Rural Jump-Start (RJS) Operating Grants is a program from the Colorado Office of Economic Development and International Trade (OEDIT) that funds new businesses starting or relocating to rural, economically distressed counties in Colorado. The program combines matching grants with substantial tax incentives, including 100% relief on state income tax, state sales and use tax, and county and municipal personal property tax.

Businesses in designated Rural Jump-Start zones may receive a matching grant of up to $15,000, while those located in Tier 1 Just Transition communities (coal transition counties) may receive up to $25,000. Grant benefits are available through June 30, 2028. Eligible zones include Alamosa, Archuleta, Costilla, Delta, Dolores, Fremont, and other participating counties.

The Rural Jump-Start Program is a collaborative effort by the state, local governments, Institutes of Higher Education (IHE), and economic development organizations (EDO) to incentivize new businesses to start in or move to rural, economically distressed counties in Colorado, which are referred to as Rural Jump-Start zones, and hire new employees.

Rural Jump-Start began in 2016 as a tax incentive program for businesses located in a Rural Jump-Start zone, and in 2021 a grant program was created. If you are a business interested in participating in this program, please review all program qualifications, discussed in greater detail under the Business Eligibility section below, before applying.

* 100% relief of State income tax for the new business, in the form of a tax credit certificate; * 100% refund of State sales and use tax for the new business; * 100% relief of County personal property tax for the new business, in the form of an incentive payment, exemption or refund; * 100% relief of Municipal personal property tax for the new business (in participating municipalities), in the form of an incentive payment, exemption or refund; and * 100% relief of State income tax for qualified New Hires, in the form of a tax credit certificate.

Grant benefits are dependent on the business' location: * **If a business is located in a Rural-Jump Start zone**, businesses can receive a matching grant of up to $15,000 as a newly established business. * **If a business is located in a Rural-Jump Start zone that is also a****Tier 1 Just Transition community**, businesses can receive a matching grant of up to $25,000 as a newly established business.

The Rural Jump-Start Program will accept applications for the tax benefits through December 31, 2030 and for the grant benefits through June 30, 2028. ### [](https://oedit. colorado.

gov/rural-jump-start-program)Participating Rural Jump-Start Zones: Alamosa, Archuleta, Clear Creek, Costilla, Conejos, Costilla, Delta, Dolores, Fremont, Garfield, Huerfano, Kiowa, Kit Carson, La Plata, Lake, Las Animas, Lincoln, Logan, Mesa, Moffat, Montezuma, Montrose, Morgan, Otero, Phillips, Prowers, Pueblo, Rio Blanco, Rio Grande, Routt, Saguache, San Juan, Sedgwick, Washington and Yuma County.

### Tier 1 Just Transition Communities: Tier 1 Just Transition communities are diversifying away from coal-dependent economic development strategies and receive additional grant funding through Rural Jump-Start. Designated **Tier 1 Just Transition communities** are Moffat County, western Montrose County, Morgan County, Pueblo County, Rio Blanco County, and Routt County.

### Eligible Counties to form Rural Jump-Start Zones: The following counties are designated as economically distressed and are eligible to be Rural Jump-Start zones, but they have not yet applied to the program: Baca, Bent, Cheyenne, Crowley, Custer, Hinsdale, Jackson, Mineral, and Park. Check out more information below in the section “How to Become a Rural Jump-Start Zone.

” **Type:** Tax credit and grant program **For:**Businesses located in Rural Jump-Start zones located in economically distressed, rural counties, and committed to hiring new employees. **Amount:**State, County, and Municipal tax relief, plus reimbursable grants up to $15,000 or $ 25,000 per new business.

**Application deadline:** Rolling **OEDIT division:**Business Funding and Incentives **Image description:** Business testimonial highlighting that Colorado Sun Tofu was supported by the Rural Jump-Start program. Quote from Colorado Sun Tofu Co-Owner Lauren Roberts, “Our business focus is related to workforce development, Colorado-based manufacturing, and exporting, which were all aligned with what the Rural Jump-Start program offered."

To qualify for the Rural Jump-Start Program, new businesses must meet the following requirements: 1. **Not** be operating (selling a product or service) in Colorado at the time the business submits and application 1.

Eligible businesses may be planning, fundraising, recruiting, doing market research, preparing for production (designing/prototyping), filing business formation or registration, or manufacturing and testing a proof of concept, even if some revenue is associated with the activity. 2. Be located in a Rural Jump-Start zone; 3.

