The Colorado Economic Development Commission awarded the last of the tax credits designed to attract more semiconductor manufacturers to the state on Thursday.

At least all the money the state has allocated for now.

The commission approved a tax package for an unnamed quantum company labeled “Project Laser” worth millions. The EDC often doesn’t disclose company names to protect the confidentiality of businesses also considering incentives from Colorado’s competitors.

Project Laser is looking to expand into the Denver metro area to build a research and development facility spanning 80,000 to 100,000 square feet, according to an EDC memo.

State officials described the company as a builder of quantum computers with “promising methods for production at scale.” 

The commission approved up to $4.4 million in job growth tax incentives for the company to bring up to 225 jobs to the state — from research engineers, production engineers, sales and marketing professionals and administration roles — over eight years.

But the EDC also approved a total of $9 million in CHIPS Refundable Tax Credits, using the last of the tax credits the state has available for the next three fiscal years.

In 2023, the Colorado Legislature passed a bill to establish a new tax credit system to incentivize more semiconductor and advanced manufacturing in the state following former President Joe Biden’s signing of the CHIPS and Science Act, a federal program to help the nation solidify itself as a global leader in the space.

The state is allowed to give out $15 million to attract semiconductor chip-related companies each year. Between the 2023 and 2028 fiscal years, the state could use a total of $75 million to lure semiconductor chip-related projects.

With the money running out, state economic officials had to get creative with the last tax credits to help Colorado win over some big companies.

All of 2027’s $15 million in semiconductor tax credits was approved on Thursday to go to win Ursa Major for an expansion set to bring 1,850 new jobs to the state. Another $8.6 million is earmarked to go to another local aerospace and defense company, pulling from the $2.26 million left from 2026’s pool of funding as well as 2028’s.

The $9 million for Project Laser will come from the remaining funds from 2028’s budget.

State officials have given each of these three companies a deadline to decide on whether they will choose Colorado or else they’ll return the tax credits back to the pool.

Ursa Major has already committed. Project Laser has until July 2027.

Other projects that have also been allotted the tax credits and haven’t made a formal decision yet could free up some money — and state officials expect some will.

“We know that we will get some back, we don’t know the exact value,” said Daniel Salvetti, the state’s leading semiconductor economic development official, to the commission.

Once some money returns, he said the state plans to go back to the EDC to move some of those credits so the quantum company can use them sooner.

Colorado also has to compete against Chicago for this project, according to the state.

Illinois was the other major quantum region vying against Colorado in 2024 for millions in federal funding and national recognition. It was Colorado that won the second phase of the Biden administration’s tech hub grant program that helped cement the state as a leader in the industry.

Since then, state leaders have pushed to attract more quantum companies to come to Colorado and support the growing industry as one of the state’s more hopeful job creators.

Competition for quantum companies is “heating up very much,” Salvetti said.

“Illinois is one of the biggest competitor states and Chicago has been identified as sort of our counterpoint in all this,” he explained, “even though we do have substantially more companies, workers and investment in that arena.”

Jeff Kraft, the deputy director of Business Funding and Incentives for Colorado’s Office of Economic Development and International Trade, stressed the importance of keeping tax incentive tools available to keep Colorado competitive in high-investment industries such as quantum and aerospace.

“Without tools like that, and by the way, it’ll be up for renewal … we would not have the tools to go out and get unbelievable wins like this,” Kraft said.

The tax program has supported 12 companies, according to OEDIT. It has helped attract up to 4,300 new jobs and $3.2 billion in capital investment.

In addition to Ursa Major’s expansion, it has also been used to support Entegris’ manufacturing center of excellence in Colorado Springs and the Micron MegaLab in Longmont.

“The CHIPS Refundable Tax Credit program has been an effective tool to promote the growth of the semiconductor and advanced industries in Colorado, and interest from businesses continues to exceed available funding,” a spokesperson from OEDIT said in a statement. “We believe that extending the program would contribute to the continued growth of these strategic industries in Colorado.”

It’s still not clear when the program will be up for renewal.

The EDC also approved incentives for another expansion called “Project Shift,” a company specializing in using crop waste to manufacture single-use packaging and food-serving utensils.

The company will get $1.1 million in job growth tax incentives, the state’s primary tool for attracting companies of any industry, if it chooses to expand in the state and create 96 new jobs.

Project Shift is looking to open its flagship manufacturing facility in northeastern Colorado’s Logan County. It’s also considering going across the Atlantic Ocean to Hauts-de-France, the northernmost region of France.

The company is considering supply chain advantages and access to talent for its location, state economic officials said.