COtax_creditpct_of_investment

Advanced Industry Investment Tax Credit

CO-AIITC · Colorado

Summary

Investor tax credit equal to 25% of a qualified equity investment in a Colorado advanced-industries small business (30% if the investee is located in an Enterprise Zone or rural area), capped at $50,000 per investor per year. Investee must be OEDIT-pre-certified, in an advanced-industries sector, have raised ≤$10M in lifetime third-party investment, and have ≤$5M in annual revenue. Statewide annual cap: $4M through calendar 2026, stepping down to $2.5M per year 2027–2031.

Benefit

Percentage
Flat
Duration
Max annual
$4,000,000 (statewide)
Max total
(taxpayer)
Carryforward

Program metadata

Distribution
allocated
Claimant subject
business
Refund/transfer election
none
Program family
Effective
Sunset
2031-12-31
Application deadline
Transfer discount

Tiers (2)

#NameBenefitMin jobsMin investmentMin wageMax annual
1Standard Rate (25%)25% of investment$200,000
2Rural-or-EZ Bonus Rate (30%)30% of investment$200,000

Benefit components (2)

NameLabelBenefitGroup
standard_rate25% standard investor rate25% of investmentaiitc_rate_pick · exclusive_one
rural_ez_bonus_rate30% rural / EZ bonus rate30% of investmentaiitc_rate_pick · exclusive_one

Hard requirements (3)

  • industry_keywordCOUNTERPARTY-SCOPE rule: the qualified small business being invested in must operate in one of Colorado's seven advanced-industries sectors (advanced manufacturing, aerospace, bioscience, electronics, energy & natural resources, infrastructure engineering, technology & information). NOTE: this rule describes the *investee*, not the claimant (the investor). Pre-§25 schema does not distinguish; verify eligibility against investee profile manually.
  • max_revenueCOUNTERPARTY-SCOPE rule: the qualified small business (investee) must have annual revenue of $5,000,000 or less. Describes the *investee*, not the claimant.
  • local_approval_requiredThe qualified small business (investee) must be pre-certified by OEDIT before the investor's investment qualifies for the credit. Procedural — OEDIT verifies advanced-industries classification, lifetime third-party investment raised (≤$10M), and annual revenue (≤$5M). NOTE: state agency, modeled via local_approval_body until §26 lands.

Preference / tiering rules (1)

  • min_investmentInvestor's qualifying equity investment must be $200,000 or more to claim the maximum dollar credit ($50,000/year — i.e., 25% of $200,000). Smaller investments earn proportionally smaller credits at the same percentage.

NAICS industries (5)

  • 3254 Pharmaceutical and Medicine Manufacturing (Bioscience)
  • 3364 Aerospace Product and Parts Manufacturing
  • 3344 Semiconductor and Other Electronic Component Manufacturing
  • 5417 Scientific Research and Development Services
  • 5415 Computer Systems Design and Related Services

Geo zones (3)

  • statewide · Colorado Statewide (Standard Rate)
  • enterprise_zone · Bonus Rate — Investee in EZ
  • rural · Bonus Rate — Investee in Rural Area

Tags (5)

  • counterparty_role: investee
  • investee_lifetime_third_party_investment_max: 10000000
  • annual_program_cap_step_down_2027: 2500000
  • investor_per_year_cap: 50000
  • pte_credit_schedule: DR_0106CR

Tax bases

  • corporate_income_taxprimary

Approval requirements (1)

  • requiredCO OEDIT / Economic Development CommissionOEDIT certifies the qualified small business (investee) before the investor's investment qualifies. Statewide cap allocation managed by OEDIT.

Source

https://oedit.colorado.gov/advanced-industries-investment-tax-credit
HB22-1149 (initial); HB25-1157 (reauthorization through Dec 31, 2031)
Last verified: 2026-04-26
COUNTERPARTY-SIDE program: claimant is the investor; eligibility rules below describe the *investee* qualified small business, modeled as if they describe the claimant per future_proposals.md §25 workaround until rule_scope lands. Refundability and carryforward not stated on accessible OEDIT pages; verify against statutory text at production-seed time. Step-down cap is statewide-FCFS allocation.