- The tax credit is for up to $1,250 per qualified employee. For example, $62,500 tax credit for 50 qualified employees trained on a new business wide ERP software ($1,250 X 50 = $62,500 tax credit)
- 3 years of potential – last year, this year and plans for next year.
- $$ benefits go to any company or pass-through equity owners that pays Georgia income taxes.
- Administered by The Technical College System of Georgia (TCSG), and must be approved by the local technical college Vice President of Economic Development (Program details click here).
Here are some ideas that may help:
- Potential training in 2014 (initial training):
- Overview & introduction to all employees, with coffee & donuts
- Major business processes affected by the new system(s) – customer records, project management, financial control
- Departmental platforms/changes
- Potential training in 2015 (more specific to your client’s business processes):
- For employee’s job or task areas, such as accounting, order entry, and customer service
- Job-specific training; for example, accounts receivable, accounts payable, and journal entry.
- Software add-ons and specialized modules affecting individual teams.
Your client and their software vendor may be planning the implementation right now, so your input sooner rather than later will go a long way towards helping them double their benefits from tax credits. Instead of getting $1,250 per employee, why not have better-trained employees and get $2,500 per employee in tax credits??
So get out there and identify those client activities that happened in 2013 or planned for 2014 that qualify for tax credits. Your clients will appreciate your proactive followup!
We recently visited with Pam Griffin, Director of Organizational Development at Georgia Quick Start (click here). She leads the Retraining Tax Credit program for the entire State of Georgia, working with the Vice Presidents of Economic Development (VP ED) at each technical college.
Pam told us that there are no Retraining Tax Credit program changes planned for 2013. However, the technical colleges are continuing to consolidate, with new VP EDs at some locations. Also, there is a big drive by the technical colleges to reach out to businesses and provide more training services, focused on local needs.
Best kept secret – the colleges can provide in-house and customized training for your clients. Examples: OSHA training, LEAN Manufacturing, Welding, and Certified Customer Service Specialist program. Many of these training programs also qualify for the Retraining Tax Credits.
We are hearing about many companies moving their business systems to the cloud. But this change may be more than just moving from a server located at their company to a server “in the cloud.”
Even though your client may be staying with the same software vendor, they may be required to upgrade to a newer version of software. This upgrade may require employee training, which may qualify for Retraining Tax Credits.
During your reviews with existing clients and visits with prospective clients, ask about their IT plans — you may just find that behind your client’s cloud, there may be a tax credit! (sorry but I had to say it).
As the economy improves (hopefully!) and your clients start adding new jobs, they may want to utilize some beneficial “no-cost” offerings from the State of Georgia:
Work Ready. We met with Ann Sechrist, Director of Economic Development at Gwinnett Technical College. She described a no-cost service provided by the Technical College System of Georgia called Work Ready. Companies can utilize this service to help find higher quality employees as well as get assistance with EEOC compliance. Job applicants with Work Ready certificates are pre-tested for math, reading and other core skills that companies require. Several other related services might also help your clients get Work Ready employees (click here).
Georgia Works. The Georgia Department of Labor has a program that provides companies with prospective employees at no cost for up to 6 weeks. The company and the prospective employee are be able to evaluate the best fit during this time period. For additional information about this and other related services, click here.
$1,250 Cap. There still is a $500 per program per employee per year restriction, but starting in 2009 the most that can be claimed for one employee is $1,250 per year.
Approved Retraining. Narrows the definition of approved retraining to exclude any retraining on commercially, mass produced software packages for word processing, data base management, presentations, spreadsheets, e-mail, personal information management, or computer operating systems, unless it is completed by those providing support or training on such software.
One-Year Look-Back. Requires that the credit be claimed within 1 year, starting with the 2009 tax year, instead of the previous 3-year look-back period.
Technical colleges re-organized. Many of the technical colleges have been consolidated as part of the state’s cost cutting program, and many of the folks who approve the Retraining Credits have or will be changed. The final changes will be made in July 2010. We’ll keep you posted.