A technology company in the aerospace and defense industry is looking to expand and could bring 1,250 jobs to Colorado if it chooses to continue growing in the state.

The Colorado Economic Development Commission approved $26 million in job growth incentive tax credits on Thursday for an unnamed company called “Project Hera.” (The commission often doesn’t disclose company names throughout the competitive process of attracting businesses to the state to protect company confidentiality).

Project Hera was described as a company that researches, designs, develops, manufactures, integrates and maintains “cutting-edge technology systems, products and services.”

State economic officials said the expansion would help the state add jobs and support Colorado’s pivotal aerospace and defense industry. Project Hera is also considering Alabama, Florida and Pennsylvania for its expansion.

The company is seeking to expand the “scope” of its federal contracts and win new contracts, as well, according to state officials.

The incentives from Colorado would help keep the company in the state and stay competitive in the market, said Kat Jarvis, senior manager of global business development with the state’s economic office.

“The company is under pressure from customers to offer more competitive pricing, and the price of doing business in the other locations under consideration is lower,” Jarvis told the commissioners.

The expansion would add more than 1,000 jobs with an average yearly income of $122,000 within four years.

The $26 million incentive package is the largest tax package offered by the state EDC so far in 2026. It comes as newly revised federal data shows the state lost 11,700 jobs in 2025. It also came on the heels of a report by the Colorado Chamber Foundation saying Colorado had suffered a net loss of 34 public company headquarters since 2022.

Meanwhile, the governor’s office released data saying Colorado’s efforts motivated 143 new businesses and expansions from 2019 to 2025, creating some 42,000 new jobs and $4.8 billion in wages.

But it’s not the first time in recent months that the EDC has awarded incentives to an aerospace company to keep it growing in Colorado, instead of choosing another state.

Last December, the commission approved $35million for a Colorado-based defense company to stay in the state for its expansion and create 1,850 new jobs.

Aerospace has been one of the largest job creators in the state through Colorado’s tax incentive program.

On Wednesday, Gov. Jared Polis announced two aerospace companies are expanding to Colorado, one in Loveland and another in Colorado Springs, at Space Symposium, a major event that attracts aerospace delegations around the U.S. and the world.

The two companies would bring the state more than 230 jobs.

Counties try to win Project Hera expansion with incentives, too

Project Hera is considering placing its expansion in either Douglas or Jefferson counties, according to state officials. Douglas County has “committed significant investment” in incentives to attract the project.

The Denver South region has recently positioned itself as an ideal place for aerospace companies due to its central location between Denver, Boulder and Colorado Springs.

Aerospace and aviation in the area grew by nearly 19% between 2020 and 2025 to be home to more than 10,000 workers, according to a new report from economic organization Denver South released ahead of the Space Symposium event this week.

About 15% of companies in the sector are based in the Denver South region.

Douglas County has recently attracted international aerospace and defense companies Safran Defense & Space and Sodern.

And Northrop Grumman, one of the largest defense contractors in the U.S., debuted a new military communication equipment facility near Centennial Airport last year.

Jefferson County is home to Lockheed Martin, where the Artemis mission’s Orion capsule design team is based, BAE Systems (formerly Ball Aerospace) and Trimble.

The Douglas County Economic Development Corp. granted a package worth “millions” to attract Project Hera and help cement the county as an aerospace hub, Ellie Reynolds, president and CEO of Douglas County EDC, told The Denver Gazette.

The package includes job-creation incentives offering monetary value for every job added, a tax rebate on any business equipment brought to its facility, expedited permitting and a targeted industry incentive to waive up to 100% of all permit fees, she said.

Reynolds said it’s important for Douglas County to not only attract companies, but keep them as well with incentives that offer both saving time and money.

While it’s not clear what company is seeking the incentives, Reynolds hinted it could be one that already has a presence in the region by saying retention is part of the puzzle.

“As we have seen Colorado become less business-friendly, we really want to be able to be that North Star in the business community, saying we’re open for business,” she said.
”And we want to make sure that we don’t lose any existing companies or the growth of those companies to other areas.”