Forest ProductsTax Credit Sourcebook

Colorado · Jobs · CO-JGITC-001

Job Growth Incentive Tax Credit

Publication revised September 24, 2026. Sourcebook page 62.

Credit amount / calculation

Up to 50% of employer-paid federal Social Security and Medicare taxes associated with approved net new jobs, over an eight-year period.

Business fit and eligible activity

Large expansions can negotiate a performance-based credit tied to new jobs and payroll. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.

Eligibility and practical use

A mill expansion can meet the capital side of a project easily and still miss a jobs credit because the headcount is too small. That is why this credit should be tested against the actual staffing plan, not the size of the equipment purchase. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit.

Illustrative business benefit

If an approved project creates 20 qualifying jobs and the eligible employer payroll-tax amount is $91,800 for the year, the 50% calculation is $45,900. The reduced five-job threshold applies in an enhanced rural enterprise zone, not every enterprise zone.

Timing / first action

Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed.

Official sources

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