For income tax years commencing on or after January 1, 2025, but
before January 1, 2035, section 1 of the bill creates a refundable state income tax credit (tax credit) that an employer may claim if the employer employs an apprentice for at least 6 months during an income tax year and either has a registered apprenticeship program or is an employer-partner of a registered apprenticeship program. The amount of the tax credit is up to $6,300 for 6 months of employment plus up to $1,050 for each consecutive additional month of employment, for a maximum of up to $12,600 per apprentice per income tax year. An employer may not claim a credit for:
•
More than 10 apprentices per income tax year;
•
The same apprentice for more than 24 consecutive months; and
•
An apprentice for months when the apprentice did not receive wages from the employer.
To claim a tax credit, an employer must submit an application for
the reservation of the tax credit and an application to receive an income tax credit certificate to the state apprenticeship agency (SAA) in the department of labor and employment (department). The SAA shall review the applications for specified criteria to determine whether the employer qualifies for the tax credit and tax credit certificate. Section 2 ends the state income tax credit for qualified investments
made in a qualified school-to-career program for income tax years after December 31, 2024. Section 4 creates the scale-up grant program in the department to
start new registered apprenticeship programs or expand existing programs in Colorado. The scale-up grant program awards grants from the money in the scale-up grant fund, which is created in the bill. Eligible grant recipients include employers or entities operating an apprenticeship program and that:
•
Plan to develop and register a new registered apprenticeship program; or
•
Currently offer a registered apprenticeship program and plan to expand it.
The bill requires the department to collect specified data regarding
the scale-up grant program and submit a report to specified committees of the general assembly. Section 5 creates the qualified apprenticeship intermediary grant
program in the department to support entities that demonstrate expertise in connecting employers or apprenticeship program participants to registered apprenticeship programs or in convening stakeholders to develop registered apprenticeship programs. The qualified apprenticeship intermediary grant program awards grants from the money in the qualified apprenticeship intermediary grant fund, which is created in the bill. An eligible grant recipient must be a qualified apprenticeship intermediary.
The bill requires the department to collect specified data regarding
the qualified apprenticeship intermediary grant program and submit a report to specified committees of the general assembly.
