Retraining Tax Credit

Summary

Georgia offers income tax credits to offset the costs of retraining employees who are affected by the implementation of new equipment or new technology.

i.      Conditions of Eligibility

All businesses that file a Georgia income tax return are eligible.

ii.     Type of Training

 Credits are available if the company is retraining current employees on newly installed equipment or on newly implemented technology, such as computer platforms, software implementation and upgrades, Total Quality Management (TQM), ISO 9000 and self-directed work teams. 

iii.     Employees

Eligible employees must be: 

  • Georgia residents;

  • first-line employees or immediate supervisors;

  • continuously employed with the company for a minimum of 16 weeks;

  • full-time employees (minimum of 25 hours per week).

 iv.           Value

The credit is equal to one half of the direct cost of retraining, up to $500 per program per year for each full-time employee. The program must be approved and certified by the Technical College System of Georgia. The credit shall not exceed $1,250 per full-time employee per year. Retraining costs include:

  • instructor salaries;

  • employee wages during retraining;

  • development of retraining program;

  • materials and supplies, textbooks and manuals;

  • instructional media, such as videotapes, presentations, etc.;

  • equipment used for retraining only;

  • reasonable travel costs.

v.           Administration

The program is administered by the Technical College System of Georgia and the Georgia Department of Revenue. Credit may be applied against 50 percent of state corporate income tax liability.

v.     Duration

Any unused credit may be carried forward for 10 years.

vi.     Application Process

A company desiring credit under the Retraining Tax Credit program must apply through the Office of Economic Development at the local technical college. Once training is complete, the company supplies a Completion Form and Form IT-RC to the Georgia Department of Revenue. These forms should accompany the company’s corporate income tax filing.

vii.    Coordination with other Credits

May be taken with other credits.

Governing Georgia Code and Rules: Georgia Code Sections 48-7-40.5.