RD54 - Report on the Status and Implementation of the Worker Retraining Tax Credit Covering Tax Years 2000-2015
The Virginia Worker Retraining Tax Credit was established by § 58.1-439.6 of the Code of Virginia to allow an employer to claim a tax credit for the costs of providing eligible worker retraining to qualified employees for taxable years beginning on or after January 1, 1999. The language establishing the credit requires that a report be submitted to the House Finance and Senate Finance Committees.
Benefits and Eligibility
The tax credit benefits participating employers by providing a credit of 30% of all training costs when the training is provided through a community college, or up to $100 per qualified employee for courses conducted at a private school. The total amount granted to employers for this tax credit each fiscal year may not exceed $2.5 million.
Eligible courses include:
• Non-credit courses at any Virginia community college or private school certified as eligible worker retraining by the Virginia Department of Business Assistance, which 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 or quality training;
* Management and supervisory training; and,
* Safety and environmental training programs.
• Credit or non-credit worker retraining courses undertaken through an apprenticeship agreement approved by the Virginia Apprenticeship Council.
A “qualified” employee is one employed in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the employer’s operations if standard fringe benefits are paid by the employer for the employee. Ineligible employees include those in seasonal or temporary positions, relatives of the employer, and those directly or indirectly owning more than five percent in value of the outstanding stock of a corporation claiming the credit.