El Paso County asks public to weigh in on Pikes Peak Enterprise Zone redesignation; input due May 15, 2025

El Paso County economic development analyst Sarah Lobato urged residents, businesses and nonprofit organizations to submit location-specific feedback by May 15, 2025, as part of a state-required redesignation of the Pikes Peak Enterprise Zone that will take effect Jan. 1, 2026.

The Pikes Peak Enterprise Zone is a place-based state program administered locally by El Paso County. Lobato, who serves as the Pikes Peak Enterprise Zone administrator for El Paso County, said the redesignation review is required by state statute and is intended to ensure zone boundaries continue to target economically distressed areas.

"Public feedback is very important in this process because El Paso County works closely with municipalities, businesses and community leaders to ensure the enterprise zone remains an effective economic development tool for the region," Lobato said.

Why it matters: Enterprise zones offer state income tax incentives to encourage private investment, hiring and charitable giving in designated areas. Lobato described two program arms: (1) a business tax-credit program for for‑profit employers that rewards specified activities such as equipment investment, hiring and job training, and (2) a contribution project program that provides state income tax credits to taxpayers who donate to approved nonprofits working in the zone.

Lobato emphasized the administrative requirement for businesses to pre‑certify before beginning eligible activities. "That precertification application is very important. If it's not completed, businesses cannot earn these very valuable tax credits," she said. She also summarized contribution-project credit rates as stated in the program: taxpayers may receive a state income tax credit equal to 25% of a monetary donation or 12.5% of an in‑kind donation to approved nonprofits in the enterprise zone.

Redesignation criteria and limits: Lobato said the Colorado Office of Economic Development and International Trade and the Colorado Economic Development Commission use U.S. Census and other data to confirm that proposed zone areas meet at least one economic‑distress criterion: (a) a high unemployment rate at least 25% above the state average, (b) per capita income less than 75% of the state average, or (c) for rural areas, a slow population growth rate less than 25% of the state average. She also noted a population cap for an enterprise zone area cited during the discussion (15,000 in urban areas such as the Pikes Peak Enterprise Zone; 150,000 in rural areas).

Timeline and how to participate: Lobato said county administrators are accepting public input through May 15, 2025, via the state's enterprise zone redesignation tool (the county office also posts guidance and maps on the El Paso County website). She outlined the next steps: enterprise zone administrators submit applications to the state in July 2025; the state and the Colorado Economic Development Commission review proposals in fall 2025; and the new boundaries, if approved, take effect Jan. 1, 2026.

Lobato also encouraged businesses to prepare by pre‑certifying for the 2026 tax year once the state finalizes boundaries, and invited nonprofits that may seek contribution‑project status to contact the county's economic development office to discuss potential applications.

Although Lobato said 2024 saw a 15% increase in the number of tax credits earned by businesses in El Paso and Teller counties, a dollar figure she referenced in the interview was not fully specified in the recording.

The county provided guidance for feedback that can include specific addresses, intersections, parcels or properties. Lobato said that public submissions help county staff and municipalities carve boundaries to focus incentives where they are most needed and to remain under statutory population limits.

Lobato concluded: "We really look forward to receiving the public's feedback and input with regard to enterprise zone areas that should be considered or not be considered as part of this process. So the sooner we receive that information the better and certainly being mindful of that 05/15/2025 deadline is very crucial to ensuring that information is taken into consideration."