HB 23-1260 Summary

• Creates refundable income tax credit program (80% refund) for semiconductor and advanced manufacturing projects in Colorado through June 2029, with $15 million annual limit and $75 million total limit across fiscal years 2023-24 through 2028-29.

• Establishes CHIPS Zone program allowing municipalities and counties to designate semiconductor manufacturing zones where taxpayers can claim investment tax credits, employee credits, and research credits under existing statutes through December 31, 2040.

• Creates Advanced Manufacturing and STEM Industries Task Force to study effectiveness of financial incentives, examine other states' programs, and report recommendations to the General Assembly by December 1, 2023.

• Modifies Colorado Job Growth Incentive Tax Credit to require advanced manufacturing and semiconductor manufacturing projects to create minimum 20 jobs with average wages at 75% of county average wage.

• Appropriates $117,583 to Office of Governor and $300,108 to Department of Revenue for fiscal year 2023-24 to implement the program.