Funds available on January 1, 2021 on a first-come, first-served basis
The Colorado Office of Economic Development and International Trade (OEDIT) today announced $750,000 in tax credits will be available through the Advanced Industries Investment Tax Credit (AITC) program for the calendar year 2021.
The AITC program encourages investments in Colorado advanced industries businesses by providing tax credits to investors. Investors can earn a state income tax credit for 25% of their investment, up to $50,000 in credits on an investment of $200,000 or more. If the advanced industries business is in a Colorado enterprise zone, the state income tax credit increases to 30% of their investment.
"[AITC] is a great program through which we were able to raise almost half of encoord's series seed investment round from Colorado-based investors,” said encoord’s CEO Carlo Brancucci, whose company participated in the AITC program. “This program may lead to additional investments in 2021 from potentially interested investors. I would highly recommend this program to Colorado startups that are looking to raise capital from Colorado individuals."
The AITC program stimulates private sector capital formation by rewarding local investors for taking equity stakes in start-up companies with high growth potential. The program targets technology sectors with a strong presence in Colorado, and complements the Advanced Industries Accelerator Grant program.
“Angel investments are a critical component of advanced industries, helping to fuel innovation and new business creation in these important technology-driven sectors,” said OEDIT Director of Business Funding and Incentives, Jeff Kraft.
“I couldn’t be more grateful for the state of Colorado’s commitment to incentivizing private investment in startups through the AITC program,” said AITC recipient Timeri Tolnay, CEO of EdCuration. “After being awarded the Advanced Industries Grant alongside the Tax Credit, EdCuration is working hard to close out our current round in January to ensure our investors are awarded the credit. With this, EdCuration is building the go-to online marketplace for all educators, worldwide, to find the best instructional resources for their population to ensure student success.”
Investors who make qualified investments on or after Jan. 1, 2021 in a small business in one of Colorado’s seven advanced industries may be eligible for Colorado state income tax credits. Credits are granted on a first-come, first-served basis. During the calendar year 2021, up to a total of $750,000 in credits may be awarded.
In order to apply for this credit, both the investor and the investee company need to set up an account with OEDIT. An investor must make their investment in a certified company in 2021.
Colorado’s advanced industries are advanced manufacturing, aerospace, bioscience, electronics, energy/natural resources and cleantech, infrastructure engineering and technology and information.