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HB24-1439

Financial Incentives Expand Apprenticeship Programs

Concerning financial incentives related to apprenticeship programs, and, in connection therewith, making an appropriation.
Session:
2024 Regular Session
Subjects:
Business & Economic Development
Fiscal Policy & Taxes
Labor & Employment
Bill Summary

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. An employer issued a tax credit certificate must file the certificate with the employer's state income tax return. The SAA is required to submit certain information and reports, as applicable, regarding the tax credit to the state auditor and the department of revenue. The SAA must also conduct outreach and provide technical assistance to small businesses concerning awareness of and application for the tax credit. 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 4 also 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 SAA must post a list of the types of entities eligible to apply to the grant program on the SAA's website. 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.

For the 2024-25 state fiscal year, $103,515 is appropriated to the department from the general fund for use by the office of future of work to implement the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Passed
Became Law

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Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details