CHIPS Refundable Tax Credit Program

CHIPS Refundable Tax Credit Program Program Summary Note: The Economic Development Commission provides approval and oversight of this program; program requirements and definitions are subject to change, and the EDC may require additional contingencies for projects upon approval. The CHIPS Refundable Tax Credits Program was created through House Bill 23-1260 to maximize incentives available to eligible semiconductor and advanced manufacturing industries in Colorado available from fiscal year 2023-24 through fiscal year 2028-29. Taxpayers engaged in semiconductor or advanced manufacturing industries as defined in statute may apply through the Colorado Office of Economic Development and International Trade to the Economic Development Commission (EDC), who is authorized to grant conditional refundable tax credits subject to the statutory requirements of the program. The total amount of all refund certificates approved by the EDC cannot exceed $15 million per fiscal year. The total amount of all refund certificates approved by the EDC for all fiscal years from July 1, 2023, through June 30, 2029, cannot exceed $75 million. The income tax credit types that may be the basis for such a refund are: Enterprise Zone credits for business personal property investments, commercial vehicles, job training, business facility employees, and expenditures for research and experimental activities; and The Colorado Job Growth Incentive Tax Credit Applicants that have applied, are applying, or will apply for federal funds under the CHIPS & Science Act must demonstrate that they are engaged or will engage in a project eligible for one of these income tax credits. The tax credits are performance-based and must be earned within 12 years of EDC approval. A taxpayer that holds a refund certificate may claim a refund of 80 percent of the income tax credit types listed on the refund certificate that are earned by the taxpayer during the twelve years following the EDC’s approval and are not used to offset the taxpayer’s state income taxes due. If a company does not earn the credit, the company will not receive the total credit certificate amount. Overview Type : Tax Credit For : Semiconductor & Advanced Manufacturers Amount : Refundable up to 80% of certain tax credit types specified in statute Application period : Rolling OEDIT division : Global Business Development Expand All Eligibility Both semiconductor manufacturers and advanced manufacturers are eligible under this program subject to the preferences identified in statute: For fiscal years 2023-2024 and 2024-2025, the EDC will give the highest priority to taxpayers engaged in semiconductor manufacturing that have received or are expected to receive matching money under ARPA, The CHIPS & Science Act, or other federal legislation that provides incentives for semiconductor manufacturing. For fiscal years 2025-2026 through 2028-2029, the EDC shall give highest priority to taxpayers engaged in advanced manufacturing or semiconductor manufacturing that have received or are expected to receive matching money under ARPA, The CHIPS & Science Act, or other federal legislation that provides incentives for semiconductor manufacturing. All projects approved for a refund certificate under this program must commence within 2 years of EDC approval. Project Commencement reason means any one of the following: Company began hiring new jobs Company began spending capital (explain) Filing building plans, permits, etc. Company Signed a Lease Company Purchased Real Estate Other milestone date indicating project commenced (explain) How to apply Applicants must reach out to the Semiconductor Industry Manager to determine eligibility and to obtain an application, which will be accepted on a rolling basis.

  function googleTranslateElemen