The following projects were approved at the December 2023 Colorado Economic Development Commission meeting. The Colorado Economic Development Commission (EDC) develops incentive packages to assist with existing business expansions and new company relocations to grow jobs in all regions of the state. They typically meet on the third Thursday of every month.
The incentives requiring approval for these kinds of project are:
Job Growth Incentive Tax Credit
These awards do not guarantee that the companies will accept the offer and/or expand or relocate to Colorado.
PROJECT NAME: Project Ladybug
Summary
The company behind Project Ladybug offers in-space propulsion solutions for satellites and other spacecraft designed to simplify the user experience when integrating a spacecraft before launch. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
The company behind Project Ladybug is scouting for a permanent location in the US to assemble and deliver products to the customer and continue the development of the product pipeline for the years ahead. Once development is completed, the company behind Project Ladybug will scale up operations to deliver thousands of products per year. In addition to Colorado, the company is considering Los Angeles, Texas, and Austria. Within Colorado, the company is considering the Denver Metro area. The company is interested in access to talent, a favorable tax environment, and proximity to leading companies in the space industry.
Jobs
Project Ladybug expects to create 160 net new jobs at an annual average wage of $109,638, which is 122 percent of the annual average wage in Denver County. The jobs will include corporate, engineering, assembly, quality control, and administrative positions. The company currently has 11 employees, none of whom are in Colorado.
Incentive
Up to $1,332,528 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC.
This incentive is contingent upon:
- The creation of up to 160 net new full-time jobs at a minimum average annual wage (AAW) of $89,700 (100% of Denver County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of net-new jobs in Colorado for one full year before any credits become vested.
- Before any credits are issued, the company must create and maintain at least 20 net new full-time jobs.
- The company must provide proof (via bank statements or other such evidence), that they have raised $1.875M in capital, by the end of 2024 (this is 75% of the $2.5MM in capital the company expects to raise in their seed funding round) prior to the execution of this JGITC award contract.
Consideration
This project would support the state’s economic goals by reinforcing Colorado’s aerospace industry sector supply chain with up and coming technology and creating high paying net new jobs in advanced manufacturing. This project would also qualify as foreign direct investment that includes a US headquarters operation.
PROJECT NAME: Project Octopus
Summary
The company behind Project Octopus is an innovation-driven company advancing space science, system engineering and legacy system sustainment & modernization. Their approach is guided by the team's focus on space acquisitions, mission operations, systems engineering, and cyber operations, including software development. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Octopus represents the company’s expansion in order to support US government contracts. In addition to Colorado, the company is considering Portland, Maine, Huntsville, Alabama, and Cape Canaveral, Florida. Within Colorado, the company is considering Colorado Springs. The primary driver for their decision is the proximity to talent and other DoD contractors and cost of doing business.
Jobs
Project Octopus, should it occur in Colorado, expects to create 427 net new jobs at an average annual wage of $140,000 , which is 233% of the average annual wage in El Paso County. The jobs will include system and program engineers. The company currently has 19 employees, 8 of whom are in Colorado.
Incentive
Up to $2,267,843 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 427 net new full-time jobs at a minimum average annual wage (AAW) of $60,151 (100% of El Paso County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Consideration
This project would support the state’s economic goals by creating high-paying net new jobs in the economy and bolster Colorado’s key aerospace industry.
PROJECT NAME: Project Balloon - Ineligible
At the January 2024 EDC meeting, it was publicly announced that Project Balloon has been determined to be ineligible for Job Growth Incentive Tax Credits at this time.
Summary
The company behind Project Balloon develops transformative, affordable technology, platforms, and systems. The company has two segments the first is comprised of an aggregation of operating segments, including its microwave electronic products, space, training, and cybersecurity, modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment that consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Balloon represents the company's efforts to capture more DOD funding through contracts. In addition to Colorado, the company is considering Pennsylvania. Within Colorado, the company is considering El Paso County. The primary factors driving their decision include talent, costs, and proximity to DOD assets.
Jobs
Project Balloon expects to create 200 net new jobs at an annual average wage of $112,000, which is 186 percent of the annual average wage in El Paso County. The company currently has 5,000 employees, 600 of whom are in Colorado.
Incentive
Up to $669,375 in performance-based Job Growth Incentive Tax Credit over an 8-year period, 96 months, is requested from the EDC.
This incentive is contingent upon:
- The creation of up to 200 net new full-time jobs at a minimum average annual wage (AAW) of $60,151 (100% of El Paso County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of net-new jobs in Colorado for one full year before any credits become vested.
- Before any credits are issued, the company must create and maintain at least 20 net new full-time jobs.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Consideration
This project would support the state’s economic goals by supporting the growth of an aerospace and defense company in Colorado over growth in other US locations.
PROJECT NAME: Project Maple
Summary
The company behind Project Maple is an agriculture company that produces a variety of commodities from blueberries to tree nuts. Due to the nature of the company, further identification would jeopardize the company’s confidentiality. Project Maple demonstrates the company’s expansion into CBD and Hemp production. The company established a subsidiary to manufacture and refine CBD products and Hemp; their plans for the facility will be split between CBD gummy manufacturing and Hemp refinement. They are looking at an existing facility in Larimer County. In addition to Colorado, the company is considering California. Within Colorado, the company is considering Larimer County.
Jobs
Project Maple, should it occur in Colorado, expects to create 29 net new jobs at an average annual wage of $62,690, which is 101% of the average annual wage in Larimer County. The jobs will include production workers, and sales jobs. The company currently has 200 employees, none of whom are in Colorado.