**Cannot**directly compete with the core function of another business that is operating in the applicant county or in any adjacent, economically distressed county 1. For example, a coffee shop would not qualify unless there were no other coffee shops in that county or any adjacent county 4. Export goods and services outside the county (bring in income from outside the county) 5.

Form a relationship with a program Sponsoring Entity to align missions and benefit the community 6. Adhere to the business plan submitted during application 7. Not be a sole proprietor 8.

Plan to hire at least three to five employees that meet the requirements for program New Hires by the 3rd full year in the program: The minimum hiring requirements for the Rural Jump-Start program are based on the population of the county where the business is located. The chart below outlines the required hiring timeline for businesses to follow: Employees must meet the following program requirements to be considered a New Hire: 1.

Earn at least the county’s average annual wage or higher; 2. Receive a W-2 from the business; 3. Be legally allowed to work in the United States; 4.

Be a resident of Colorado; 5. Be employed for at least six months with the business; 6. Be a full-time employee (work at least 35 hours per week); and 7.

Spend at least 80 percent of their non-travel time at a location inside the Rural Jump-Start zone (they do NOT have to live in the zone) Qualified New Hires receive 100 percent reimbursement of their State Income Tax. There are three steps that must be taken to become a Rural-Jump Start Business: 1.

Contact the sponsoring entity in your Rural Jump-Start zone to determine qualification and create a Memorandum of Understanding, outlining the relationship. 2. Go to the OEDIT Salesforce portal and login to your account or create a new one.

To protect your personal information, we manually add new users to the portal, so it may take several days to activate your account. 3. Collaborate with the sponsoring entity to complete and submit the Rural Jump-Start application in Salesforce.

Applications require the following documents: 1. Business Plan, including: 1. A description of customers and competitors, how your business adds to the economic base, and how the business plans to export goods/services outside the county; 2.

Pro-forma income statement for the next three years; 3. Income statements and balance sheets for the last three years, if applicable; 4. Total employee and New Hire forecast for the next five years; and 5.

Percentage of sales in Colorado, outside of Colorado, and outside the U.S. 2. Articles of incorporation or organization; and 3. Statement of Good Standing from the Colorado Secretary of State Upon submission, OEDIT staff complete a rigorous competitive analysis in the applicant’s county and adjacent, economically distressed counties.

During a one-month waiting period, an existing Colorado business in an applicant’s county or an adjacent, economically distressed county may challenge an application if it believes a company would directly compete with the existing company’s core function. If another business challenges an application, OEDIT staff review the challenge and make a decision as to whether or not to move forward with the application.

If there are no challenges to the application and the business passes the competitive analysis, it will be presented to the Economic Development Commission for final approval. The Economic Development Commission meets on the third Thursday of every month. OEDIT staff will analyze a company’s new hires each year after receiving Annual Reports.

If an Annual Report does not meet requirements, OEDIT staff will discuss the report with the business to ensure it is accurate. If a business does not meet the New Hire requirements, OEDIT staff will suspend Rural Jump-Start benefits for that year. The company will submit a plan for how the business will meet the requirements for the next year.

If a company is suspended, it can only be reinstated after a subsequent year’s Annual Report. If a business does not meet the requirements the next year, then it will lose Rural Jump-Start status. If this happens, the business must re-apply to the program with a new application.

### Eligibility for Other Tax Credits Businesses that receive benefits from the Rural Jump-Start program may not claim any other tax incentive for establishing the New Business, including tax incentives for the New Hires hired by the New Business. Such prohibited incentives include the Job Growth Tax Incentive Credit and the Enterprise Zone New Employee Credits and potential others.

Businesses that receive benefits from the Rural Jump-Start zone program may claim tax credits for programs that do not incentivize establishing New Businesses and hiring new employees.

For instance, a business receiving benefits from the Rural Jump-Start program may also utilize the Enterprise Zone Investment Tax Credit, the Historic Preservation Tax Credit, the Advanced Industry Accelerator Grant, etc. If you have an existing Colorado business and believe a Rural Jump-Start business applicant would directly compete with your company’s core function, you may challenge the application before the Colorado Economic Development Commission approves it.

To challenge a business application, please contact the program manager. ### Claiming Tax Benefits 1. **Businesses must submit an annual report.

