Colorado Springs is seeking permission from the state to establish new zones within city boundaries that will further support advanced manufacturing companies in town and strengthen efforts to grow the sector locally.

City Council voted unanimously at its regular meeting on Monday to approve a proposal establishing the Colorado Springs CHIPS Zone. It was approved through the consent calendar without discussion; items on the consent calendar are considered as a whole and passed through with one vote.

Colorado’s Economic Development Commission must review and approve the request. Its vote is expected in December, the city’s Economic Development Manager Shawna Lippert said at a work session last month.

Establishing a CHIPS Zone will allow Colorado Springs to compete for new investment and high-paying jobs by accessing state and federal incentives via the Colorado CHIPS Zone Act and the national CHIPS and Science Act, officials said in a news release this week. The programs help support companies involved in semiconductor design, production and advanced manufacturing.

The Colorado Springs CHIPS Zone will also help retain existing advanced manufacturing companies who are already in town, such as Microchip Technologies and Entegris, for example.

“This initiative represents the kind of collaboration that defines our region. Our partners at El Paso County and the (Colorado Springs Chamber of Commerce & Economic Development Corp.) have been instrumental in shaping this proposal. Together, we’re creating the right environment for advanced manufacturing to thrive, supporting local companies, attracting new investment and driving high-quality job growth across the Pikes Peak region,” Lippert said in the release.

Colorado lawmakers created the CHIPS Zone Program in 2023 to maximize incentives available to eligible semiconductor companies in Colorado. Businesses can apply for state income tax credits for new employees, research and development, investment and workforce training, with the goal of strengthening supply chains, bolstering innovation and retaining high-tech jobs.

Establishing the Colorado Springs CHIPS Zone won’t affect city zoning, overlays or land use. There are no fiscal impacts to the city, Lippert said last month.

“We’re reinforcing our legacy as a high-tech manufacturing hub and accelerating our momentum as ‘Silicon Mountain,’” Mayor Yemi Mobolade said in the release. “From semiconductors to advanced manufacturing, this new designation helps ensure that businesses big and small have the tools to grow, innovate and stay rooted right here in Colorado Springs. It’s a smart, strategic move for our economy and for our future.”

A map provided in meeting documents shows Colorado Springs CHIP Zones are proposed to be created in all but one of the city’s six districts; no zone will be created in District 5, the central part of the city.

The proposed zone boundaries were based on state criteria, Lippert said.

Some districts have fewer proposed CHIPS Zones, or have none, because they already lie within the Pikes Peak Enterprise Zone boundaries that will go into effect next year, or they are not in areas already zoned for advanced manufacturing, she said.

The Enterprise Zone is a state income tax credit incentive that encourages business growth and retention in economically distressed areas. By law, CHIPS Zone and Enterprise Zone boundaries cannot overlap.

If the Colorado Economic Development Commission approves the request, the Colorado Springs CHIPS Zone will take effect Jan. 1.