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| LOCAL INCENTIVES |
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COUNTY & STATE INCENTIVES |
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FINANCIAL PROGRAMS |
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LOCAL INCENTIVES
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Sales and Use Tax Rebate
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Those
projects that make a minimum investment in new or
replacement plant and/or equipment/machinery during
the calendar year in which application is made for
incentives and that meet the criteria outlined in
Chapter 4.52 of the City code will qualify for a
sales and use tax rebate. See example below.
1.
Construction materials, fixed equipment and
machinery installation.
a) 100% waived on the first $500,000 in cost.
b) Above $500,000, $15,000 plus 1% per $100,000 of
cost including the first $500,000.
| Example: |
Building permit value |
$1,600,000 |
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Construction materials
cost |
800,000 |
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Sales & Use Tax @ 3.46% |
27,680 |
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Waiver |
(15,000) |
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$800,000/100,000 = 8 |
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8 x 1% = 8% x 27,680 = |
(2,214) |
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Sales & Use Tax Due |
$10,466 |
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c) $10,000,000 and above project, sales & use tax is
waived 100%. |
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2.
Equipment and machinery, research equipment, and
computer hardware not used for word processing. |
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a) 100% waived on the first $500,000 in cost
b) Above $500,000, $15,000 plus 1% per $100,000 of
cost including the first $500,000. (see example
above)
c) $10,000,000 and above project, sales & use tax is
waived 100%. |
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(Click here to view full requirements as defined in
City Ordinance 48, Section 1,4.52) |
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Development Fee Waiver |
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1.
Certain fees will be waived at the rate of $500 per
new full-time job created at or above the county's
annual average wage and who has an employee health
plan that is paid a minimum of fifty percent (50%)
by the employer.
2.
Fees waived cannot exceed fees required.
3.
Fees that are not eligible for the waiver include:
water and sewer plant investment fees, drainage fees
and transportation fees.
(Click
here to view full
requirements as defined in City Ordinance 48,
Section 1,4.52) |
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Personal Property Tax Incentive |
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Through enabling legislation (SB 118 & 182) counties and cities, on
a case-by-case basis, can negotiate a rebate of up to 50% of the
jurisdiction's levy on new taxable personal property, for up to ten
years. The property must be used in connection with the
operation of a qualifying new or expanded business facility and meet
all state guidelines. Weld County, Greeley and numerous towns
throughout the county have utilized this incentive.
(Click
here to view full requirements as
defined in City Ordinance 48, Section 1, 4.52) |
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Industrial
Water Bank |
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Most
water providers require the developer to supply raw
water in the form of water stock or cash to buy the
raw water needed for the development. At the
discretion of the staff, the
city may offer the industrial water bank water at a
discounted rate, which will in turn reduce the
company's raw water cost.
(See
joint resolution no. 52, 1998) |
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| FastTrack Permitting |
| Projects may qualify for the expediting of the
review process and/or approval schedules. In
this case, reviews are completed at the staff level.
The city prides itself in completing the plan
submittal reviews within a two-week time frame with
a 100% track record of successful review within
three weeks. |
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| Tax Increment Financing (TIF) |
| Greeley has several tax increment districts set
up to capture sales and property tax to be used
toward qualifying redevelopment within the respective
district. For additional information on this
incentive, please contact the Community Development
Department at 970-350-9802. |
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| Aviation Development Zone
(ADZ) |
| Qualifying aircraft parts manufacturers locating
or expanding at the Greeley/Weld County Airport are
eligible to claim a $1,200 state income tax credit
for each new full-time job created within the
Greeley/Weld County Airport Aviation Development
Zone. Companies must employ at least 10
full-time employees within the development zone to
be eligible and any unused earned credits may be
carried forward 5 years. |
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COUNTY & STATE INCENTIVES
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Personal Property Tax Incentive |
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Through enabling
legislation (SB 118 & 182) counties and cities, on a
case-by-case basis, can negotiate a rebate of up to
50% of the jurisdiction's levy on new taxable
personal property, for up to ten years. The
property must be used in connection with the
operation of a qualifying new or expanded business
facility and meet all state guidelines. Weld
County, Greeley and numerous towns throughout the
county have utilized this incentive.