Incentive
Up to $208,616 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 29 net new full-time jobs at a minimum average annual wage (AAW) of $62,010 (100% of Larimer County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Consideration
This project would support the state’s economic goals by supporting the growth of the hemp/CBD ecosystem in Colorado and creating net new agriculture manufacturing jobs in the State.
PROJECT NAME: Project Hydrogen
Summary
The company behind Project Hydrogen is a U.S-headquartered, public multinational that employs almost 1,000 workers in Colorado, with the vast majority at a substantial manufacturing location in Colorado Springs. The company produces semiconductor devices and is a leading embedded control solutions provider with a comprehensive product portfolio that supports over 125,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Further identification would jeopardize the company’s confidentiality. Project Hydrogen is a multi-facility expansion and modernization of the company’s Colorado Springs facility that will lead to massive gains in output capacity, with several product lines expanding between three to seven times the current production levels. The project is pursuing CHIPS funding.
Jobs, Capex, and Federal Funding
Project Hydrogen expects to create 371 net new jobs at an average annual wage of $75,000, which is 118% of the average annual wage in El Paso County. It will also invest $868,800,000 in the project and is seeking CHIPS funding. Per CHIPS Program Office guidance, companies may receive up to 15% of the capital expenditure of a project in direct funding, and may receive up to 35% of the capital expenditure in a total incentives package that also includes federal loans and loan guarantees. The company currently employs nearly 1,000 workers in Colorado, with a substantial majority at the Colorado Springs facility.
Incentive
Project Hydrogen is expected to earn $22,617,000 over the next 8 years in eligible Enterprise Zone (EZ) credits. It does not have and is not expected to receive a Job Growth Incentive Tax Credit. In the application, the company requested the total amount of $22,617,000 in CHIPS Refundable Tax Credits. The Commission approved Project Hydrogen for up to $10,000,000 in CHIPS Refundable Tax Credits.
CHIPS Refundable Tax Credits can only be used after the company earns eligible credits through the JGITC or EZ programs and uses them to cover its existing tax liability. The cash value of the Refundable Credits is 80% of its face value.
Consideration
This project supports the state’s economic goals by supporting the growth of the semiconductor ecosystem in Colorado, which was the intent of the enacting legislation: HB23-1260. The project meets the highest priority under C.R.S. § 24-46-108 (4), since it meets the definition of semiconductor manufacturing and is seeking CHIPS Act funding. Given that the company is a large producer of semiconductors with name recognition, this investment serves as a signal that Colorado is a strong and supportive State for the industry. It is also one of the largest known planned investments in the Colorado semiconductor ecosystem to date - in terms of capital expenditure and wage impact - is well supported by the local community, and includes moderate plans for workforce development and EDIAB.
PROJECT NAME: Project Helium
Summary
The company behind Project Helium is a U.S.-headquartered, public multinational that has operated in Colorado Springs for over three decades and currently employs over 300 workers there. It is a leading manufacturer of equipment, products, advanced materials and solutions critical for the semiconductor, life sciences, and other high-technology industries. Its broad range of products are essential to the semiconductor fabrication process. Further identification would jeopardize the company’s confidentiality. Project Helium is a multi-facility construction of state-of-the-art manufacturing space totaling 680,000 sq ft on a greenfield site in Colorado Springs. The new space will house several of the company’s essential product lines and will support investments in the Mountain West region from large-scale semiconductor customers like Intel, TSMC, Samsung, and Micron. It will be completed in two phases with the first reaching commercial operation in early 2025 and the second beginning shortly thereafter. The project is pursuing CHIPS funding.
Jobs, Capex, and Federal Funding
Project Helium expects to create 600 net new jobs at an average annual wage of $69,100, which is 109% of the average annual wage in El Paso County. It will also invest $724,000,000 in the project and is seeking CHIPS funding. Per CPO guidance, companies may receive up to 15% of the capital expenditure of a project in direct funding, and may receive up to 35% of the capital expenditure in a total incentives package that also includes federal loans and loan guarantees. The company currently employs around 500 workers in Colorado Springs.
Incentive
Project Helium is expected to earn $10,752,000 over the next 8 years in eligible EZ credits. It does not have and is not expected to receive a Job Growth Incentive Tax Credit. In the application, the company requested the total amount of $10,752,000 in CHIPS Refundable Tax Credits. The Commission approved Project Helium for up to $3,300,000 in CHIPS Refundable Tax Credits.
CHIPS Refundable Tax Credits can only be used after the company earns eligible credits through the JGITC or EZ programs and uses them to cover its existing tax liability. The cash value of the Refundable Credits is 80% of its face value.
Consideration
This project supports the state’s economic goals by supporting the growth of the semiconductor ecosystem in Colorado, which was the intent of the enacting legislation: HB23-1260. The project meets the highest priority under C.R.S. § 24-46-108 (4), since it meets the definition of semiconductor manufacturing and is seeking CHIPS Act funding. Given that the company is a large semiconductor supply chain company with name recognition, this investment serves as a signal that Colorado is a strong and supportive State for the industry. It is also one of the largest known planned investments in the Colorado semiconductor ecosystem to date - in terms of capex and wage impact - is well supported by the local community, and includes strong plans for workforce development and EDIAB.
This project received a Strategic Fund incentive from Colorado’s Economic Development Commission in November 2022 for $3,880,500. This, along with strong local incentives, can be used to meet the “covered incentive” requirement of the CHIPS Act, meaning there is less need for this program to help draw down the federal funding. Nonetheless, the form of these incentives are such that they will not see benefits for many years or they equate to a reduction in operating costs. These credits are therefore important in defraying the large near-term capital costs associated with Project Helium.