section 39-30.5-105 (3).
(c) (I) A new business that receives approval as specified in subsection (7)(a) of this section for the rural jump-start zone program benefits may be awarded grants, at the commission's discretion:
(A) For the establishment of operations in a rural jump-start zone; and
(B) For each new hire who meets the requirements of section 39-30.5-103 (8), and who is either hired by the new business upon establishing operations in a rural jump-start zone, or in the years after establishing operations in a rural jump-start zone; except that the grants allowed in this subsection (7)(c)(I)(B) must be calculated on an annual basis and may only be awarded one time for each new hire based on the new hire's federal form W-2.
(II) The commission may issue grants, subject to subsection (7)(c)(I) of this section and subject to available appropriations, as follows:
(A) Up to twenty thousand dollars to new businesses to establish operations;
(B) Up to forty thousand dollars to new businesses to establish operations in a tier one transition community;
(C) Up to two thousand five hundred dollars to new businesses for each new hire; or
(D) Up to five thousand dollars to new businesses for each new hire who is hired by the new business that is located in a tier one transition community.
(III) The commission may establish additional terms and conditions that it deems appropriate in awarding grants under this subsection (7)(c).
(IV) Grants allowed under this subsection (7)(c) may only be awarded to a new business if the new business meets the eligibility requirements for the tax benefits set forth in this article 30.5.
business that is located in a tier one transition community.
(III) The commission may establish additional terms and conditions that it deems appropriate in awarding grants under this subsection (7)(c).
(IV) Grants allowed under this subsection (7)(c) may only be awarded to a new business if the new business meets the eligibility requirements for the tax benefits set forth in this article 30.5.
(d) (I) The commission may issue grants, at the commission's discretion, subject to this subsection (7)(d), and subject to available appropriations, not to exceed thirty thousand dollars per applicant, to a state institution of higher education or an economic development organization that collaborates with a new business that received approval for the rural jump-start zone program benefits under subsection (7)(a) of this section, in order to support the new business in meeting the purposes outlined in subsection (7)(c) of this section.
(II) When considering whether to issue a grant to a state institution of higher education or an economic development organization, and when considering the size of the grant, the commission shall review:
(A) An applicant's real and demonstrated costs resulting from the collaboration with a new business;
(B) Other nonmonetary benefits afforded to the applicant in collaborating with a new business;
(C) The number of new businesses the applicant is currently collaborating with and likely to collaborate with in the future;
(D) Whether the grant will support workforce development and applied research projects being carried out by the state institution of higher education or the economic development organization in concert with new businesses; and
(E) Any other facts the commission deems necessary when considering the overall mission of the rural jump-start zone program and the role of the applicant in furthering that mission.
(III) The commission may establish additional terms and conditions that it deems appropriate in awarding grants under this subsection (7)(d), including the size of the grant.
(IV) Grants awarded under this subsection (7)(d) may only be awarded to a state institution of higher education or an economic development organization if the grant recipient meets the eligibility requirements set forth in this article 30.5.
(8) The commission may review a new business or new hire up to twelve months following the issuance of any credit certificates to ensure the requirements in this article are being met.
(9) The Colorado office of economic development may make recommendations to the commission regarding any of the commission's duties and responsibilities outlined in this article 30.5, may provide staff assistance to the commission, and may assist the commission in administering the provisions of this article 30.5.
C.R.S. § 39-30.5-105 Rural jump-start zone program benefits
39-30.5-105. Rural jump-start zone program benefits. (1) New business income tax credit.
(a) (I) If a new business locates in a rural jump-start zone during the income tax years commencing on or after January 1, 2016, but before January 1, 2031, and the commission has approved the new business for the rural jump-start zone program benefits as specified in section 39-30.5-104 (7)(a), then except as provided in subsection (1)(a)(II) of this section, the new business is entitled to receive an annual income tax credit in an amount equal to one hundred percent of the income taxes imposed by article 22 of this title 39 on the income derived from its activities in the rural jump-start zone for four consecutive income tax years beginning with the first income tax year designated by the commission in the first credit certificate. The commission shall conduct an annual review to verify that the new business continues to meet the requirements set forth in this article 30.5 and shall issue a credit certificate to the new business for every income tax year during the four-year period only if the commission is satisfied the requirements are being met.
(II) A new business may seek an extension of the four-year benefits period specified in subsection (1)(a)(I) of this section by completing a written application to the commission. The extension may not exceed an additional four years. The application for extension must include an explanation of the new business' need for the extension and any other information the commission deems necessary. In deciding whether to grant the extension, the commission must consider the state of the economy in the rural jump-start zone, the estimated demand for tax credits allowed in this section for other new businesses, and the importance of these credits in incentivizing the new business. The extension application must be considered at a regularly scheduled meeting of the commission where the public is allowed to comment.
(b) To claim the income tax credit allowed in this section, the new business shall attach a copy of the credit certificate to its state income tax return. No tax credit is allowed under this section unless the new business provides the copy of the credit certificate with its filed state income tax return.
