Employers with qualifying registered apprenticeships can claim up to $126,000 in tax credits.
(DENVER) — Apprenticeship Colorado and the Colorado Department of Labor and Employment (CDLE) are pleased to announce the New & Emerging Industries Apprenticeship Tax Credit, created by House Bill 24-1439: Financial Incentives Expand Apprenticeship Programs. This tax credit is designed to encourage the adoption and expansion of Registered Apprenticeship Programs (RAPs) in new and emerging industries.
The tax credit aims to address key workforce challenges by:
- Providing financial incentives for businesses to hire and train apprentices
Supporting the growth of Registered Apprenticeship Programs in new and emerging industries. - Helping small businesses overcome financial barriers to apprenticeship programs.
Here’s what employers need to know about the tax credit:
- Type: Refundable Tax Credit
- For: Employers participating in Registered Apprenticeship Programs in Colorado
- Amount Per Employer: Max $12,600 per apprentice per income tax year. Qualifying taxpayers can claim up to ten apprentices per year for a maximum tax credit of $126,000.
- Total Available Amount: $15 million per year through 2034
Eligibility Criteria:
- Businesses must be qualified taxpayers operating in Colorado.
- Employers must employ one or more apprentices in a Registered Apprenticeship Program for at least six months.
- Apprentices must be in a "New and Emerging" occupation.
- Employers must be listed as either the RAP Sponsor or employer on the Colorado Apprenticeship Programs Directory as verified by Apprenticeship Colorado.
Application Process:
- An overview of the Application Process to reserve the Tax Credit is available on the Apprenticeship Colorado website.
- Join Apprenticeship Colorado and register for a webinar to review how to complete the Reservation Application for the Tax Credit on Wednesday, February 26, 2025.
"Colorado is committed to accelerating apprenticeship program growth, and continuing to innovate in industries that have been traditionally underrepresented," said Denise Miller, State Director of Apprenticeship Colorado. "This tax credit will help employers develop skilled workforces and provide career opportunities for Coloradans."
Resources and Support:
Interested employers can:
- Visit the Apprenticeship Tax Credits webpage for detailed information
- Review the Frequently Asked Questions (FAQ) document (PDF)
- Email questions to apprenticeshiptaxcredit@state.co.us
About Apprenticeship Colorado
Apprenticeship Colorado is the State Apprenticeship Agency (SAA) in Colorado, which is responsible for the oversight and registration of Registered Apprenticeship Programs. Apprenticeship is an industry-driven, high-quality career pathway where employers can develop and prepare their future workforce, and individuals can obtain paid work experience, classroom instruction, and a portable, nationally-recognized credential.
###
Resources Mentioned
Apprenticeship Colorado
New & Emerging Industries Apprenticeship Tax Credit
Colorado Apprenticeship Programs Directory
Register for the Tax Credit Reservation Application Webinar on Feb 26th