CHIPS Zones Program

CHIPS Zones 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 Zone Program was created through House Bill 23-1260 to maximize incentives available to eligible semiconductor companies in Colorado.   groups of the two may apply through the Colorado Office of Economic Development and International Trade to the Economic Development Commission (EDC) to designate a geographical area within its governance as a CHIPS Zone. Applying entities must provide the boundaries of the area to be designated, along with estimated benefits and an economic justification of the zone. The preference for CHIPS Zone applications is for project based proposals that are delimited by a specific parcel of land or a building; larger areas will be considered based on the strategic advantages as explained by the applicant. Once approved, taxpayers engaged in semiconductor manufacturing in the CHIPS Zone can access the following state income tax credits from the Enterprise Zone program: Qualified investment tax credit Job training Tax Credit Commercial Vehicle Investment Tax Credit Business facility new employee tax credit Research and development tax credit A company must have a precertification that is submitted and approved by the CHIPS Zone administrator before any credits may be earned. All such credits may be used to offset a taxpayer's liability or carried forward for a period not to exceed 12 years. Note: If a business is already located in an Enterprise Zone, they do not need to be incorporated into a CHIPS Zone and should follow the guidelines to receive EZ tax credits. However, businesses must separately and additionally apply for any CHIPS Refundable Tax Credits whether they are located in an Enterprise Zone or a CHIPS Zone. Businesses must obtain EDC approval for any refundable tax credits prior to precertification. Overview Type : Program For : Municipalities and counties Application period : Rolling OEDIT division : Global Business Development Expand All How communities designate CHIPS Zones Local governments seeking CHIPS Zone designations must reach out to the Semiconductor Industry Manager to obtain an application, which will be accepted on a rolling basis. CHIPS Zones minimum application elements: Applicant Information ( 39-36-104(1)(a)) Governments involved in application Point of contact Boundaries of the Proposed Zone ( 39-36-104(1)(b)(I)) Qualitative description Attached copy of deed description Attached copy of property line map Potential for Business Development & Job Growth  ( 39-36-104(1)(b)(II)) Qualitative description Affected companies Anticipated expansion estimates (capex, sq ft, output, etc) Anticipated net new jobs Support & Consistency with Area Economy  ( 39-36-104(1)(b)(III)) Qualitative description Attachment supporting vision (optional) Other Information  ( 39-36-104(1)(b)(IV)) Resolution(s) from all affected governments Each zone must have economic development objectives with outcomes that can be measured and documented for future reporting. Upon receipt of the application, an OEDIT representative will present the proposed zone to EDC. OEDIT has the statutory authority to provide recommendations to that effect. The EDC has statutory authority to approve or deny the application. CHIPS Zone Expiration The CHIPS Zone Administrator will review all CHIPS Zones every five years to evaluate CHIPS Zones to assess any zones in which no companies have precertified or claimed credits and recommend whether or not these Zones should expire in consultation with the EDC.

  function googleTranslateElementInit() { new go