** 1. Businesses are required to submit an annual report each year at the end of January, due in the OEDIT Salesforce portal(opens in new window). Typically, annual reports are due by the last day of January, for the previous year.

Your annual report will include information on business performance such as: 1. The number of employees, new hires, and owners; 2. The number of employees, new hires, and owners; 3.

Geographic areas of sales; 5. How you support the sponsoring entity’s mission. 2.

After reviewing a business’s annual report, OEDIT staff present all reports for approval to the Economic Development Commission. Once approved, tax certificates for the business, qualified New Hires, and owners will be sent to the business for distribution. 2.

**To claim the New Business State Income Tax Credit:** 1. Eligible businesses must submit the following documents with their state taxes: 1. Rural Jump-Start tax credit certificate 2.

Form DR 0113 - New Businesses must complete Sections A, B and C 3. **To claim the New Business State Sales & Use Refund:** 1. Form DR 0137B - New businesses must complete and file the form to claim a refund.

4. **To claim the New Business County and Municipal Business Personal Property Tax Relief:** 1. Contact your county or municipality for information about tax relief from county and municipal business personal property tax.

5. **To claim the New Hire State Income Tax Credit:** 1. Eligible New Hires must submit the following documents with their state taxes: 1.

Rural Jump-Start New Hire tax credit certificate 2. Form DR 0113 - Employees of a new business only need to complete Section D to claim the new hire income tax credit, and should leave line 11 blank. ### General Operating Matching Grant On January 16, 2025, the Colorado Economic Development Commission approved a continuation of funding for the RJS grant program through a re-allocation of Strategic Fund dollars.

This re-allocation provides $630,000 in grant funding, through June 30, 2028 or until all grant funds are awarded. **The following terms and conditions are approved for the RJS Grant program going forward:** 1. Operating grants will be up to $15,000 2.

Operating grants in Just Transition communities will be up to $25,000 3. The New Hire grant has been discontinued. 4.

New Businesses must submit their first invoice for grant reimbursement within 18 months of approval into the program by the EDC, otherwise grant funds will be re-captured. 5. New Businesses will be awarded the last $5,000 of their grant award after they have created and maintained a New Hire job for at least one year.

6. There is a cap of 3 new grant awards per county, which will be re-evaluated in January 2027. The Rural Jump-Start program matches a business’s operating expenses on a 3:1 or 25% basis, with a minimum reimbursement of $5,000.

For example, if a business spent $20,000 on business supplies, the program would match $5,000. The program will only match expenses made on or after the Economic Development Commission EDC’s approval of the business joining Rural Jump-Start. OEDIT cannot reimburse for expenses that occurred before the approval date.

Requests for reimbursement must be for reasonable business expenses such as, rent/mortgage, equipment, salaries, marketing, utility bills, etc. Reimbursements will not be allowed for tax-related expenses, late fees, or purchases that also benefit the owner personally. OEDIT staff reserves the right to deny reimbursements. Active Rural Jump-Start Businesses, as of December 2025.

Sponsoring entities include institutes of higher education (IHEs); two- and four-year public colleges in Colorado and certain specialty schools; and Economic Development Organizations (EDO). The Sponsoring Entity is a key liaison between the public and private sectors in each county. Every business which applies to the program must be endorsed by and apply through a Sponsoring Entity in their specific Rural Jump-Start Zone.

The following Sponsoring Entities have been identified for each Rural Jump-Start Zone: ### Application Materials In the application, the entity needs to prove that it: * Intends to actively execute in its role in the rural jump-start zone; * Has the resources to manage the program; and * Has designated a point person to work with businesses and our office.

* Adopt a conflict of interest policy and keep a written record of all conflict of interest disclosures; and * Provide disclosures for the last calendar year to the Colorado Economic Development Commission (EDC) by January 31 of each year.

The conflict of interest policy needs to state that: * A representative of the entity may not use the relationship between the entity and the business for the representative’s private benefit; * A person who sells goods or services to the entity, an employee of such person, or a person with a business interest in such person’s business shall not vote on or participate on behalf of the entity in any transaction with such business; and * If a representative of the entity is aware of any actual or potential conflict of interest, he or she shall advise the chief academic officers or executive director of the entity of the conflict.

After the sponsoring entity submits its application, the Economic Development Commission will review it at the next meeting, which is held on the third Thursday of every month. The Economic Development Commission will approve, deny, or defer the application. The sponsor entity will be notified of the decision.

