Colorado Work Opportunity Income Tax Credit

The bill creates the Colorado work opportunity income tax credit, which provides an additional state-level income tax credit to a private-sector business that hires individuals who are members of a targeted group and employs them in Colorado, but only if such private-sector business is eligible for the federal work opportunity tax credit for hiring such individual.

The income tax credit is a one-time credit of a specified percentage of the individual's first-year wages, subject to a maximum amount, and subject to a minimum number of hours that the individual must work for the private-sector business. The credit amount is increased if the individual is a veteran.

There is an additional one-time income tax credit for private-sector businesses that hire individuals who are long-term family assistance recipients. That credit is a specified percentage of the individual's second-year wages, again subject to a maximum amount, and subject to a minimum number of hours that the individual must work for the private-sector business.

(Note: This summary applies to this bill as introduced and does not reflect any amendments that were subsequently adopted.)