Colorado’s economic development office approved roughly $2.5 million in tax incentives this month for three businesses that are considering building new facilities in the state.
The largest incentive package includes up to $1.84 million in tax credits over an eight-year timeframe for a project dubbed Project Juniper. The company, a UK-based manufacturer in the renewable energy sector, hasn’t been identified. It’s also considering Texas, Delaware and California for its North American headquarters.
If it’s built in Colorado, the new facility will be in Golden, in part due to its proximity to Glo Park, a renewable energy research campus. The project is projected to create 137 jobs with an average wage of $83,380. It would also support Gov. Jared Polis’ aim of making the state’s energy grid fully renewable by 2040. The company would need to meet job creation hurdles to receive the tax credits.
Other incentives approved at this week’s economic development meeting include about $372,000 for a defense and space technology firm and $299,000 for an engineering firm. All of the incentives are contingent upon creating and maintaining a set number of jobs.
Colorado, and other states, regularly grant tax incentives to attract businesses. Companies take a lot of things into account when it comes to choosing a location, including the labor pool, access to universities and the cost of living. But tax credits are a big lure, too.
For instance, Philip Morris International just announced it’s opening a manufacturing facility in Aurora to make nicotine pouches. The new development is projected to create 500 jobs and bring in millions of dollars in tax revenues annually. As part of the deal, Phillip Morris will get up to $4.55 million in tax credits if it meets job and salary hurdles.
