State taking applications for advanced industries investment tax credits

DENVER — The Colorado Office of Economic Development and International Trade is accepting applications for the Advanced Industry Investment Tax Credit for 2017.

The tax credit is designed to stimulate private-sector capital formation by rewarding local investors for taking equity stakes in startup companies with high growth potential.

Colorado’s advanced industries include advanced manufacturing, aerospace, bio-Science, electronics, energy/natural resources and clean tech, infrastructure engineering, and technology and information.

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“Angel investments are critical ingredients that fuel innovation and new business creation in technology-driven sectors like the advanced industries,” said Jeff Kraft, OEDIT’s director of business funding and incentives.

Credits will be granted on a first-come, first-served basis. During the calendar year 2017, up to a total of $750,000 in credits may be awarded.

In order to qualify for this credit, the investor and the investee company must set up an account with OEDIT. An investor must make their investment in a certified company in 2017. The investment must be an equity security of at least $10,000. Convertible debt does qualify as equity for this program, and the investor must hold no more than 30 percent of the voting power before the investment, and less than 50 percent of the voting power after the investment.

For more information on the tax credit click here or contact Ken Jensen at ken.jensen@state.co.us or 303-892-3743.