The New Markets Tax Credit (NMTC) Program catalyzes economic development across Colorado, from Denver’s urban neighborhoods to mountain resort communities, the Eastern Plains’ agricultural regions, and Western Slope towns transitioning from extractive industries. As a state experiencing rapid growth alongside persistent poverty in specific communities, Colorado offers unique opportunities for NMTC deployment to address housing affordability, workforce development, and economic diversification while preserving the quality of life that attracts residents and businesses to the Centennial State. CBO Financial partners with manufacturers, outdoor recreation enterprises, technology companies, and community organizations to structure financing solutions supporting Colorado’s economic evolution.
Colorado’s economy—characterized by aerospace and defense, outdoor recreation and tourism, technology and software, renewable energy, agriculture, bioscience, and quantum computing—creates diverse applications for community development investment. The state ranks among national leaders in educational attainment and venture capital investment, yet maintains rural counties with limited economic opportunity and urban neighborhoods experiencing displacement from rapid growth. This economic disparity makes new market tax credit consultant services particularly valuable for projects serving Colorado’s underserved communities.
How the NMTC Program Works in Colorado
The NMTC Program incentivizes private capital investment by providing federal tax credits to investors who support qualified businesses and real estate projects in designated low-income census tracts. Community Development Entities (CDEs) certified by the U.S. Treasury’s CDFI Fund receive allocation authority to deploy tax credit equity into qualifying projects throughout Colorado’s diverse urban, mountain, and rural communities.
In Colorado, this financing structure addresses several distinct challenges. Despite overall prosperity, many Denver neighborhoods experience concentrated poverty and limited commercial investment. Rural communities on the Eastern Plains face agricultural consolidation, aging infrastructure, and youth out-migration. Western Slope communities dependent on natural resource extraction require economic diversification as industries decline. Mountain resort towns struggle with workforce housing affordability, which threatens the viability of the service sector. Immigrant and refugee communities concentrated in specific metro Denver areas face language barriers and discrimination, limiting capital access despite strong entrepreneurship.
The NMTC subsidy—approximately 20% of the qualified equity investment after fees—bridges financing gaps, preventing economically viable projects from achieving financial feasibility. Whether supporting an advanced manufacturing facility in Pueblo, developing affordable early childhood education infrastructure in rural Mesa County, financing modular housing production serving Colorado’s affordability crisis, or creating a historic hotel revitalization in Canon City, NMTC capital enables projects that conventional underwriting rejects despite community need and economic potential.
Colorado benefits from active local CDEs, including the Colorado Enterprise Fund, which has deployed significant NMTC allocations since its creation in 1976, and the Colorado Growth and Revitalization Fund, which focuses on healthcare, affordable housing, and community facilities throughout the state. These organizations understand Colorado market conditions, the dynamics of the outdoor recreation economy, and the challenges of high-altitude construction, making them valuable partners for NMTC transactions.
For comprehensive information about Colorado’s broader community development finance ecosystem, explore our resources covering CDFI fund programs and multiple capital sources supporting economic growth in underserved markets.
Eligible Projects and Borrowers
NMTC financing in Colorado supports diverse community development initiatives aligned with the state’s economic strengths and community needs.
Aerospace and Advanced Manufacturing projects include aerospace component manufacturing supporting Colorado’s concentration of space industry activity; advanced manufacturing leveraging Colorado’s engineering talent; semiconductor fabrication supporting emerging quantum computing applications; precision manufacturing; and defense contracting facilities. Colorado Springs hosts significant military installations and aerospace operations, creating supply chain opportunities for NMTC-financed manufacturers.
Outdoor Recreation and Tourism projects encompass outdoor gear manufacturing, hospitality infrastructure in economically distressed mountain communities, recreation equipment rental and retail operations, tourism-related facilities in rural areas, and cultural attractions supporting Colorado’s visitor economy. The outdoor recreation industry generates substantial economic activity while creating employment accessible to residents without advanced degrees.
Renewable Energy and Sustainability projects include solar and wind energy component manufacturing, energy storage technology, sustainable building materials production leveraging Colorado’s timber resources, water conservation technology addressing Western water scarcity, and circular economy enterprises. Colorado’s renewable energy leadership creates opportunities for NMTC-financed projects supporting energy transition.
Healthcare and Education projects address critical access gaps through federally qualified health centers in underserved neighborhoods, rural clinics serving agricultural communities, behavioral health facilities addressing substance abuse challenges, mental health crisis centers, early childhood education facilities addressing Colorado’s childcare desert areas, charter schools, and workforce training centers preparing Coloradans for careers in aerospace, technology, and advanced manufacturing.
Agriculture and Food Systems projects include food processing and value-added agricultural operations, cold storage infrastructure, craft beverage production, organic agriculture operations, and farmers’ market facilities. Colorado’s agrarian diversity creates opportunities for NMTC-financed food-related enterprises that connect producers with consumers.
Technology and Innovation projects leverage Colorado’s technology strengths through business incubators, quantum computing support facilities, software development operations in economically distressed areas, data centers, and research and development facilities that commercialize innovations from Colorado’s universities and federal laboratories.
