Enterprise Zone Job Training Tax Credit
If your company is located in one of Colorado’s Enterprise Zones, it may be eligible for a 10% tax credit toward job training expenses for your employees. The Job Training Tax Credit may be applied toward what your company spends on IECRM apprentice training (also including the Live-Online Program) and continuing education classes for your employees. Please read below for eligibility requirements.
Overview of the Colorado Enterprise Zone Program
Colorado’s Enterprise Zone (EZ) Program provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state (high unemployment rate, low per capita income, and/or slower population growth rate).
One of the Enterprise Zone tax credit programs is the Job Training Tax Credit, which allows employers that are located in Colorado Enterprise Zones to claim a tax credit of 10% of their total investment in a qualified job training program for their eligible employees.
The following information is sourced from The Colorado Office of Economic Development and International Trade website, AdvanceColorado.gov. Please refer to AdvanceColorado.com for the most up-to-date information about the program, eligibility requirements, how to apply, and legislative changes. The following information, below, should be regarded as a guide only.
Basic eligibility requirements include:
- Employer must be located in one of Colorado’s Enterprise Zones. View the map of Enterprise Zones here.
- To apply the tax credit to an employee’s training, the employee must work predominantly within an Enterprise Zone.
- “Qualified job training program” is a structured training or basic education program conducted on-site or off-site, not including on-the-job training.
For all eligibility requirements, please visit the FYI Income 31: Enterprise Zone Qualified Job Training Program Investment Credit webpage.
Using the Tax Credit for IECRM Apprentice Training or Continuing Education
The IECRM Four-Year Apprentice Training Program, Live-Online Apprentice Training Program, and all continuing education classes may be applicable for the Job Training Tax Credit. Please follow eligibility and application instructions.
How to Apply for the Job Training Tax Credit
- Acquire Pre-Certification from the State of Colorado. A business must get Pre-Certified before any activity is performed, to earn a credit. Please visit the Colorado Enterprise Zone Tax Credit Pre-Certification and Certification online service webpage to apply for Pre-Certification.
- Receive Pre-Certification approval. Once approved, all training performed after approval is eligible to earn the tax credit.
- Typically at the end of the income tax year, a business must get Certified summarizing all activities that were performed during the income tax year that earned a credit. Click here to get Pre-Certified or Certified.
The above instructions are taken from the Enterprise Zone Tax Credits webpage (see “Process for Certifying Business Tax Credits” section).
Changes in 2014
- Effective January 1, 2014, the Job Training Tax Credit will be increased from 10% to 12%. (House Bill 13-1142)
- Enterprise Zone boundaries will be reviewed in 2014. (House Bill 13-1142)
Please view the Colorado Enterprise Zone Legislation webpage for the most up-to-date legislative changes to this program.
Please contact your Enterprise Zone Administrator with any questions about this program, your eligibility, how to apply, or anything else.