Retraining Tax Credit

Retraining tax credits enable Georgia businesses to offset their investment in employees. 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.

Businesses can receive a tax credit of 50 percent 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

Retraining tax credits can be used to offset up to 50 percent of a company's Georgia corporate income tax liability. If the earned credit exceeds that limit, then the unused credit can be carried forward for up to 10 years and applied to future years' tax liability. 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. To qualify for the credit, retraining expenses must be approved by the Technical College System of Georgia. Additional questions contact Brandy Wilkes, TCSG RTC Approver, via email or 1+229-560-3793.