Eligible borrowers include for-profit businesses, nonprofit organizations, cooperatives, social enterprises, real estate developers, and community facilities serving qualified low-income communities. Projects must be located in qualifying census tracts and demonstrate measurable community benefit through job creation, service provision to low-income populations, or economic revitalization of distressed neighborhoods.
CBO Financial provides experienced NMTC services, helping Colorado borrowers navigate qualification requirements, identify appropriate CDEs with Colorado allocation authority and mission alignment, and structure transactions optimized for community impact while managing high-altitude construction challenges and the dynamics of Colorado’s outdoor recreation economy.
Benefits of the NMTC Program for Colorado
The NMTC Program delivers substantial benefits, particularly suited to Colorado’s development challenges and opportunities:
Addressing Housing Affordability: Colorado’s housing crisis affects workforce retention and economic competitiveness. NMTC-financed modular housing manufacturing, workforce housing development, and mixed-use projects combining housing with essential services address affordability challenges while creating construction and manufacturing employment.
Rural Economic Diversification: Eastern Plains and Western Slope communities require economic alternatives to declining agriculture and natural resource extraction. NMTC supports value-added agriculture, renewable energy, outdoor recreation infrastructure, and manufacturing operations, creating quality employment in rural Colorado.
Outdoor Recreation Economy: Colorado’s $62 billion outdoor recreation economy requires supporting infrastructure. NMTC-financed manufacturing, retail, hospitality, and service operations connect underserved communities to economic opportunities in outdoor recreation while creating accessible employment.
Technology Sector Growth: Colorado’s emerging quantum computing hub and established aerospace and technology sectors require workforce development and supplier infrastructure. NMTC-financed training facilities, incubators, and manufacturing operations expand access to the technology economy for underserved communities.
Immigrant Community Support: Colorado’s refugee and immigrant populations demonstrate vigorous entrepreneurial activity but face barriers to capital access. NMTC supports businesses serving these communities while creating culturally appropriate employment opportunities.
Healthcare Access: Rural Colorado communities face shortages of healthcare providers and clinic closures. NMTC-financed health centers, behavioral health facilities, and specialty care operations bring essential services to underserved areas while creating healthcare employment.
Historic Preservation and Downtown Revitalization: Small Colorado towns need downtown revitalization to support tourism and local commerce. NMTC financing enables landmark building rehabilitation, mixed-use development, and community facilities that anchor commercial districts.
Whether you’re expanding aerospace operations, developing community facilities, or creating outdoor recreation infrastructure in Colorado, CBO Financial can assess your project’s eligibility and structure financing suited to the state’s unique market conditions. Contact us today to explore your options.
Regulatory & State Development Framework
Colorado’s economic development framework supports projects aligned with NMTC objectives by enabling agencies to understand the state’s unique dynamics. The Colorado Office of Economic Development and International Trade (OEDIT) works with statewide partners to foster a favorable business climate that encourages dynamic economic development and sustainable job growth. Under Governor Jared Polis’s leadership, OEDIT advances the state’s economy through financial and technical assistance supporting local and regional economic development activities throughout Colorado.
OEDIT administers various programs supporting small businesses, workforce development, housing infrastructure, and industry-specific initiatives that complement NMTC transactions. The Colorado Competes Tax Credit program, Rural Jump-Start program, and Advanced Industries Accelerator program offer incentives that often layer with NMTC financing to reduce total project costs and improve feasibility.
Colorado Enterprise Fund is a major Colorado-based CDE that has deployed NMTC allocations throughout the state since receiving its first allocation. CEF’s successful transactions include historic hotel rehabilitation, early childhood education campus development, modular housing manufacturing, and advanced manufacturing facility construction, demonstrating Colorado’s capacity to structure impactful NMTC projects across diverse sectors and geographies.
The state’s network of regional economic development organizations, workforce development boards, Small Business Development Centers, and Manufacturing Extension Partnerships provides localized support for project planning, workforce training, and coordination with state programs. Colorado’s robust outdoor recreation industry associations and aerospace/defense networking organizations offer sector-specific resources supporting NMTC-financed projects.
CBO Financial maintains relationships with CDEs holding Colorado allocation authority and specializes in navigating the state’s regulatory environment, coordinating with OEDIT programs and regional initiatives, and structuring comprehensive financing packages maximizing available resources while ensuring compliance with federal NMTC regulations and Colorado state requirements.
Get Started with NMTC Financing in Colorado
Ready to explore how New Markets Tax Credits can support your Colorado project? CBO Financial’s experienced team understands Colorado’s unique market dynamics—outdoor recreation economy, aerospace and defense concentration, housing affordability challenges, rural economic diversification needs, and high-altitude operational considerations—and can structure transactions suited to your specific circumstances.
From initial feasibility assessment through closing and compliance monitoring, we provide comprehensive support throughout the NMTC process. We evaluate projects by considering Colorado-specific factors, including altitude and weather impacts on construction, seasonal outdoor recreation, workforce housing challenges, and coordination with state economic development programs and regional initiatives.
Contact us today to discover how strategic community development finance can transform your vision into reality while delivering lasting benefits to Colorado’s underserved communities.