Region 10 Can Help You Take a Break—a Tax Break!
REGIONAL—Tired of paying higher and higher taxes? There may not be a cure for what ails you, but Region 10 can help ease the burden with some exciting savings strategies.
One rewarding way to save money on your taxes is to make a contribution to an approved Enterprise Zone Contribution Project. These projects are pre-approved by the state so that donors who qualify can obtain a Colorado state tax credit.
“When I started at Region 10, there were just four approved projects,” recalls Region 10 Enterprise Zone Administrator Rhona Keckler. “Today, there are 34 contribution projects receiving a total of $2.6 million in donations, and $600,000 in tax credits—that’s a lot of tax credits. And as the word has gotten out, more and more organizations are asking to become projects, because it really helps them generate donations.”
Keckler has worked hard over the years to educate financial professionals throughout Region 10’s six-county territory (Montrose, Delta, Ouray, San Miguel, Gunnison, Hinsdale), who in turn educate their clients about the benefits of donating to approved Enterprise Zone Contribution Projects and about Business Tax Credits for new and expanding businesses within the Enterprise Zone, which can claim state tax credits for investing in their own startup companies or expanding existing businesses, Keckler said.
“We want everyone to know about this,” Keckler said. “Every new business has cash flow issues, and this is when you are buying equipment and hiring employees. These tax credits get your business off to a good start and help it develop in a healthy way.”
Keckler also advises that there are changes to the law that take effect in 2014; the credit for each new, qualified employee hired for a new business is raised to $1,100 beginning tax year 2014; the credit for employer sponsored health insurance is being raised to $1,000 beginning in 2014, and the Enterprise Zone Investment Tax Credit limit will be raised to $750,000, beginning tax year 2014, though credits above the limit may be carried forward for fourteen years. The Economic Development Commission has the authority to waive the limit.
Those investing in a qualified job training program will able to claim a tax credit on 12 percent of their investment beginning in tax year 2014.
Credits carried forward from tax years prior to 2014 are exempt from the $750,000 limit.