Summary
Colorado state income tax credit equal to 20% of eligible expenses incurred by an employer for an employee who is, or has recently been, receiving benefits under the Colorado Works program (Colorado's TANF). Eligible expenses include: child care services, health insurance, dental insurance, job training, education, and transportation to and from work. The credit's practical effectiveness is limited because employees often exceed Colorado Works income limits once the employer-provided benefits begin.
Benefit
- Percentage
- 20% of payroll
- Flat
- —
- Duration
- —
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- taxpayer_earned
- Claimant subject
- business
- Refund/transfer election
- none
- Program family
- —
- Effective
- —
- Sunset
- —
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- local_approval_requiredEmployer must attest that an employee is, or has recently been, receiving Colorado Works (TANF) benefits, and that the eligible expenses claimed (childcare, health/dental, job training, education, transportation) are properly documented.
Preference / tiering rules (0)
None.
NAICS industries (0)
Any.
Geo zones (1)
- statewide — · Colorado Statewide
Tags (2)
- eligible_expense_categories: child_care,health_insurance,dental,training,education,transportation
- employee_eligibility: colorado_works_tanf_recipient
Approval requirements (1)
- requiredCO CDOR — Colorado Works Program employer attestation — Employer attestation: employee CO Works status + eligible-expense documentation.
Source
§ 39-22-521, C.R.S. (Income 34)
Last verified: 2026-04-30
CO-statewide. Employer-side credit. Targeted at CO Works (TANF) participants. Source URL is CDOR Income Tax Topics PDF (Income 34) — fetched only via WebSearch + state legislative review document, not directly. Re-verify rate/eligibility on production-seed pass.