What Colorado Can Do For You: Colorado’s Investments in the Biosciences

There are a variety of state-led business incentives and investment funds for bioscience firms.

The Colorado Innovation Investment Tax Credit (CIITC)

CIITC was created in 2009 by the Colorado legislature (House Bill 09-1105) to encourage, promote, and stimulate investments in new, small Colorado businesses primarily involved in research & development, or manufacturing, of new technologies, products, or processes.
www.AdvanceColorado.com

The Job Creation Performance Incentive Fund

Companies that maintain new positions with salaries at least 110 percent above the average salaries in their counties for one year will be awarded with a performance-based incentive. Three million dollars will be distributed annually by The Economic Development Commission (EDC) with administrative support from the Office of Economic Development and International Trade.
www.AdvanceColorado.com

Job Growth Incentive Tax Credit

Provides a state income tax credit to businesses undertaking job creation projects that would not occur in Colorado without this program and that have met certain requirements under the Economic Development Commission’s (EDC) Job Growth Incentive Tax Credit Program.
www.AdvanceColorado.com

Biotechnology R&D Sales and Use Tax Refund

Colorado’s biotechnology industry has the ability to recover the sales and use taxes paid in the preceding year on equipment and supplies purchased to conduct biotechnology research and development. The biotech company may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property used directly in research and development of biotechnology.
www.revenue.state.co.us.

Manufacturing Equipment Exemption from Colorado Sales and Use Tax

The purchase of machinery or machine tools and parts are exempt from state sales and use tax when the machinery will be used in manufacturing. The machinery must be used to manufacture tangible personal property for sale or profit in Colorado. The tax exemption includes tangible personal property that will be used for one year or more and limits qualifying purchases of used equipment to a maximum of $150,000 annually.
www.revenue.state.co.us.

Certified Capital Companies (CAPCOs)

The Certified Capital Companies Program was created by the Colorado legislature with the goal of making venture capital funds available to new or expanding Colorado small businesses. The CAPCO Program is expected to create new employment opportunities within the state and to stimulate economic growth.

To receive funding you must contact the CAPCOs directly. To view a list of CACPOs please visit http://www.state.co.us/oed/business-finance/capco-list.cfm.

Venture Capital Authority

The Colorado General Assembly in 2004 passed legislation that established the Colorado Venture Capital Authority (VCA), and in 2005 High County Venture was selected as the fund manager to establish the first fund. Colorado Fund 1 will make seed- and early-stage capital investments in businesses.

High Country Venture is independently operated and generally makes independent funding decisions. State approval is limited to ensuring that businesses receiving funding meet minimum specified requirements. Investments range from $250,000 to $3.375 million. www.Coloradofund1.com.

Enterprise Zone

Colorado’s enterprise zone program provides tax incentives to encourage businesses to locate and expand in economically distressed areas. Criteria for the establishment of zones include higher-than-average unemployment rates, low per capita incomes, and/or a population base of less than 80,000. There are 18 enterprise zones and subzones in Colorado.  Businesses making qualifying investments and creating jobs in these zones are entitled to various incentives, including ten different enterprise zone tax credits. www.AdvanceColorado.com.

Job Training Grant Funds

The Colorado First and Existing Industry grants are jointly administered by the OEDIT and the Colorado Community College System. Colorado First grants are provided to companies relocating to Colorado or existing companies undertaking a major expansion.  The Existing Industry grants are designed for Colorado companies implementing new technology in order to remain competitive and retain local jobs.

Local Incentives

Your local community may also provide business development incentives. For additional information, contact your local economic development organization. A list can be found at www.advancecolorado.com.

Go to www.coloradoprospects.com to find more information on Colorado’s business incentives.