A Grand Junction-based company has received a four-year extension under a state program offering tax incentives for creating jobs.
ProStar is the first company in the state to complete a four-year term and receive an extension under the Colorado Rural Jump-Start Program.
“Receiving the extension is of great significance as Jump-Start has been a major ingredient in our growth in terms of the recruitment and retention of employees,” said Page Tucker, president of chief executive officer of ProStar.
The Grand Junction Economic Partnership worked with the Colorado Office of Economic Development and International Trade on the extension. The Economic Development Commission approved the extension.
ProStar supplies computer software and related services to companies and government agencies to map and manage pipelines and other underground infrastructure.
The Colorado Rural Jump-Start Program creates zones in which eligible businesses are exempted from paying state and local taxes for up to eight years. Qualifying businesses are exempt from paying state income, use and sales taxes as well as county and municipal personal property taxes. In Mesa County, local government jurisdictions have offered additional incentives.
To participate, businesses must create a minimum of five net new jobs in the county in which they’re located and establish a relationship with an institution of higher education — Colorado Mesa University in Mesa County.
Newly enacted legislation extends the Colorado Rural Jump-Start Program for five more years as well as eases a requirement approved participants not conduct businesses that compete with existing companies in the state.
Since the program began in 2016, 18 companies in Mesa County have been approved for tax credits, of which 11 remain active. Pierce Corporation and Visual Globe recently were removed because they were unable to meet criteria to remain eligible.
“Participating counties have a cap on the total number of jobs that can be applied toward the tax credit. While it is disappointing to see any Mesa County companies removed from Jump-Start, it opens up the program for more local businesses by freeing up our cap,” said Steve Jozefczyk, deputy director of the Grand Junction Economic Partnership.