Georgia’s Retraining Tax Credit (RTC) provides businesses with a financial incentive to invest in their employees by subsidizing the cost of specified training expenses. The credit can provide tax savings of up to $1250 per year per employee for eligible businesses.
The RTC covers half the cost of retraining current employees, helping workers learn to use new systems, technology, and equipment when your company makes upgrades. This valuable economic development program helps Georgia-based companies boost their competitive edge by supporting workforce training and encouraging the adoption and use of cutting-edge technology and management approaches that maximize efficiency and business performance.
- ISO 9000
- Six Sigma, Lean
- Software and systems
- Tools and machinery
- Office equipment
- Production equipment
- New technologies
- Technical seminars
- Physical plants and facilities
If you are a Georgia employer, you may be eligible to claim RTC benefits. These credits can yield $100,000 or more in tax savings and are available to businesses in every industry, including manufacturers, distributors, retailers and dealers, healthcare providers, professional services, restaurants, wineries, construction contractors, transportation companies and many others.
Many Georgia businesses that qualify for the RTC don’t claim the tax savings they’ve earned, which means they’re leaving money on the table. It happens because they don’t know about the credit or don’t realize they qualify. In many cases, they do not know how to calculate, document and claim the tax incentives.
Claiming improper tax credits is a costly mistake that can expose your business to excessive risk; some choose not to claim credits to avoid potential fees and penalties in case of an audit.
The state and local tax professionals at Mauldin & Jenkins make it easy to claim your tax benefits by identifying events that may potentially trigger eligibility for retraining credits, such as:
- Purchasing new tools, equipment, systems or services
- Expanding your facility or moving operations to a different location
- Using a different provider for technology systems and services
- Implementing new systems or software
- Upgrading technology (including a switch from manual to digital processes or adding additional features, modules or components to existing software solutions)
- Overhauling operations and systems
Our M&J Credits & Incentives team then evaluates your eligibility for the RTC by reviewing your company’s expenditures on training programs and events, whether they’re in-house or delivered by external providers. Eligible expenses include wages during the training period, necessary travel, teaching materials, instructors, and other costs arising directly from retraining that are approved by the Technical College System of Georgia.
Based on this data we calculate the amount of your tax credit and construct detailed documentation that demonstrates your eligibility and can withstand the scrutiny of tax authorities in the event of an inquiry or full audit of your business tax return.
Contact your Mauldin & Jenkins tax advisor today and find out how much money your business can save with the Georgia Retraining Tax Credit.
