Incentives

State Incentives

The state of Colorado offers several incentive programs that are available throughout the seven-county Metro Denver region and the two-county Northern Colorado area.

Job Creation

The Strategic Fund and the Job Creation Performance Incentive Fund (PIF) provide performance-based incentive payments to qualifying companies that create net new jobs which pay above average wages. Jobs created must be maintained for at least one year and must pay more than 110 percent of the county average wage to qualify. Payments range from $1,500 to $5,000 per net new job.
The Tax Credit for Colorado Job Growth, passed in 2009, allows companies to apply to the Colorado Economic Development Commission for a state income tax credit based on the payroll tax cost they incur from creating new jobs. To qualify for the credit, companies must create at least 20 new jobs in urban areas or five new jobs in rural areas, and pay wages above the local average.

If approval is received, the company is then credited half of the amount it paid in federal Social Security and Medicare taxes on the jobs created, which in most cases is roughly 3.8 percent of each job's annual wage.

Training

The Colorado FIRST and Existing Industry training programs can be used to offset training costs other than the trainee’s salary for companies that are relocating to Colorado or existing companies that are undertaking a major expansion. Existing Industry training grants support Colorado companies implementing new technology to remain competitive and keep jobs in Colorado. Approved training is for transferable job skills that support both the company's economic competitiveness by re-training its workers in new skills, while enhancing the workers' resumes and long-term employment opportunities. Senate Bill 171, passed in 2009, allows companies to partner with a community college or other training provider to apply for a grant from this program in order to create a training program for an entire industry sector. Potential employees will be able to take part in these training programs before being hired by a company.

Project Assistance

The Colorado Economic Development Commission provides state funds for qualified projects. Funds may include grants, low interest, short-term loans, or an interest write-down on a loan. Each project is considered on a case-by-case basis using factors such as the number of jobs, salary levels, location, local participation, and resource availability.
Feasibility Study Grants - The planning and feasibility study grant program is designed to provide funding to determine the feasibility of a project or to plan for a project. Generally, funding may be provided up to $20,000 per study; however, this amount may vary based on a number of factors.
Bioscience Discovery Evaluation Grant Program - The grant fosters development and supports both new business development and quality jobs for Coloradans. Originally awarded to non-profits and research institutions, grants can now be made directly to companies developing new bioscience technologies through Early-Stage Bioscience Company grants.
Early-Stage Bioscience Company grants - These grants can award up to $250,000 and accessible to qualified companies whose technology is licensed from a qualified research institution. Grants will support the commercialization of therapeutic or diagnostic products, devices, or instruments to improve human health; bioscience technologies that improve agriculture; or biofuels.
Infrastructure - The infrastructure program utilizes federal funds from the U.S. Department of Housing and Urban Development to construct or improve infrastructure. To receive the grants, companies must demonstrate that the project will create or retain low- and moderate-income jobs.
Manufacturing - Tax exempt Colorado private activity bonds may be available for qualified manufacturing projects. Industrial development bonds up to $10 million may be available, based upon the credit worthiness of the business.
Renewable Energy - The U.S. Department of Energy (DOE) named Colorado among 15 states that will receive grant money for the development and transmission of renewable energy. Colorado’s $397,700 grant will help researchers, utilities, and policymakers explore ways to fully utilize the state’s renewable energy capacity. More specifically, the money will help add an additional 1,000 megawatts of renewable energy – enough for roughly 330,000 homes – to the state’s power grid. In exchange for the funds, grant recipients are required to submit policy recommendations focused on barriers to and incentives for renewable energy development.
Clean Energy Fund - New Energy Economy Development (NEED) Grant Program - The 2007 Colorado Legislature provided funding to the Governor’s Energy Office (GEO) for the purpose of creating the Clean Energy Fund. The Fund will provide revenue to advance energy efficiency and renewable energy throughout the state of Colorado through the NEED grant program. The NEED grant program is now accepting applications for a portion of $500,000 to fund applicants during this competitive cycle (NEED III).

Sales Tax Refund/Waiver

State Sales Tax Refund for Biotechnology - State sales and use taxes paid on the sale, storage, use, or consumption of tangible personal property to be used in Colorado directly and predominantly in research and development of biotechnology are refundable.

Tax Credits

Colorado Aircraft Manufacturer New Employee Tax Credit - Aircraft manufacturers located in a Colorado aviation development zone may qualify for a state income tax credit of $1,200 per new employee.
School-To-Careers Investment Tax Credit - Colorado taxpayers are allowed to claim a credit of 10 percent of their current year investment in a qualified school-to-career program that integrates school curriculum with job training and encourages placement of students in jobs or internships that will teach them new skills and improve their school performance.
Contaminated Land Redevelopment Income Tax Credit - An income tax credit for expenses associated with the redevelopment of contaminated land is available for qualified projects.
Colorado Innovation Investment Tax Credit (CIITC) - Provides an income tax credit for investing entities that make investments during calendar year 2010 in small, innovative Colorado companies that are involved in research and development or manufacturing of new technologies, processes, and/or products. The credit is equal to 15 percent of the investment up to a maximum tax credit of $20,000 per taxpayer ID. The maximum tax credit amount for the entire program for the 2010 tax year is $750,000.
Enterprise Zones - The Enterprise Zone Program provides tax credits for private enterprise to expand and for new businesses to locate in economically distressed areas of Colorado as designated by the Colorado Economic Development Commission (EDC). Businesses located in a zone may qualify for ten different Enterprise Zone Tax Credits and Incentives to encourage job creation and investment in Colorado. Additional information, maps, and contact information is available in the Enterprise Zone section of this Web site.
Qualifying Therapeutic Discovery Projects - A tax credit provided under new section 48D of the Internal Revenue Code (IRC), enacted as part of the Patient Protection and Affordable Care Act of 2010 (P.L. 111-148). The credit is a tax benefit targeted to therapeutic discovery projects that show a reasonable potential to: 1) Result in new therapies to treat areas of unmet medical need or prevent, detect or treat chronic or acute diseases and conditions, 2) Reduce the long-term growth of health care costs in the United States, or 3) Significantly advance the goal of curing cancer within 30 years.

Venture Capital

Certified Capital Companies Program (CAPCO) - The CAPCO program was created by the Colorado State Legislature in 2001 to provide venture capital funds to new and expanding small businesses throughout the state.
Colorado Venture Capital Authority (VCA) - The Colorado General Assembly passed legislation that established a Colorado Venture Capital Authority in 2004. The VCA makes seed and early-stage capital investments in businesses from $250,000 to $3.3 million.