Colorado Job Growth Incentive Tax Credit (JGITC)
Colorado Office of Economic Development and International Trade (OEDIT)
% of FICA on new jobs, up to 8 yrs
Colorado's FICA-based jobs tax credit
Colorado's primary business retention and attraction incentive — a performance-based state income tax credit equal to a percentage of FICA taxes paid by the employer on net new full-time Colorado jobs for up to 8 years. The FICA-based structure means the credit scales directly with wage levels and is easy to calculate. Awarded by the Colorado Economic Development Commission; requires competitive application and Commission approval. Particularly active for technology, aerospace, bioscience, and financial services projects.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Annual credit equal to 50% to 100% of employer FICA taxes (Social Security and Medicare taxes — 7.65% of wages) paid on net new full-time Colorado employee wages, for a negotiated period of 1–8 years. A company adding 50 employees at $100,000 average wages generates approximately $382,500 in annual employer FICA. At a 50% credit rate for 5 years, total JGITC value is approximately $956,000. At 100% credit rate for 8 years, the same project could yield over $3M.
- Realistic amount
- A typical JGITC award for 50 net new Colorado jobs at $90K average wages, 50% credit rate for 5 years, yields approximat…
- Deadline
- Rolling — Colorado Economic Development Commission (EDC) meets approximately quarterly; applications accepted on a rolling basis.
- Status
- active
- States
- CO
- Payment model
- tax offset
Who qualifies
- Business must create a minimum of 20 net new full-time Colorado jobs (35+ hours/week) — projects in rural areas or Enterprise Zones may qualify with fewer jobs
- New jobs must pay at least 100% of the statewide average annual wage (approximately $70,000 as of 2024/2025) — higher-wage projects receive stronger credit terms
- Project must demonstrate the 'but for' test — without the JGITC credit, the project would not proceed in Colorado or would locate elsewhere
- Application must be submitted and conditionally approved before the company commits to Colorado
- Company must be in an eligible industry: technology, aerospace, advanced manufacturing, bioscience, financial services, clean technology, or similar tradeable-sector industries
- Company must be financially viable with the ability to fulfill multi-year performance commitments
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- JGITC is a FICA-based tax credit — offsets Colorado income tax with no restriction on underlying business expenses
- Net new full-time Colorado jobs (35+ hours/week) at or above 100% of statewide average annual wage
- Employer FICA taxes (Social Security 6.2% + Medicare 1.45% = 7.65%) paid on qualifying new employee wages serve as the credit base
Ineligible expenses
- Jobs transferred from existing Colorado locations do not count as net new
- Part-time and temporary positions do not qualify
- Jobs below the statewide average annual wage floor
- Federal taxes are unaffected
- Retail trade and locally-serving service businesses
- Credit is non-refundable — excess beyond Colorado income tax liability carries forward 7 years; no cash refund
How to apply
-
1
Engage OEDIT and discuss project details
Contact OEDIT's Business Finance team to discuss the project. Provide preliminary job count, wages, capital investment, and competing location information. OEDIT will advise on likely credit terms and process before formal application.
~4 hrs
-
2
Submit JGITC application
Complete the JGITC application with company profile, industry classification, detailed job-creation plan (titles, projected wages, hire timeline), 5-year financial projections, Colorado capital investment, 'but for' statement, and any competing incentive offers from other states.
~25 hrs
-
3
OEDIT review and credit term negotiation
OEDIT staff review the application and negotiate the credit percentage (50%–100% of FICA) and term (1–8 years). Staff prepare a recommendation for the Colorado Economic Development Commission.
~0 hrs
-
4
Colorado Economic Development Commission approval
OEDIT presents the project to the EDC (appointed Commission meeting approximately quarterly) for public approval. Commission votes on the recommended credit terms. Companies may be asked to present.
~3 hrs
-
5
Execute agreement, create jobs, and claim credits
Sign the JGITC credit agreement specifying annual milestones (job count, average wage thresholds). Each year, file JGITC annual report with OEDIT. OEDIT certifies credit; claim on Colorado income tax return. Credit is non-refundable with 7-year carryforward.
~5 hrs
The FICA-based calculation is intuitive and predictable — model your credit value precisely before applying by multiplying projected new wages × 7.65% × credit rate × years. Colorado is not flush with incentives compared to southeast or midwest states, so JGITC is the primary chip for site-selectors evaluating CO vs. TX, UT, or AZ. OEDIT is pragmatic and relationship-oriented — a preliminary call dramatically improves application quality and sets realistic expectations.
Deadline & timing
Companies should engage OEDIT early in site-selection — applications must be received and conditionally approved before the company makes a binding Colorado commitment. Process from initial inquiry to EDC approval typically takes 2–4 months. OEDIT staff recommend a preliminary conversation before submitting a full application.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.