The Colorado Economic Development Commission awarded a large package of incentives to a growing aerospace and defense company in order to keep a majority of its operations within the state. 

The unnamed company dubbed “Project Ladybug” plans to make a major expansion that would add about 1,850 new jobs over eight years, making it one of the largest projects for Colorado in recent years. 

The EDC approved two sets of incentives on Thursday for the company’s expansion: $35 million in job growth tax incentives and $8 million in CHIPS Refundable Tax Credits.

The commission also uniquely designated another $15 million in refundable tax credits to give to the company in 2027, though it still needs to be approved in the next budget cycle.

“We want to maintain their headquarters and center of gravity in Colorado,” according to an EDC memo. “It is critical that we secure projects like this to ensure companies not only start here but are able to scale and stay here.”

In most cases, the EDC does not disclose company names to protect confidentiality amidst the competitive process between states to attract businesses. While the project would be the expansion of a Colorado-based company, the EDC said Project Ladybug is also considering going to Ohio, Mississippi or California. 

Yet several clues point to rocket manufacturer Ursa Major as the potential recipient of the tax incentives. 

Project Ladybug is described as a company that “builds propulsion systems for hypersonics, solid rocket motors, in-space mobility, and space launch,” matching Ursa Major’s description on its website nearly word-for-word. It’s a Colorado-based company, and Ursa Major is headquartered in Berthoud. 

The company’s website says it delivers “flight-proven capabilities for hypersonics, solid rocket motors, space mobility and launch.”

Ursa Major also has a manufacturing operation in Ohio, one of the other states Project Ladybug is considering expanding to. 

The company did not immediately respond to a request for comment.

The state also gave Project Ladybug an advanced industries grant in 2017 for $250,000, according to the EDC.

Ursa Major was awarded an early-stage grant totaling $250,000 for fiscal year 2019, though the Colorado Office of Economic Development and International Trade announced it publicly in 2018.

Ursa Major is growing and planning to scale its manufacturing capabilities after securing $100 million in its Series E funding round, according to a company news release last month.

The company said it would use the funding to “address urgent needs” in the U.S. and “scale hypersonics, solid rocket motors and space mobility” at a cheaper and faster rate than legacy suppliers.

“This investment gives us the tools to solve critical strategic industrial base and national security challenges for the United States and our allies,” said Dan Jablonsky, CEO of Ursa Major, in the release.

Ursa Major secured more than $115 million in contracts in the first three quarters of the year with public and private partners such as the U.S. Department of Defense, Stratolaunch and BAE Systems. 

Project Ladybug’s expansion plans to add both office and production jobs, the EDC said. The expansion would add jobs to two locations, including its current home and a new site that could be in Colorado, Ohio, Mississippi or California. 

The company is considering expanding in the metro Denver area if it chooses Colorado for the expansion. 

The company plans to make a decision in the first half of 2026, said Rachel Gradner, a commercial real estate at CBRE who spoke on behalf of Project Ladybug.

Splitting up tax credits

It would be one of the largest expansions for the state in terms of high-paying jobs, number of jobs and workforce training commitments in recent years, the EDC said, and it’s critical to keep it in state to help Colorado grow its manufacturing industry and continue its lead in science and engineering.

The EDC signaled strong support for the company and made a special promise regarding the CHIPS refundable tax credits.

The state plans to split the tax credits created to lure semiconductor and advanced manufacturing companies to Colorado across two fiscal years, a first for the state. 

The Colorado EDC can only allocate $15 million a year for CHIPS refund tax credits.

OEDIT recommended the EDC approve $8 million in the CHIPS tax credits for fiscal year 2026 to ensure there were enough tax credits for other projects in 2026. The state economic development agency also plans to give $15 million in tax credits from 2027’s budget.

The EDC is not allowed by state statute to legally bind the $15 million tax credits from 2027 to the project, at least not yet, said Sean Gould, OEDIT’s deputy director of financial analysis for business funding and incentives. 

“You’re kind of making a moral commitment to the company,” he said. “They’re going to take that into strong consideration.”

The EDC signaled its plans to strongly consider awarding the $15 million in tax credits to Project Ladybug at a later date.