HB 16-1372: Colorado Work Opportunity Income Tax Credit

• Creates a state-level income tax credit for private-sector businesses that hire individuals from targeted groups (TANF recipients, veterans, ex-felons, SNAP recipients, and others) and are eligible for the federal work opportunity tax credit.

• Provides a one-time first-year credit of 40% of qualified first-year wages (up to $4,500, or $4,800 for veterans) for employees working 400+ hours, or 25% (same wage caps) for employees working 120-399 hours.

• Provides an additional one-time second-year credit for long-term family assistance recipients of 50% of qualified second-year wages (120+ hours) or 25% (120-399 hours), with combined first and second-year wage limit of $10,000.

• Requires taxpayers to provide department of revenue with certification from the Colorado Department of Labor and Employment (designated local agency) confirming employee eligibility, and allows unused credits to carry forward for up to five years.

• Sunsets effective December 31, 2024, and applies to income tax years commencing January 1, 2018 through December 31, 2019.