Colorado Rural Jump-Start Grant and Tax Credit Program
Colorado Office of Economic Development and International Trade (OEDIT)
Up to $20K + $2,500/new hire
Launch in rural CO, get grants + tax breaks
Colorado's Rural Jump-Start Program incentivizes NEW businesses to launch or relocate into rural, economically distressed counties by providing cash grants, per-hire grants, and multi-year income and property tax exemptions. New companies in designated zones get up to $20,000 in grants plus $2,500 per new hire (double in Tier 1 Just Transition counties). The program runs through 2028 (grants) and 2030 (tax benefits) and requires a local sponsoring entity relationship.
- Funding type
- Grant
- Level
- State
- Amount range
- $2,500 – $40,000
- Realistic amount
- A typical Rural Jump-Start business launching with 5–10 new hires in a standard zone receives $32,500–$45,000 in grants…
- Deadline
- Grants accepted through June 30, 2028; tax credits through December 31, 2030. Applications accepted on a rolling basis.
- Status
- active
- States
- CO
- Payment model
- milestone
Who qualifies
- Business must be NEW — must NOT be operating (selling a product or service) in Colorado at the time of application. Planning, fundraising, recruiting, filing formation documents, and R&D are acceptable pre-application activities.
- Business must be located in a designated Rural Jump-Start zone county
- Must NOT directly compete with another business in the same or adjacent economically distressed county
- Must export goods or services outside the county — the business's revenue must come from outside the zone
- Must form a Memorandum of Understanding with a local sponsoring entity (economic development organization, institute of higher education, or local government)
- Must plan to hire at least 5 qualified New Hires
- New Hires must be net new to the business and Colorado — not transferred employees
Hard requirements
- Must be incorporated
- Location restriction: Designated Rural Jump-Start zone county
- Requires creating at least 5 new jobs
What it covers
Eligible expenses
- Matching grant funds can be used for: business formation, operating expenses, equipment, rent, payroll for new hires
- Per-hire grants tied to verified employment of qualified New Hires
Ineligible expenses
- Funding for businesses already operating in Colorado at time of application
- Competing directly with existing businesses in the same or adjacent distressed county
- Transfer of existing Colorado employees — new hires must be net new to Colorado
How to apply
-
1
Confirm zone and contact sponsoring entity
Verify your target county is a designated Rural Jump-Start zone at oedit.colorado.gov. Contact the local economic development organization or institute of higher education to be your sponsoring entity. Negotiate an MOU outlining mutual goals and support.
-
2
Apply through OEDIT's SalesForce portal
Log into the OEDIT Application Portal (SalesForce). Complete the Rural Jump-Start application with the sponsoring entity's collaboration. Application includes business plan, hiring projections, zone location confirmation, and MOU.
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3
Receive Rural Jump-Start designation
OEDIT reviews the application. Once approved, the business receives official Rural Jump-Start designation, unlocking access to tax credits on Colorado income tax returns and the grant funds.
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4
Hire qualified New Hires and claim grant milestones
As you hire net new employees into the zone, submit documentation to OEDIT to release per-hire grant funds. The $20K–$40K establishment grant is tied to meeting initial milestones.
-
5
File for tax exemptions on annual state tax return
Use Form DR 0113 (Rural Jump-Start Zone Credit Schedule) to claim income tax exemptions on qualified New Hire wages. Report to county assessor to receive personal property tax abatements.
The 'must not be operating in CO' rule is strict but 'planning mode' is broadly allowed — fundraising, filing paperwork, and market research all qualify. The sponsoring entity relationship is the critical first step; don't apply without one.
Deadline & timing
OEDIT confirmed $630,000 in grant funding approved through June 30, 2028. Tax credits (income tax + property tax exemptions) available through January 1, 2031. Apply early — grant funds are allocated and may run out before the June 2028 program end.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.