Colorado Industrial Tax Credit Offering

Tax credits for industrial facilities to reduce greenhouse gas emissions.

Funding Overview:

Type: Refundable Tax Credit
For: Industrial Facilities
Amount: $168 million total; up to $8 million per eligible project
Match: Varies
Program length: Until all tax credits are reserved, or through 2032
Application cycles: Semi-annual, closing on June 30 and December 31 of each year. Current application cycle open October 1 - December 31, 2024.

The Colorado Energy Office (CEO) provides tax credits for industrial facilities to explore and implement eligible industrial greenhouse gas emission reduction and avoidance projects in Colorado. The Colorado Industrial Tax Credit Offering (CITCO) is a competitively awarded, refundable tax credit. A total of $168 million in tax credits will be available over the program’s nine-year duration, through December 31, 2032.

What is a refundable tax credit? A refundable tax credit is a credit you can receive as a refund on your taxes if the credit amount is more than the amount of taxes you owe.

For more information on CITCO, please contact ceo_citco@state.co.us.

CEO hosted an informational webinar on the Colorado Industrial Tax Credit Offering funding round on October 9, 2024.
Watch webinar recording

CEO will also host office hours every other Wednesday at 1:00 PM MT, starting October 16. Note that the second November office hours will be on Monday instead of Wednesday and the final Office Hours will be on December 18 instead of December 25. CITCO will not meet with applicants outside of office hours.

All questions answered during office hours will be added to the Program Q&A. Applicants may also submit questions through the form linked below or via email to ceo_citco@state.co.us.
Submit questions

CEO will publish responses to all questions on the document linked below on a rolling basis.
View second application cycle CITCO Q&A responses

Eligible Applicants

Industries within North American Industry Classification System (NAICS) codes 31-33 (manufacturing) are eligible to apply. Additionally, all GEMM-I and GEMM-II facilities, project developers (e.g. Energy As A Service organizations), carbon management developers, and Special Purpose Vehicles (SPVs) (e.g. Joint Ventures, limited partnerships, etc.) are eligible to apply during the current application cycle.

Eligible Projects

CITCO provides funding for industrial studies and retrofit projects. Additionally, the program has expanded eligibility to include new build and expansion projects.

Eligible projects include:

Industrial Studies, including:
- Industrial energy and emissions audits
- Feasibility studies
- Pre-FEED and front-end engineering and design studies meeting CITCO’s standards
Improvements at existing and new/expansion facilities that help measurably reduce greenhouse gas emissions, including:
- Replacing fossil-fuel-powered off road equipment, such as forklifts and construction equipment, with electric equipment
- Replacing fossil-fuel-fired equipment for space or water heating or industrial process heating with high-efficiency electric equipment
- Replacing fossil-fuel-fired or compressed air-driven industrial process equipment with high-efficiency electric equipment
- Placing in service advanced refrigeration systems that reduce greenhouse gas emissions
- Placing in service waste heat recovery technology
- Upgrading or implementing energy monitoring systems

Improvements that help measurably reduce greenhouse gas emissions, including (cont.):
- Installing high efficiency electric pumps, motors, compressors, and lighting
- Installing variable volume or load efficiency equipment
- Installing carbon capture equipment that demonstrates a net reduction in greenhouse gas emissions and provides a permanent durable carbon storage plan; the captured carbon may not be used for enhanced oil recovery
- Installing equipment used for collection of biomethane
- Replacing fossil-fuel-fired equipment with hydrogen fueled equipment
- Installing hydrogen fueling stations for fuel cell vehicles at industrial facilities
- Converting fossil-fuel-powered pumps, compressors, and controllers to compressed air-driven or electric-driven pumps, compressors, and controllers
- Installing onsite energy storage
- Installing or upgrading to utility service feed equipment to directly support the implementation of any of the electrification improvements
- Placing in service carbon management systems including direct air capture and other forms of carbon dioxide removal
- Thermal energy storage projects
- Material substitutions within industrial processes to reduce industrial process emissions by a minimum of 15% percent when compared to existing production practices; and
- Other similar improvements as established in CITCO’s standards

Please Note: The office may reserve credits for the current or any future tax year based on the anticipated completion or in-service date indicated in the entity's application. However, credits may not be reserved for studies or projects completed before the end of the application and approval process.

How It Works

Colorado's Industrial Tax Credit Offering

Download and review all the Application Materials and CITCO standards and guidelines, including general standards and guidelines and project type specific standards and guidelines

Submit the application through the CITCO application portal
View CITCO application demo video

An evaluation committee will review and score applications based on predefined selection criteria.

CEO will enter a formal Conditional Agreement with awardee outlining terms and conditions to receive the tax credit.

CEO will provide a tax credit certificate for the awardee to file with the Colorado Department of Revenue (DOR) during their tax filing period upon project completion

DOR reduces tax liability for tax year and amount outlined in Conditional Agreement, refunding any remaining amount as applicable.

Additional Resources

View First Application Cycle CITCO Q&A Responses

Colorado Industrial Tax Credit Offering