September 2024: EDC Approved Job Growth Incentive Tax Credit and Strategic Fund Projects

The following projects were approved at the September 2024 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 kind of projects are:

Job Growth Incentive Tax Credit

Strategic Fund Job Growth Incentive

These awards do not guarantee that the company will accept the offer and/or expand or relocate to Colorado.

Project Name: Diamond

Summary

The company behind Project Diamond is a developer of a space surveillance system designed to offer predictive and robust space-based situational awareness services.  The company's system provides real-time earth coverage by deploying a constellation of cost-efficient nanosatellites in LEO (Low Earth Orbit) along with precise modeling through an AI-ML-based algorithm, enabling the space industry to secure long-term spaceflight safety and building maps for space.

This project represents this international company's efforts to seek opportunities to collaborate with US Defense agencies on its surveillance and defense initiatives. The company plans to establish a base in the US to pursue these opportunities actively. In addition to Colorado, the company is considering North Carolina, Texas, and California. Within Colorado, the company is considering Colorado Springs. Proximity to talent and locating in a strategic Aerospace market are key considerations for this company.

Jobs

Project Diamond, should it occur in Colorado, expects to create 61 net new jobs at an average annual wage of $82,645, which is 130% of the average annual wage in El Paso County. The jobs will include Software Engineers, Systems Engineers, Business Developers, HR, and Finance roles. The company currently has 70 employees, none of whom are in Colorado.

Incentive

Up to $1,910,438 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 141 net new full-time jobs at a minimum average annual wage (AAW) of $94,497 (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 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 new high-wage net jobs in the economy, supporting an award-winning women-owned business’s continued growth in Colorado, encouraging DoD contracted companies to stay and grow in Colorado as they win new projects, and solidify our status as the best aerospace economy in the world.

Project Name: Skyhawk

Summary

The company behind Project Skyhawk develops micro-satellite systems and infrastructure providing turn-key systems designed for applications including earth observation, and communications.

This project represents the company’s consideration of headquarters relocation from Santa Clara. In addition to Colorado, the company is considering Utah. Within Colorado, the company is considering the Metro Denver area. The primary consideration for this company is proximity to talent and cost of doing business.

Jobs

Project Skyhawk, should it occur in Colorado, expects to create 141 net new jobs at an average annual wage of $126,589, which is 134% of the average annual wage in Denver County. The jobs will include Accountants, Specialists, and Engineers.  The company currently has 70 employees, 30 of whom are in Colorado. 

Incentive

Up to $1,910,438 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 141 net new full-time jobs at a minimum average annual wage (AAW) of $94,497 (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 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 new high-wage net jobs in the economy, supporting an award-winning women-owned business’s continued growth in Colorado, encouraging DoD contracted companies to stay and grow in Colorado as they win new projects, and solidify our status as the best aerospace economy in the world.

Project Name: Bobcat

Summary

The company behind Project Bobcat is a producer in Colorado’s advanced manufacturing industry. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.

Business growth has resulted in the company needing to expand operations out of its current facility in Colorado. They are currently in the process of looking for a new building inside and outside of Colorado. In addition to Colorado, the company is considering Pennsylvania. Within Colorado, the company is considering Boulder County. The main driver for the company to consider moving its operations outside of Colorado are the associated costs with expanding their facility within the state.

Jobs

Project Bobcat, should it occur in Colorado, expects to create 314 net new jobs at an average annual wage of $97,493, which is 109% of the average annual wage in Boulder County. The jobs will include accountants, engineers, manufacturing and IT employees.

Incentive

Job Growth Incentive Tax Credit: Up to $5,581,873 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 314 net new full-time jobs at a minimum average annual wage (AAW) of $89,544 (100% of Boulder 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.


Strategic Fund: Up to $397,315 in a performance-based Strategic Fund incentive over a 5-year period, 60 months, is requested from the EDC at $1,831 per net new job. 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 217 net new permanent full-time jobs at a minimum average annual wage (AAW) of $89,544 (100% of the Boulder County average annual wage).
  • The maintenance of the net new jobs in Colorado for one full year before any grant payments are made.
  • A $1:$1 local match of incentives by the local municipality in Boulder county and/or grants from other community partners that match the payout and term structure of the OEDIT incentives and will not result in the possibility of a clawback by the community partners and an undermatch of OEDIT’s payouts.
    • OEDIT Staff will lower the Strategic Fund Incentive award amount if the tentative commitment letter (attached) shows the Local match, as negotiated and contracted with the local municipality, is actually less than the amount proposed today. 

Consideration

This project would support the state’s economic goals by retaining a well-established and valued advanced manufacturing company, retaining 101 jobs and adding 314 new, good-paying jobs in one of Colorado's seven advanced industries.

Project Name: AX Experience

Summary

The company behind Project AX Experience is a medical device company. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.

The company is looking to establish a medical education facility in the western half of the United States. In addition to Colorado, the company is considering Dallas, Texas and Salt Lake City, Utah. Within Colorado, the company is considering Arapahoe County. The main drivers of their decision are access to talent and clientele as well as proximity to a higher education system with robust medical education programs.

Jobs

Project AX Experience, should it occur in Colorado, expects to create 100 net new jobs at an average annual wage of $133,200, which is 161% of the average annual wage in Arapahoe County. The jobs will include lab technicians, project engineers, and office managers. The company currently has more than 6,000 employees in the US, none of whom are in Colorado.

Incentive

Up to $1,673,558 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 100 net new full-time jobs at a minimum average annual wage (AAW) of $82,615 (100% of Arapahoe 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

The addition of a medical education facility in Colorado would offer training led by world-class surgeons and optimize the surgical experience for Colorado patients and beyond. This project would support the state’s economic goals by adding high-paying jobs in one of Colorado’s Advanced Industries and develop the life science ecosystem.