Enterprise Zone Sales and Use Tax Exemption (Manufacturing & Mining)
CO-EZ-MFGSUT · Colorado
Summary
Full Colorado state sales and use tax exemption on qualifying machinery, machine tools, and parts thereof when (a) used in Colorado, (b) cost >$500, (c) would qualify for the federal investment tax credit under §38 IRC, and (d) used directly and predominantly in manufacturing tangible personal property for sale or profit. Inside an Enterprise Zone the exemption is expanded to additionally cover (1) materials for construction or repair of machinery/machine tools, (2) extraction activities including refining, blasting, exploring, mining, mined-land reclamation, quarrying, processing, beneficiation, or otherwise extracting natural resources, and (3) both capitalized and expensed acquisitions. Excludes blasting caps, explosives, detonators, fuses, and cords.
Benefit
- Percentage
- —
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- none
- Program family
- —
- Effective
- —
- Sunset
- —
- Application deadline
- —
- Transfer discount
- —
Hard requirements (3)
- local_approval_requiredEZ administrator (one of 16 OEDIT-designated administrators) must pre-certify the qualifying activity (vehicle purchase / machinery purchase / building rehabilitation) before the credit or exemption is realizable. Pre-certification is location-based and renews annually.
- industry_keywordMarijuana / cannabis businesses do not qualify (federal-illegality bar). The OEDIT program page for each EZ credit explicitly enumerates this exclusion ("businesses in the marijuana industry do not qualify for this tax credit"). This is a source-grounded exclusion, not a modeling decomposition.
- min_investmentMachinery, machine tools, or parts must cost more than $500 to qualify for the SUT exemption (base CO requirement, also applies to the EZ-expanded version).
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (1)
- enterprise_zone — · Colorado Enterprise Zones (16 zones, OEDIT-designated)
Tags (3)
- reported_on_form: DR_1191_or_DR_1192
- requires_section_38_qualification: true
- sole_exclusive_ez_use_required: true