PUEBLO—On Monday, Nov. 28 Pueblo City Council approved by resolution participation in the Colorado Rural Jump-Start Program for the City of Pueblo. The Rural Jump-Start Zone program based on Senate Bills 15-282 and 21-229 is a grant and tax relief program for new businesses to locate to a designated rural, economically distressed area of Colorado.
“The City of Pueblo is looking forward to participating in the Rural Jump-Start Program because of the added support this offers to our partners with PEDCO as they are attracting new businesses to Pueblo,” said Mayor of Pueblo Nick Gradisar. “I believe the grant and tax relief benefits are enticing and we look forward to building and supporting new business in our community.”
This program is administered by the Colorado Office of Economic Development and International Trade (OEDIT), the Colorado Economic Development Commission (EDC) and the Colorado Department of Revenue. To participate in this program, a county must be designated as economically distressed by the EDC. Once designated, the county must pass a resolution to offer tax relief and be approved by the EDC to participate in the program. Pueblo County Commissioners also approved this Rural Jump-State Zone program earlier in 2022.
The Rural Jump-Start program is a collaborative effort between economic development organizations, institutes of higher education, counties, municipalities, business and employees. The sponsoring entity is a key liaison between the public and private sectors in each county. Pueblo County has two sponsoring entities with Colorado State University Pueblo and Pueblo Community College.
The Rural Jump-Start program encourages new business and new hires within a city where the business does not compete with an already established business in the area. The program offers benefits such as grants up to $40,000 on a three to one reimbursement bases for business expenses, grant up to $5,000 per net new hire in the program, relief from state income taxes, relief from the state sales and use tax, relief from county and municipal business personal property tax and relief from personal state income taxes for the new hire. Additionally, grants are double that of a normal economically distressed county because Pueblo County is a tier 1 Just Transition Community.
Under the resolution, the City of Pueblo agrees to provide incentive payments, exemption or refunds, as appropriate for 100% of the municipal business personal property tax imposed on all new businesses that are approved by the Colorado Economic Development Commission to participate in the Rural Jump Start program. This is with the understanding that such tax relief is limited by state statute to eight years for each new business.