Companies that provide satellites for surveillance and communications as well as ones in advanced manufacturing, artificial intelligence and high-performance computing received approval Thursday from state economic development officials for incentives totaling approximately $12.3 million.
The Colorado Economic Development Commission approved tax credits for five companies. The companies, given code names for confidentiality, are considering whether to move to Colorado or expand their operations in the state.
One of the companies, with the code name of Project Lithium, is a global Fortune 200 business that has been in Colorado for 40 years and develops and tests a variety of semiconductor chips at sites across the U.S. The state EDC approved up to $2 million in tax credits to the company to consolidate its operations and add 40,000 square feet of space for an advanced data center.
Fort Collins is one of the potential locations for the new infrastructure, EDC officials said. The company expects to earn a total of $3.6 million in tax credits through the Fort Collins CHIPS Zone established in 2023.
Project Lithium’s application for tax credits is the state’s third as part of a program to increase semiconductor manufacturing in Colorado, said Dan Salvetti,with the Colorado Office of Economic Development and International Trade.
“We are able to give out $15 million in these eligible credits each year for five years,” Salvetti said.
Legislation passed in 2023 included the tax credits to help boost the federal government funding for semiconductor and advanced manufacturing in Colorado.
The EDC approved up to $5.58 million in job-growth iax credits over eight years for Project Bobcat. The award is contingent on the Colorado advanced manufacturing company’s creation of 314 new full-time jobs at a minimum average annual wage of $89,544.
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The commission also approved up to $397,315 for Project Bobcat in a performance-based strategic fund incentive over five years at $1,831 per new job. Staffers said the company is looking at expanding operations outside its current facility and is considering Boulder County and Pennsylvania.
Other projects receiving the OK for incentives were:
Project Diamond, approved for up to $759,034 in performance-based job-growth tax credits over eight years, contingent on the creation of up to 61 new full-time jobs at a minimum average annual wage of $63,362. The international company, which develops space surveillance systems, is looking to collaborate with U.S. defense agencies. The company is considering moving to Colorado, Texas, California or North Carolina.
Project Skyhawk, approved for up to $1.9 million in job-growth tax credits over eight years, contingent on the creation of up to 141 new full-time jobs at a minimum average annual wage of $94,497. The company develops micro-satellite systems and infrastructure for communications and Earth observations. It is considering moving its headquarters from California to Colorado or Utah.
Project AX Experience, approved for up to $1.6 million in job-growth tax credits over eight years, contingent on the creation of up to 100 new full-time jobs at a minimum average annual wage of
$82,615. The company develops medical devices and is looking at potential sites in Arapahoe County, Dallas or Salt Lake City.