(c) If a new business has income both from operations within the rural jump-start zone and operations outside of the rural jump-start zone, the new business shall apportion its income between the operations within and outside the rural jump-start zone in accordance with rules promulgated by the department in order to calculate the amount of income tax credit. Such rules shall calculate the value of the credit, as nearly as practicable, to be equal to the tax due on the income generated by the new business that relates to its activities in the rural jump-start zone on the basis of the new business' property and payroll in the rural jump-start zone relative to its property and payroll everywhere.
(d) The commission shall, in a sufficiently timely manner to allow the department to process returns claiming the income tax credits allowed by this section, provide the department with an electronic report of each new business that the commission approved for the rural jump-start zone program benefits as specified in section 39-30.5-104 (7)(a) for the preceding calendar year that includes the following information:
(I) The taxpayer's name; and
(II) The taxpayer's social security number or the taxpayer's Colorado account number and federal employer identification number.
t with an electronic report of each new business that the commission approved for the rural jump-start zone program benefits as specified in section 39-30.5-104 (7)(a) for the preceding calendar year that includes the following information:
(I) The taxpayer's name; and
(II) The taxpayer's social security number or the taxpayer's Colorado account number and federal employer identification number.
(e) If a new business receiving an income tax credit allowed in this subsection (1) is a partnership, limited liability company, S corporation, or similar pass-through entity, the commission shall issue credit certificates that allocate the credit among the new business' partners, shareholders, members, or other constituent entities in accordance with their ownership interests. The new business shall certify to the commission, and the commission shall provide to the department no later than the January 15 following each income tax year for which the new business is claiming a credit, the identity and ownership percentage, including such identifying information as the department may require, of each partner, shareholder, member, or other constituent entity of the new business.
(2) New hire income tax credit.
(a) (I) Except as provided in section 39-30.5-104 (7)(b)(II) and subsection (2)(a)(II) of this section, if a new hire is employed by a new business, and the commission has approved the new business for the rural jump-start zone program benefits as specified in section 39-30.5-104 (7)(a), for income tax years commencing on or after January 1, 2016, but before January 1, 2031, new hires are entitled to receive an income tax credit in an amount equal to one hundred percent of the income taxes imposed by article 22 of this title 39 on the new hire's wages paid by the new business for work performed in the rural jump-start zone for four consecutive income tax years beginning with the first income tax year in which the new hire is employed by the new business. The commission shall conduct an annual review to verify that the new hire and the new business continue to meet the requirements set forth in this article 30.5 and shall issue a credit certificate to the new business for each new hire for every income tax year during the four-year period only if the commission is satisfied the requirements are being met.
(II) A new business may seek an extension of the four-year benefits period specified in subsection (2)(a)(I) of this section by completing a written application to the commission. The extension may not exceed an additional four years. The application for extension must include an explanation of the new business' need for the extension and any other information the commission deems necessary. In deciding whether to grant the extension, the commission must consider the state of the economy in the rural jump-start zone, the estimated demand for tax credits allowed in this section for other new businesses, and the importance of these credits in incentivizing the new business. The extension application must be considered at a regularly scheduled meeting of the commission where the public is allowed to comment.
(b) To claim the income tax credit allowed in this section, the new hire shall attach a copy of the credit certificate to the new hire's state income tax return. No tax credit is allowed under this section unless the new hire provides the copy of the credit certificate with his or her filed state income tax return.
ularly scheduled meeting of the commission where the public is allowed to comment.
(b) To claim the income tax credit allowed in this section, the new hire shall attach a copy of the credit certificate to the new hire's state income tax return. No tax credit is allowed under this section unless the new hire provides the copy of the credit certificate with his or her filed state income tax return.
(c) The commission shall, in a sufficiently timely manner to allow the department to process returns claiming the credit allowed by this section, provide the department with an electronic report of each new hire receiving a credit certificate as allowed in this section for the preceding calendar year that includes the following information:
(I) The new hire's name; and
(II) The new hire's social security number.
(3) New business sales and use tax refund. (a) Each new business is eligible for a refund for all sales and use taxes imposed under parts 1 and 2 of article 26 of this title 39 on the purchase of all tangible personal property acquired by the new business and used exclusively within the rural jump-start zone. Except as provided in subsection (3)(b) of this section, the new business is eligible for the refund allowed in this subsection (3)(a) for four consecutive years beginning with the date the commission approved the new business for the rural jump-start zone program benefits as specified in section 39-30.5-104 (7)(a).
(b) A new business may seek an extension of the four-year period specified in subsection (3)(a) of this section by completing a written application to the commission. The extension may not exceed an additional four years. The application for extension must include an explanation of the new business' need for the extension and any other information the commission deems necessary. In deciding whether to grant the extension, the commission must consider the state of the economy in the rural jump-start zone, the estimated demand for sales and use tax refunds allowed in this section for other new businesses, and the importance of the refund in incentivizing the new business. The extension application must be considered at a regularly scheduled meeting of the commission where the public is allowed to comment.
