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Commercial Aeronautical Zone (CAZ)
As defined by City ordinance, the Sales and Use taxes from the City of Colorado Springs, El Paso County and Pikes Peak Rural Transportation Authority (PPRTA) are abated for businesses specifically engaged in a variety of aeronautical activities.
Exempt from sales or use tax under this City Tax Code:
How to apply for CAZ:
As defined by City ordinance, the Sales and Use taxes from the City of Colorado Springs, El Paso County and Pikes Peak Rural Transportation Authority (PPRTA) are abated for businesses specifically engaged in a variety of aeronautical activities.
Exempt from sales or use tax under this City Tax Code:
- The sale, purchase, lease, rental, use, storage, distribution or consumption any aircraft, aircraft parts or supplies, equipment, tooling, solvents and/or paints used or consumed in the manufacture, maintenance, repair or overhaul of aircraft within the commercial aeronautical zone.
- Purchase of lease equipment directly and exclusively used or consumed in the manufacture, maintenance, repair or overhaul of aircraft within the commercial aeronautical zone.
- Annually, El Paso County and PPRTA will provide a credit back to eligible businesses within the CAZ for the county’s 1% and PPRTA’s 1% general sales tax collected on the same items covered by the City’s exemption of 2.5%. The combined sales or use tax abatement to equal 4.5%.
How to apply for CAZ:
- Visit the Sales Tax Applications and Forms for more information or you may call the City Sales Tax Office at (719) 385-5903.
- Complete the CAZ Exemption Certificate Application.
- Submit to the City Sales Tax Office for approval.
- When approved by the City of Colorado Springs, you will be issued a Commercial Aeronautical Zone Certificate of Exemption that may be provided to any seller or supplier to exempt you from payment of City Sales Tax on qualifying purchases.
Aviation Development Zone (ADZ)
COS has recently been registered as an Aviation Development Zone (ADZ), a state program that is complimentary to the CAZ. In addition to the local sales and use tax abatement and rebate provided by the CAZ, the State’s ADZ provides a State income tax credit per each new employee of eligible aviation businesses located at the Airport.
How to apply for ADZ:
COS has recently been registered as an Aviation Development Zone (ADZ), a state program that is complimentary to the CAZ. In addition to the local sales and use tax abatement and rebate provided by the CAZ, the State’s ADZ provides a State income tax credit per each new employee of eligible aviation businesses located at the Airport.
How to apply for ADZ:
- Any company that claims a new employee credit must file Form DR 0085 "Aircraft Manufacturer New Employees Credit Progress Report" with the Department of Revenue and the OEDIT. (Form DR 0085)
- Learn more about Colorado's Aviation Development Zone Tax Credit.
- For more information, contact Simon Fox, Financial and Program Manager.
Foreign Trade Zone (FTZ)
Foreign Trade Zones (FTZ) are restricted access areas that are considered legally outside the U.S. Customs territory. Companies operating within an FTZ benefit from Federal statutes such as duty referral, duty reduction and duty avoidance. Merchandise is accepted in the FTZ without being subject to the extensive list of federal laws that would otherwise prohibit such importations. Personal property imported from outside the U.S. and held in the FTZ, or personal property produced in the U.S. and held in the FTZ are not subject to state and local ad valorem taxes.
Financial incentives for companies operating in an FTZ include, but are not limited to, the following:
Tammy Fields
Senior Vice President, Business Development
Colorado Springs Regional Business Alliance
tfields@springsbusinessalliance.com
Foreign Trade Zones (FTZ) are restricted access areas that are considered legally outside the U.S. Customs territory. Companies operating within an FTZ benefit from Federal statutes such as duty referral, duty reduction and duty avoidance. Merchandise is accepted in the FTZ without being subject to the extensive list of federal laws that would otherwise prohibit such importations. Personal property imported from outside the U.S. and held in the FTZ, or personal property produced in the U.S. and held in the FTZ are not subject to state and local ad valorem taxes.
Financial incentives for companies operating in an FTZ include, but are not limited to, the following:
- Companies only pay U.S. Customs Service duties when merchandise is shipped from the zone into U.S. Custom territory.
- No Customs duties are paid on merchandise exported from the zone.
- Companies do not pay Customs duties on the value of labor, overhead and profit attributed to production operations in a zone.
Tammy Fields
Senior Vice President, Business Development
Colorado Springs Regional Business Alliance
tfields@springsbusinessalliance.com
Enterprise Zone (EZ)
The Enterprise Zone program provides incentives for new and established businesses to locate and expand in economically distressed areas of the State. Businesses in the Enterprise Zone may save thousands of dollars on their Colorado income tax bill each year for any or all of the following:
How to apply:
Legislative changes to the Enterprise Zone Program that became effective in 2012 now requires pre-certification be obtained 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 easy and will ensure that your business can utilize the tax credits.
To pre-certify, go to the Colorado Office of Economic Development and International Trade Enterprise Zone site and simply click on the EZ Pre-certification and Certification link. An e-mail acknowledging receipt 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 on file as it will be needed to receive certification for credits.
The Enterprise Zone program provides incentives for new and established businesses to locate and expand in economically distressed areas of the State. Businesses in the Enterprise Zone may save thousands of dollars on their Colorado income tax bill each year for any or all of the following:
- Making capital investments
- Hiring new employees
- Providing training for employees
- Rehabilitating old buildings
- Conducting Research & Development
- El Paso County region
- Northern region of Colorado Springs Airport
- Southern region of Colorado Springs Airport
How to apply:
Legislative changes to the Enterprise Zone Program that became effective in 2012 now requires pre-certification be obtained 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 easy and will ensure that your business can utilize the tax credits.
To pre-certify, go to the Colorado Office of Economic Development and International Trade Enterprise Zone site and simply click on the EZ Pre-certification and Certification link. An e-mail acknowledging receipt 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 on file as it will be needed to receive certification for credits.