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LCityof <br />Louisville <br />ECONOMIC VITALITY COMMITTEE <br />COLORADO • SINCE 1878 <br />SUBJECT: ENTERPRISE ZONE UPDATE <br />DATE: MAY 8, 2025 <br />PRESENTED BY: VANESSA ZARATE, CECD, ECONOMIC VITALITY MANAGER <br />SUMMARY: <br />The Colorado Enterprise Zone was created by the Colorado legislature to encourage <br />development in economically distressed areas. There are 16 designated Enterprise <br />Zones, and areas in the zone qualify based on high unemployment rates, low per capita <br />income, or slow (declining) population growth. The Enterprise Zone program provides <br />state tax credits and sales/use tax exemptions for certain business actions taken within <br />the zone. <br />Tax Credits include: <br />• Job Training Tax Credit: 12% of eligible costs <br />• New Employee Tax Credit: $1,100 per net new employee <br />• Employer -Sponsored Health Insurance Tax Credit: $1,000 per net new employee <br />• Research and Development Tax Credit: 3% of an increase in research and <br />development expenses <br />• Vacant Commercial Building Rehabilitation Tax Credit: 25% of rehabilitation <br />costs (up to $50,000 in credits on $200,000 or more in costs) <br />• Commercial Vehicle Investment Tax Credit: 1.5% of purchase price <br />• Investment Tax Credit: 3% of business personal property investment <br />• Sales and Use Tax Exemption for Manufacturing and Mining. <br />Louisville is located in the North Metro Enterprise Zone, and the Longmont Economic <br />Development Partnership is our zone administrator. The state requires that we re- <br />evaluate and re -designate the zones every ten years. Previously, Louisville did not have <br />any qualifying census tracts. <br />This year, communities are re-evaluating the zone and based on preliminary data, the <br />majority of Louisville's commercial corridors now qualify based on a declining <br />population. <br />Economic Vitality Staff is working with all our counterparts in the North Metro Zone to <br />create and solidify our North Metro Zone application. We work together to submit <br />qualifying tracts because all the tracts in the zone combined cannot exceed a population <br />of 150,000. At the moment, we submitted all eligible tracts and are below the population <br />threshold. We should receive final data points over the summer and finalize our <br />