A number of tax credits available through the enterprise zone program may be useful to lawn and landscape companies.
Investment tax credit. Companies can claim a 3% credit for their business personal property. Credits for property that qualifies as a renewable energy investment, like biodiesel lawnmowers or solar chargers for equipment, can be carried forward for up to 22 years if they were put into service between Jan. 1, 2014, and Dec. 31, 2017. Credits for investments put into service between Jan. 1, 2015, and Dec. 31, 2020, can be claimed as an 80% refund.
Job training. Companies that implement a qualified job-training program for their employees in an enterprise zone may earn a credit of 12% of their eligible training costs.
New employee credit. When companies hire new employees, they can earn a state income tax credit of $1,100 for each net new employee they hire in an enterprise zone. If the enterprise zone is designated an “enhanced rural” zone, the credit increases to $2,000 per net new employee. While enterprise zones are re-evaluated every 10 years, enhanced rural zones are re-established every two years, so it’s worthwhile for companies to double check their eligibility for this credit.
Health insurance credit. For the first two years that a company does business in an enterprise zone, it can claim a credit of $1,000 per net new employee covered by a company insurance plan, if the company covers at least half of the cost.
Commercial vehicle investment credit. Certain trucks, trailers and tractors may be eligible for a 1.5% credit if they are primarily housed in an enterprise zone. The vehicle must be a Class A vehicle licensed and registered in Colorado, with a gross vehicle rating of 54,000 or more pounds. The vehicle must have been purchased new after July 1, 2011, and be a 2010 model year or later.
The enterprise zone program also offers credits for businesses that conduct research and development, and that redevelop commercial buildings.