Louisville has approved amending its business assistance program so that new businesses or businesses looking to relocate to the city get help with large up-front costs.

In 2007, the city started the Tax and Fee Business Assistance Program, to which businesses such as Ironton Distillery — which plans to reopen in Louisville in 2026, — and Snarf’s Sandwiches have applied. Benefits of the program generally include rebates on building permit fees and construction use taxes.

During its meeting Tuesday, the council approved the enhanced assistance for capital-intensive businesses. A capital-intensive business is one that requires a large amount of upfront investment in fixed assets, according to City Attorney Kathleen Kelly.

Vanessa Zarate, the city’s economic vitality manager, said the enhanced assistance part of the Business Assistance Program will provide a full rebate on the 3% sales and use tax paid on software, machinery, machinery tools, among other things. Only businesses that are looking to open in Louisville, relocate to the city or are expanding in Louisville qualify for the program. The business also has to meet other criteria to qualify. The enhanced assistance will most likely, Zarete said, be for a large one-time expense as the business looks to open.

She said the rebate allows Louisville to remain competitive.

“Part of this enhanced assistance was to even the playing field for businesses that end up having to pay something in Louisville that they don’t in other communities,” Zarete said.

The program only provides rebates, and no other upfront incentives.

Councilmember Dietrich Hoefner raised concerns about the initial language of the enhanced assistance rebate. The initial amendment would have only applied to Boulder County Targeted Industries, as named by the Boulder Economic Council, or industries that have been identified as providing significant economic benefits and high-paying employment opportunities. The industries are aerospace, bioscience, cleantech, IT and software, natural products and outdoor recreation.

Dietrich said only having the rebate available for certain industries could inadvertently leave out certain businesses.

“I just don’t want to pre-judge that these are the only five industries that matter to us,” Hoefner said.

Zarete said the city can advertise the program to all industries, but the rebate would affect businesses differently. For example, she said a 3% sales and use tax rebate on a $1,000 piece of equipment would be far different than the rebate on a $100,000 piece of equipment. But she does not anticipate a burden on staff if the rebate opens to all industries.

Councilmember Caleb Dickinson was absent from the meeting.