COLORADO APPRENTICESHIP TAX CREDIT RULES

1

DEPARTMENT OF LABOR AND EMPLOYMENT

Office of the Future of Work

COLORADO APPRENTICESHIP TAX CREDIT RULES

7 CCR 1108-2

[Editor’s Notes follow the text of the rules at the end of this CCR Document.]

_________________________________________________________________________

Adopted November 27, 2024; effective January 14, 2025.

1.1

Statement of Authority.

This regulation is adopted pursuant to the authority in C.R.S. §§ 39-22-562 and 8-15.7-102 and is

intended to be consistent with the requirements of the State Administrative Procedures Act, C.R.S. § 24-

4-101 et seq. (the “APA”) and in conformity with 7 CCR 1108-1 and regulations promulgated by the

Secretary of Labor under the National Apprenticeship Act, 29 U.S.C. 50.

1.2

Purpose and Incorporation by Reference.

A.

The general purpose of these Colorado Apprenticeship Tax Credit Rules (“Rules”) is to exercise

the authority of the Director of the State Apprenticeship Agency to enforce and implement rules

establishing the standards for issuing apprenticeship tax credit certificates.

B.

29 C.F.R. § 29 (2024) is hereby incorporated by reference. These regulations are available for

public inspection at the Colorado Department of Labor and Employment, Office of the Future of

Work, 633 17th Street, Denver CO 80202. Copies may be obtained from this Office at a

reasonable charge, or can be accessed electronically from the Apprenticeship.gov website.

Certified copies of these regulations are available from the U.S. Government Publishing Office

Online Bookstore. Pursuant to C.R.S. § 24-4-103(12.5)(b), the agency shall provide certified

copies of the statutes and regulations incorporated at cost upon request or shall provide the

requestor with information on how to obtain a certified copy of the material incorporated by

reference from the agency originally issuing the statutes. All Office of the Future of Work (OFW)

rules are available to the public on the State Apprenticeship Agency Policy & Legislation

webpage

provide certified

copies of the statutes and regulations incorporated at cost upon request or shall provide the

requestor with information on how to obtain a certified copy of the material incorporated by

reference from the agency originally issuing the statutes. All Office of the Future of Work (OFW)

rules are available to the public on the State Apprenticeship Agency Policy & Legislation

webpage. Where these Rules have provisions different from or contrary to any incorporated or

referenced material, the provisions of these Rules govern so long as these are consistent with

Colorado statutory and constitutional provisions and in conformity with regulations promulgated

by the Secretary of Labor under the National Apprenticeship Act, 29 U.S.C. 50.

C.

If any part of these Rules is held invalid, the remainder shall remain valid, and if any part is held

not wholly invalid, but in need of narrowing, it will be retained in narrowed form.

1.3

Definitions.

“Apprentice” means a worker at least 16 years of age, except where a higher minimum age standard is

otherwise fixed by law, who is employed to learn an apprenticeable occupation as provided in article 15.7,

title 8, C.R.S. and 29 CFR 29.4 under standards of apprenticeship fulfilling the requirements of 29 CFR

29.5.

Code of Colorado Regulations

Secretary of State

State of Colorado

CODE OF COLORADO REGULATIONS

7 CCR 1108-2

Office of the Future of Work

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“Apprenticeship Agreement” means a signed written agreement, complying with 29 CFR 29.7, between

an apprentice and either the apprentice's program sponsor, or an apprenticeship committee acting as

agent for the program sponsor(s), which contains the terms and conditions of the employment and

training of the apprentice.

“Certificate of registration” means documentary evidence that the State Apprenticeship Agency has

registered an apprenticeship program pursuant to article 15.7, title 8, C.R.S. and federal guidelines as

evidenced by a Certificate of Registration or other written indicia

ng as

agent for the program sponsor(s), which contains the terms and conditions of the employment and

training of the apprentice.

“Certificate of registration” means documentary evidence that the State Apprenticeship Agency has

registered an apprenticeship program pursuant to article 15.7, title 8, C.R.S. and federal guidelines as

evidenced by a Certificate of Registration or other written indicia.

“Credit" means the credit against income tax created in C.R.S. § 39-22-562.

“Employee" means and includes every individual who is a resident or domiciled in the state of Colorado

performing services for an employer, either within or without or both within and without the state of

Colorado, or any individual performing services within the state of Colorado, the performance of which

services constitutes, establishes, and determines the relationship between the parties as that of employer

and employee, and includes officers of corporations and individuals, including elected officials, performing

services for the United States government or any agency or instrumentality thereof or the state of

Colorado or any county, city or municipality, or political subdivision thereof, except that “employee”

includes only those individuals who perform services for the taxpayer for at least 1,040 hours per income

tax year.

“New and emerging industry” does not include the building and construction trades as described in C.R.S.

§ 8-15.7-105 (4). The State Apprenticeship Council defines the jurisdiction of the building and

construction trades and new and emerging industries.

“Qualified taxpayer" or "taxpayer" means a person subject to tax pursuant to article 22, title 39, C.R.S.,

that is doing business in this state and that employs an apprentice in the relevant tax year.

“Registered apprenticeship program” means an apprenticeship program that is registered by the State

Apprenticeship Agency as provided in C.R.S. § 8-15.7-101(13)

rades and new and emerging industries.

“Qualified taxpayer" or "taxpayer" means a person subject to tax pursuant to article 22, title 39, C.R.S.,

that is doing business in this state and that employs an apprentice in the relevant tax year.

“Registered apprenticeship program” means an apprenticeship program that is registered by the State

Apprenticeship Agency as provided in C.R.S. § 8-15.7-101(13). An apprenticeship program may be

registered by the SAA if it directly registers with the SAA, or if it is an apprenticeship program registered

by the US DOL’s Office of Apprenticeship, or another State Apprenticeship Agency to which the SAA

must accord reciprocal approval of apprentices, apprenticeship programs and standards under federal

law if the program sponsor requests such reciprocity be granted.

