Advanced Industry Investment Tax Credit

Advanced Industry Investment Tax Credit Program Summary The Advanced Industry Investment Tax Credit (AITC) encourages third-party investments in Colorado advanced industries businesses by incentivizing investors with state income tax credits. First, Colorado businesses in the advanced industry sectors apply to be certified as an advanced industry business. They then use that status to attract Colorado investors who can earn a state income tax credit by investing in certified advanced industry businesses. Investors can earn a tax credit of 25% of their investment up to a maximum $100,000 credit on an investment of $10,000 or more. If the advanced industries business is in a Colorado enterprise zone or rural county, investors can earn a state income tax credit of 35% of their investment. An investor can only earn a single tax credit per business, but individual investors can receive credits for investing in multiple certified businesses, and multiple investors can earn a credit for investing in the same business. OEDIT reviews the applications in the order they're received until $4,000,000 of credits have been awarded in a given calendar year (the pool of credits will be reduced to $2.5M starting in the calendar year of 2027). Once the credit pool is exhausted no more credits are awarded, so an investor is not guaranteed a tax credit when they make a qualified investment in a certified business. Please read the drop-down tabs below for important information on the application process for businesses and investors. To review the currently active companies, check out the Advanced Industry Investment Tax Credit Eligible Businesses (Google Sheets) . Overview Type:  Tax credit For:  Investors and advanced industries businesses Amount:  25% to 35% per investment up to $100,000 Application period:  Rolling (until funds are gone) OEDIT division: Business Funding and Incentives Expand All Tax credit rates by location Rates for tax credits vary depending on the property’s location. If the business receiving the investment operates in an enterprise zone  or rural county, the tax credit to the investor is 35% of the qualified investment, up to the $100,000 maximum allowable tax credit amount. The business needs to get their Enterprise Zone Pre-Certification number to qualify for enterprise zone status. Businesses can become pre-certified for free by applying through the OEDIT application portal . Location Rate Maximum allowable amount Standard 25% $100,000 Enterprise zone or rural county 35% $100,000 The following are considered rural counties for the Advanced Industry Investment Tax Credit program: Carson, La Blanco, Rio Juan, San Yuma. Business eligibility Business Qualification Requirements For a business to be a qualified investee in this tax credit program, it needs to: Be a other business entity (individuals do not qualify). Manufacture an advanced technology and influence one or more of Colorado’s advanced industries, which include advanced and natural resources, infrastructure engineering, and information technology. Have headquarters in Colorado or have at least 50% of employees based in Colorado. Be registered with the Colorado Secretary of State and in Good Standing. Have received less than $10 million from third-party investors since the business was formed.

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