Colorado Springs City Council Approves CHIPS Zone Boundaries
On November 10, Colorado Springs City Council approved a resolution establishing proposed boundaries for a Colorado CHIPS Zone, advancing the city’s effort to strengthen and retain its advanced manufacturing and semiconductor industries.
The CHIPS Zone Program is a State of Colorado incentive, created through House Bill 23-1260 and administered by the Colorado Office of Economic Development & International Trade (OEDIT). The program supports semiconductor and advanced manufacturing companies by providing access to several state income tax credits, including:
- $1,100 New Employee Tax Credit
- 3% Research & Development Tax Credit
- 3% Investment Tax Credit
- 1.5% Commercial Vehicle Investment Tax Credit
- 12% Job Training Tax Credit
The initiative is designed to complement Colorado’s Enterprise Zone (EZ) program. Because CHIPS Zones cannot overlap with EZ boundaries, the new designation allows certain businesses—particularly those graduating out of the Pikes Peak EZ in 2026 or those not currently within an EZ—to continue accessing valuable state incentives.
In total, 67 parcels within city limits were identified as potentially affected by these boundary changes. Sherry Hoffman, Colorado Springs Chamber & EDC Director of Business Retention and Expansion, conducted outreach with companies located in these parcels, in conjunction with the City of Colorado Springs Economic Development Division and El Paso County’s Pikes Peak Enterprise Zone Administrator, to ensure all eligible businesses were informed.
With City Council’s approval, the next step is for the Colorado Springs Chamber & EDC and our local economic development partners at the City of Colorado Springs and El Paso County to begin the application process for state tax credits under the CHIPS Zone program.
The CHIPS Zone does not impact city zoning, land use, or overlays and carries no fiscal impact for the municipality. It is a strategic tool to help retain, grow, and attract advanced manufacturing companies in areas outside the existing Enterprise Zone, supporting Colorado Springs’ long-term economic development goals.
The Colorado Economic Development Commission will now review the city’s application for final CHIPS Zone designation.