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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. If your business has purchased or upgraded software, equipment or any technology, you may already qualify for a retraining tax credit that immediately reduces or eliminates your state income tax burden.
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.
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
Based on approved Retraining Tax Credits this year, over 90% were awarded to companies related to upgraded software or new software, including to help them manage:
- Customer conversations (e.g., CRM)
- Business processes (e.g., ERP)
- Patient health information (e.g., EHR or EMR)
- Marketing activities
- Inventory, documents or storage
- Project details and workflows
- Billing or payments
As always, we are here to help. If you think your business may qualify or would like to discuss this opportunity further, please contact your CPA.