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Worker Retraining Tax Credit Virginia Department of Business Assistance For more information: wfs@dba.state.va.us The Worker Retraining Tax Credit may be claimed by employers who provide qualifying retraining for their employees through noncredit classes approved by the Virginia Department of Business Assistance (VBDA) or through an apprenticeship agreement approved by the Virginia Apprenticeship Council. For qualified employees who attend Virginia community colleges the employer can claim 30% of all training costs. For those employees who attend private schools, the employer may claim the actual costs up to $100 per qualified employee. Qualifying apprenticeship programs may include credit and noncredit classes. The total retraining credits granted to all employers is limited to $2,500,000 for each year. If the total qualifying credits exceeds this amount, the credit will be prorated. Employers must apply for their share of the available credit by filing Form WRC with the VDBA or Department of Taxation, as applicable, to determine their proportionate share of the credit. Notification of the authorized credit amount must be received before the credit may be claimed on the tax return. The credit is allowable against individual income tax, estate and trust tax, corporation income tax, bank franchise tax and taxes imposed upon insurance companies and utility companies (under Sections 58.1-2500 et. seq. and Section 58.1-2620 et seq., Code of Virginia). This credit is nonrefundable, but excess credit may be carried forward for the next three taxable years. No credit can be carried back to a preceding taxable year. Complete instructions for completing Form WRC with Instructions (1901042 Rev 10/03) can be found on-line. All questions should be directed to the Department of Business Assistance wfs@dba.state.va.us or by calling 804-371-8120 DEFINITIONS “ Noncredit Courses” include, but are not limited to: • specific job-related skills/studies; • computer training due to process or equipment change of entry-level computer skills (ongoing computer software upgrades are not included); • continuous improvements such as team building and quality training; • management and supervisory training; • safety and environmental training programs; and • credit or noncredit approved apprenticeship courses. “ Qualified Employee” means an employee who works in a full-time position requiring a minimum of 1,680 hours in the normal year of the employerís operation and standard fringe benefits are offered to the employee. Employees eligible to take credit or noncredit courses undertaken through a registered apprenticeship agreement must be employed in a full time position requiring a minimum of 1,924 hours in the normal year of the employerís operation unless otherwise approved by the Virginia Apprenticeship Council. A Qualified Employee shall not be a spouse; child; grandchild; parent or sibling of an employer; or in the case of a corporation, an individual that owns, directly or indirectly, five percent or more of the corporationís stock. Employees in seasonal or temporary positions are not qualified for this program. “Retraining” means an upgrade in training for existing employees, which is identified as essential to the production or distribution of a product, rendering services or retraining provided through an apprenticeship agreement approved by the Virginia Apprenticeship Council. “Standard Fringe Benefits” means the benefits that a particular employer offers to its full-time employees. “ Training Costs” means instruction, instructional materials, facilities fees, and other costs determined to be necessary to the delivery of the training. Trainee wages and curriculum development costs are not covered. Remember! This credit must be approved before being claimed on your return. Form
WRC with Instructions (1901042 Rev 10/03) is on-line. All
questions should be directed to the Department of Business
Assistance wfs@dba.state.va.us or |
Employers | Students | Staff
