CHIPS Zones

Your Vision, Our Semiconductor Ecosystem

The CHIPS Zone Program helps eligible semiconductor companies operating in Colorado Springs access state tax incentives that support job creation, capital investment, and research and development. Companies located within the designated CHIPS Zone may qualify for multiple state income tax credits if they meet program and precertification requirements.

Site Selection

Colorado Springs CHIPS Zone Map

To view the local CHIPS Zone boundaries and to see if a parcel is located within the CHIPS Zone, use the City of Colorado Springs interactive online map tool, SpringsView. Under Layers on the left side of the screen, scroll to the “Economic Development” layer. Check the box next to the Economic Development layer, use the arrow to expand the Economic Development layer to view economic zones, and check the box next to CHIPS Zone.

View Map

Available Tax Credits
Considerations & Eligibility

Available Tax Credits

Available Tax Credits

Taxpayers in semiconductor manufacturing, which is defined as “the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture or enhance semiconductors, or semiconductor manufacturing equipment,” can claim specified state tax credits. 

New Employee Tax Credit – 1,100 or more per net new employee

Businesses can earn a state income tax credit of $1,100 per net new employee. Businesses can earn more tax credits if the business is an agricultural processor or is in an enhanced rural enterprise zone. This tax credit encourages businesses to hire and expand employment opportunities, thus reducing unemployment rates. State and local governments benefit from income and sales tax revenue generated from these employees.

Research and Development Tax Credit – 3% of an increase in research and development expenses

Businesses can earn a 3% tax credit for an increase in annual research and development expenses compared to what they spent the prior two years. Investment in research and experimentation supports an innovative economy. A research and development focused business that sells products, services, or intellectual property will bring outside dollars to the local economy.

Qualified Investment Tax Credit – 3% of Business Personal Property Investment

Businesses can earn a state income tax credit for 3% of an investment in business personal property. New business personal property increases a company’s capacity. The taxes a business pays on these purchases far exceed all tax credits under the Enterprise Zone program.

Job Training Tax Credit: 12% tax credit of the total investment made during the taxable year in a qualified job training program.
Commercial Vehicle Investment Tax Credit: Provides a credit of 1.5% on commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of fifty-four thousand pounds or greater that is model year 2010 or newer and is designated as Class A personal property.

Considerations & Eligibility

Considerations & Eligibility

Enterprise Zone Considerations

If a business is already located in an Enterprise Zone (EZ), 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. 

To learn more about the Colorado Enterprise Zone program in the Pikes Peak region, visit the El Paso County website.

Eligibility

Semiconductor-related businesses (the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture or enhance semiconductors, or semiconductor manufacturing equipment) looking at expanding their footprint in Colorado Springs, or semiconductor-related businesses (as defined above) located in the Pikes Peak region needing additional support, please contact Sherry Hoffman, Director of Business Retention & Expansion, for potential incentives and available resource information.