“Small business" means a business with fewer than fifty employees.

"State Apprenticeship Agency" or "SAA" means the State Apprenticeship Agency created in C.R.S. § 8-

15.7-102.

“State apprenticeship council” or “SAC” means the state apprenticeship council created in C.R.S. § 8-

15.7-105.

1.4

Requirements for Apprenticeship Tax Credit

A.

Reserving a Tax Credit.

1.

The taxpayer must submit an application to the SAA to reserve a tax credit for a given tax

year beginning in 2025. The application requirements will be specified on the

Apprenticeship Colorado website.

CODE OF COLORADO REGULATIONS

7 CCR 1108-2

Office of the Future of Work

ticeship council created in C.R.S. § 8-

15.7-105.

1.4

Requirements for Apprenticeship Tax Credit

A.

Reserving a Tax Credit.

1.

The taxpayer must submit an application to the SAA to reserve a tax credit for a given tax

year beginning in 2025. The application requirements will be specified on the

Apprenticeship Colorado website.

CODE OF COLORADO REGULATIONS

7 CCR 1108-2

Office of the Future of Work

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2.

The SAA shall review the application to determine whether it meets the minimum

requirements for a tax credit reservation and may reserve for the benefit of the qualified

taxpayer all or part of the credit amount requested. The SAA shall notify the taxpayer of

its decision whether to reserve a tax credit and, if a reservation is made, the amount

reserved.

3.

The reservation of a tax credit does not entitle the taxpayer to the issuance of a tax credit

certificate until the SAA has verified that the taxpayer has met all the requirements in

Sections 1.4(B) and 1.5 and C.R.S. § 39-22-562.

B.

Claiming a Tax Credit.

1.

In order to claim an apprenticeship tax credit, an employer must submit an application for

reservation of a tax credit and must meet the following requirements.

a.

Qualified taxpayer. A qualified taxpayer is a person subject to tax pursuant to

article 22, title 39, C.R.S. that is doing business in this state (must file a Colorado

income tax return) and that employs an apprentice in Colorado in the relevant tax

year. In addition, a qualified taxpayer must either:

i.

have established a registered apprenticeship program in good standing

with the SAA and received a certificate of registration from the SAA,

USDOL’s Office of Apprenticeship, or another State Apprenticeship

Agency; or

ii.

be an employer partner of a registered apprenticeship program in good

standing with the SAA as verified by the qualified taxpayer's inclusion on

the Colorado State Apprenticeship Directory pursuant to C.R.S. § 8-83-

308

ship program in good standing

with the SAA and received a certificate of registration from the SAA,

USDOL’s Office of Apprenticeship, or another State Apprenticeship

Agency; or

ii.

be an employer partner of a registered apprenticeship program in good

standing with the SAA as verified by the qualified taxpayer's inclusion on

the Colorado State Apprenticeship Directory pursuant to C.R.S. § 8-83-

308. Inclusion on the Colorado State Apprenticeship Directory requires

the registered apprenticeship program sponsor to add the qualified

taxpayer as an employer partner in the Registered Apprenticeship

Partners Information Database System (RAPIDS) or any successor data

management system.

b.

Apprentice. The apprentice(s) that the employer claims the tax credit for must be:

i.

An employee of the qualified taxpayer for a minimum of six months in the

tax year, and

ii.

Registered with the SAA, USDOL’s Office of Apprenticeship, or another

State Apprenticeship Agency, as evidenced by a current Apprenticeship

Agreement on file in the Registered Apprenticeship Partners Information

Database System (RAPIDS) or any successor data management

system.

c.

New and emerging industry. The apprentice must participate in a registered

apprenticeship program in an occupation defined as “new and emerging”. The

SAC defines the jurisdiction of the building and construction trades and new and

emerging industries. The SAC shall review occupations on an annual basis and

publish a list to the SAA website.

CODE OF COLORADO REGULATIONS

7 CCR 1108-2

Office of the Future of Work

ng industry. The apprentice must participate in a registered

apprenticeship program in an occupation defined as “new and emerging”. The

SAC defines the jurisdiction of the building and construction trades and new and

emerging industries. The SAC shall review occupations on an annual basis and

publish a list to the SAA website.

CODE OF COLORADO REGULATIONS

7 CCR 1108-2

Office of the Future of Work

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C.

Credit Amounts.

1.

The credit is equal to up to $6,300 for six months of employment, plus up to $1,050 for

each additional month of employment, for a maximum of $12,600 per apprentice per tax

year.

D.

Limitations.

1.

The taxpayer shall not claim a credit for:

a.

More than ten apprentices per income tax year;

b.

The same apprentice for more than two consecutive income tax years; and

c.

An apprentice for months when the apprentice did not receive wages from the

taxpayer.

1.5

Standards of Apprenticeship Program Quality

A.

As required by article 15.7, title 8, C.R.S., registered apprenticeship programs must conform to

the standards located at 7 CCR 1108-1(1.5) and federal regulations published in 29 CFR Parts 29

and 30 in order to be eligible for approval and registration by the SAA.

B.

The SAA shall perform its duties as set forth in C.R.S. §8-15.7-102 and 7 CCR 1108-1. Related to

program quality, the SAA conducts reviews of registered apprenticeship programs and quality

assurance assessments for compliance with federal and state regulations and state policies,

including equal opportunity in apprenticeship, at the end of the first full training cycle. Subsequent

reviews occur at least every five years.

C.

Registered apprenticeship programs not in conformity with applicable state and federal law,

regulations, and guidance shall not be considered in good standing for purposes of claiming the

tax credit for apprentices.