Opportunity Now Tax Credits

Organizations must meet the following criteria:

1. Applicant is based in Colorado
2. Asset will establish or expand training in the advanced manufacturing, clean energy, construction, infrastructure or semiconductor industry
3. Asset is either:
   1. Land in Colorado.
   2. Building in Colorado (purchasing, constructing or renovating).
   3. Equipment for use in Colorado for training purposes (personal equipment does not qualify).
4. Asset is unacquired/incomplete at time of application submission
5. Applicant is not receiving grants that already cover half the cost of the asset
6. Investment will result in increased job placements with a living wage in the advanced manufacturing, clean energy, construction, infrastructure or semiconductor industries

Please note: Local Governments, Institutes of Higher Education, Technical Colleges and Local District Colleges are ineligible to apply.

This tax credit has a multi-step application process:

1. Reservation Application
   1. $250-$500 application fee (depending on amount requested)
   2. Merit-based application review
   3. Selected applicants receive Reservation Approved letter
2. Progress Report (Dates Vary by Applicant)
   1. Applicants who do not submit an Issuance Request within 18 months of receiving the Reservation Approved letter, and every 12 months thereafter, must submit a Progress Report.
   2. If applicant is making adequate progress towards placing qualified asset into service, applicant receives Progress Report Approval letter.
   3. If applicant is not making adequate progress towards placing qualified asset into service, OEDIT will schedule a time to discuss progress, which may result in revoking tax credit reservation.
   4. Progress Report will ask about progress in placing the qualified asset into service; qualified asset photographs and copies of major invoices will be required, in addition to other information requested by the office.
3. Issuance Request (Dates Vary by Applicant)
   1. Once applicant has placed their qualified asset into service they must submit their Issuance Request.
   2. Issuance Fee is 3% of tax credit amount specified on Tax Credit Certificate.
   3. Issuance Request will ask about passthrough entities, taxpayer information and when qualified asset was placed into service; qualified asset photographs, expenditures spreadsheet and CPA review/audit will be required.
   4. If compliant, tax credit is issued through a Tax Credit Certificate.
4. Compliance Report (Dates Vary by Applicant)
   1. Tax Credit Certificate recipient must submit Compliance Report every 12 months for 15 years.
   2. Compliance Report will ask about qualified asset disposition and trainee numbers, demographics and geographic distribution.

Applicants should be prepared to provide the following information:

Project and Industry Information

• Description of the qualified asset and related training activities.
• How the project will increase job placement in a qualified industry with industry-competitive wages.
• Applicable North American Industry Classification System (NAICS) and Standard Occupational Classification (SOC) codes. (if available)

Asset and Investment Details

• Asset type (land, building, equipment)
• Counties served
• Overlap with higher education institutions (and justification, if applicable)
• Asset status and estimated in-service date
• Total project investment
• Tax credit amount requested
• Other tax credits or grants supporting the project

 Training Program and Partners

• Percentage of asset use dedicated to training
• Quality, value, and transferability of skills taught
• Industry-recognized credentials or Registered Apprenticeship Program (if applicable)
• Community partners with access
• Wraparound services offered, if any

Trainee Impact and Capacity

• Current and projected annual number of trainees
• Current and projected weekly training hours
• Trainee recruitment plans

Return on Investment (ROI)

• Expected talent and economic outcomes, such as:
  • Job placements and average wages
  • Investment or tax credit cost per trainee or per job placed
     

Applications will be evaluated based on the applicant’s ability to clearly demonstrate the following:

1. Asset Need: The qualified asset is necessary to deliver high-quality training
2. Job Placement and Wages: The training will lead to increased job placement in a qualified industry with living or industry-competitive wages.
3. Job Demands: A documented talent shortage exists in the qualified industry.
4. Regional Need: The project addresses a regional training or workforce gap not currently met by existing programs.
5. Regional Partnerships: Thoughtful partnerships are in place to maximize regional access and use of the qualified asset.
6. Training Quality and Value: The training programs are high quality, valuable, and support economic mobility.
7. Capacity Growth: The project is expected to result in a measurable increase in:
   1. Number of trainees served, and
   2. Training hours delivered once the asset is placed into service.