(Click here to view full requirements as defined in
City Ordinance 48, Section 1,4.52) |
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Enterprise Zone Credits (EZ) |
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Companies that locate or expand within the physical
boundaries of the EZ are eligible to earn a variety
of state income tax credits based on their specific
activities primarily in equipment investment job
creation/training, research and development
activities, etc. Earned credits are applied to
the company's Colorado income tax liability.
Find out more.... |
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Colorado FIRST/Existing Industries Customized
Training Program |
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For qualifying new or
expanding primary sector companies, training grant
dollars are available from the state through this
program. Training grants are given to assist
with the cost of training new or retraining existing
employees. The total dollar amount will depend
upon the training required, but typically it is
about $800 per new job. The new jobs created
must be full-time and pay above minimum wage levels
for the industry and geographic area.
Companies must also provide a health care coverage
plan. At the appropriate time, a formal
application needs to be completed by Aims Community
College, which administers this program on behalf of
Weld County. |
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Colorado Performance-Based Job Creation Incentive |
| In an effort to support the creation of
increasingly better jobs in Colorado, funding has
been provided to the Economic Development Commission
(EDC) to incentivize primary sector business that
create a minimum of five new jobs in rural areas,
ten new jobs in urban areas, beyond the company's
previous 3-year FTE average. Companies may
apply for $1,000-$2,500 per qualifying new job based
upon the average company wage as a percentage of the
county average wage. New jobs must be created
and maintained for at least one year before applying
to the EDC for this incentive. |
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Community Development Block Grant Funds (CDBG) |
| Upstate Colorado Economic Development, covering
Weld County, provides infrastructure grant
application and implementation assistance to
eligible communities seeking federal CDBG dollars
for infrastructure projects. Contact
Upstate
Colorado for application and
additional information. |
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Energy Impact Infrastructure Funds |
| These state funds are available on a
case-by-case basis to qualifying projects within
qualifying counties. The grant dollars may be
utilized to help provide required public
infrastructure to encourage new business development
and expansion. A formal state application is
required. |
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FINANCIAL
| Greeley Community
Development Loan Fund (GCDF) |
| Upstate Colorado Economic Development, covering
Weld County, administers this loan fund to assist
with the financial needs of for-profit businesses
expanding/locating in Greeley. This pool of
monies is available to finance up to 45% of the
total company need up to $125,000. The GCDF
can take a second collateral position behind the
bank or SBA. Interest rates are negotiable
based on the national prime rate. A personal
guarantee is required and jobs must be created.
Contact
Upstate Colorado
for application and additional information. |
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Weld/Larimer Revolving Loan
Fund (RLF) |
| Upstate Colorado Economic Development, covering
Weld County, administers this loan fund to assist
with the financial needs of for-profit businesses
locating/expanding to rural Weld or Larimer County.
This pool of monies is available to finance up to
45% of the total company need up to $500,000.
The RLF can take a second or third collateral
position behind the bank or SBA. Interest
rates are negotiable based on the national prime
rate. A personal guarantee is required and
jobs must be created. Contact
Upstate Colorado
for application and additional information. |
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| Private Activity Bond
Financing (PAB) |
| PAB are tax-exempt bonds that can be issued for
several eligible purposes, including the
construction of manufacturing facilities.
Support of a local government jurisdiction and State
approval is required. As a general guideline,
project size should be between $3 million and $10
million. The State has established application
deadlines in January and August of each year. |
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| SBA (Small Business
Association) Financing |
| Numerous Greeley/Weld banks have experience with
the SBA programs summarized below: |
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| 7A Bank Loan Guarantee Program - The SBA can
guarantee loans for working capital, land purchases,
business expansion, and purchase of machinery,
equipment and building construction with loans up to
25 years. The program guarantees 85-90% of
qualifying bank loan to a small business. A
personal guarantee is required. |
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| 504 Loan Program - The program provides low
cost, long-term real estate and equipment loans for
eligible small businesses by financing up to 40% of
a project's cost through the sale of an SBA
guaranteed debenture. This program is
specifically designed for companies that have a
proven track record and are expanding. The
company typically puts in 10%, the bank does 50%
with a first collateral position, and the SBA
finances 40% at a fixed interest rate, taking a
second collateral position behind the bank. A
personal guarantee is required. |
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