Aircraft manufacturers have an extra incentive to keep their operations in Colorado, thanks to a new state law that takes effect today.
The law gives income tax credits of up to $2 million per company to aircraft manufacturers within special development zones. It could help create more than 1,000 new jobs in coming years, according to state Rep. Alice Borodkin, D-Denver, who sponsored the bill with Sen. Lewis Entz, R-Hooper.
The economic incentive is targeted at jet makers Aviation Technology Group and Adam Aircraft. Both are based at Centennial Airport, and both are expanding.
ATG chief executive George Bye is planning to build a new plant for about 500 employees and is considering locations in Colorado, New Mexico and Utah.
Adam Aircraft is expanding here but also has opened a plant in Ogden, Utah.
The law “makes Colorado more competitive in terms of future growth for the company,” Bye said. “…When a company like us is making decisions about where to grow and where to put production facilities, these kinds of factors are very important.”
The Colorado airports Bye is considering for his manufacturing facility are Front Range, which is also in an enterprise zone, and Centennial.
“Our surrounding states are really throwing money at these companies,” Borodkin said. “We can’t really afford to do that … but (the law) was an effort to keep them here, kind of a good-faith deal.”
Borodkin said she “won’t be a happy camper” if ATG chooses another state for its facility.
Other aircraft manufacturers besides Adam and ATG could qualify. The incentive provides a $1,200 income-tax credit for each new employee and runs from tax year 2006 through 2016.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