Eligibility Questions

• Who is eligible for the tax credit?
  • Please refer to the Eligibility Requirements section above for full details.
• Are non-profit organizations eligible to apply?
  • Yes, non-profit organizations may apply.
• Are K–12 schools or higher education institutions eligible to apply?
  • No. Educational institutions may not apply directly; however, they may partner with a business entity that applies for and receives the tax credit.
• I do not see a NAICS or SOC code linked to my industry. Does this mean my organization is ineligible?
  • No. You may still apply, as NAICS and SOC codes do not apply to all industries.

Applicant Guidance 

• How much can I apply for in tax credits?
  • You may request up to 50% of the estimated total investment.
• When can I apply for the tax credit?
  • The next application cycle begins June 1, 2026. The Reservation Application will run June 1st through July 20th. Notifications will go out in October 2026.
• What is the application process for the tax credit?
  • Please see the "Application Process” section above.
• How should I prepare for the reservation application?
  • Please see the “How To Prepare for the Application Process” section above.
• When do I need to submit my reservation application?
  • If your Pre-Qualification Application is approved, you will gain access to the Reservation Application on or after August 18th through September 18th.
• Is the application first-come, first-served?
  • No, there is a merit-based review by an evaluation committee made up of industry and training experts as well as OEDIT personnel.
• What does the merit review process entail?
  • Please see the “Selection Process” section above
• When will we be notified of our application status?
  • Applicants will be notified of their status in October 2026.
• If our reservation application is approved, are we guaranteed to receive the tax credit?
  • No. Please review the “Application Process” section above to see what happens after the Reservation Application.
• What are the expectations of those who have been granted a tax credit reservation but have not yet received their tax credit certificate?
  • Please review the “Application Process” section above to see what is expected after the Reservation Application.
• What if we over or underestimated the tax credit amount when applying?
  • The tax credit issued will not exceed the amount reserved. If the original estimate was higher than the amount that was actually earned, the tax credit will be equal to the amount earned. If the original estimate was lower than the actual credit earned, the amount reserved will be issued.
• Once I have my tax credit certificate, what do I do when filing my taxes?
  • Tax credits must be applied to the tax year that the asset was placed in service. There is a line for Colorado tax credits on the return. Enter the amount of the total tax credit on this line and include a printed copy of the tax credit certificate when filing your return. Non-profits will complete a Colorado form DR 0990 and include it with their return.

Opportunity Now Application Questions (Google Doc)

Qualified Assets and Training Use

• What is considered a potentially qualified asset?
  • Qualified assets include land, buildings, and equipment. Personal equipment does not qualify.
• Can the tax credit be claimed for facilities or equipment already used for training?
  • No. Assets must not already be in service. They must be newly acquired, constructed, reconstructed, or remodeled. Projects currently in progress are acceptable.
• Is there a minimum number of training hours required to qualify for the tax credit?
  • No. However, projects that maximize the use of facilities or equipment for training purposes will be prioritized.

Tax Credit Details

• What kind of tax credit is this?
  • This is a fully refundable, non-transferable tax credit.
• How long will this tax credit be available?
  • Applications will be accepted through December 31, 2029.
• How will funding be allocated through 2033?
  • Up to $15 million in tax credits per year will be available for reservation to approved projects, except in years where the General Assembly forecasts less than 4% growth, in which case $7.5 million will be available.
  • Only reserved funds will be issued, up to the amount earned and not to exceed the reservation amount.
• Can my organization claim other tax credits if approved for the Opportunity Now tax credit?
  • Yes, provided total tax credit coverage does not exceed 50% of the qualified asset investment.
• Can my organization apply if it has already received an Opportunity Now grant?
  • Yes, as long as total tax credit coverage does not exceed 50% of the qualified asset investment.