06.23.15 |
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Georgia Businesses: Do You Qualify for a Retraining Tax Credit?

Training is an essential part of a company’s development, growth and overall success.Georgia Peach

The effectiveness of training programs, whether it’s providing an orientation for new employees or ongoing training for incumbent employees, can have a significant impact on the company’s bottom line for years to come.

Expenses can add up fast depending on the industry and materials required for training. Fortunately, many states offer a variety of training incentives to help businesses offset these costs.

The Georgia Retraining Tax Credit[1] is an example of this type of incentive program. The main focus is to help businesses throughout the state maintain their competitive edge by providing up-to-date training for their employees on a more frequent basis.

How Much Can Your Business Receive?

The Georgia Retraining Tax Credit can cover up to 50 percent of a company’s training expenses.  Credits of up to $500 can be granted for each full-time employee per training program, with a maximum annual limit of $1,250 per employee[2].

Only full-time employees are eligible to count towards their company’s total credit tally, which cannot exceed more than $500 per approved training program, per year, for each full-time employee who has successfully completed an approved retraining program.[3]

Businesses in Georgia can use the credit to offset up to 50 percent of their liability in state corporate income tax, and any credit amount above the 50 percent maximum can be applied toward future liability for up to 10 years[4].


A business owner or CFO must file a current Georgia income tax return in order to be eligible to receive the Georgia Retraining Tax Credit. To qualify as an approved training program, the program “must be designed to enhance quality and productivity or teach certain software technologies.” [5]

The purpose of the Georgia Retraining Tax Credit is to help businesses within the state[6]:

  • Drive profitability and competitiveness by fostering workforce development
  • Build employees’ knowledge/skills on new technology, equipment or systems
  • Offset posts for retraining employees on new technology, equipment or systems

As you plan a new training regimen for your company, it’s wise to be aware of expenses that the Georgia Retraining Tax Credit may cover. Eligible training expenses[7] can cover instructor salaries, employee wages during the retraining process, the development of the retraining program and educational materials/supplies/equipment. On occasion, travel costs are covered as well.

Please note that the Technical College System of Georgia must approve all retraining expenses in order for them to be eligible for credit. 

How to Get Started

The first step is to look ahead and outline your company’s retraining plan for the year. Then make sure it meets eligibility requirements.  From there, ensure your training plan is approved for funding through the Technical College System of Georgia.

The approval process may be complex, depending on the size and scope of your proposed retraining program, so it’s best to plan ahead. To learn more about how ADP® can help businesses identify and capture tax credits for which they’re eligible, go to the ADP SmartCompliance® Tax Credits module.


Learn More About ADP SmartCompliance® Tax Credits



[1] http://www.georgia.org/competitive-advantages/tax-credits/retraining-tax-credit/

[2] http://www.georgia.org/competitive-advantages/tax-credits/retraining-tax-credit/

[3] http://www.georgiaquickstart.org/econdev/retrain.html

[4] http://www.pauldingdevelopment.org/incentives-and-business-costs/competitive-operating-costs-incentives/tax-credits

[5] http://www.georgia.org/competitive-advantages/tax-credits/retraining-tax-credit/

[6] http://www.georgiaquickstart.org/econdev/retrain.html

[7] http://www.georgiaquickstart.org/econdev/retrain.html




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