14 across
Militant
going
into
business
with
John
Denver
here
(8)
Militant going into business with John Denver here (8)
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The definition is at the end of the clue.
How the clue works
The definition is Denver here, since Denver is the capital of the state. For the wordplay, take CO (business), then John gives LOO, and "militant" gives RAD (short for radical) going into that lot — so RAD is dropped inside COLOO to build CO-LO-RAD-O, spelling COLORADO. The John Denver reference is a lovely bit of misdirection.