Georgia Retraining Tax Credit
In order to incentivize Georgia businesses to invest in their employees and encourage workforce development, any business that files a Georgia income tax return may be eligible for the retraining tax credit. Training must be designed to enhance quality and production or teach software technologies, which in turn enhances the skills of Georgia employees enabling them to successfully use new equipment, technology or operating systems.
- Businesses must file a Georgia income tax return.
- Training programs must be related to new equipment, newly implemented technology (such as computer platforms, software implementation and upgrades), Total Quality Management, ISO 9000 or self-directed work teams.
- Training programs must be approved by the Technical College System of Georgia prior to claiming credits on the Georgia income tax return.
- Training must be provided at no cost to the employee.
Employees must be:
- Georgia residents;
- Full-time (employed for a minimum of 25 hours per week);
- Continuously employed with the company for a minimum of 16 weeks prior to receiving training;
- First-line employees or immediate supervisor (any positions above first line supervisors such as executives, management, partners, directors do not qualify).
Eligible retraining costs include:
- Instructor salaries;
- Employee wages during the retraining;
- Development costs/time of retraining program;
- Materials and supplies (e.g. textbooks, manuals, etc.);
- Cost of third-party training
- Travel costs
- Eligible businesses can receive a tax credit of 50 percent of the direct training expenses, with up to a $500 credit per full-time employee, per training program.
- The maximum credit per employee is $1,250.
- Retraining tax credits can be used to offset up to 50 percent of a company’s Georgia corporate income tax liability.
- Excess credits can be carried forward for up to 10 years.
Documentation required for approval of the retraining program:
Description of the equipment, technology or operating system change requiring employee retraining;
Description of the purpose and objectives of the retraining program;
Contact information and qualifications of training provider;
Criteria for employee performance evaluation;
Estimated total hours of instruction;
Roster of all employees receiving retraining (including employee name, hire date, program title, training date(s), total training hours, hourly wage, total program costs)
Worksheet detailing itemized and total cost of retraining