Forest ProductsTax Credit Sourcebook

Colorado · Workforce · CO-EZ-TRAIN-001

Enterprise Zone Job Training Credit

Publication revised September 24, 2026. Sourcebook page 55.

Credit amount / calculation

Twelve percent of qualifying investment in a structured training or basic-education program that improves the job skills of the taxpayer's employees working predominantly within an enterprise zone. There is no statutory per-worker cap under this provision. Eligible training is not limited to incumbent workers learning new machinery.

Business fit and eligible activity

A mill's structured training in scanner operation, kiln controls, maintenance, or other job skills may qualify. The training can take place on or off site and can be conducted by the employer or another entity. Eligible statutory costs include training-staff wages or fees, course contracts, supplies, expensed equipment, temporary space rental, travel, and other qualifying training expenses. Certain facilities and capital equipment used entirely within the zone primarily for training can qualify when the same costs are not claimed under the investment credit. The employer must substantiate the program, employee participation, where the employees predominantly work, and the cost allocation. Ordinary production equipment does not become a training expense merely because employees learn to operate it. Keep ordinary payroll separate from the documented training-staff and program costs; do not assume every wage paid while an employee attends instruction qualifies. Likewise, do not categorically exclude basic education or orientation solely because it is not retraining on new technology; apply the structured job-skills test.

Illustrative business benefit

A precertified mill pays $45,000 in documented qualifying training-provider fees, training-staff costs, and supplies. The credit is $45,000 × 12% = $5,400. Assume certification is obtained and $6,000 of eligible Colorado income tax remains available to absorb it. The mill uses the full $5,400 in the current year. Do not assign value to an unused balance without applicable Department of Revenue guidance.

Timing / first action

Complete annual zone precertification before undertaking the activity for which the credit will be claimed. Obtain certification of the qualifying activity and costs for the tax-year claim. Training can occur outside the zone, but the employees must meet the predominantly-in-zone work requirement.

Using the credit

  • Refundable: No ordinary refund entitlement is established for this training credit.
  • Transferable: No general sale/transfer authority identified; ordinary pass-through allocation is a different issue.
  • Carryforward: No carryforward period is stated for current Job Training Investment Tax Credits. Do not apply the 2026 14-year investment-credit rule to this credit. Current statutory treatment The 14-year paragraph added in 2026 expressly applies to the subsection (1) Enterprise Zone Investment Credit; the enacted bill summary likewise describes an investment and renewable-energy rule. This guide therefore does not apply 14 years to job-training credits. Earlier state guidance addressed unused job-training credits differently. Taxpayers with an unexpired legacy balance should confirm its treatment under current filing guidance.

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