The Advanced Industry Investment Tax Credit program (C.R.S. 24-48.5-112) was created to grow high-potential advanced industry businesses with the objective of stimulating the State’s economy and creating high-paying jobs. The Advanced Industry Investment Tax Credit (AITC) aims to improve access to capital for Colorado’s early-stage advanced industry businesses by reducing investor risk. The AITC links Colorado investors to Colorado businesses.
New funding was made available on January 1st, 2020. Investor applications cannot be submitted or approved until the company they are investing in has been fully approved.
The AITC funding allowance for the 2019 calendar year has been fully allocated.
The State Legislature has authorized an annual allowance for program tax credits. The AI Tax Credit is made available at the beginning of each calendar year to investors in qualified Advanced Industry businesses on a first-come-first-served basis.
Note: though an investor may currently apply for the AITC prior to certification of the investee/business; the process is expedited for investment in certified businesses.
Investors in a qualified business may earn a State Income Tax Credit calculated at 25% of the qualified investment, with a maximum tax credit of $50,000.
If the business receiving the investment operates in a rural or economically distressed area per Enterprise Zone standards, the tax credit to the investor is 30% of the qualified investment, up to the $50,000 maximum allowable tax credit amount (per investment). The business must obtain an Enterprise Zone Pre-Certification number to qualify.
Applications must be submitted online via the OEDIT Application Portal.
Businesses/investees begin with filling out the AI Tax Credit Investee Pre-Certification 2018-2022.
Investors begin with filling out the AI Tax Credit Investor Eligibility Check 2018-2022. Applications can only be submitted after the investment transaction has taken place. Al Tax Credits are processed on a first come, first served basis; therefore, investors are encouraged to submit their applications as soon as possible. If the statutory limit on tax credits for the program is reached, the program will suspend accepting tax credit applications until the first business day of the following year.
Investors and the Investees must have unique accounts in the OEDIT Application Portal (Create an account)
This online grant application system is only compatible with certain web browsers: Google Chrome, Mozilla Firefox,Safari and Internet Explorer 10
Businesses located in Opportunity Zones may tap into additional funding.