Colorado: Community Revitalization Tax Credits

Widely used for historic preservation and film, state tax credits offer a unique policy mechanism for advancing the creative economy and incentivizing industry investments. Colorado offers a recent example for the arts sector.

In June 2025, Colorado Creative Industries (CCI) announced $10 million in Community Revitalization Tax Credits for 10 projects across the state. Each project is a mixed-use development initiative designed to catalyze creative economic prosperity and improve access to affordable housing. In tandem with the creation of numerous visual and performing arts spaces, the projects selected for the credits will provide 185 new affordable housing units and facilitate access to community gathering places, childcare services and multigenerational learning spaces.

The World’s Wonder View Tower, built in 1926, will be redeveloped into a community gathering place, cultural center, creative business incubator and economic driver on Colorado’s Eastern Plains. Photo by Jeffrey Beall

These credits are part of a multiyear initiative. Between tax years 2025 and 2029, Colorado will provide up to $50 million in credits to capital improvement projects (involving construction, rehabilitation or conversion) located within creative districts, historic districts, commercial corridors or main streets. The projects must focus on economic development or diversification efforts that support artisans and arts workers as well as the wider community in which they reside. Applicants may request tax credits of up to $3 million or 25% of the total eligible expenses of a project. All awards are competitive. A project’s goals, community engagement practices, projected impacts, financial status and implementation time line are taken into consideration when applications are adjudicated.

The tax credit program builds on the success of the Colorado Community Revitalization Grant. Starting in 2021, CCI worked with the Colorado Department of Local Affairs to run a program that invested $98 million in 59 projects across Colorado. Approximately 58% of the subsequent grant projects were located in rural communities. 85% incorporated clean/renewable energy strategies, 49% were located in a creative district and 84% served an Enterprise Zone or Enhanced Rural Enterprise Zone. Collectively, these initiatives are creating over 598 housing units, many of which are affordable and low-income units. The statute that initially established the Community Revitalization Grants was amended in 2024 to incorporate the new tax credit mechanism.

To learn more about tax credits or creative economy strategies, contact NASAA.