The state of Georgia offers an excellent tax saving opportunity for businesses of all sizes and forms with the State’s retraining credit. If your business has invested in training your employees on newly installed equipment or technology or a newly implemented process, you will most likely qualify for the credit.
Below are examples of training costs that would qualify for the credit:
- instructor salaries;
- employee wages during the retraining;
- development of retraining program;
- materials and supplies, textbooks and manuals;
- instructional media, such as videotapes, presentations, etc.;
- equipment used for retraining only (not production);
- reasonable travel costs.
For each qualified training program, a company can claim a credit up to a maximum of $500 per full-time employee. The maximum annual credit per employee is capped at $1,250 per employee. For example, if an employee participates in 3 training programs in a calendar year, the total credit for that one particular employee would be $1,250 (i.e. $500 + $500 +$250). The potential credit available for a company with 20 employees would be $25,000 (20 x $1,250).
The retraining credit can be used to offset up to 50% of your tax liability. Any unused credit can be carried forward up 10 years.
If your business has invested in employee training in 2016 or 2017, please contact us to discuss your ability to take advantage on this great tax saving opportunity.