Colorado Workforce Training Tax Credits: What Employers Can Claim

Credit of 12% of eligible job training costs for employees working in the enterprise zone.

12% of eligible training costs. Not refundable; unused credit can be carried forward up to 12 years. Employee wages and OJT costs are not eligible expenses.

The business, as a Colorado income tax credit that carries forward up to 12 years.

• Business located in one of the 16 enterprise zones
• Structured training that improves skills of employees working primarily in the zone
• Pre-certify each business location before the training
• Marijuana businesses do not qualify

Up to $12,600 per apprentice per tax year, for up to ten apprentices.

Up to $6,300 for six months plus up to $1,050 per extra month. State cap $15 million per year.

The employer, as a refundable Colorado income tax credit.

• Registered Apprenticeship in a new and emerging occupation; construction trades are excluded
• Apprentice employed at least six months and 1,040 hours in the tax year

A credit equal to 50% of FICA tax paid per net new job for each calendar year in the credit period. This is a job creation incentive, not a training credit.

Up to 50% of FICA per net new job, subject to statute. Needs at least 20 net new jobs, or 5 in an Enhanced Rural Enterprise Zone, at 100% of the county average wage.

The business, as a performance-based Colorado income tax credit over eight years. Unused credit is not refunded but carries forward 10 years.

• Competitive relocation or expansion project considering another state or country
• Colorado's credit must be a major factor in the decision
• Do not start, announce or hire for the project before the Economic Development Commission approves

A refundable credit toward land, buildings or equipment that expand training in advanced manufacturing, clean energy, construction, infrastructure or semiconductors.

Up to 50% of the estimated qualified asset; up to $15 million of certificates a year.

Training programs run by organizations in advanced industries, not by ordinary employers for wages. Local governments and colleges are ineligible.

• Colorado-based applicant
• Asset not yet acquired or completed at application
• Application fee of $250 to $500

Nothing for new hires: the credit covers only people who began work on or before Dec. 31, 2025.

Not available for 2026 hires. The IRS page, updated July 20, 2026, shows no extension. The CDLE page still advertises WOTC without noting the lapse.

The employer, as a federal income tax credit.

• Hires who started on or before Dec. 31, 2025, with state certification