Colorado Enterprise Zone Boundaries Reevaluated, Dolores County Businesses Advised

Colorado will revisit the boundaries that determine eligibility for Enterprise Zone business tax credits in the 2026 cycle, a move that could reshape incentives for firms across Dolores County. The review covers the Southwest Enterprise Zone area, and Region 9 Economic Development has begun outreach to businesses in Southwest Colorado to outline how rezoning could affect eligibility, describe the potential for grandfathering, and advise on steps companies can take now.

Enterprise Zone tax credits are a state tool used to encourage job creation and investment in economically distressed or rural areas by lowering tax liabilities for qualifying businesses. When boundaries change, businesses that previously relied on those credits can see project returns, hiring plans, and investment timelines altered. Most of Dolores County has historically been included in the Southwest Enterprise Zone, so any significant boundary shift could have direct consequences for local employers and new ventures considering expansion.

Region 9 has communicated with businesses to raise awareness of the upcoming process and to explain options, including the possibility of grandfathering for businesses that have already made decisions based on the existing zone map. Grandfathering would allow certain firms to retain credits they planned on receiving prior to the boundary change, reducing the risk of abrupt financial disruption for projects already underway. The outreach is meant to help companies assess whether they might qualify under current rules, and to encourage early engagement with zone administrators if changes would affect planned investments.

For Dolores County residents and business owners, the policy review has several practical implications. Companies that depend on Enterprise Zone credits when calculating the return on new equipment purchases, facility upgrades, or additional hires may need to revise financial forecasts if eligibility shifts. Smaller family owned firms and startups with tight margins are most exposed, since state credits can tip marginal projects into viability. Local governments and workforce groups that track job creation could also see impacts if incentives are narrowed in the region.

Analytically, boundary reviews reflect a broader policy tension between targeting limited state resources to persistently distressed areas and recognizing areas that have recovered and may no longer need the same level of subsidy. Periodic rezoning aims to align credits with current economic conditions, but the transition can create uncertainty for investors. Policymakers can mitigate disruption through phased changes and grandfathering provisions, which preserve policy stability while recalibrating incentives.

Local business owners are encouraged to monitor the 2026 process and to contact zone administrators if they believe boundary changes would affect planned investments. Early inquiry and documentation of reliance on credits can be important if grandfathering or case by case exceptions are considered during the state review.