If you are considering moving your company to Georgia, you are not alone — especially if you have employees that require training.
Retraining tax credits enable Georgia businesses to offset their investment in employees. Training employees can be one of the greatest hurdles and reasons why employers shy away from hiring. Whether retraining workers to use new equipment or new technology or upgrading the company’s competitiveness with ISO 9000 training, companies can afford more training, more often, thanks to Georgia’s tax credit program.
How the Program Works
Businesses can receive a tax credit of 50% of their direct training expenses, with up to $500 credit per full-time employee, per training program. The annual maximum of the credit amounts to $1,250 per employee.
Eligible Expenses Include:
- Costs of instructors and teaching materials
- Employee wages during retraining
- Reasonable travel expenses
Benefits of the Retraining Tax Credit
- Retraining tax credits can be used to offset up to 50% of a company’s Georgia corporate income tax liability.
- If the earned credit exceeds that limit, the unused credit can be carried forward for up to 10 years and applied to future years’ tax liability.
Eligibility Requirements
Any business that files a Georgia income tax return is eligible for the retraining tax credit. To qualify:
- Training programs must be designed to enhance quality and productivity or teach certain software technologies.
- Retraining expenses must be approved by the Technical College System of Georgia.
Georgia Retraining Tax Credits help businesses grow by making it more affordable to continually upskill their workforce.
Frequently Asked Questions
What is the Georgia Retraining Tax Credit?
The Georgia Retraining Tax Credit is a financial incentive program that helps businesses offset the cost of training their employees. It offers up to 50% reimbursement of direct training expenses, with a cap of $500 per full-time employee per training program and an annual maximum of $1,250 per employee.
Who is eligible to apply for the retraining tax credit?
Any business that files a Georgia income tax return can apply, provided the training programs enhance quality and productivity or involve approved software technologies. Additionally, retraining expenses must be approved by the Technical College System of Georgia.
What expenses qualify under the program?
Eligible expenses include the cost of instructors and training materials, employee wages during training, and reasonable travel costs associated with the retraining program.
How can businesses use the tax credit?
Businesses can use the credit to reduce up to 50% of their Georgia corporate income tax liability. If the credit exceeds that limit, the unused portion can be carried forward for up to 10 years to offset future liabilities.
Why should companies consider this tax credit?
The retraining tax credit makes it more financially feasible for businesses to invest in upskilling their workforce, especially when adapting to new technologies or operational standards, thereby increasing competitiveness and employee retention.