Mayor Michael B. Hancock and the Office of Economic Development today launched a five-year Business Investment Program designed to support businesses that are investing in growth through capital investment and job creation.
The program includes a tax credit that is part of the significant service enhancements provided by the passage of Measure 2A in 2012. The tax credit will be awarded annually through 2017 to local businesses that make qualifying investments in business personal property; including machinery, equipment, furniture and other items related to commercial or industrial operations.
“Thanks to Denver voters, we are able to make smart, critical investments in the local businesses and neighborhoods that are investing in themselves, helping to grow our economy and create jobs even in these tough times,” Mayor Hancock said. “This program and tax credit will be an incentive to our businesses to continue growing, which in turn will strengthen our economy and move Denver forward. It’s just smart business.”
Businesses can apply for this credit in the amount of the Denver General Fund portion of their taxes on business personal property for up to four years, starting when the property is placed in service. As examples of potential benefits, a business that invests $1 million in a new piece of equipment for a manufacturing process can receive an estimated total of $12,000 in tax credits over a four-year period.
All Denver businesses that made significant capital investments through a business start-up or expansion are eligible to apply. Businesses established prior to 2012 must meet at least one of these growth requirements for 2012:
- Investment of at least $1 million in business expansion; or
- Increased investment by at least 100% of the prior business capital level; or
- Increase of at least 10 employees over the preceding 12-month average; or
- Increase of at least 10 percent in employment over the preceding 12-month average.
The Office of Economic Development is accepting and reviewing applications for the tax credit. The first application deadline, for businesses that made qualifying investments in business personal property put in service in 2012 is July 1, 2013.
“Our goal was to design this program to be as simple and easy to apply for as possible, so that business owners can focus on customers and continue to grow,” Paul Washington, Executive Director of the Denver Office of Economic Development said. “Business owners already compile and submit information annually for the city as it is, so this does not represent significant additional paperwork.”
For more information on the Business Investment Program, visit www.denvergov.org/InvestInDenver.
About Measure 2A
Thanks to Denver voters’ overwhelming support of Measure 2A in 2012, the city is equipped to eliminate its budget deficit, restore essential services and move Denver forward. The city’s plan to Deliver Denver's Future is made possible by these critical investments, and will allow Denver to deliver a smart, 21st century city that is built on a solid financial foundation with good jobs, healthy children, accessible libraries and safe streets.
The passage of Measure 2A allows the city to catch up on childcare, after-school and recreational programs for our children, repave 300 lane miles of city streets, and increase the maintenance and upkeep of our parks. It allows Denver to hire 100 new police officers and firefighters.
The city is working to double Denver’s property tax credit for low-income seniors and people with disabilities. Denver is also working to attract new businesses as well as keep and expand companies already located in the city.
Measure 2A revenues are publicly dedicated to these efforts. To deliver on the Hancock administration’s promise to be responsible, accountable and transparent with every dollar, the Chief Financial Officer will provide detailed annual reports to the Mayor’s Office, the City Council and City Auditor as well as an e-newsletter to keep Denverites fully informed.
At the same time, the city is delivering on a balanced fiscal strategy to find efficiencies, eliminate redundancies and grow Denver’s economy. CLICK HERE for more information about the city's plan to Deliver Denver's Future.