In July of 2024, the Economic Development Administration (EDA) selected the Mountain West’s application as one of 12 federally designated Regional Technology and Innovation Hubs (Tech Hubs) under the CHIPS and Science Act. The public-private partnership that began in 2023 would eventually distribute $10 billion across 5-10 Tech Hubs across the U.S. focused on 10 key technologies. After being designated as a hub in October 2024, the Elevate Quantum coalition - a consortium of private and public sector organizations, academic institutions and nonprofits across Colorado, New Mexico and Wyoming - was selected for Phase 2 Funding, positioning Colorado’s quantum ecosystem for up to $900M in funding from this program alone.

To further promote the growth of Colorado’s quantum ecosystem, the Colorado General Assembly passed and Governor Polis signed bipartisan legislation that invests an additional $74 million across two incentive programs that will reduce growth barriers and ensure a bright future for all Coloradans. This funding was contingent on Colorado being designated for and earning this EDA Tech Hub funding award.

This historic state investment will boost Colorado’s booming quantum sector and position the state to draw down tens of millions more from the federal government, creating thousands of good-paying jobs.

Representing half of the bipartisan legislation signed in May of 2024, the Colorado Quantum Fund (CQF) for Shared Facilities supports and facilitates the development of shared quantum translational lab facilities by providing 100% refundable tax credits to applicants making qualifying investments in fixed capital assets.

To be eligible for a tax credit, a qualified applicant must provide and execute a project plan that outlines the qualifying investments in qualifying fixed capital assets for the creation of a shared quantum facility.

Qualified Applicants

A qualified applicant can be a nonprofit or for-profit entity or a consortium that submits an application for the reservation and issuance of a fixed capital asset tax credit. An applicant may include a person that is exempt from taxation (pursuant to section 39-22-112).

Qualified applicants and project plans will be prioritized if they include and collaborate with the following:

• A nonprofit entity created by institutions of higher education of high research activity, classified as R1 universities, led by a public R1 university with a demonstrated history of quantum-related research and investment in Colorado; and
• A nonprofit entity that has received a substantial federal award for the purposes of cultivating and expanding a quantum-related ecosystem within Colorado.

Qualified Fixed Capital Assets

Qualified applicants must undertake capital projects to create a shared quantum facility. Within these capital projects, the following types of fixed capital assets are eligible:

• Land
• Buildings, fixtures and other structural components of buildings for which the applicant is allowed a deduction for depreciation pursuant to Section 167 of the Internal Revenue Code.
  • This includes purchasing or constructing a facility, renovating a facility, making tenant improvements, funding a capital lease, capitalized labor, construction, and installation costs.
• Tangible personal property for which the applicant is allowed a deduction for depreciation pursuant to Section 167 of the Internal Revenue Code.
  • This includes furniture, fixtures and equipment such as outfitting an office, laboratory machines, refrigeration, HVAC systems, piping, measuring, monitoring and instrumentation equipment, fabrication machines, tools and equipment, and any hardware and software developed by third parties necessary for quantum technology applications.
• Computer software acquired for which the applicant is allowed a deduction for depreciation pursuant to Section 167 of the Internal Revenue Code.

All fixed capital assets must be acquired for use exclusively in Colorado. Each qualified fixed capital asset must be accompanied by a justification statement to ensure there is no duplication of efforts across the shared facility locations.

This program can be described by the following multi-step application process:

1. Reservation Application: to reserve a tax credit, qualified applicants will submit an application for a tax credit reservation. This application will certify that the applicant is qualified; confirm that the application contains all required elements of the project plan; and reserve the tax credits requested in the application.
   1. At a minimum, project plans must include a detailed project plan budget, an explanation of the ways in which the shared quantum campus will be used and how it will benefit the quantum industry in the state, and a community benefits plan.
2. Place project (or project phase) into service: to claim tax credits under this program, the qualified applicant must place the project or phase of the project into service.
3. Issuance Application: after a project or phase of a project has been placed into service, the applicant will notify OEDIT via an Issuance Application. This application will make a final determination as to whether the project is eligible; certify the amount of the tax credit; and issue a tax credit certificate.
4. Claiming a tax credit: to claim the credit authorized by this program, the applicant will file the tax credit certificate with the applicant’s Colorado state income tax return.
   1. If the amount of the credit exceeds the amount of income taxes otherwise due in the income tax year for which the credit is being claimed, or the applicant is a person who is exempt from taxation, 100% of the amount of the credit not used as an offset against income taxes is refunded to the applicant.

The Colorado Quantum Fund (CQF) for Shared Facilities is currently creating policies, procedures, and guidelines that govern the program and its usage. Formal applications are expected to launch in 2025, however the pre-application window is open now. If you would like to be kept informed of program development or submit a pre-application, please use the signup form below.