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What is the Georgia Retraining Tax Credit?

What is the Georgia Retraining Tax Credit?

The Georgia Retraining Tax Credit (RTC) was introduced as part of the Georgia Business Expansion Support Act of 1994. It is one of the most unique Tax Credits in the entire country because it applies to all businesses in the state of Georgia that have a corporate income tax liability. Section 48-7-40.5 grants tax credits to employers who provide or sponsor an approved Retraining Education Program

What is the Purpose of the Georgia Retraining Tax Credit?

The purpose of the Retraining Tax Credit is to:

What is the Benefit of the Georgia Retraining Tax Credit?

Eligible Georgia businesses can annually get up to $1,250 per qualified employee, which can be used to offset up to 50% of their state corporate income tax liability. Unused credits carry forward for five years. The credit amount per employee is equal to one-half of the direct costs of retraining, capped at $500 per state-approved retraining program. Another way to describe this is that if a company has $2,500 of qualified training costs for an employee, then that employee will reach the $1,250 maximum credit amount. 

Here is a simple equation to help identify your potential tax credit: 

Number of Qualified Employees Trained x $2,500 training costs x 50% = Maximum Potential Tax Credit


Example: 15 Qualified Employees x $2,500 Qualified Training Costs x 50% = $18,750 Maximum Potential Georgia Retraining Tax Credit 

Who is eligible for the Georgia Retraining Tax Credit?

Like all employee-based tax credits, there are many requirements that employees must meet to be claimed for the tax credit.    

What is Eligible for the Georgia Retraining Tax Credit?

Not eligible: Commercially available software (e.g., word processing, databases, spreadsheets, email, operating systems) and routine technology upgrades, except for retraining related to software support or training. Marketing materials, soft skills or personal development training, mandated safety training, certification testing, continuing education, and cross-training on existing technology are also excluded.


Training Programs:

What Retraining Costs are eligible for the Georgia Retraining Tax Credit?

Costs that are not eligible include sales taxes, training space, and employee-paid training. An employer may not receive a credit if the employer requires that the employee reimburse or pay the employer for the cost of retraining, either directly or indirectly, or through the use of forfeiture of leave time, vacation time, or other compensable time. 

What Happens Next

The approval of the retraining by the Technical College System of Georgia (TCSG) is the next step in the process.  If you opt to complete the Retraining Tax Credit yourself, you must follow this process, which can take a month or longer based on the complexity of your training and how well-documented your training is. For more information on the specifics of the documentation requirements, see the links at the end of this article.

1. Contact the TCSG designated approver for information regarding the Retraining Tax Credit. 

2. Register via the Retraining Tax Credit portal.

3. The TCSG Designated Approver contacts you to coordinate the submission of the application.

4. You submit the Georgia Retraining Tax Credit Program Approval Form to the TCSG-designated approver.

5. The TCSG designated approver reviews the application package for eligibility, adequacy, and completeness.

6. The retraining program is approved/denied, and the company is notified.  

7. Your company implements the retraining if the program is approved.

8. You submit a Georgia Retraining Tax Credit Program Completion Form and detailed supporting documentation to the TCSG-designated approver. The TCSG designated approver signs and returns the form to the company within 30 days.

What It Looks Like To Partner With Us 

McMillian & Associates identifies eligible training, documents it, and maximizes the Georgia Retraining Tax Credit for our clients. Partnering with us to manage all aspects of this tax credit’s substantial requirements for your company mitigates your risk, and the potential for a “less than maximum credit amount” is reduced. It also minimizes the workload for your employees who need to provide the required information.

Here is our process:   

1.  A Kick-Off meeting with McMillian and your main training contact to review equipment and technology changes that resulted in training activities that are eligible for the tax credit.

2.  You gather the list of equipment and technology changes, training invoices, training activities, and payroll for the tax year.

3.  McMillian & Associates calculates the credit, prepares the required documentation,and submits the Application Package to the TCSG on behalf of your company. 

4. The TCSG reviews the Application Package for eligibility, adequacy, and completeness. Upon approval, the Approval Form is signed by TCGS and returned to McMillian & Associates.  We notify you that your retraining has been approved.

How To Claim The Georgia Retraining Tax Credit

Employers may claim the Georgia Retraining Tax Credit if their Application Package is approved by the TCSG.  The credit is claimed on Georgia Form IT-RC.  This form must be accompanied by the signed Completion Form (signed by the TCSG approver).  We send these forms to you and your CPA to claim the tax credit.

We maintain records for at least three years from the date the credit is claimed on your tax return. These records include:


Our Top 10 Industries for the Georgia Retraining Tax Credit

The Georgia Retraining Tax Credit provides substantial opportunities for employers across a wide range of industries to strengthen workforce skills, adapt to evolving technologies, and offset training costs. While virtually any Georgia business can qualify, certain sectors consistently realize the greatest value due to high levels of innovation, equipment changes, and employee development needs. The following represent our Top 10 industries that have most effectively leveraged the credit to enhance the performance of their workforce.

Leveraging the Georgia Retraining Tax Credit for Growth

These client success stories showcase how Georgia employers across industries are strategically using the Georgia Retraining Tax Credit to strengthen workforce capability, drive innovation, and achieve measurable business outcomes.

McMillian & Associates offers a Free Tax Credit Analysis. Contact us if you’ve never claimed the tax credit or if you want to make sure you’re getting the greatest tax credit possible based on your eligible retraining. Click here to schedule your Free Tax Credit Analysis.

Resources For The Georgia Retraining Tax Credit

https://georgia.org/retraining-tax-credit

https://dor.georgia.gov/tax-credit-summaries https://www.tcsg.edu/about-tcsg/econdev/tax-credit/

https://www.tcsg.edu/wp-content/uploads/2019/09/Georgia-Retraining-Tax-Credit-Guide.pdf

The Crucial Role of Workforce Development Programs in Fostering Economic Growth – ResearchFDI