Colorado taxpayers are allowed to claim a credit of 10% of their current year investment in a qualified school-to-career program.
"Qualified investment" means money directly expended for wages, workers' compensation insurance, unemployment insurance, and training expenses to employ a student to work or to allow a student to participate in an internship through a qualified school-to-career program.
"Qualified school-to-career program" means a program that integrates school curriculum with job training, that encourages placement of students in jobs or internships that will teach them new skills and improve their school performance, and that is approved by:
- The Board of Education of the school district in which the program is operating;
- The State Board for Community Colleges and Occupational Education;
- The Division of Private Occupational Schools created pursuant to 23-60-703 C.R.S.; or
- The Colorado Commission on Higher Education.
No credit should be claimed for any expense incurred prior to the date the program was approved by one of the above organizations. Each year’s claim should be accompanied by a letter from the organization certifying the program and citing the taxpayer as an approved participant.
If the credit exceeds the taxpayer’s tax liability, the excess credit will not be refunded, but may be carried forward to the following income tax year. Credits may be carried forward up to five years, but must be applied to offset tax in the earliest year possible.
For more information, please see Colorado FYI Publication 32