Georgia Retraining Tax Credit

By : Ben Baggett

Did you know employers can claim a retraining tax credit worth 50% of the direct costs of retraining full-time employees?

It’s true, Georgia’s retraining tax credit allows employers to claim certain costs of retraining employees to use newly installed equipment and newly implemented technology, such as computer platforms, software implementation and upgrades.

Eligible retraining costs include instructor salaries, employee wages during retraining, development of the program, materials and supplies, instructional media, equipment used for retraining only, and reasonable travel costs.

Eligible employees include Georgia residents who are first-line employees or their immediate supervisors. Management positions not eligible, In addition, the employee must work a minimum of 25 hours per week and must be continuously employed for a minimum of 16 weeks prior to the commencement of the retraining program.

Procedures for approval of retraining programs and claiming credit are as follows:

• Company contacts the Vice President of Economic Development Programs at the local Technical College or the state office of Economic Development Programs for an application package.
• Company completes and submits proper forms and documentation to the VP of Economic Development Programs at local Technical College
• The retraining program is approved and the company is notified.
• Company implements program and submit a Georgia Retraining Program Completion Form to the Vice President of Economic Development Programs at the local Technical College. VP signs and returns.
• Company attaches form to Georgia income tax return to claim credit.
  

Contact Nichols, Cauley & Associates by Email, phone, or online form with your questions.

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