Below is an overview of the four main steps a county/municipality must go through to become designated as a Rural Jump-Start zone.

**Step 1:** Receive designation as an economically distressed, rural county by the Colorado Economic Development Commission (EDC) **Step 2:** Pass County and Municipality Tax Relief Resolutions **Step 3:** Engage with a Sponsoring Entity **Step 4:** Apply in Salesforce to Become a Rural Jump-Start Zone Details for each of the four steps are explained in more depth below.

### Step 1: Receive designation as an economically distressed, rural county by the Colorado Economic Development Commission (EDC) An area will qualify as a Rural Jump-Start zone based on population and economically distressed measures, as explained below. * Population: the area needs to be in a county with a population of fewer than 250,000 people.

* Economic distress measures: Rural Jump-Start zones MUST meet at least three of these requirements: * Per capita income is at least 20% below the state average; * County-wide personal income is at least 20% below the state average; * Average unemployment level during the last five years is at least 20% above the state average; * During the past 5 to 10 years, the area lost population in the workforce age range; * Percent of students eligible for free school lunch is higher than the state average; * Designated as an Enhanced Rural Enterprise Zone; or * **Not**be in a metropolitan statistical area as defined by the U.S. Census Bureau.

The Economic Development Commission can approve an unlimited number of Rural Jump-Start zones. Each municipality can contain only one Rural Jump-Start zone. A zone may not be larger than a county.

Once the Economic Development Commission approves a Rural Jump-Start zone, the zone will exist until the county loses its economically distressed status. **The following counties are designated as economically distressed and are eligible to be Rural Jump-Start zones, but they have not yet applied to the program:** Baca, Bent, Cheyenne, Crowley, Custer, Hinsdale, Jackson, Mineral, and Park.

### Step 2: Pass County and Municipality Tax Relief Resolutions Counties and participating municipalities need to pass tax relief resolutions to become a Rural Jump-Start zone. The resolution needs to state that the jurisdiction will not impose a business personal property tax on new businesses in the program. Partial relief from business personal property tax does not qualify.

The jurisdiction needs to offer tax relief for up to eight years for each business. Jurisdictions may also adopt resolutions with incentive payments and other tax relief including credits, exemptions, and refunds. **Specifics for Municipalities** If a county participates in the program, municipalities are not automatically enrolled.

A county or sponsoring entity cannot force a municipality to participate in the Rural Jump-Start Program.

To be eligible for the Rural Jump-Start Program, a municipality must: * Be located in a rural, economically distressed county as designated by the Economic Development Commission (EDC) (the municipality itself does not need the designation); * Be located in a county that passed a Rural Jump-Start tax relief resolution that the Economic Development Commission (EDC) has approved; * Work with a sponsoring entity, which leads the application; and * Pass a resolution to participate in the program and waive the municipal business personal property tax for Rural Jump-Start participants.

Unlike counties, municipalities may limit resolutions to specific businesses. Municipalities may restrict resolutions to certain geographic areas of the municipality. ### Step 3: Engage with a Sponsoring Entity Counties and municipalities will need to work with a sponsor entity to establish a Rural Jump-Start zone.

Sponsoring entities are either: * An approved economic development organization; or * A designated institute of higher education. ### Step 4: Apply in Salesforce to Become a Rural Jump-Start Zone After the county and participating municipalities pass resolutions, the sponsoring entity can apply for Rural Jump-Start zone designation. A sponsoring entity must lead and submit the application online in the OEDIT Salesforce portal.

The sponsoring entity can submit an application at any time. Before applying, the sponsoring entity should know the boundaries of the zone, the participating municipalities, and any other relevant aspects of the zone.

The sponsor entity must include the following materials in the application: * List of all jurisdictions that have passed or are expected to pass tax relief resolutions; * Copies of the county and municipality(ies) tax relief resolutions; * List of all local government partners collaborating with the entity; * Description of the geographic boundaries of the zone; * Strategies to implement the Rural Jump-Start Program; and * Report of all businesses in the pipeline If the sponsoring entity wants to modify the zone by changing boundaries, adding or removing municipalities, the sponsoring entity needs to file a separate application through the OEDIT application portal.

After you submit your application, the EDC will review it at the next meeting, which is on the third Thursday of every month. The EDC will approve, deny, or defer the application. The sponsoring entity will be notified of the decision.