Season 2, Episode 37 - Understanding the Impact of the Enterprise Zone

Understanding the Impact of the Enterprise Zone

 

In this edition of "Beyond the Dais," host Scott Anderson sat down with Sara Lobato, the Pikes Peak Enterprise Zone Administrator, to discuss the significant role the Enterprise Zone Program plays in fostering economic growth in El Paso County, Colorado. This program, designed to stimulate economic development in areas facing economic distress, offers a range of incentives to both businesses and nonprofits operating within specific zones.

The Mechanics of the Enterprise Zone Program:  The Enterprise Zone Program aims to assist businesses and nonprofits through two primary mechanisms: business tax credits and contribution projects. For businesses, these tax credits are available for various activities such as investing in new equipment, hiring additional staff, and conducting research and development. One key takeaway from the interview is the importance of pre-certification; businesses must apply for pre-certification before they start eligible activities to benefit from the tax credits.

On the nonprofit side, the Enterprise Zone Contribution Project allows donors who contribute to approved nonprofit projects within the zones to receive a state tax credit equal to 25% of their monetary donations. This incentive not only supports the nonprofits but also encourages community involvement and investment in local development initiatives.

Impact on Local Businesses and Community Projects:  Sara emphasized the transformative impact the Enterprise Zone Program has had on local businesses and community projects. For businesses, especially small enterprises, accessing these tax credits has allowed for expansion and growth that might not have been possible otherwise. They've been able to afford additional employees and expand operations, contributing to the overall economic health of the region.

For nonprofits, the ability to offer tax credits to donors has significantly boosted fundraising efforts, enabling them to undertake large-scale projects, including capital campaigns for new facilities. These projects not only improve the infrastructure of the area but also enhance the services available to the community.

Enterprise Zone Program During Economic Challenges:  The adaptability of the Enterprise Zone Program was particularly evident during the COVID-19 pandemic. The County introduced new initiatives to support businesses adversely affected by the pandemic. Grants and additional support were provided to ensure businesses could survive and adapt to the new economic landscape. This proactive approach underlines the program's role in economic development and resilience.

Getting Involved and Utilizing the Enterprise Zone Benefits:  For businesses or individuals interested in exploring the benefits of the Enterprise Zone Program, completing the pre-certification process is crucial. The process is straightforward and can be initiated through the Colorado Office of Economic Development and International Trade's website. For those looking to support or start a nonprofit, understanding the eligibility criteria for becoming a Contribution Project is key to accessing potential funding and support through tax credit incentives.

A Catalyst for Sustained Economic Growth:  The Enterprise Zone Program is a boon for businesses and nonprofits in El Paso County, offering a pathway to not only survive but thrive in challenging economic climates. As Sara Lobato explained, the overarching goal is to enhance the economic conditions of the region, creating a more dynamic and prosperous community for everyone.

Those interested in learning more about the program or seeking guidance on applications can reach out directly to Sara Lobato via email at saralobato@elpasoco.com, ensuring they receive personalized support tailored to their specific needs. For more information and resources, listeners and readers are encouraged to explore El Paso County Economic Development's website, which houses detailed information and additional learning tools.

Episodes like these not only shed light on critical economic development tools but also demonstrate the real-world impact these programs have on individuals and communities, reinforcing the value of staying informed and engaged with local government initiatives.