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Colorado Springs staff ask council to approve CHIP Zone boundaries to attract semiconductor investment
Summary
City economic-development staff recommended a resolution approving proposed Colorado Springs boundaries for Colorado's CHIP Zone incentive program, which would allow eligible semiconductor and advanced-manufacturing firms to apply for state tax credits; staff said there are no direct fiscal impacts to the city and requested placement on the Nov. 10 consent agenda.
Colorado Springs economic development staff asked the City Council on Monday to approve proposed local boundaries for Colorado's CHIP Zone, a 2023 state incentive intended to attract semiconductor and related advanced-manufacturing businesses.
Shauna Lippert, the city's economic development manager, told the council the approval would allow the city to submit an application to the Colorado Office of Economic Development and International Trade (OEDIT) and that the CHIP Zone designation would not change city zoning, overlays or land-use decisions. "There are no fiscal impacts to the municipality," Lippert said, adding that the program would enable eligible local companies to apply for state income-tax credits such as the new employee, R&D and investment tax credits.
The presentation said CHIP Zone boundaries cannot overlap the city's enterprise zone (Pikes Peak Enterprise Zone), and noted the city is coordinating with El Paso County and the Colorado Springs Chamber & EDC to identify parcels that meet state criteria. "This is a tool to retain and attract eligible companies," Lippert said, and staff requested council place the resolution on consent for the Nov. 10 regular meeting.
Council members asked staff for clarifications on eligibility rules. A council question about the new-employee tax credit prompted Lippert to say that, because this is a state program, credits apply to net-new jobs in Colorado and OEDIT tracks where employees live and work; municipalities do not directly set that rule. Sherry Hoffman of the Colorado Springs Chamber and EDC described outreach and attraction activities to match eligible companies with the program.
Next steps described by staff: if council approves the resolution, city staff will submit the CHIP Zone application to the state in November 2025, and the state's Economic Development Commission would consider the application in December 2025. If approved, the CHIP Zone designation would take effect Jan. 1, 2026.
The council did not vote Monday; staff asked that the resolution be placed on consent for the Nov. 10 meeting.
