The Colorado Economic Development Commission on Thursday approved $4.26 million in state tax credits to persuade Colorado Springs defense contractor Infinity Systems Engineering to expand by hiring 459 people during the next eight years.

The incentives were approved under the code name “Project Thoroughbred,” which the Colorado Office of Economic Development and International Trade describes as “a Colorado-based engineering services company that provides systems engineering, integration and testing services to major prime integrators and the Department of Defense.” The company employs 266, including 215 in Colorado, according to a project summary report the office prepared for the commission.

Infinity President Dan Jaworowski on Friday confirmed the incentives for Project Thoroughbred are for his company to launch a product line that will incorporate new software using artificial intelligence and machine learning into its systems engineering services. He said the company also is seeking financial incentives from one other location he declined to identify and expects to decide between the two locations by the end of the month.

“I think you know where our heart is,” Jaworowski said. “Right now it is down to pricing real estate (at the other location). They haven’t made an offer yet, but we should hear from them in the next two weeks. We are close to making our decision.”

The incentives come after a series of economic development announcements for the Springs during the past year that would add 2,300 jobs, many of which will be positions paying significantly more than El Paso County’s average wage of $60,151.

Infinity has received $3.7 million in Small Business Innovation Research grants in the past month from the Air Force and Space Force for the new product line, but Jaworowski said the company hasn’t received approval from either military branch to release more information about the grants. Infinity began investing two years ago in the new product line, which it calls “digital engineering transformation,” which he said makes systems engineers more productive.

The commission document said the 459 jobs created by Project Thoroughbred would include engineers, analysts and managers who would earn an average wage of $143,615, or 38% higher than El Paso County’s average wage.

The state income tax credits the commission approved equals half of the Social Security tax for each new employee during the period of the incentive and are paid after the company creates and keeps at least 20 new jobs in Colorado for a year.

The Colorado Springs City Council is scheduled Monday to consider offering $82,379 in sales and use tax rebates on purchases of construction materials and equipment to Project Thoroughbred. A presentation included in the council agenda packet says the expansion is for a new product line and would involve spending $14.7 million on buildings, improvements, furniture, fixtures, machinery and equipment during the 10-year term of the rebates.

If Infinity chooses Colorado Springs for its expansion, Jaworowski said the company plans during the next 12 tp 18 months to add another 3,000 square feet to its new Colorado Springs headquarters in the Victory Ridge development southeast of Voyager and InterQuest parkways. By the end of the 10-year term of the city incentives, he said the company would likely need another 20,000 to 30,000 square feet of additional space, or nearly triple the size of the new headquarters.

The city’s Office of Economic Development estimates that the project will help the city retain the 215 people  employed by the company behind Project Thoroughbred and result in businesses that serve the company’s employees hiring another 1,145 people. The office also estimates the project and spending by its employees during the next 10 years would generate $1.14 billion in economic activity and $10.4 million in additional revenue for the city.

The council also is scheduled to consider similar rebates for two other companies Monday and Tuesday, including $3.04 million for Swiss solar cell manufacturer Meyer Burger and $102,590 for a local company code named Project Star Trek.

Meyer Burger plans to spend $403.5 million during the next two years to transform the former Intel semiconductor plant at 1575 Garden of the Gods Road into a solar cell manufacturing facility that would result in the company hiring 380 people during the next three years at an average annual wage of $77,842. The city credits are part of a $90 million incentive package that also includes Colorado Springs Utilities and El Paso County on top of $5 million in state tax credits.

The city’s economic development office describes the company behind Project Star Trek, which the city did not identify, as “a rapidly growing high-tech small business that provides technology services and software products to government and commercial customers.” The office’s presentation to council said the company plans to “expand into a new strategic location to expand their capabilities and to be in proximity to customers” and is considering at least five other locations.

Project Star Trek is expected to create 200 jobs paying an average annual wage of $140,000 and involve $15 million in spending on buildings, improvements, furniture, fixtures, machinery and equipment. The office estimates the project will help the city retain the 70 people employed by the company and result in businesses that serve the company’s employees hiring another 410 people.

The office also estimates the project and spending by its employees during the next 10 years would generate $628 million in economic activity and $6.2 million in additional revenue for the city.