Employer’s Credit for Approved Employee Retraining
On this page find information and instructions for claiming the retraining tax credit.
- Tax Credit Code: 102
Summary
The retraining tax credit allows employers to claim certain costs of retraining employees to use new technology. However, approved retraining shall not include any retraining on commercially, mass produced software packages for word processing, database management, presentations, spreadsheets, email, personal information management, or computer operating systems except a retraining tax credit shall be allowable for those providing support or training on such software. The credit is calculated at 50% of the direct costs of retraining full-time employees, up to $500 per employee per approved retraining program per year. There is a cap of $1,250 per year per full-time employee who has successfully completed more than one approved retraining program.
The credit may be utilized up to 50% of the taxpayer’s total state income tax liability for a tax year. The credit must be claimed within one year instead of the normal three-year statute of limitation period. Credits claimed but not used may be carried forward for 10 years. For taxable years beginning on or after January 1, 2025, any credits generated but not used may be carried forward for five years. For a copy of the Retraining Tax Credit Procedures Guide, contact the Technical College System of Georgia.
How to Claim this Credit
This credit should be claimed on Form IT-RC, with Program Completion forms signed by Technical College System of Georgia personnel attached.
Forms
Form IT-RC Retraining Tax Credit
Relevant Links
Technical College System of Georgia
Policy
Statement IT-2010-01-07 Georgia Retraining Tax Credit