Colorado Updates Law Concerning Tax Incentives for Employee-Owned Businesses

The Colorado Governor Signed a law creating two income tax deductions, a new income tax credit, and modifying the current Employee Ownership Tax Credit. The law specifically: 1) provides an income tax deduction for business owners that establish a qualified employee-owned business; 2) allows worker-owned cooperatives to deduct from their Colorado taxable income an amount equal to their federal taxable income up to $1 million; 3) creates a refundable state income tax credit for nonprofit and for-profit entities that assist in converting a qualified business to an employee-owned business; 4) extends the current Employee Ownership Tax Credit through tax year ...