Training & Hiring

Tax Credits

Speaker: Peter Green

Training and Hiring Tax Credits

Why States do this?

• Attract Business

• Encourage Business Behavior

• Increase Skill Sets of the Workforce

• Political Pressure – Targeted Industries

• Competing with other States to keep

business

Differences State to State

• Tax Credits or Cash Grants

• Funding May be Limited

• Targeted Industries

• Capital Investment

• Your Value to the State

• Amount of tax credits nationwide: 2,500

Federal Hire Act

OVERVIEW

• Payroll Tax Exemption for employees hired between Feb 3, 2010 and Jan 1, 2011.

• 2011 Tax Credit of up to $1,000 per worker if employed 52 weeks.

• Maximum tax savings from exemption is $6,621.

QUALIFICATIONS

• Employee was unemployed for 60 days prior to starting work, or worked <40 hours during the 60 day period.

• There is no requirement for a net increase in the total number of employees – can be qualified replacements.

Georgia Tax Credits

• Job Tax Credit

• Quality Job Tax Credit

• Retraining Tax Credit

• Investment Tax Credit

• Film Production Tax Credit

JTC Tier Map

Georgia Job Tax Credit

QUALIFIED INDUSTRIES INCLUDE

• Manufacturing, Processing, Research & Development, Warehousing &, Distribution, Tourism, Telecommunications and Broadcasting

Note: In the lower 40 counties all industries can qualify.

VALUE TO YOU

• From $750 - $5750 per new job created each year up to five years

• 50% - 100% of Georgia income tax liability by county

• Tier 1 counties can take the Jobs Tax Credit against Withholding

Georgia Job Tax Credit

Note:

• Retroactive for all open tax years. (3yrs pre 2009 1yr

post 2009)

• Credits may be allocated to affiliated corporations

• May be used along with the Retraining Tax Credit

• Can be used instead of, but not with, the Investment tax

credit

• Unused credit can be carried forward for up to 10 years

Georgia Quality Job Tax Credit

• 50 + new jobs created

• Average Salary > 100% of County Average

• Greater Tier benefit for each job.

• Credits can be taken against withholding

Census Tracts and Opportunity Zones

www.factfinder.census.gov

Georgia Retraining Tax Credit

To foster the profitability and competitiveness

of Georgia’s existing businesses by

encouraging workforce development.

To help companies offset the costs of

retraining employees

To enhance the skills of Georgia employees

Qualified Training Includes

• New Technology

• New Equipment

• New Software and Software Upgrades

• Total Quality Management Programs – Lean

Manufacturing, Six Sigma etc.

• ISO Standards

• Self-directed work teams

Value to You

• Up to a maximum of 50% of your total Georgia

income tax liability

• Up to 50% of direct training costs

• Up to $1,250 per employee per year, at $500 per

person per program

Some Tax Specifics

• Retroactive for all open tax years – (3yr look

back pre 2009. 1yr look back post 2009)

• Unused credit can be carried forward for up to

10 years

• May be allocated to affiliated corporations

• Can be used in conjunction with other tax credits

GRTC Allowable Training Costs

• Instructor salaries

• Employee wages during the retraining

• Development of retraining program

• Materials and supplies, textbooks and manuals

• Instructional media, videotapes, presentations, etc.

• Equipment used for retraining only (not production)

• Reasonable travel costs.

Eligible Employees

• Employed by the company claiming the credit

• Georgia residents

• First-line employees or immediate supervisor

• Continuously employed with the company for a

minimum of 16 weeks full-time employees

(employed for a minimum of 25 hours per week.)

Eligible Training Resources

• Company trainers

• Training vendors

• Technical colleges

• Universities

• E Learning

Administration

• Technical School System of Georgia

• The Department of Revenue

How to Maximize

Analyze all training for all Georgia

employees to see what might qualify

Look at all training costs, not just what

appears in the training budget

New Legislation

HB 439 - 2009

• $1,250 – per person per year maximum

• 1 year look back - 2009

• M.S. Office – no longer qualifies

For More Information

• http://www.georgiaquickstart.org/econd

ev/retrain.html

• www.wraywallace.com

Next Steps…

• Visit our table and pick up a flyer on each

credit

• Have a conversation with your Tax

Department

Thank You!

Peter Green

President

WALLACE – The Training Tax Credit

Company

770-772-0252 ext 302

pgreen@wraywallace.com

www.wraywallaxe.com