(c) The commission shall provide the department with a list of every new business eligible for the sales and use tax refund allowed in this subsection (3).
(4) Restrictions on other credits. Notwithstanding any law to the contrary, if a new business claims the rural jump-start zone program benefits allowed in this section, the new business may not claim any other tax incentive that the new business is eligible for in this title as a result of establishing the new business in the state, including tax incentives for the new hires hired by the new business.
(5) Grant program. (a) There is hereby created in the office the rural jump-start zone grant program, referred to in this subsection (5) as the "grant program", to provide grants for new businesses in addition to the tax benefits set forth in this article 30.5, and to provide grants to state institutions of higher education or to economic development organizations.
(b) The office shall administer the grant program and the commission shall award grants, in accordance with this subsection (5) and section 39-30.5-104 (7)(c) and (7)(d). Subject to available appropriations, grants shall be paid out of the rural jump-start zone grant fund account in the Colorado economic development fund created in section 24-46-105 (7).
(c) The office shall issue guidelines to implement the grant program as specified in section 39-30.5-104 (1)(a).
C.R.S. § 39-30.5-106 Rural jump-start zone - local government requirements
39-30.5-106. Rural jump-start zone - local government requirements. (1) Before the commission may approve a rural jump-start zone as specified in section 39-30.5-104, the following must occur:
(a) An interested distressed county must adopt a resolution affirming that it will provide incentive payments, exemptions, or refunds, as appropriate, to new businesses to eliminate the business personal property tax imposed on all new businesses by the distressed county. The distressed county may adopt an additional resolution affirming that it chooses to provide incentive payments, exemptions, or refunds, as appropriate, to all new businesses to eliminate any other tax imposed on or paid by such new businesses in the distressed county.
(b) Interested municipalities within an interested distressed county must adopt either:
(I) A general resolution affirming that it will provide incentive payments, exemptions, or refunds, as appropriate, to all new businesses to eliminate the business personal property tax imposed on new businesses by the interested municipality. The interested municipality may adopt an additional resolution affirming that it chooses to provide incentive payments, exemptions, or refunds, as appropriate, to all new businesses to eliminate any other tax imposed on or paid by such new businesses in the interested municipality.
(II) A limited resolution affirming that it will provide incentive payments, exemptions, or refunds, as appropriate, to a specific new business to eliminate the business personal property tax imposed on the specific new business by the interested municipality. The interested municipality may adopt an additional resolution affirming that it chooses to provide incentive payments, exemptions, or refunds, as appropriate, to the specific business to eliminate any other tax imposed on or paid by the specific business in the interested municipality.
C.R.S. § 39-30.5-107 Rural jump-start zone reporting requirements
39-30.5-107. Rural jump-start zone reporting requirements. (1) The commission shall annually post on the Colorado office of economic development's website, and include in the commission's annual report required to be presented to the general assembly pursuant to section 24-46-104 (2), the following information regarding any rural jump-start zone program benefits allowed under this article 30.5:
(a) The distressed county and interested municipalities that make up each rural jump-start zone, the number of approved rural jump-start zones, the distribution of new businesses across rural jump-start zones, and the number of rural jump-start zones that have graduated from the rural jump-start zone program, including a comparison of such numbers before and after the rural jump-start program renewal in 2020;
(a.5) Information regarding the tier one transition communities that are a part of any rural jump-start zones;
(b) The state institution of higher education or economic development organization that submitted the application;
(c) The name, type, and active or inactive status of each approved new business, including whether the new business is in an advanced industry as defined in section 24-48.5-117 (2)(a), and a comparison of the total number of approved and active new businesses over time;
(d) Evidence of any ancillary economic development occurring in any rural jump-start zone as a result of the rural jump-start program;
(e) The tax year for which the first credit certificate is issued or the date the sales and use tax refund is authorized;
(f) The number of new hires hired and the number of individuals hired by a new business that do not meet the new hire definition specified in section 39-30.5-103 (8);
(g) The average salary or hourly wage of each new hire;
(h) An estimated amount, as calculated by the new business, of the income tax credits for the new business and any new hires and the sales and use tax refunds allowed in section 39-30.5-105, and an estimated amount, as calculated by the new business, of incentive payments, exemptions, or refunds provided by local governments as allowed in section 39-30.5-106;
(h.5) The types of grants, grant amounts, and information regarding grant recipients for all grants awarded under section 39-30.5-105 (5); and
(i) Any other economic benefits resulting from the rural jump-start zone program.
(2) Any new business located in a rural jump-start zone must submit an annual report to the commission in a form and at such time and with such information as prescribed by the commission in its guidelines. Such information shall be sufficient for the commission to monitor the continued eligibility of the new business and the new hires to continue to participate in the rural jump-start zone program and to receive the rural jump-start zone program benefits.
C.R.S. § 39-30.5-108 Severability
39-30.5-108. Severability. If any provision of this article or the application thereof to any person or circumstance is held invalid, such invalidity does not affect other provisions or applications of this article that can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.docxFetched: 10/6/2026