State OKs millions in incentives to semiconductor maker for Colorado Springs plant upgrades
A semiconductor manufacturer seeking to expand and modernize its Colorado Springs plant would be eligible for a $3.68 million cash award from the state under a financial incentive for the company approved Thursday by the Colorado Economic Development Commission.
The company, whose identity was kept confidential by state officials and instead was assigned the code name Project Boron, had requested refundable tax credits that are available under the CHIPS Refundable Tax Credit program — created by Colorado lawmakers in 2023 as a means of encouraging the development and expansion of the state’s semiconductor industry.
In turn, the financial support provided by the state helps Colorado companies secure funding through the federal Creating Helpful Incentives to Produce Semiconductors and Science program — known as the CHIPS and Science Act, which also provides financial incentives to boost the nation’s semiconductor industry.
At its monthly meeting Thursday, the state Economic Development Commission — a panel appointed by the governor and legislators and that considers tax breaks for employers — approved $4.6 million in refundable tax credits for the Project Boron company through the CHIPS Refundable Tax Credit program. Under rules of the program, 80% of that amount, or $3.68 million, now would be available to the company in the form of a cash refund.
Though the Project Boron company wasn’t identified by name at the Economic Development Commission meeting, its description provided by officials of the Office of Economic Development and International Trade — a state agency — matches that of Colorado Springs-based InnovaFlex Foundry.
InnovaFlex officials didn’t immediately return a phone call to The Gazette for comment.
The company behind Project Boron was described by the Office of Economic Development and International Trade as “a nontraditional semiconductor manufacturer that has capabilities to create a variety of electronics on both glass and flexible substrates. The company’s digital sensor technology provides the foundation for some of today’s most innovative solutions in military, medical, industrial and security imaging business markets.”
The semiconductor manufacturer’s expansion and modernization would double the size of its existing, 55,000-square-foot clean room space, according to state officials.
“The new space and equipment will allow the company to increase production of its current custom products — which are used by the Department of Defense and companies in the medical, automotive, aerospace, and consumer markets — and enable an aggressive (research and development) agenda,” state officials added.
The company behind Project Boron must travel a somewhat complicated road to receive its refund under the CHIPS Refundable Tax Credit program.
Companies that receive incentives through the state’s Job Growth Incentive Tax Credit program and the Enterprise Zone program can seek to take some of those tax breaks as refunds under the CHIPS Refundable Tax Credit program, state officials say.
In the case of the company behind Project Boron, it received a $2.8 million Job Growth Incentive Tax Credit award two years ago and it expects to earn Enterprise Zone tax credits totaling $7.1 million over the next eight years, according to information provided by state officials.
Combined, those incentives total $9.9 million, which is the refund amount the company sought Thursday from the Economic Development Commission under the CHIPS Refundable Tax Credit program.
The Office of Economic Development and International Trade, however, recommended that the commission approve a refund of $4.6 million for the company, which translates to $3.68 million under rules of the CHIPS Refundable Tax Credit program.
It’s unknown when the company behind Project Boron might announce its next steps on the improvements planned for its Colorado Springs facility.
Incentives for airplane manufacturer
Also at its Thursday meeting, the Economic Development Commission approved $2.15 million in Job Growth Job Growth Incentive Tax Credits to an airplane manufacturer.
The company, dubbed by state officials as Project Airplane, is looking to build a seat production and customer experience center, according to information provided to the commission. The company is eying Colorado or Florida for its expansion.
The company was described by state officials as a manufacturer within the aerospace industry with 3,000 employees. It previously has received tax incentives from Colorado.
Descriptions of the company suggest it’s likely Pilatus Aircraft, a Swiss airplane maker with a facility in Broomfield.
Pilatus has more than 3,000 employees worldwide, according to its website. And Richard Janser, the company’s vice president and chief financial officer, was in attendance virtually at the the commission meeting Thursday.
The company is considering factors such as location, talent, costs and access to the supply chain, according to information provided by state officials.
The tax incentives approved for the company would span eight years and the expansion is expected to create 191 jobs, which would include craft workers, operatives, administrative support and sales. Annual wages would average $85,000.
The airplane maker received another job growth tax incentive from the state that closed in December 2023 and overperformed on the jobs it promised, according to the EDC. The company added about 70 more jobs than it originally reported in its employment plan.
