Boulder CHIPS Zone

Three commercial areas in Boulder have been designated as a CHIPS Zone, enabling local semiconductor manufacturers and other eligible businesses to access state and federal tax incentives. The zone includes areas in Gunbarrel, East Boulder and Central Boulder as shown in the maps below.

CHIPS Zones were created as part of the federal CHIPS (Creating Helpful Incentives for Producing Semiconductors) and Science Act to attract and strengthen domestic chip production, enhance supply chain resilience, and promote job creation in advanced industries. More information about federal CHIPS Zone programs and business incentives can be found on the National Institute of Standards and Technology (NIST) Chips for America website.

Colorado’s CHIPS Zone Program was created to maximize incentives available to eligible semiconductor companies located in the state.

Businesses in semiconductor manufacturing (defined as by the state as the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture or enhance semiconductors, or semiconductor manufacturing equipment) and technologies such as quantum computing that are interdependent with semiconductors that are located in Boulder’s CHIPS Zone may qualify for state incentives in the form of business income tax credits.

Note: Colorado CHIPS Zone credits are the same as state Enterprise Zone credits.

New Employee Tax Credit
Businesses can earn a state income tax credit of $1,100 per net new employee hired.

Research and Development Tax Credit
Businesses can earn a 3% tax credit for an increase in annual research and development expenses compared to what they spent the prior two years.

Investment Tax Credit
Businesses can earn a state income tax credit for 3% of an investment in business personal property.

Commercial Vehicle Investment Tax Credit 
Businesses can earn a state income tax credit of 1.5% on new commercial vehicles.

Job Training Tax Credit
Businesses can earn a 12% state income tax credit on expenses for qualified job training programs.

Companies that receive CHIPS Zone tax credits may be able to request a refund for up to 80% of any unused credits through the CHIPS Refundable Tax Credit Program. Applicants must reach out to the CHIPS Zone administrator at the state level to determine eligibility and to obtain an application, which will be accepted on a rolling basis.

For more information about Boulder’s CHIPS Zone, please contact Marisela Parraguez, Program Manager, City of Boulder at ParraguezM@bouldercolorado.com or 303-413-7473.

For more information or to apply for the state CHIPS Zone Program or other related tax credit incentives, contact Daniel Salvetti, Semiconductor Industry Manager, Colorado Office of Economic Development and International Trade (OEDIT) at 720-601-5055 or daniel.salvetti@state.co.us.